- 10 Marks
BCL – Mar 2023 – L1 – Q4b – Alternative Forms and Constitutions of Business Organisations
Identify issues and requirements for establishing a partnership under the Incorporated Private Partnership Act, 1962 (Act 152).
Question
b) Jane, Ama, and twenty-two other individuals agreed to incorporate a private partnership, which they simply referred to as Partnership. The individuals neither stated any registered address of the partnership nor the nature of the firm’s business. The individuals, however, stated the names of the foundation partners. The amount and percentage of contribution of each partner to the capital of the firm was also not stated. Even though the individuals stated the periodic and monthly drawings of funds, they failed to indicate any profit-sharing arrangements.
Required:
i) Identify TWO (2) issues that may arise in the above scenario.
(4 marks)
ii) State SIX (6) requirements for partnerships to be established under the Incorporated Private Partnership Act, 1962 (Act 152).
(6 marks)
Find Related Questions by Tags, levels, etc.