what is illegal association ?

An illegal association is an association of more than 20 persons (run 3 in case of banking business) which carries a business without being registered under any law.

Under the Companies Act, , not more than 10 persons can come together for carrying on any banking business and not more than 20 persons can come together for carrying on any other of business, unless the association is registered under the Companies Act or any other Indian law. Any association which does not comply with the above norms is an illegal association. Therefore, a partnership of more 10 or 20 members, as the case may be, is an illegal association unless the registered under the Companies Act or any other Indian law.

Under the Companies Act, , not more than 10 persons can come together for carrying on any banking business and not more than 20 persons can come together for carrying on any other of business, unless the association is registered under the Companies Act or any other Indian law. Any association which does not comply with the above norms is an illegal association. Therefore, a partnership of more 10 or 20 members, as the case may be, is an illegal association unless the registered under the Companies Act or any other Indian law. However, this provision does not apply in the following cases :- A Joint Hindu Family business comprising of family members only. But where two or more Joint Hindu families come together for business through partnership, the total number of members cannot exceed 10 or 20 as the case may be, but in computing the number of persons, minor members of such family will be excluded. Any association of charitable, religious, scientific trust or organisation which is not formed with a profit motive Foreign companies. When the number of members exceed the prescribed maximum, members must register it under Companies Act or any other Indian law.

**ILLEGAL ASSOCIATION** Hi, Illegal association is when the company or partnership firm carrying on banking business with more than 10 members or any other business with more than 20 members and their object is acquisition of gain but they are not registered under the companies Act shall be considered an illegal association. So any firm with more than 10 members in case of banking business and 20 members in any other case is illegal association. Thanks

Hie Uma, **Illegal Association is :-** Illegal association - Section 11(2) of the companies act 1956 talks about illegal association which states No company, association or partnership consisting of more than twenty persons shall be formed for the purpose of carrying on any other business that has for its object the acquisition of gain by the company, association or partnership, or by the individual members thereof, unless it is registered as a company under this Act, or is formed in pursuance of some other Indian law. As important aim of companies act is to eliminate the evils caused by large number of partnerships trading In unincorporated form. A business association consisting of a large number of members, unless incorporated as a company, leads to inevitable confusion and uncertainty concerning the rights and liabilities of members inter se and their relations with others. Its therefore, necessary to provide that every business association having a certain number of members must be registered as a company failing which it shall be regarede as an u\illegal association.

Hai Under the Companies Act, , not more than 10 persons can come together for carrying on any banking business and not more than 20 persons can come together for carrying on any other of business, unless the association is registered under the Companies Act or any other Indian law. Any association which does not comply with the above norms is an illegal association. Therefore, a partnership of more 10 or 20 members, as the case may be, is an illegal association unless the registered under the Companies Act or any other Indian law. However, this provision does not apply in the following cases :- A Joint Hindu Family business comprising of family members only. But where two or more Joint Hindu families come together for business through partnership, the total number of members cannot exceed 10 or 20 as the case may be, but in computing the number of persons, minor members of such family will be excluded. Any association of charitable, religious, scientific trust or organisation which is not formed with a profit motive Foreign companies. When the number of members exceed the prescribed maximum, members must register it under Companies Act or any other Indian law.