Characteristics of unincorporated associations, Business Law and Ethics

Characteristics of Unincorporated Associations

However these are associations of persons that who associate to promote a common and lawful purpose.  Thus now they have no legal existence of their own and property whether any is jointly held or is held through trustees for the benefit of all members.  Further the rights of the members are enshrined in constitution of the association.  Because Members are liable to debts and in the event of dissolution and other obligations of the associations hence members are entitled to share in suchlike remains.  Although a general rule there can only be sued or sue with its principal officers.  But the law governing these associations is the law that regulates the activities they engage in.

However in the FORT-HALL BAKERY SUPPLY CO. v WANGOE as unreported High Court case there a group of forty-five people had carried at a bakery business below the name of 'Fort-Hall Bakery Supply Co'.  Whatever the assumed business employed Wangoe as its manager although later on dismissed him.  Therefore proceedings brought in High Court to recover a certain amount of money alleged to be owed through him to the business the court terminated the proceedings immediately as its attention was drawn to the fact such the association had not been registered below the Companies Act and had not been formed under any Act of Parliament.  Conversely the court held that the association must be treated as non-existent from a legal point of view and could not thus be allowed to sue.

Posted Date: 1/22/2013 12:42:39 AM | Location : United States







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