(1)
No association, or partnership consisting of more than 20 persons shall be formed for the purpose of carrying on any business for profit or gain by the 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 enactments in force in Nigeria.
(2)
Nothing in this section shall apply to—
(a)
any co-operative society registered under the provisions of any enactment in force in Nigeria ; or
(b)
any partnership for the purpose of carrying on practice—
(i)
as legal practitioners, by persons each of whom is a legal practitioner, or
(ii)
as accountants by persons each of whom is entitled by law to practise as an accountant.
(3)
If at any time the number of members of an association or partnership exceeds 20 in contravention of this section and it carries on business for more than 14 days while the contravention continues, each person who is a member of the company, association or partnership during the time it so carries on business is liable to a fine as prescribed by the Commission for every day during which the default continues.