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Association of persons- formation (urgent)

Querist : Anonymous (Querist) 12 August 2011 This query is : Resolved 
How to form a AOP. Is there any particular law which deals with AOP.And also assist me with AOP agreement and byelaws.AOP is required to be form for sale and purchase of tribal artisan's handicrafts.
ajay sethi (Expert) 12 August 2011
1) please find enclosed herewith format of association of persons agreement

AGREEMENT OF ASSOCIATION OF PERSONS This Agreement of Association of Persons executed on this _____th day of August 2011 by and between. 1. Mr. 2. Mr. 3. Mr. WITNESSESS Whereas the above named parties have decided to form an ASSOCIATION OF PERSONS (AOP) w.e.f. 12th august 2011 for sale and purchase of tribal artisan hadncicrafts AND Whereas it is necessary to reduce into writing the terms and conditions for the above AOP known as ____________________________________AND ASSOCIATES; We the parties aforesaid do hereby of our freewill and consent agree to and conform as under: 1. That the above named Parties has decided to form an AOP known as ____________AND ASSOCIATES for carrying on the business of ___________________ (ex.sale and purchase of tribal artisan handicrafts) in the name of AOP with its Principal place of business at:___________________________________________________________________. 2. That the AOP shall run the business of sale & purchase of tribal artisan handciacrafts
in the name of AOP i.e. _____________ AND ASSOCIATES. The business activities may be extended to other transaction with the mutual consent of all the parties. 3. That the financial year of the firm shall be from 1st April to 31st March every year. 4. That the duration of the AOP shall be at will. 5. That a bank A/c shall be opened in any Scheduled or Co-operative Bank or Banks as the parties may decide in joint name of the parties and/or in the name of AOP and the same shall be operated jointly and/or severally by all the parties as decided among them. 6. That all the parties have a right to look after day-to-day work and activities of business. 7. That all of the parties have an authority to look after and manage the business of AOP fruitfully in the interest of AOP, borrow Money, take loans form Bank or parties, to sign document, to enter into any business contracts and so other activities which required for smooth running of the AOP with the greatest interest of the business activities carried over by the said AOP i.e. ______________________ AND ASSOCIATES. 8. That all or any one of the parties shall sign any agreement, document etc. as and when require on behalf of the AOP. 9. That at the end of the year the profit or loss of the A.O.P. shall be distributed among the members in the ratio of capital standing to the credit in the individual member's capital account of AOP as on the last day of the year. In witness whereof we the parties have signed this Agreement of Association of Person on this ____th day of January 2010 at ___________in the presence of the following witness. Witness: Members of AOP 1. 1. 2. 2. 3. 3.

DEFENSE ADVOCATE.-firmaction@g (Expert) 12 August 2011
Very good effort sir, new members doing hard work to add inputs instead of I agree and I also agree or well advised etc etc.,

Please just add one more paragraph in your draft agreement of AOP about a) bank accounts, its authority and b) remedy for disputes mostly arbitration.
Manish Singh (Expert) 18 August 2011
there is no law which regulates Association of persons. Also, there is no formal procedure to create any association of person.
AoA means an association where several persons come together to act for a specific purpose.

As per IT Act its a personbut for contract act, thisis not a legal entity
DEFENSE ADVOCATE.-firmaction@g (Expert) 18 August 2011
Yes but when some thing is in black and white that is written than it can regulate relations between them.
Manish Singh (Expert) 19 August 2011
then it would be an agreement between them. AoA when registered as per the Society's Registration act becomes a society. When drawn as per the Partnership Act, becomes a firm.
AoP definition has been laid down by the SC in many of its rulings..I don't remember them but Ill try to write down the same as soon as possible.

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