It may be noted that once an association becomes illegal, it remains illegal until it is registered under the Companies Act or conned under any other Indian law. The illegality of the association cannot be cured by any subsequent reduction in the number of its members.
Rules for Counting Number of Persons. In counting the number of persons, every person human, legal or otherwise who holds an independent position in law and is capable of entering into contract shall be regarded as one person. Accordingly, a joint stock company (legal entity), or a Hindu undivided family (separate entity in Hindu law) managed by a karta shall be counted as one person irrespective of varying number of individual members. But, where two or more joint families form a partnership, all their adult members shall be counted as partners of the firm (not the number offamilies). Two or more persons holding the shares jointly are treated as one person. A person holding shares both in his own and in the name of the minor shall be counted as one
person. Non-al)))licability of Provision of Sc. 11.
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