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Solution Library
Group of People with Common Interest Forming a Limited Liability Company
Question
Carol is one of a group of people in a country town who have a common interest in knitting. They have been meeting informally, but regularly over the last year to share and exchange among themselves, patterns and wools they have spun. In the last few months the numbers have grown and about twenty people come to most meetings. At the invitation of the towns hospital auxiliary the group organized a stall selling knitwear at the hospital’s annual fete. All the profits went to the hospital but now several people have suggested that it would be a good idea to run a regular stall at the local Sunday Market. One of the members also makes gourmet picnic hampers and says such an item would no doubt sell very well at the Sunday Market.
a. Should they adopt a formal legal structure? If so, what structure would be most suitable?
b. Would it make any difference if instead of any profits made from running the stall being donated to local charities they are divided amongst members?
Summary
The question belongs to Law and it discusses about a group of people who share a common interest of knitting. The members want to formally legalize the structure and are looking for options.
Total Word Count 83
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