Companies Act 2014 section 1436

Prohibition of banking partnership with more than 10 members

Section 1436 prohibits the formation of any banking business with more than 10 members unless it is registered as a company under the Companies Act 2014 or formed under another statute.

• No company, association or partnership of more than 10 persons may be formed to carry on banking business.
• This prohibition is lifted if the entity is registered as a company under the Companies Act 2014.
• The prohibition also does not apply if the entity is formed under some other statute.
• The provision derives from section 372 of the Companies Act 1963 and carries forward a long-standing restriction on unregistered banking partnerships.