Highlights
QUESTION 1
Shumba, Sanhewe, and Samaita are small-scale master farmers based at the Nyakomba Irrigation scheme in the Manicaland Province of Zimbabwe. They are involved in a partnership, which grows a variety of horticultural products for export. Recently Mr. and Mrs. Stevens (donors) held discussions with the three small-scale farmers concerning the expansion of their farming project, including the establishment of a small revolving fund to help them profitably and professionally market their produce. The two donors are, however, concerned about the absence of a corporate legal body through which the objectives of the farmers can be realized and have urged the farmers to consider forming an incorporated association.
Required:
In relation to company law, advise the three farmers on the type of incorporated association best suited to their needs, highlighting the advantages and disadvantages of incorporation as compared to a partnership.
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