Description

Commercial Transaction

1. Nyakora Enterprises is a thriving general retail business formed by three close friends and former school mates some eight years ago. The three, Nyamele, Kola and Rarinde have seen the business grow into a muti-million shilling organization in a short period. Nyambele and Kola reckon that they can now undertake, in addition to the current business, hardware and electronics business. Rarinde does not agree with them and is ready to withdraw from the business and leave his friends to continue.

All three partners have approached you to advise them on the best way forward legally. Advise on:

• The effect of Rarinde’s departure from Nyakora Enterprises.
• The most suitable business vehicle that the two remaining friends may form, having indicated that they no longer wish to use the partnership. Spell out the steps involved in forming the new association.

(15 marks)