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Microlesson · 5-min read

Difference between AOP and BOI

# AOP vs BOI

Both are categories of 'person' under Section 2(31), but they differ in who can be a member and why they are formed.

## Association of Persons (AOP)

  • A group formed for a shared goal or business — individuals working together for joint income.
  • Formed voluntarily with a common purpose.

## Body of Individuals (BOI)

  • Individuals (e.g. trustees, executors) who receive income jointly for a common benefit.
  • Generally lacks the voluntary association that characterises an AOP.

## Comparison

CriteriaAOPBOI
MembershipCan include individuals AND entities (companies, firms, etc.)Only individuals can be members
Formation purposeFormed voluntarily with a common purpose/goalNo requirement of a shared purpose or intention

> Memory hook: BOI = Bodies of individuals only; AOP can mix individuals and other persons.

Worked example

### Example 1

Three companies and two individuals join to bid jointly for a contract and share profits — this is an AOP (entities can be members; formed voluntarily for a common purpose). Five individuals who inherit property jointly and receive rent without any common business intention form a BOI.

⚠️ Common exam mistakes

  • Allowing a company or firm to be a member of a BOI — only individuals can be members of a BOI; entities can only be in an AOP.
  • Requiring a 'common purpose' for a BOI — a common purpose is essential for an AOP, not a BOI.
Reference: Section 2(31)
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