Can a charitable/ religious trust be a company?
This query is : Open
03 July 2012
Can a Charitable/ religious Trust be a company?
also tell relevant section /provision for the same.
also tell relevant section /provision for the same.
03 July 2012
Hi
Society/Trust as a member
Department Clarification- A society registered under the Society Registration Act, 1860 should not be deemed to be a ‘body corporate’ within the meaning of the section 2(7) of the Companies Act, although such a society can be treated as a ‘person’ having separate legal entity apart from the members constituting it and thereby capable of being a member of a company under section 41(2) of the Companies Act, 1956. [Circular Letter, dated-24-11-1962]
Shares belonging to society held in the name of trustee simpliciter
Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)
So, Trust will not be treated as company.
Regards
CS Ajay Mishra
Society/Trust as a member
Department Clarification- A society registered under the Society Registration Act, 1860 should not be deemed to be a ‘body corporate’ within the meaning of the section 2(7) of the Companies Act, although such a society can be treated as a ‘person’ having separate legal entity apart from the members constituting it and thereby capable of being a member of a company under section 41(2) of the Companies Act, 1956. [Circular Letter, dated-24-11-1962]
Shares belonging to society held in the name of trustee simpliciter
Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)
So, Trust will not be treated as company.
Regards
CS Ajay Mishra
04 July 2012
Dear Ajay ,
if the trust is registered under the trust act and not under the society act 1860 , then can it form a company since the trust is not specifically excluded from the definition of section 2(7) of companies act 1956.
if the trust is registered under the trust act and not under the society act 1860 , then can it form a company since the trust is not specifically excluded from the definition of section 2(7) of companies act 1956.
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