Forming a pvt co.with 50 members-any problem ?
This query is : Resolved
23 June 2012
Hello everyone,
one of our client want to form a private ltd company with 50 members.
capital of the company will be rs.100000.
after incorporation all these members will bring further money into the business and that will be shown as loan.
is their any problem in it. can ROC raise any objection since the number of members are large ?
one of our client want to form a private ltd company with 50 members.
capital of the company will be rs.100000.
after incorporation all these members will bring further money into the business and that will be shown as loan.
is their any problem in it. can ROC raise any objection since the number of members are large ?
24 June 2012
No problems. Please refer section 3(1)(iii) of the Companies Act, 1956.
Section 3 (1) (iii) defines a private company as one which—
has a minimum paid-up share capital of Rs.1 Lakh or such higher capital as may be prescribed; and by its Articles Association
1) restricts the right of transfer of its share;
2) limits the number of its members to 50 which will not include:
(i) members who are employees of the company; and
(ii) members who are ex-employees of the company and were members while in such employment and who have continued to be members after ceasing to be employees
3) prohibits any invitation to the public to subscribe for any shares or debentures of the company; and
4) Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
Section 3 (1) (iii) defines a private company as one which—
has a minimum paid-up share capital of Rs.1 Lakh or such higher capital as may be prescribed; and by its Articles Association
1) restricts the right of transfer of its share;
2) limits the number of its members to 50 which will not include:
(i) members who are employees of the company; and
(ii) members who are ex-employees of the company and were members while in such employment and who have continued to be members after ceasing to be employees
3) prohibits any invitation to the public to subscribe for any shares or debentures of the company; and
4) Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- 115-BAC-for AOP-private discretionary trust
- Cgst asmt - 10
- Insurance make against any item and later get insurance claim received
- IN PAGHDI SYSTERM . RENT RECPT CHANGE OF NAME AFTER FAMILY PARENTS TO SON
- CAN a GSTIN registered under rule 14A opt for composition scheme without withdrawal from rule 14A ??
- E-Invoice applicability related question
- PTEC-payment
- Rejection of the application for the registration of a society in Andhra Pradesh state
- Refund Claim in Next Year
- Reduce fine on my company
- Fy 22-23 --> tyed more in gst 3b vs 2b, any interest?
- INCOME TAX QUERY FY25-26()\
- Query regarding applicability of UDIN on MCA forms signed using DSC by a Chartered Accountant
- GST ON PERSONAL MOTORCAR SOLD
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
