Private Trust be shareholder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2010 Dear Sir;
Fact of the case
One of my client expired leaving behind will stating that all the shares in private limited company as well as public limited company own by him should be transferred to a private trust which is to be formed as per his will.

Query
1) Whether a private trust can be a shareholder in private limited company.

2) If so what procedure the pvt ltd company has to follow in regards to above.

Ajay Mishra

Ajay Mishra (Expert)
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14 October 2010 Dear Friend

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]

Regards
CS Ajay Mishra

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