26 March 2015
SEC 8: Formation of Companies with Charitable objects 1) Scope of the companies that may be formed with charitable objects (section 25 of the companies Act 1956) --- increased to sports , education , social welfare, research, protection of the environment, in addition to promotion of science, commerce , art, religion and charity 2) Sec 8 companies can be merged with Sec 8 companies only 3) The central government by licence issue in such manner , that the association of person without the word "ltd" or Pvt Ltd" register such association 4) The company registered under sec 8 enjoys all the privileges subject to limited companies 5) A company registered under this act shall not alter its MOA, AOA without the permission of Central Government. A company registered under this act can convert itself of any kind after fulfilling the prescribed conditions. 6) Where the central government is satisfied that the objects of the company fall with the objects of sec 8 it can by licence allow the company to be registered under Sec 8 7) Where the Central Government is satisfied that the company has contravened any of the regulations , the Central Government will cancel the licence and ask the company to affix the words "ltd" or " Pvt Ltd" 8) Where the licence is revoked the central government may permit the company to be amalgamated. However only Sec 8 company can be amalgamated with Sec 8 company 9) If the company defaults in complying with the requirement a. the company shall be punishable with a fine of Rupees ten lakhs to one crore b. the directors shall be punishable with imprisonment of about 3 years or fine of Rs 25000 to Rs 25 lakhs (maximum) Or both
26 March 2015
SEC 8: Formation of Companies with Charitable objects 1) Scope of the companies that may be formed with charitable objects (section 25 of the companies Act 1956) --- increased to sports , education , social welfare, research, protection of the environment, in addition to promotion of science, commerce , art, religion and charity 2) Sec 8 companies can be merged with Sec 8 companies only 3) The central government by licence issue in such manner , that the association of person without the word "ltd" or Pvt Ltd" register such association 4) The company registered under sec 8 enjoys all the privileges subject to limited companies 5) A company registered under this act shall not alter its MOA, AOA without the permission of Central Government. A company registered under this act can convert itself of any kind after fulfilling the prescribed conditions. 6) Where the central government is satisfied that the objects of the company fall with the objects of sec 8 it can by licence allow the company to be registered under Sec 8 7) Where the Central Government is satisfied that the company has contravened any of the regulations , the Central Government will cancel the licence and ask the company to affix the words "ltd" or " Pvt Ltd" 8) Where the licence is revoked the central government may permit the company to be amalgamated. However only Sec 8 company can be amalgamated with Sec 8 company 9) If the company defaults in complying with the requirement a. the company shall be punishable with a fine of Rupees ten lakhs to one crore b. the directors shall be punishable with imprisonment of about 3 years or fine of Rs 25000 to Rs 25 lakhs (maximum) Or both
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