Section 25 Company

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deepa

deepa (Querist)
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02 December 2010 A section 25 company wants to change its members. what is the procedure. please suggest.

Ajay Mishra

Ajay Mishra (Expert)
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04 December 2010 The procedure are same as applicable to public or private company.

• MEMBERSHIP IN SECTION 25
Though a partnership firm is not a legal person like a body corporate, section 25(4) of this section enable the firm to become member of any association registered under this section such as chamber of commerce or club or charitable institution and enjoy all such privileges as are enjoyed by bodies corporate which become members of such associations. Membership of such firm shall cease upon dissolution of the firm. However, the partners of the firm may continue to be the members of such company in their individual capacity.
It is advisable that the firm should obtain membership in the individual name of the partners as they may agree.
• SHARE CAPITAL
As per the provision of section 3 of the Companies Act, 1956, a private company is required to have a minimum paid-up capital of Rs. 1Lakh and Public Company is required to have minimum share capital of Rs. 5 Lakh. However section 25 companies have been exempted from this requirement regarding minimum share capital by virtu of sub-section (6) inserted by Companies Amendment Act of 2000. As such they can be registered even if they have share capital less than the statutory minimum.

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