Transfer of business

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This query is : Resolved

Neha Singh (Querist)

03 September 2013 Dear all,

One of the businesses of a section 25 company's is to act as business correspondents for banks. Now it has formed a new company to carry out this business solely.

Please tell me the provisions and procedures related to transfer of business from one company to another..

Thanks..

Ajay Mishra

Ajay Mishra (Expert)

03 September 2013 Hi

Generally the provision of transfer of business to section 25 companies will not apply unless the company going to be converted having the same object.

Section 25 companies may be amalgamated with another section 25 companies subject to the compliance with the provisions of the Act.

The other views are also solicited.

Neha Singh

Neha Singh (Querist)

03 September 2013 Thank you sir for your reply..but my query is that from the few projects of the section 25 company, we need to transfer one of the project to a newly incorporated company within same group. Kindly let me know the legal formalities regarding the same.

Ajay Mishra

Ajay Mishra (Expert)

03 September 2013 Whether such other incorporated company is section 25 company or not.

Neha Singh

Neha Singh (Querist)

03 September 2013 No its a private limited company

Ajay Mishra

Ajay Mishra (Expert)

03 September 2013 So, as per my view their may be some restriction on transfer of business. Please check Section 25 licence & MOA & AOA, whether it permit or not to transfer business.

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