Trust
This query is : Resolved
24 November 2012
Can a private trust become a shareholder of a private limited company?
Ajay Mishra
(Expert)
24 November 2012
Hi
Yes,
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]
Shares belonging to society held in the name of trustee simpliciter
Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)
Regards
Yes,
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]
Shares belonging to society held in the name of trustee simpliciter
Department Clarification-In 1957 the Department of Company Affairs was advised that the shares in the company, being the property of a charitable trust, can be held in the name of the trustee. (Extracts from Department’sFile No. 1(43)-PT/67)
Regards
CS Ankur Srivastava
(Expert)
24 November 2012
Thanks for sharing Ajay ji...
Ajay Mishra
(Expert)
24 November 2012
Welcome dear Ankur.......
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