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Admission of members in sec.25 company

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Can an employee be admitted as member in a company limited by guarantee?

If yes,than can they be paid their salary as the articles say that the income cannot be distributed among the members... 
 

Replies (2)

first of all i think there is no problem in admitting employeee as a member, & on salary point , its not a distribution of income among members, its a compensation of his services...

 

for e.g. x employee doing job in  reliance , he also holds shares of the co, so he is member also... now  think , what will be treatment of salary which he is getting from company.. its  not a distribution its a expense for earning income..... 

 

lets see what others are saying...........

U are right Sir...

But its a Sec 25 company..limited by guarantee..And the auditors have raised this issue that employees cannot be admitted as members in sec 25 Co....Now how can I convince them?? Please help...

 


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