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Can a Sec 25 Company be run as a typical trust

Niranjan (CHARTERED ACCOUNTANT) (103 Points)

16 February 2011

Can a Section 25 company be run as a typical trust, i,e.. Sec. 25 companies can receive the anonymous donations from the Donor.

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cs ashwini kumar (Company Secretary in Practice) (173 Points)
Replied 17 February 2011

Hi,

If the Section 25 Company is working within the framework of its licence given by the Central Govt (Regional Director), MOA and AOA and complying with the provisions of the Companies Act and Income Tax Act (for claiming exemption etc.), then I don't think there may be any restriction on receiving anonymous donations from the Donor. Also in the Company, there must some mechanism for recording/accounting for/of such type of donations.

Regards

CS Ashwini Kumar