Dear Self,
Greetings!
I would like to understand and consult you in regards to Charitable Trusts registered under Bombay Trust Act.
We would like to convert our Trust into a for profit company. Our current lawyer said it is not possible due to conflict between Maharashtra HC and SC. Could you please kindly guide on the possibility of the same?
Thanking you,
Siddhant Rishi Prabhakar
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Maharashtra Charitable Trust Conversion
Replies (1)
Converting a charitable trust into a "for-profit" company is legally problematic and likely impermissible because it violates the fundamental purpose of the trust and the laws governing charitable endowments. While you can transition to a Section 8 (non-profit) company, you cannot convert into a for-profit commercial entity without inviting severe tax consequences and potential legal action for the misuse of charitable assets.
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