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SECTION 8 COMPANIES

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1- what are the sources of revenue for npo's?
2 - can npo's issue shares ?? if yes then who will invest in that shares without earning any profit from that shares ??
3 - how npo's operates normally mean who manages it ?? who are the owners of it??
4 - can NPO'S conduct AGM ??

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Quick Summary

This discussion clarifies key aspects of Section 8 companies (non-profit organisations) in India. It explains that these companies can generate revenue through donations and business activities, and can issue shares to donors who act as investors. Management is handled by directors and staff, with donors often considered the owners. Section 8 companies operate like full-fledged companies, including the ability to conduct Annual General Meetings (AGMs), with specific exemptions applied.

pritesh

delhi

720 Points Posted on 29 May 2020

1. donation and work too they can do any business
2.yes npos issue share the investee are donors
3. it's a simple company director and staff manages the same donors are the owner.
4. it's a full fledged company so every section is applied on it except exemption. so the can conduct agm