Please let me know the procedure for conversion of a society into a pvt ltd company.The Society was registered under societies registration act and consist of 9 members and was engaged in welfare activities. Can the shareholding of the above company so formed be as follows:-
Members of the Society :- 98% of the shareholding.
Directors of the Company :- 2% remaining.
PLZ REPLY ITS URGENT
Hi
You can made shareholding as u desired.
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]
Regards
CS Ajay Mishra
CAclubindia
