Explain the provisions of the Companies Act, 2013- who can get a licence to operate as a section 8 company (non profit organization)?
CA Intermediate · Corporate and Other Laws · MTP · May 2024
Explain the provisions of the Companies Act, 2013- who can get a licence to operate as a section 8 company (non profit organization)?
Suggested Answer and Working Notes:
As per section 8 of the Companies Act, 2013, the Central Government (ROC in its behalf) may grant a licence (to operate as a non profit organisation) if it is proved to the satisfaction that a person or an association of persons proposed to be registered under the Companies Act, 2013, as a limited company: has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;intends to apply its profits (if any) or other income in promoting its objects; andintends to prohibit payment of any dividend to its members.
Topics: Incorporation of Company and Matters Incidental Thereto
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