Please Help: section 25 company
Posted Date : 03-Nov-2011 , 04:06:03 pm | Posted By nehakumari
how many members are required to form company under section 25 of companies act 1956
Category : Corporate Law | Answers : 3 | Comments : 4 | Hits : 808
Answers
Answer By: Ashish Karundia
Dear Neha, As per Companies Act, 1956, broadly there can be two types of Companies viz.,Public Limited and Private Limited.The minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members [Refer Section 3(1)(iii) and Section 3(1)(iv)of Companies Act, 1956]. Further, Section 25(1) of the Companies Act provides that where it is proved to the satisfaction of the Central Government that an association (a) is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object, and (b) intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members,the Central Government may by licence, direct that the association may be registered as a company with limited liability, without the addition to its name of the word “Limited” or the words “Private Limited”. Thus, the number of members required to form a section 25 company depends upon the status of company (i.e. public or private) making an application to the government i.e 2 or 7 as the case may be.
Answer By: PRIYANKA
I also agree with the answers given by Mr. ashish and Mr.unmesh, that, the requirement of members in Section 25 company depends on stautus of the company being limited or private limited having 7 or 2 members respectively.
Answer By: PRIYANKA
I also agree with the answers given by Mr. ashish and Mr.unmesh, that, the requirement of members in Section 25 company depends on stautus of the company being limited or private limited having 7 or 2 members respectively.
Comments
Unmesh
03-Nov-2011 , 06:57:44 pmType of section 25 company A section 25 company, which is proposed to be registered with limited liability, may either be a public limited company or a private limited company as may be decided by the promoters. No requirement of minimum paid-up capital Requirement of minimum paid-up capital of Rs. 1.00 Lac for a private limited and Rs. 5.00 Lacs for a public limited company shall not be applicable to a company registered u/s 25 of the Companies Act, 1956. However views of other learned members solicited.
Ashish Karundia
03-Nov-2011 , 09:29:13 pmDear Neha, As per Companies Act, 1956, broadly there can be two types of Companies viz.,Public Limited and Private Limited.The minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members [Refer Section 3(1)(iii) and Section 3(1)(iv)of Companies Act, 1956]. Further, Section 25(1) of the Companies Act provides that where it is proved to the satisfaction of the Central Government that an association (a) is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object, and (b) intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members,the Central Government may by licence, direct that the association may be registered as a company with limited liability, without the addition to its name of the word “Limited” or the words “Private Limited”. Thus, the number of members required to form a section 25 company depends upon the status of company (i.e. public or private) making an application to the government i.e 2 or 7 as the case may be.
Unmesh
03-Nov-2011 , 09:31:01 pmMore precise
nehakumari
04-Nov-2011 , 02:46:29 pmThanks for guiding me,i was also knowing the same but actually i became confused after going through the information posted in dare.co.in/opportunities/services/how to set up your ngo, and some of the other sites showing information related to basic requirements for starting ngo.