Company regd under sec 25 of Companies Act

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 we are a company regd under sec 25 ( with limited liability )of the Companies Act with a Capital outlay of Rs 40 crore and main object being to promote the system of discharge of the treated effluent water . We have a query and need to know :

1.What provision governs the contribution from the memebrs of the Company on account of membership fees .

2. Can we also accept deposits (interest free) and if yes ,what are the related provisions governing the deposit acceptance.

3. Can we also take unsecured loans from the members ( Interest free) which are repayable to them out of the contribution recd.from members.

4. We will receieve capital subsidy from the govt . Can the loans from members be repaid out of the capital subsidy recd from the govt.

Pls give your expert opinion the sited queries.

M Prabhakar Menon

M Prabhakar Menon (Expert)
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03 March 2010 Please refer to the Company's latest (as amended to date) Articles of Assn for the answers.Also refer to the Minutes of the company's Board Meetings for delegation of authority etc Normally the terms of issue capital subsidy will specify what u can/cannot do with the money.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 the article of Asso is silent on all these issues. pl clarify the standing provisions in either case

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