01 March 2012
I WANT TO KNOW THAT THE PROCEDURE FOR ANNUAL FILING OF SECTION 25 COMPANY IS SAME LIKE ANY OTHER PRIVATE OR PUBLIC COMPANY OR THERE IS ANY DIFFERENCE IN THAT & IF THERE IS THEN WHAT ARE THOSE DIFFERENCES IN ANNUAL FILING.
• EXEMPTIONS AND PRIVILEGES The section 25 company enjoys all advantages that any other limited company registered under the act enjoys. But apart from these advantages there are some specific privileges conferred upon them that distinguish them from other company. These privileges are in nature of exemptions from some provisions of the Companies Act or apply with some modifications to section 25 company. Minimum Share Capital: Section 25 companies have been exempted from this requirement regarding minimum share capital by insertion of sub-section (6). As such they can be registered even they have share capital less than the statutory minimum. {section 3(6)} Publication of Name: A section 25 company has been exempted from the provisions of section 147 and as such is not required to mention its name and address as required in case of all other companies. (Section 147) Annual Return: Section 25 company without a share capital is required to file returns with ROC as required by section 160 but it is exempted from mentioning the particulars of the members who are presently with the company or have ceased to be members since holding of its last Annual General Meeting. {Section 160 (1)(aa)} Time and Place of AGM: Every company is required to hold its AGM during business hours and on a day not a public holiday and has to be held at its registered office or at a place within the limits of city, town or village where its registered office is situated. Section 25 company has been exempted from this provision. As such they are free to determine the date, place and time of its AGM according to their convenience and feasibility, the only condition being that time, place and date of such meeting should have been pre determined by the Board of Directors. (Section 166(2)). Notice of AGM: Section 25 company has been given some relief in this regard by allowing them to hold an AGM after giving a notice of 14 days length instead of 21 days as required by section 171(1). Therefore they can call an AGM at a short notice of 14 days instead of 21 days. (Section 171(1)). Minutes of Meeting: In section 25 company minutes may be recorded within 30 days of the conclusion of every meeting in case of companies where the Articles of Associations provides for confirmation of minutes by circulation. (Section 193) Maintaining Books of Accounts: Every company is required by section 209(4-A) to maintain books of accounts relating to a period of 8 years. However a section 25 company is required to maintain books of account relating to a period of only 4 years instead of 8 years immediately preceding current year. {Section 209(4A)} Service of Copies of Certain Documents: A section 25 company is allowed to send the required documents at least 14 days before the date of meeting instead of 21 days. (Section 219)
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