Khushbu (Practising Company Secretary) (127 Points)
09 January 2013Can an employee be admitted as member in a company limited by guarantee?
If yes,than can they be paid their salary as the articles say that the income cannot be distributed among the members...
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 09 January 2013
first of all i think there is no problem in admitting employeee as a member, & on salary point , its not a distribution of income among members, its a compensation of his services...
for e.g. x employee doing job in reliance , he also holds shares of the co, so he is member also... now think , what will be treatment of salary which he is getting from company.. its not a distribution its a expense for earning income.....
lets see what others are saying...........
Khushbu
(Practising Company Secretary)
(127 Points)
Replied 09 February 2013
U are right Sir...
But its a Sec 25 company..limited by guarantee..And the auditors have raised this issue that employees cannot be admitted as members in sec 25 Co....Now how can I convince them?? Please help...
CAclubindia
