Dear Friends
Kindly Guide me in this question
Can a section 25 Company issue prefrence share capital which requires payment of didvend
Thanks
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 21 April 2010
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.
The objective of section 25 of the Companies Act, 1956 is to provide special benefits and privileges to such organisations, which are formed for the purpose of:
(a) promoting commerce, art, science, religion, charity or any other useful object, and
(b) apply its profits and incomes for promotion of its objects and prohibit distributing them as dividends.
Dividend distribution is prohibited for a Section 25 Company.
Regards
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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