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SEC 25 COMPANY

PANKAJ AGARWAL (ARTICLE) (28 Points)

24 February 2010

IS THERE ANY LIMIT ON THE NUMBER OF MEMBERS IN A SEC 25 COMPANY FORMED UNDER THE CATEGORY OF PRIVATE LIMITED.

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6 Replies

ASOKUMAR J (Deputy General Manager - FINANCE) (46 Points)
Replied 24 February 2010

I hope minimum 7 members. Even Artificial person can be a member

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ASOKUMAR J (Deputy General Manager - FINANCE) (46 Points)
Replied 24 February 2010

Also there is no word PRIVATE or PUBLIC in the Formation of Sec.25 companies.

Sunil Gupta (Service) (181 Points)
Replied 24 February 2010

there is not such division as private and public as far as Section 25 Companies is concerned. Section 25 companies are essentially societies registered under companies act and enjoy the benefits of companies form of business like limited liabilities etc, for example FICCI.minimum member required is 7.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 24 February 2010

Type 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.

Minimum members are 7 in case of public form and 2 in case of adoption of private form.

Membership in a section 25 company

Section 25(4) of the Companies Act provides that a partnership firm may become a member of section 25 companies; membership of such firm shall cease upon dissolution of the firm. However, partners of the dissolved firm may continue to be the members of such company in their individual capacity.

It is advisable that the firm should obtain membership in the individual name of the partners as they may agree.

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.