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Section 8 company

syeed alisha (3 Points)

04 January 2021

How to take money out of a section 8 company?
Is a section 8 company a bottomless abyss.

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3 Replies

Pushpak Thakare (2 Points)
Replied 05 January 2021

As per provision of Companies Act one can not take money out of section 8 companies.
However if section 8 is going to stop then the excess money i.e surplus is transfered to another section 8 company which works in same way.

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syeed alisha (3 Points)
Replied 05 January 2021

Thank you for sharing your knowledge but what I exactly wanted to know is whether we can take the money out of section 8 company without investing it further, not necessarily from companies act point of view but what happens in practical life .

Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

As per section 8(1) (a) of the Companies Act, 2013 section 8 company can carry such type of activities. Bonus can be paid to employ but not to members even they are employees. There is no restriction on payment remuneration to employees/director