Section 8
Any two or more persons or entities who are interested in the objective of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, and/or protection of environment can registered themselves in the form of an entity like section 8 company …the government give various benefits to this type of companies in various sectors for the growth of country.
These companies apply their profits or income in the promotion of their objectives and prohibits payment of dividends to their members.
Advantages of section 8 companies:-
- No need of minimum paid up capital.
- No restrictions, no minimum requirement on maximum no. Of directors.
- Special resolution is not needed for appointing more than 15 directors.
- Audit committee of section 8 company need not have independent directors forming a majority.
- Nrc and src not apply.
- Extension of 7 days has been granted to section 8 companies for sending copies of their financial statements, auditors report etc to their member’s debenture trustees etc.
