TOPIC 28: QUICK REFERENCE TO “Few Important aspects about Section 8 Companies i.e. Non -Profit Organization”

.
Quick Reference to "Few Important aspects about Section 8 Companies i.e. Non -Profit Organization "
.
Points:-
.
1. Section 8 company can be a Private Company or Public Company.
.
2. Section 8 Companies are not allowed to Pay Dividend to its members.
.
3. Alteration of MOA and AOA of Section 8 Companies can be done only with the Approval of Central Government.
.
4. A Partnership firm may be a Member of Section 8 Companies.
.
5. Section 8 Company shall amalgamate only with another Section 8 Company having similar objects.
.
6. Proxy need to be a Member of Section 8 Companies.
.
7. Section 8 Company can accept Foreign Contributions only after getting a certificate of Registration under Foreign Contribution (Regulation) Act, 2010.
.
8. Section 8 Companies may have any number of Directors.
.
9. A person who is holding office as Director in more than 20 Companies can still be appointed as Director in section 8 Companies.
.
10. General meeting of Section 8 Companies can now be conducted with notice of 14 days before the meeting.
.
11. The Revised SS-1 and SS-2 is not applicable to Section 8 Companies.
.
12. Quorum for Board meeting is 8 Directors or 1/4th of total strength whichever is lower. But subject to Minimum of 2.
.
13. Licence Requirement is mandatory for Section 8 Companies.
.
14. Permanent Account Number is must for every charitable Organization.
.
15. The Provisions relating to Minutes i.e. Section 118 is not applicable to Section 8 Companies except AOA provides for that.
 .
.
.
Regards
ACA SOURAV BAGARIA