Parijat Kaul (Consultant) 12 July 2015

Companies law section 25 accepting new members

What are the rules for accepting new members in Non Profit Companies formed under Companies Law Section 25 of Companies Act 1956? Whether the existing members have the right to object to inclusion of new members if falling short in requirements, qualifications and validity as per the rules of teh registered company under section 25? If so what is the process for consideration when a new members credentials have been questions by exsiting member(s) in writing?

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5 Replies

rajagopal.s (Lawyer.) 13 July 2015

It is always better to have like minded people as directors of association. if they have objections, then the same must be clarified in best interest of association.

There is no standardised process as such for admission of member / director in to association.

however if you want to democratise the process, you can announce an election by ballot, invite all of the aspiring director/member to submit their candidature, organise for the candidates to present about themselves and how will they do better for the association and thereafter conduct elections.

please keep records of all of the activities and i am sure you will succeed.

Documents Required for Section 25 Company

For Director Identification No (DIN) (to be taken for all directors)
Photo Identification Proof Of Directors (PAN Card Mandatory)
Color Passport Size Photograph – 2
Address Proof (If address not included in Photo ID Proof)
For Digital Signature (to be taken for atleast one director)
Photo Identification Proof Of Directors (PAN Card Mandatory)
Color Passport Size Photograph – 2
Address Proof (If address not included in Photo ID Proof
For form 24A
1. Three printed copies of the memorandum and articles of association of the applicant company, signed by all the promoters with full name, address and occupation (No stamp duty is payable on the Memorandum and Articles of Association)
2. A declaration by an advocate or a chartered accountant that the memorandum and articles of association have been drawn up in conformity with the provisions of the Act and that all the requirements of the Act and the rules made there under have been duly complied with, in respect of registration
3. List of the names, addresses and occupation of the promoters, members of board of directors, name of companies, associations and other institutions in which promoters of the applicant company are directors or hold positions, descripttion of the positions held by them (three copies)
4. A statement of assets and liabilities
5. Source of income of the Applicant Company and estimate of annual expenditure;
6. A statement giving a brief descripttion of the work, if any, already done by the association and of the work proposed to be done by it after registration in pursuance of section 25;
7. A statement on grounds on which the application is made under section 25 of the Companies Act, 1956;
8. A declaration by each of the persons making the application that he/she is of sound mind, not an undischarged solvent, not convicted by a court for any offense and does not stand disqualified under section 203 of the Companies Act, 1956 for appointment as director.

Parijat Kaul (Consultant) 15 July 2015

Thank you @rajagopal.s for replying to my post but issue is not about election of Directors of company under section 25.

I am asking what to do when one of the Directors has admitted someone a general member, with voting rights, of the non profit company without the formal approval of the governing body.

Also the member does not fulfill the basic criterion set by the non profit company for anyone to be a member of the company.

Is there a higher authority to complain to?

HARISHKANNA M 15 March 2016

Sir,

I'm working as a CAD Engineer in a organisation called "CADD centre" it is an Software training institute and i have to train the students with related software. I was signed an contract with them for one year on 29th Jan 2016. I asked them "Term and Conditions of the organisation in print or mail format" While joining. But they told me "there is no any terms like that you have asked to give a pint version". On 2nd Feb they inform me about one training for me and training was helded from 4th Feb to 12th Feb 2016 and the venue is Chennai. i refuse that because i'm not ready for the training mentally and i don't have a source to stay in chennai. But my manager forced me and i have attend 1st day training successfully, but 2nd day i can't due to bus delay. so my corporate company cancel the one day training and send me out. 3rd day i have attend correct time, but again 4th day i can't. For this my head office cancel my training for next days also. After that 10th dayof joning my manager told me that "Sir you have no salary for 1st month" and your salary will be calculated from 1st class that is when we Allotted a batch for you from that only you will have a salary and attendance also untill you have to come with no salary. I was shocked because they didn't inform me this term while attend the interview and signing the contract with them. but i accepted that because of my family(my family depends on my salary only). After that i got a call from MD he told me that " Harish we have another Trained person who was working in your place he told me to come again here so we have to terminate you because he is already trained person by our head office" on 9th March 2016. I asked him " Sir if you terminates me then what is the compensation for me because i spent an money for my travel and training which i have attend in chennai and time taking for find out next job". My MD told me i'll say after a discussion with Manager. Finally they told me I need to work again one month that is till April 15 i need to work with out salary and i'll get a salry from 16th April to 30th April in may month.

And they are told me now that is "i didn't attend the training properly so you have to adjust with the company".

Here i have to mention that "i attend This traning because of stress from the manager and one more thing My branch office register a another faculty name for this training and suddenly they force me to attend behalf of her".

While signing the contract they didn't said anything about these type of trainings.

I need a guidance how to approch them for getting compensation. My point of view they didn't give their Terms and condition even oral. and regarding my salary they didn't mention that 1st month no salary or Salary will be credited from your 1st class like that.

And the problem is i don't have a batches(Students are not joined a course yet. Management is doing the marketing now by visiting the college campus) now, that is why "they are not ready for give a salary for free" so they are maximize the cancellation of training which happend on Feb 2016.

Help me in this case

Regards

HARISHKANNA M

compliance 26 April 2016

Why dont you hire a perfect member.

Ms.Usha Kapoor (CEO) 31 August 2016

Dear Client,

Do you means to say without qualifictions as required under section 25 of companies Act 1956 Director is appointing any person as member and that too with voting rights. without approval of Board of directors and without meeting the qualification criteria of a member

According to section 25 a member should be one who fulfils the criteria of being interested in promoting Art, commrce, Science, Religion. Charity or some other useful object.

You mean to say without haviing an interest or proof of an interest in promoting the above subjects ordinary members who do not meet with the above secrtion 25 criteria aare appointed that too with voting rights and without the mandatory approval of Board of /directors by special Resolution or governing body's special resolution. Accordingf to Canadian not for prrofit corporation the qualifications anordinary member should have is:.

SECTION 2 - MEMBERSHIP – MATTERS REQUIRING SPECIAL RESOLUTION

2.01 Membership ConditionsFootnote 3

[ Choose this provision if you want a single class of individual members]

Subject to the articles, there shall be one class of members in the Corporation. Membership in the Corporation shall be available only to individuals interested in furthering the Corporation's purposes and who have applied for and been accepted into membership in the Corporation by resolution of the board or in such other manner as may be determined by the board. Each member shall be entitled to receive notice of, attend and vote at all meetings of the members of the Corporation.

Yes appointment of members requires approval by special resolution of the governing body and they should have minimum qualifications in promoting art, commerce, Science, religion, charity and any other useful object.

[ Choose