LTD.co. having members but not as shareholders

Jagdish Bagri (Querist) 19 March 2011 This query is : Resolved
Asansol Club Ltd is registered under companies act and as per the articles of Association it cannot have more than 500 members. The Comapny is engagaed in profit making activities. But has not issued shares to the memebrs.

1 The company now proposes to raise the memebrship from 500 to 700 which will result in a direct increase in share capital to the tune of 7 crores @ donation of Rs 3.5 lac per memeber. They have no plans for utilising this fund. Is it possible by merely calling a AGM and passing a resolution by voice vote even if more than 10% members press for secret ballot.

2.Can a person elected as a president and Hony secretary sign ROC papers as director.

3 Every member should be treated as a bonafide share holder. Can a company terminate a member and sell his share to another memebr and retain the profit of 3.5 lacs without paying any tax.

4 Can a company take donations.

5 Can a company Registered under the Indian Companies act Restrain a bonafide memebr from contesting a election only on the ground that he has won several times in the past.

What is the proper forum for registering these complaints. And how can an ordinary member restrain the commitee from taking these steps.

Follow Query

Report Abuse

Devajyoti Barman (Expert) 20 March 2011
1. MOA needs to be perused to reply this query.
2.No, only full time Secretary can do this.
3. No
4.Yes

5.No
You can lodge such complaint before Company Law Board which will try the allegations and pass the necessary order. The Company Law Board can pass appropriate interim order in the nature of injunction as well.