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Parijat Kaul (Consultant)     24 June 2015

Companies act section 25

What are the rules for accepting new members in Non Profit Companies formed under Companies Law Section 25 of Companies Act 1956? Are these members also shareholders of the company and whether the existing members have the right to object to qualifications validity as per the rules of company of new members? If so what is the precess for consideration when a new members credentials have been questions by exsiting member(s) in writing?


 2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     24 June 2015

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)     30 June 2015

I am not talking of becoming director but being accepted as the member of the company under clause 25. If present members object to any new member being added to without due scrutiny of his/her suitability as per the norms set by the company then who takes the decision? Is one office bearer alone (without being given any authority by the governing board) empowered to do so? If not then can a complaint be made to Company Law Board?

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