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Gopalakrishnan K B (NA)     29 September 2010

Educational trust in partnership

Dear Sirs,
Please give your valuable opinion.

One of our clients has formed a trust, which is registered as educational trust in Kerala.
Now our client wants to start a partnership firm which will provide vocational training and personality development courses.

Now since the license is obtained in the name of the trust, we want to make the firm a division of the trust.

How can we proceed?
Can we make the trust a partner?
Or is there any other way to associate the trust and the new proposed firm?



Learning

 2 Replies

Kanaksinh P.Boda (Educationist/Lawyer)     29 September 2010

The Trust is registered under Public Trust and is not a Company, and if land/permission  is granted by the Govt. conditionally for education purpose, the trust can  not share the said permission nor can it accomodate any such profit making  partner as its own division but it can hire the services in the interest of the students .if it is an independent firm having experise required for teaching,

SACHIN AGARWAL (ADVOCATE)     02 November 2010

The trust cannot go for profit taking. The educational trust can hire services of the partnership firm for better education to students but cannot be the part of prifit taking unit.


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