Section 25
Summary of section 25 of Indian Companies Act 1956 (additional
registration) According to section 25(1)(a) and (b) of the Indian
Companies Act, 1956, a section-25 company can be established ‘for
promoting commerce, art, science, religion, charity or any other
useful object’, provided the profits, if any, or other income is
applied for promoting only the objects of the company and no dividend
is paid to its members.For a section-25 company, the main instrument
is a Memorandum and articles of association (no stamp paper required)A
section-25 Company needs a minimum of three trustees; there is no
upper limit to the number of trustees.
The Board of Management is in the form of a Board of directors
or managing committee.There are some additional formalities based
on this section which needs to be taken care of while registering
the organizations under Bombay Public Trust act 1950 as well as
Societies Registration Act 1860
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