Question

Company with charitable objects ________.

• A. enjoys all the privileges of limited Company
• B. obligations of Limited company
• C. both A and B
• D. None of the above

Answer 1

The correct option is C both A and B

Under section 8 of the Act, where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;

intends to apply its profits, if any, or other income in promoting its objects; and intends to prohibit the payment of any dividend to its members, the Central Government may, allow that person or association of persons to be registered as a limited company under this section.