SECTION 8 COMPANY

Section 8 Company- Significant points

•  Formed for the promotion of commerce, art, science, religion, charity, protection environment, sports, etc. 
•  Requirement of minimum share capital does not apply. 
•  Uses its profits for the promotion of the objective for which formed. 
•  Does not declare dividend to members. 
•  Operates under a special licence from Central Government. 
•  Need not use the word Ltd./ Pvt. Ltd. in its name and adopt a more suitable name such as club, chambers of commerce etc. 
•  Licence revoked if conditions contravened. 
•  On revocation, Central Government may direct it to 

           – Converts its status and change its name

           – Wind – up

           – Amalgamate with another company having similar object. 

•  Can call its general meeting by giving a clear 14 days notice instead of 21 days. 
•  Requirement of minimum number of directors, independent directors etc. does not apply. 
•  Need not constitute Nomination and Remuneration Committee and Shareholders Relationship Committee. 
•  A partnership firm can be a member of Section 8 company.