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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Sahyog Trust Ltd, a section 8 company promoting social welfare, wants to amend the objects clause in its memorandum. What does section 8 require?

The company needs the previous approval of the Central Government. Section 8(4)(i) bars a section 8 company from altering its memorandum or articles without that approval, so a special resolution of members alone, or Registrar approval alone, does not suffice.

  1. APrevious approval of the Central GovernmentCorrect
  2. BOnly a special resolution of members, with no other approval
  3. CApproval of the Registrar alone after filing the resolution
  4. DApproval of the Tribunal after notice to creditors

Explanation

Section 8(4)(i) states that a company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government. A members' resolution alone is therefore insufficient.

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