Question

Section 8 of the companies act, 2013 contains provision relating to

• A. incorporation of company
• B. formation of companies with charitable objects, etc
• C. effect of registration
• D. Effect of memorandum and articles.

Hint:

Remember: Section 8 Company = Charitable or Not-for-Profit Company. It's a special type of company that can't distribute profits to its members.

Answer 1

The Correct Option is B

Section 8 of the Companies Act, 2013, specifically deals with the "Formation of companies with charitable objects, etc." These companies are commonly referred to as Section 8 companies. They are established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object. A key feature of these companies is that they are required to apply their profits, if any, or other income in promoting their objects and are prohibited from paying any dividend to their members.