Section 25 Companies Act 1956

 

Section 25 Companies Act 1956

Power to dispense with" Limited" in name of charitable or other company.

(1) Where it is proved to the satisfaction of the Central Government that an association-

(a) is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object, and

(b) intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members, the Central Government may, by licence, direct that the association may be registered as a company with limited liability, without the addition to its name of the word" Limited" or the words" Private Limited".

(2) The association may thereupon be registered accordingly; and on registration shall enjoy all the privileges, and (subject to the provisions of this section) be subject to all the obligations, of limited companies.

(3) Where it is proved to the satisfaction of the Central Government-

(a) that the objects of a company registered under this Act as a limited company are restricted to those specified in clause (a) of sub- section (1); and

(b) that by its constitution the company is required to apply its profits, if any, or other income in promoting its objects and is prohibited from paying any dividend to its members,the Central Government may, by licence, authorise the company by a special resolution to change its name, including or consisting of the omission of the word" Limited" or the words" Private Limited"; and section 23 shall apply to a change of name under this sub- section as it applies to a change of name under section 21.

(4) A firm may be a member of any association or company licensed under this section, but on the dissolution of the firm, its membership of the association or company shall cease.

(5) A licence may be granted by the Central Government under this section on such conditions and subject to such regulations as it thinks fit, and those conditions and regulations shall be binding on the body to which the licence is granted, and where the grant is under sub- section (1), shall, if the Central Government so directs, be inserted in the memorandum, or in the articles, or partly in the one and partly in the other.

(6) 1 It shall not be necessary for a body to which a licence is so granted to use the word" Limited" or the words" Private Limited" as any part of its name and, unless its articles otherwise provide, such body shall, if the Central Government by general or special. order so directs and to the extent specified in the direction, be exempt from such of the provisions of this Act as may be specified therein.


Supreme Court of India Important Judgments And Leading Case Law Related to Section 25 Companies Act 1956:  

Afzal Imam vs State Of Bihar & Ors on 19 April, 2011

Himachal Pradesh Cricket vs The State Of Himachal Pradesh on 2 November, 2018

Union Of India & Anr vs Delhi High Court Bar Association &  on 14 March, 2002

Official Liquidator High Ct.Of vs Allahabad Bank & Ors on 12 March, 2013

State Of West Bengal vs Calcutta Club Limited on 3 October, 2019

M/S Anita International vs Tungabadra Sugar Works Maz.Sangh  on 4 July, 2016

Additional Commissioner Of ... vs Surat Art Silk Cloth on 19 November, 1979

Dharmadeepti, Alwaye, Kerala vs The Commissioner Of Income Tax, on 24 July, 1978

Bank Of Maharashtra vs Pandurang Keshav Gorwardkar & Ors on 7 May, 2013

M/S Speedline Agencies vs M/S T.Stanes & Co.Ltd on 14 May, 2010



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