query
visha lranjan
(Querist) 03 April 2011
This query is : Resolved
suppose i am running a for profit pvt. ltd. company and want to run an NGO/NPO with an express purpose of politically educating the masses and to bridge the gap b/w govt. of the state and its people, what will be the best mode prescribed for its legal form: trust, society, or sec. 25 company??
our intention is that the pvt. ltd. company should have a major say in the functioning of such ngo.
Please advise.
thanks and regards.
Guest
(Expert) 03 April 2011
While a private limited company is established for the sole purpose of profiteering and has to comply with various provisions of company law and cannot suit the purpose of non-profit NGO, as it serves the sole interests of a very limited section consted of the members of the firm.
On the other hand a although a trust also watches, more or less the interests of a particular section of the family group or clan, but still it can serve the purpose of an NGO by extending its activities in social welfare.
Similarly, a society can not only watch the interests of its own members but can extend its activities on account of its bye-laws, it can work in the common interests of the people on large scale with the selfless social activites rendered by its members.
So, an NGO can take the shape of any one of the trust or the society.
visha lranjan
(Querist) 03 April 2011
pardon my ignorance sir, but i don't think that i have got a reply to my question. let me rephrase my question: i have a pvt. ltd. company named X and i also want to start an NGO.
now i want to put that company X as one of the members of governing council/as a tustee, having a major say in the decision making processes and election of members. what will be the most suitable form: TRUST, SOCIETY OR as a COMPANY registerd under SECTION 25.
I also have an intention to pass the reins of tht NGO to my son.
by keeping these points in mind please addvise.
thanks and regards
Sri Vijayan.A
(Expert) 04 April 2011
IN MY VIEW, TRUST ACT SHALL BE BEST OPTION
visha lranjan
(Querist) 04 April 2011
can anyone please give me reasons that why trust is the best option. i will really appreciate it.
thanks and regards
