CAN A COMPANY FORM A TRUST?
2,506 views
Skip to first unread message
Surbhi Sati
Sep 24, 2014, 2:28:08 AM9/24/14
to csch...@googlegroups.com, csmy...@googlegroups.com
Dear All,
Can a private ltd. company form a trust- What are the formalities that are meant to go through?
Is a shareholder resolution necessary?
Regards,
Surbhi
--
Ramaswami Mohan
Sep 24, 2014, 2:41:11 AM9/24/14
to csmysore
yes, provided the co's objects permit the co to form trusts and the purpose for which such trust is sought to be formed like welfare of employees etc ...
if there is such an enabling clause, then the co can be the author of the trust with 2 or 3 other directors as other Trustees, and other procedures for the formation are as ususal ... draft the trust deed and get it registered with the sub-registrar of assurances office and thereafter apply for PAN , Bank Account opening and Registrations with with the Income Tax Department etc.
regards,
Mohan
--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
CS. R. Mohan
Mobile: 9908814677
Surbhi Sati
Sep 24, 2014, 2:44:20 AM9/24/14
to csmy...@googlegroups.com
What if the Objects are silent on this? I believe its not written anywhere that objects should voice for the formation of the Trust.
Request you to kindly clarify.
Thanks.. Surbhi
Ramaswami Mohan
Sep 24, 2014, 3:18:46 AM9/24/14
to csmysore
A Co can not do an activity which is not there in the objects, and it so does, then such activity will be ultra virus the company and its Members.
More over the Income Tax dept can question (& disallow) the income / expenses which may flow out to the Trust from the Co.
Views of others welcome,
regards,
Mohan
CS Manish Thakur
Mar 31, 2015, 8:57:23 AM3/31/15
to csmy...@googlegroups.com
Dear Rohan,
Objects of Company define the business which the company can do or do not.
To form a trust is not the business of the company.So, MOA should not be required to be amended. company can be author or settler of any trust is the company's power under companies act because of its legal entity character.
Please clarify if there is any section under new co. act or old.
Thanks
Manish Kushwaha
Ramaswami Mohan
Mar 31, 2015, 9:25:29 AM3/31/15
to csmysore
pl see the following article in the web link:
extracted relevant para from this article:
Who can be a trustee
A corporation can act as a trustee
A corporation is capable of accepting the ownership of property with an obligation annexed to the ownership for the benefit of another which may be a class of persons, there can be no objection to a corporation acting as a trustee. This is a well-established proposition from the time of the decision of the Judicial Committee of the House of Lords in Salomon v. Salomon and Company Ltd which has been followed in India by the Supreme Court and it has held that a juristic person can carry on all human activities subject to such limitation as arise from its not being a natural person and the limitations imposed upon it activities by its own charter contained in the objects clause in the memorandum of association. A juristic person cannot marry and procreate, but it is certainly capable of owning property. It is also capable of owning property in its capacity as a trustee. Corporations carrying on the activity of becoming trustees and executors are not unknown. There can, therefore, be no objection to a corporation acting as a trustee provided its objects clause in the memorandum of association so permits. For example, a trust company is a bank that has been named by author of trust to act as trustee in managing a trust. A partnership can serve as a trustee if state law permits. An unincorporated association, such as a Labor Union or Social club, usually cannot serve as a trustee.
A corporation can act as a trustee
A corporation is capable of accepting the ownership of property with an obligation annexed to the ownership for the benefit of another which may be a class of persons, there can be no objection to a corporation acting as a trustee. This is a well-established proposition from the time of the decision of the Judicial Committee of the House of Lords in Salomon v. Salomon and Company Ltd which has been followed in India by the Supreme Court and it has held that a juristic person can carry on all human activities subject to such limitation as arise from its not being a natural person and the limitations imposed upon it activities by its own charter contained in the objects clause in the memorandum of association. A juristic person cannot marry and procreate, but it is certainly capable of owning property. It is also capable of owning property in its capacity as a trustee. Corporations carrying on the activity of becoming trustees and executors are not unknown. There can, therefore, be no objection to a corporation acting as a trustee provided its objects clause in the memorandum of association so permits. For example, a trust company is a bank that has been named by author of trust to act as trustee in managing a trust. A partnership can serve as a trustee if state law permits. An unincorporated association, such as a Labor Union or Social club, usually cannot serve as a trustee.
--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
ACS suresh chaudhary
Apr 1, 2015, 7:59:06 AM4/1/15
to csmy...@googlegroups.com, csch...@googlegroups.com
Can a trust hold shares in a company ? can we make entry in register of member of company showing trust as a member?
Ramaswami Mohan
Apr 1, 2015, 10:01:23 AM4/1/15
to csmysore, csch...@googlegroups.com
yes. so long as the Trust is a Registered entity, it is possible to register the same as a shareholder.
views of others welcome,
regards,
Mohan
--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.
Reply all
Reply to author
Forward
0 new messages