Trust conversion into company

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Harish D

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Nov 21, 2012, 8:28:21 AM11/21/12
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Dear All,

Can a trust be converted into a Company under the companies act.

If yes, what is the procedure for such conversion of the trust into a company.

Warm regards,
Harish D
+91 96633 22007

ULHAS BHAT

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Nov 21, 2012, 12:59:43 PM11/21/12
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Dear Mr. Harish,
In my humble opinion it is not possible. However, a new company could be set up, under Sec. 25 licence, and the property of the trust could be acquired by the Company, with all the trustees becoming members of the section 25 Company.
Again, this will not in any way change the character of the trust, and all capital gain taxes and stamp duties will be applicable. Also, the trust will have to be dissolved, and regarding sale of property the provisions of the Trust Deed are supreme.
Request other expert members to also give their views.
Regards,
Ulhas

pvr...@gmail.com

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Nov 21, 2012, 1:08:33 PM11/21/12
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Hello,
Neither a private family trust nor a public charitable trust can be 'converted' into a 'company' by reason of statutory injunctions comprised in the Indian Trusts Act as well as the Companies Act.
Even the absorption of a trust under extinction or dissolution can be done only if governing trust deed expressly so permits.
You may explain the intent and purpose of contemplated action to evolve other effective means under all applicable Statutes.
Best,
PVR



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From: ULHAS BHAT <ulha...@gmail.com>
Date: Wed, 21 Nov 2012 09:59:43 -0800 (PST)
Subject: [CSMysore] Re: Trust conversion into company
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ULHAS BHAT

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Nov 21, 2012, 2:10:57 PM11/21/12
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Agree with Mr. PVR. No one could have put it so lucidly-thanks.
Regards,
CS Ulhas S Bhat
Practicing Company Secretary
Mangalore

pvr...@gmail.com

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Nov 21, 2012, 2:14:23 PM11/21/12
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Hello,
Thank you.
Regards,
Pamarty VenkataRamana,
Supreme Court of India,
International Corporate Lawyer,
New Delhi .

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From: ULHAS BHAT <ulha...@gmail.com>
Date: Thu, 22 Nov 2012 00:40:57 +0530
Subject: Re: [CSMysore] Re: Trust conversion into company

CS VIJAY L VYAS

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Jul 31, 2017, 7:21:46 AM7/31/17
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Dear Shri PVR

I have little different query. Whether a Public Trust registered with the Charity Commissioner be a member of a registered  Co-Op Housing Society (Under State Co.Op Societies Act) ? and whether such a Trust can be merged into the Co.Op. Housing Society?

CS Vijay L Vyas  
Baroda

Venkata Ramanaa

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Jul 31, 2017, 7:26:37 AM7/31/17
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Hello,
No please.
These are entities covered by distinct enactments. The suggested action cannot be taken as proposed in the query.
Thanks,
PVR.

CS VIJAY L VYAS

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Aug 19, 2017, 5:52:56 AM8/19/17
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Is it possible to convert a Public Trust Registered with the Charity Commissioner in to a Private Trust?
If yes, what is the procedure?
CS Vijay L Vyas

Venkata Ramanaa

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Aug 19, 2017, 5:54:01 AM8/19/17
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No.


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