Conversion of Trust to a company under CA 2013

[Nagarajan V]

dear Members,

Whether under the new Companies Act, 2013 we can convert a Charitable trust registered under the Indian Trust Act to a Section 8 Company. 

This is due to the fact that  Under Section 366 of the Companies Act, 2013 it states that:

For the purposes of this Part, the word “company” includes any partnership firm, limited liability partnership, cooperative society, society or any other business entity formed under any other law for the time being in force which applies for registration under this Part. 

Further the companies (Authorised to Register) Rules, 2014 and in the E-form URC 2 Advertisement giving notice about registration under Part I of Chapter XXI - the word trust is not expressly stated, however it other forms of organisation like  a partnership firm/LLP/Co-operative Society/Society/a business entity. 

Hence there is no clear expression of whether a trust can be converted under this Part and this section and being new Act we do not have any statistics of any of the trusts have been converted in to Section 8 Company and any member who has done or have any idea on the above can throw some light with examples under the new Companies Act, 2013

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V.NAGARAJAN
COMPANY SECRETARY
Cell: 099401 11058
New No. 29 Kavarai Street, 
(Near AMR Kalyana Mandapam)
West Mambalam, Chennai 600 033.
Cell: 099401 11058
Ph: 044-4207 7125

It is better to wear out, than to rust out.

[Nagarajan V]