Section 25 licence limits profit distribution and conditions member remuneration, requiring government approval for deviations. Licence under section 25 permits registration as a company without "Limited" where the entity applies all income to its stated charitable objects and ... Summary
Section 25 licence limits profit distribution and conditions member remuneration, requiring government approval for deviations.
Licence under section 25 permits registration as a company without "Limited" where the entity applies all income to its stated charitable objects and prohibits distribution of profits or dividends to members. Members are generally barred from receiving remuneration except limited reimbursements and authorised payments; non member officers may receive reasonable remuneration for services actually rendered. Any alteration to constitutional documents requires prior Central Government approval, and contravention of licence conditions or the memorandum's provisions may lead to revocation of the licence and registration.
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