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A Section 8 company (formed for charitable objects):
ARequires a minimum capital
BApplies its profits to promote its objects, pays no dividend to members, and may omit 'Limited'/'Private Limited' from its name
CMust add 'Limited' to its name and pay dividends
DCannot have limited liability
Answer & Solution
Correct answer: B. Applies its profits to promote its objects, pays no dividend to members, and may omit 'Limited'/'Private Limited' from its name
A Section 8 company promotes charitable objects, applies profits to those objects, pays no dividend, operates under a Central Government licence, and need not use 'Limited'/'Private Limited'.
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