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A Section 8 (not-for-profit) company meets the turnover and paid-up capital limits of a 'small company'. Can it claim that status?
AYes, automatically
BNo — Section 8 companies are excluded from 'small company' classification
CYes, only with ROC permission
DYes, only if it acquires 5% stake in another small company
Answer & Solution
Correct answer: B. No — Section 8 companies are excluded from 'small company' classification
1. Section 2(85) explicitly excludes Section 8 companies from being classified as 'small'.
2. The exclusion is statutory and not subject to ROC discretion.
3. Hence the correct answer is (C).
_Source: ICAI BoS CA Inter Paper 2 — Preliminary_