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A Section 8 company under the Companies Act, 2013 is incorporated only for a defined set of objects. Which of the following lists best matches the permitted objects spelt out in the lesson?
Answer & Solution
Correct answer: B.
1. The lesson defines a Section 8 company as a not-for-profit body.
2. Permitted objects include commerce, art, science, sports, education, research, social welfare, religion, charity and protection of environment.
3. Profits must be ploughed back into these objects and no dividend may be paid to members.
4. Banking, mining and securities trading are not Section 8 objects per se.
_Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._
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