Establishment of company not distributing profits

(1) Notwithstanding anything contained elsewhere in this Act, any company may be incorporated to develop and promote any profession or occupation or to protect the collective rights and interests of the persons engaged in any specific profession or occupation or to carry on any enterprise for the attainment of any scientific, academic, social, benevolent or public utility or welfare objective on the condition of not distributing dividends.

(2) Any person or trustee of a public trust registered pursuant to the prevailing law or any other corporate body incorporated pursuant to the prevailing law who wishes to register a company for the attainment or the objective mentioned in Sub-section(1) may make an application to the Office pursuant to Section 4.

(3) The number of promoters promoting a company pursuant to sub- section (1) shall be at least five; and after the incorporation such company, it may have any number of its members, with a minimum of five members.

(4) The membership of a company incorporated pursuant to Subsection (1) shall not be transferable in any manner. The membership of any person or body shall ipso facto be terminated in the event of death, cancellation of registration or dissolution of such member or amalgamation of such member with another body or company.

(5) Except with the prior approval of the Office, a company incorporated pursuant to Sub-section (1) shall not add words such “company:, “ limited “’ or “private limited” at the end of its name.

(6) A company registered pursuant to Sub-section (1) shall obtain approval of the Office to expand its branch.