BASIS OF SECTION 25 DIFFERENCE COMPANY BASIC DOCUMENT Memorandum of Association Articles of Association

SOCIETY

TRUST

Memorandum of Trust Deed which Association contains objects of the Articles of Association trust (bye-law) with rules & regulations. FORMATION Little Hard Simple Easy JURISDICTION Registrar of Registrar of Societies Deputy Registrar / Comapnies (Maharastra Charity Charity Commisioner Commissioner) LEGISLATION / Indian Companies Act Societies Registration Relavent state Trust STATUTE 1956 Act 1860 Act OBJECTS Nonprofit Activities Literary, Charitable, Social benefits & Scientific and resource Charitable oriented MODIFICATION OF Complicated Easy Alteration can be OBJECTS Legal Procedures Legal Procedures undertaken only by the Founder. If the founder is deceased alteration of objects is impossible REQUIRED Minimum = 7 Minimum = 7 Minimum = 2 MEMBERS Maximum = No limit Maximum = No limit Maximum = No limit REGISTRATION As per Companies Act As Society with As Trust with the under Section 25 Society Registrar Registrar. STAMP DUTY No Stamp paper No stamp paper 4% of Trust property required for required for Value will be executed Memorandum of Memorandum of in non judicial stamp association and articles association, and rules paper with the registrar of association. and regulations. NAME Prior approval required Very easy to choose Very easy to choose from Registrar of Companies. MANAGEMENT Board of Directors Governing Body Trustees BOARD & Management committee SUCCESSION IN By Appointment By Election By Election MANAGEMENT MEETINGS Quite Extensive as per Annual Meeting As per No provisions the provision of Law. Governing Body Company Law meeting as per the rules of Society. LEGAL STATUS Full Legal Status Limited Legal Status Limited Legal Status

STATUTORY REGULATIONS MEMBERSHIP TRANSFER MEMBER ADMISSION DISSOLUTION OR TAKE OVER BY STATE PAYMENT TO MEMBERS

Exhaustive

Limited

Nominal Impossible Not applicable

Free or Control as per Impossible desire. General Body or Board Governing Body Control through issue Control of Capital. Very risky and difficult Possible

Possible

As approved by Company & State.

Not restricted

As notified in Trust deed