10)

A group of individuals intend to form a club namely ‘Budding Pilots Flying Club’ as limited liability company to impart class room teaching and aircraft flight training to trainee pilots. It was decided to form a limited liability company for charitable purpose under Section 8 of the Companies Act, 2013 for a period of ten years and thereafter the club will be dissolved and the surplus of assets over the liabilities, if any, will be distributed amongst the members as a usual procedure allowed under the Companies Act.
Examine the feasibility of the proposal and advise the promoters considering the provisions of the Companies Act, 2013.

Answer rating: 100% (QA)

Answer According to section 81 of the Companies Act 2013 where it is proved to the satisfaction of t... View the full answer