Section 25 in The Companies Act, 2013

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25. Document containing offer of securities for sale to be deemed prospectus.—

(1)Where a company allots or agrees to allot any securities of the company with a view to all or any of those securities being offered for sale to the public, any document by which the offer for sale to the public is made shall, for all purposes, be deemed to be a prospectus issued by the company; and all enactments and rules of law as to the contents of prospectus and as to liability in respect of misstatements, in and omissions from, prospectus, or otherwise relating to prospectus, shall apply with the modifications specified in subsections (3) and (4) and shall have effect accordingly, as if the securities had been offered to the public for subscription and as if persons accepting the offer in respect of any securities were subscribers for those securities, but without prejudice to the liability, if any, of the persons by whom the offer is made in respect of mis-statements contained in the document or otherwise in respect thereof.

(2)For the purposes of this Act, it shall, unless the contrary is proved, be evidence that an allotment of, or an agreement to allot, securities was made with a view to the securities being offered for sale to the public if it is shown—

(a)that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or

(b)that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.

(3)Section 26 as applied by this section shall have effect as if —

(i)it required a prospectus to state in addition to the matters required by that section to be stated in a prospectus—

(a)the net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and

(b)the time and place at which the contract where under the said securities have been or are to be allotted may be inspected;

(ii)the persons making the offer were persons named in a prospectus as directors of a company.

(4)Where a person making an offer to which this section relates is a company or a firm, it shall be sufficient if the document referred to in sub-section (1) is signed on behalf of the company or firm by two directors of the company or by not less than one-half of the partners in the firm, as the case may be.

Section 25 in The Companies Act, 2013

25. Document containing offer of securities for sale to be deemed prospectus.—

(a)that an offer of the securities or of any of them for sale to the public was made within six months after the allotment or agreement to allot; or

(b)that at the date when the offer was made, the whole consideration to be received by the company in respect of the securities had not been received by it.

(3)Section 26 as applied by this section shall have effect as if —

(i)it required a prospectus to state in addition to the matters required by that section to be stated in a prospectus—

(a)the net amount of the consideration received or to be received by the company in respect of the securities to which the offer relates; and

(b)the time and place at which the contract where under the said securities have been or are to be allotted may be inspected;

(ii)the persons making the offer were persons named in a prospectus as directors of a company.

AI Summary

It appears there's a misunderstanding. "Section 25 in The Companies Act, 2013" is not a case title. Section 25 itself is a provision within the Companies Act, 2013. It deals with companies formed for charitable purposes, etc.

To provide a case summary, I need an actual case name (e.g., ABC vs. Union of India). I can then analyze and summarize the court's decision related to that case, even if it involves Section 25 of the Companies Act.

However, I can provide a summary of what Section 25 of the Companies Act, 2013 itself covers:

Short Summary

Section 25 of the Companies Act, 2013 (now Section 8 after the 2017 amendment) allows the Central Government to grant a license to companies formed for promoting commerce, art, science, religion, charity, or any other useful object, provided they intend to apply their profits in promoting their objects and prohibit the payment of any dividend to their members. Such companies are registered as limited companies without the addition of the words "Limited" or "Private Limited" to their name.

Facts

This section is a legislative provision, not a case. It outlines the requirements and privileges for companies formed for specific non-profit purposes. Key facts are:

The company must be formed for promoting commerce, art, science, religion, charity, or any other useful object.
The company must intend to apply its profits, if any, or other income in promoting its objects.
The company must prohibit the payment of any dividend to its members.

Issues

The "issue" is the legal framework for incorporating and regulating non-profit companies.

"Petitioner's" Arguments

Not applicable, as this is a legislative provision. If a company is applying for a license under this section, their "argument" would be demonstrating that they meet the requirements outlined above.

"Respondent's" Arguments

Not applicable, as this is a legislative provision. The Central Government, in considering an application, would assess whether the applicant company meets the statutory criteria.

Court's Reasoning

This section is a statutory provision enacted by the legislature. The "reasoning" behind it is to encourage and facilitate the formation of companies dedicated to non-profit objectives by providing them with certain exemptions and privileges, such as the ability to operate without the "Limited" or "Private Limited" suffix.

Conclusion

Section 25 (now Section 8) of the Companies Act, 2013, provides a framework for the incorporation and regulation of non-profit companies in India. It allows eligible companies to be licensed and operate under specific conditions designed to ensure that their profits are used for their stated objectives and not distributed to members as dividends.