Our government is under a lot of pressure to ameliorate the conditions within the national legislation. However, due to many factors, the central government cannot address each and every issue simultaneously and this creates a space for specific organizations which assist the government working for the well-being of society. Such organizations are known as non profit organizations or non- government organizations.
Rule 8(6) the Companies (Incorporation) Rules, 2014 provides that the Central Government may, by order, revoke the licence granted to a company if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence was granted or the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest.
For promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided the profits, if any, or other income is applied for promoting only the objects of the company and No dividend is paid to its members.