• Purchasing a preschool run under the name of Trust

Hi team,

My wife wanted to buy a preschool which has come for sale as the owner of the school wants to see and move out of India. This school has a licence obtained from Government to run a preschool upto UKG ( Nursery, Lower KG and Upper KG). The licence to run this school is in the name of the Trust. The school is run on a rented place and I will have to get a rental agreement done with the Owner for the same.
My questions are 
1) What all should i check before I go to buy this Preschool
2) If my wife gets her name added as member to the trust and the original members slowly move out of the trust is that fine ? or is there any legal completion 
3) If there are complications , Can She get the School licence shifted to a trust of my own and run the Preschool 
4) Can she get a loan for buying this under the women empowerment programe provided by the government
Asked 6 years ago in Business Law

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9 Answers

1. You have to ensure that the board of trustees have approved this sale by a resolution passed by the majority members and have authorised the seller to sell the same on behalf of the trust, if it is not available then the sale cannot be held as a legally valid sale.

2. The school comes under trust hence even if she is becoming a member of the trust, until the trust is passing a resolution to sell this proeprty, she cannot become a owner of the school.

3. The school is already under the governance of a trust, hence you cannot shift the same to your own trust.

4. No. For anything concerned with this property,she cannot do anything except the trust has to follow  the procedures as mentioned above.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Check the terms and conditions of licence for running a play school 

 

2) whether pre school has been registered with the competent authority 

 

3) whether licence is transferable 

 

4) also check the trust deed . is it registered with charity commissioner under trust act 

 

5) Government has come up with schemes providing a loan to women entrepreneurs for establishing a preschool or child day-care centre by Bharatiya Mahila Bank and Punjab National Bank called the BMB Parvarish loan scheme which requires loan repayment in 5 years and a 12% rate of interest.

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

Since the school is manage by trust, wife can become trustee but cannot purchase the trust business.

Let the original member resign once your wife join and later become MT. But first check trust and provision of appointment and resignation of trustee.

No, only in the name of trust, loan may grant.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

It is necessary to peruse the trust deed to advice 

 

your wife can be added as trustee by the existing trustees 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

You may get the trust deed vetted by a local lawyer and after his opinion, you may decide about it because without knowing the conditions of the trust no opinion may be a proper one to you at this juncture.

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

There is no specific legal requirement for opening pre school. All laws those are applicable for opening and running a business will be applicable on pre schools too. Some states or local bodies have made some policies/rules in this regard that should be followed, however, it will depend on business location. Consult and engage a local prudent lawyer for better appreciation of facts, analyse, guidance and proceeding professsionally.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. You should check all the documents and check whether the licence is valid or not. 

2. She can become member of trust but it will be better if she buys the school from trust and run the school by herself and not in name of that trust. 

3. Yes she can apply for fresh licence to run the school. 

4. For possibilities of loan you should contact some banker. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

NO

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

Whether that trust can that preschool under trust deed. Trust being non profit organization it's difficult to run commercial preschool. 

2. It will not be sale then it will be acquiring of trusteeship in that trust. 

3. That can't be said in this scenario

4. That all depends on trust deed 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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