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FAQs
for Societies Registration Act 1860
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Q1.
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What
are the things to be kept in mind while proposing a name
of the society? |
Ans:
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The
things to be kept in mind while proposing a name for the
society are: |
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1.
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The
name of the society proposed should not attract
the provisions of The Names and Emblems (Prevention
of Improper Use) Act 1950 i.e the name proposed
should not imply any connection with Government
of India, or Government of State or any connection
with legal authority
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2.
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The
name proposed for the registration of the society
should not be identical to name of any other society
which has already been registered or resembles such
name likely to deceive the public or the members
of the society.
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3.
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There
is prohibition of use of any name, emblems, official
seals specified under the Names and Emblems Act without
permission of the appropriate authority.
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4.
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There
is prohibition of the use of the name of the national
heroes or other names mentioned in the Names and
Emblem Act,1950 .
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5.
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The
registrar of Societies can be approached with alternative
names to ascertain whether the same are not undesirable
and are not being used by any other existing societies.
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6.
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The
name of the Society should not suggest obscenity or
be against decency and decorum. It should not be undesirable
in the opinion of the Registrar |
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Q2.
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Who
all can form a society? |
Ans:
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A
society can be formed by “Any Seven or more persons
associated for any literary, scientific or charitable
purpose, or for any such purpose as described in Section
20 of this Act, may, by subscribing their names to a
memorandum of association, and filing the same with registrar
of Joint Stock Companies (The word Joint Stock Companies
has been replaced by respective state acts as either
Registrar of Societies or Inspector General of registration
or as the respective State Act may specify) form themselves
into a society under this Act”.
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Q3.
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What
is the eligibility to form a society?
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Ans:
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Apart
from individuals the following persons are also eligible
for subscribing to the memorandum of the society: |
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Foreigners:
foreigners can subscribe to the memorandum of the
society. |
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Partnership
firm: The position of Partnership firm regarding
its eligibility to subscribe to the memorandum
of the society is not clear from provisions of
the Partnership Act 1932, Societies Registration
Act 1860 or any other judicial decision. However
simple analogy can be drawn by keeping in view
the provisions of Sec 25(4) of Companies Act, 1956
which permits a partnership firm to become a member
of a Section 25 company and provides that the firm
may be a member of any association or company registered
under the provisions of the Companies Act 1956.
However on dissolution of the firm, the membership
of the firm to such an association or company will
lapse. Therefore drawing a parallel from the above,
we may deduce that a partnership firm may subscribe
to the memorandum of society.
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Limited
company: Company can subscribe to the memorandum
of society |
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Registered
society: A registered society can subscribe to memorandum
of association of proposed society. |
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Q4.
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What
is the purpose for which a society can be formed? |
Ans:
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According
to Section 20 of the Societies registration Act 1860 the
society may be registered for the following purpose: |
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Grant
of charitable assistance |
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Creation
of military orphan funds |
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Societies
established at the general presidencies of India |
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Promotion
of science, literature, fine arts, instructions
or diffusion of useful knowledge, diffusion of
political education, foundation or maintenance
of libraries, public museum and galleries of paintings,
works of art, collection of natural history, mechanical
and philosophical inventions, instruments , designs
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Q5.
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What
is a memorandum of Association of a society? |
Ans:
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The
memorandum is the charter of the society. It contain the: |
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Name
of the Society |
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The
objects of the Society |
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The
names, addresses and occupation of the members of
the governing body |
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The
place of the registered office of the Society |
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The
memorandum also contains the names, addresses and full
signatures of the seven and more persons subscribing their
name to the memorandum of association |
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Click
here for sample Memorandum of Association of a society |
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Q6.
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What
are the Rules and regulations of a society? |
Ans:
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The
rules and regulations of the society are a guide to the
members of the governing body or the persons entrusted
with management of the society to regulate the functions
of the society and for its internal management. These
rules and regulations help in achieving the objects of
the society and are binding on its members.
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Click
here for sample Rules and Regulations of a society |
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Q7.
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Who
can be the members of a society? |
Ans:
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Member(s)
as given in the memorandum shall be a person(s) who has
been admitted according to the rules and regulations of
the society and have paid the subscription and signed the
list of members. A person shall not be entitled to vote
or be counted as a member in any of the proceedings of
the society whose subscription is in arrears (The time
limit for receiving the subscription should generally be
specified in the rules and regulations of the society.
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Q8.
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What
are the rights of a member of the society? |
Ans:
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Rights
of a member of a society are: |
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Right
to receive notices |
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Right
to vote |
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Right
to receive copies of the bye laws |
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Right
to receive statement of accounts |
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Right
to attend general meetings |
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Q9.
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What
are the duties of the members of a society? |
Ans:
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Duties
of a member of a society are: |
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To
work towards attainment of the objectives of the
society |
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To
attend the meetings regularly and exercise their
democratic right as and when necessary. |
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A
society may act against the members for: |
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recovery of arrears of membership subscription
- recovery of any retained property or damages to the property caused
by the members
- for mis-utilisation / mis-appropriation of funds of the society
- Forging any deed, document, money receipt etc. causing loss of
fund or loss of credibility of the society. |
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Q10.
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What
is a Governing Body? |
Ans:
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Governing
Body under the Societies Registration Act,1860 can be
said to be consisting of the Governor’s council,
Committee, trustees or some other body by whatever name
called to whom or to which by the rules and regulations
of the society the management of its affairs is entrusted.
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Q11.
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What
is a General Body of a Society? |
Ans:
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General
Body of a society comprises of all the members who have
subscribed to the memorandum of the society. |
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Q12.
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What
is the notice to be given for a meeting of the society? |
Ans:
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A
notice for every meeting is to be given to all the
members of the society according to the time limit
as mentioned in the bye laws.The notice for the meetings
has to be given in writing.
Generally
a 21 days notice should be given for a general meeting and
7 days notice for a governing body meeting.
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Q13.
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What
is the quorum required for a meeting of a society? |
Ans:
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‘Quorum’ implies
the minimum number of members who must be present in the
meeting to make the proceedings of the meeting valid.
The
bye laws of the organisation specifies the quorum required
for different meetings.
If
the required quorum is not present then the meeting is
generally adjourned to the same day of the next week, at
the same time and the same place. In case the quorum is
still not present in the adjourned meeting then the meeting
can be taken as a valid meeting. However proxies are not
considered as part of the quorum.
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Q14.
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How
are the minutes of a society’s meeting to be maintained? |
Ans:
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The
minutes of a meeting of a society are recorded on loose
sheets chronologically prepared and bound together or a
bound register. The pages of the minutes should be serially
numbered.
The
minutes of the previous meeting are to be read and confirmed
at the beginning of a meeting. These minutes are then
signed by the chairman and subsequently they cannot be
altered or corrected
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Q15.
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In
whom is the property of a society vested? |
Ans:
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The
members of the governing body are the Trustees of the Property
of the Society. The property whether movable or immovable
vests with the society’s trustees. |
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Q16.
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Who
is the signing authority of a society? |
Ans:
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In
general all the documents of the society to be filed
with the registrar of the societies should be signed
by the President or the Chairman or the Secretary of
the Society or by any other person specifically authorized
in this behalf.
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Q17.
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What
are the disqualifications for being a member of the society? |
Ans:
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A
person is disqualified for being chosen as or being a member
of the governing body : |
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If
a person is an undercharged insolvent |
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Is
convicted of any offence in connection with the formation,
promotion, management or conduct of the affairs of
a society or a body corporate, or of any offence
involving moral turpitude. |
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Q18.
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Are
the Governing Board members same as the desirous persons
in the Memorandum of the Association? |
Ans:
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At
the time of filing the Memorandum of Association with
the registrar of Societies it should be ensured that
the name of the members given as the Governing Body in
the Memorandum of Association should necessarily form
part of the persons who have signed in the memorandum
as the desirous persons to form the society.
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Q19.
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What
are the documents required for registration of a society? |
Ans:
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Documents
required for registration of a society are: |
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1.
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Request
letter to register a society under Societies Registration
Act 1860 |
2.
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Two
sets of Memorandum of association including list
of proposed Governing Body and list of desirous persons |
3.
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Two
sets of Rules and regulations framed for the functioning
of the organisation |
4.
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Affidavits
(on Rs.2/- stamp paper from p[resident/Secretary
of the Society regarding the name/title of the society |
5.
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Copy
of residence proof of all desirous persons |
6.
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Proof
of ownership of the registered office of the society
and no objection certificate(on rs.2/- stamp paper) |
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Q20.
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What
is the contact address for registrar of society in Delhi? |
Ans:
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Contact
Address: |
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Registrar of Societies
Office of the Registrar of Societies
Office of the Commissioner of Industries
Govt.of NCT of Delhi
C.P.O Building
Kashmere Gate
Delhi
Phone Nos. 22960173
Visiting Hours: 10.30A.M
to 1.00 P.M
Website: http://delhigovt.nic.in/dept/industries/service1.asp
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Q21.
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What
are the things to remember while filing for registration
of a society? |
Ans:
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Things
to remember while registering a Society in Delhi under the
Societies Registration Act 1860 |
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Q22.
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What
are the steps for alteration, extension or abridgement
of the aims and objectives of a society?
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Ans.
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Section
12 of the Societies Registration Act 1860 has laid down
the following steps for alteration, extension or abridgement
of the aims and objectives of a society which have to be
followed:
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Submission
of the proposal by the governing body to the members
of the society |
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10
days notice to members about holding of a special meeting, |
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convening
a special meeting for the consideration of the proposal, |
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Approval
of the proposal by 3/5th of members, |
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Convening
second special meeting after a month, and |
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Confirmation
by 3/5th of members present at the second special
meeting |
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Q23.
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What
is the procedure for change of the name of the society? |
Ans.
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In
general, various state acts under section 12,12A,12B give
the following procedure for change of the name of the society:
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Convene
a general meeting for the purpose of the change of
the name |
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A
resolution should be passed by a majority |
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The
notice in writing of the change of name, which has
to be signed by the Secretary of the society along
with seven members(as in case of the registration of
the memorandum of association), should be submitted
to the registrar. |
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Q24.
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What
are the books of accounts to be maintained by a society? |
Ans:
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Generally
the following books of account to be maintained by the society
on Single Entry/Double Entry basis are: |
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Cash
Book/Bank Book giving the daily receipts |
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Voucher
files |
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Ledgers |
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Receipt
books |
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Q25.
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Should
a society get the books of accounts audited by a society? |
Ans:
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There
are various provisions under the specific State Societies
Registration Act(s) wherein provisions for Audit and filing
of annual returns are specified. In general these Acts
specify the check and audit of the accounts to be done
by a duly qualified Chartered accountant within the meaning
of the Chartered Accountants Act 1949 or a person approved
by the Registrar of Societies in this behalf.
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Q26.
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In
which form should a society maintain its books of accounts? |
Ans.
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Section
145 of the Income tax Act provides that either cash or
mercantile system of Accounting should be followed. However
it has been held in various court cases that Section 14
i.e income of charitable organizations need not be computed
under various heads of income, therefore there is no clarity
whether a charitable organization also come under the purview
of Section 145 or not. Therefore in absence of any clarifications,
a charitable organization can maintain books of accounts
from the following three methods of accounting:
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Cash
Basis of Accounting |
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Accrual
Basis of accounting |
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Hybrid/Mixed
basis of Accounting |
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Q27.
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What
are the specific rules for Accounting and Audit of Foreign
Contribution received by a registered society under the
FC(R) A?
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Ans.
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For
organizations which are receiving the grants or funds from
international agencies, it is also important to follow
the rules and the guidelines of the Foreign Contribution
Regulation Act. Under the FC(R) A, Section 13 states that:
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“Recipients
of foreign contribution to maintain accounts, etc.
Every
association, referred to in section 6, shall maintain, in
such form and in such manner as may be prescribed-
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(a)
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an
account of any foreign contribution received by it,
and |
(b)
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a
record as to the manner in which such contribution
has been utilized by it.” |
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Rule
8 of the Foreign Contribution Regulation (FCR) Rules 1976
states that: |
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A
separate set of accounts and records shall be maintained,
exclusively for foreign contribution received and
utilized-
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(a)
in Form FC-6, where the foreign contribution relates
only to articles as referred to in item (1) of sub-clause
(c) of clause (1) of section 2;
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(b)
in the cash book and ledger account on double entry
basis, where the foreign contribution relates to
currency received and utilized, and a separate bank
account shall be maintained in respect of such contribution;
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(c)
in Form FC-7, where the foreign contribution relates
to foreign securities. |
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Every
account specified in sub-rule (1) shall be maintained
on yearly basis, commencing on the 1st day of April
each year and every such yearly account, duly certified
by a chartered accountant in Form FC-3 along with
a balance sheet and statement of receipt and payment
shall be furnished in duplicate, to the Secretary
to the Government of India, in the Ministry of Home
Affairs, New Delhi, within four months of the closure
of the year.
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Q28.
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What
do you means by ‘Forthwith’ Under Section
13 for dissolution of a society under the Societies registration
Act 1860?
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Ans.
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‘Forthwith’ according
to the dictionary means, ‘immediately, at once, without
delay or interval’. In Bidya Deb Burma Vs District
Magistrate Tripura, Agartala AIR 1969, the court interpreted
from the case of Keshav Nilakanth Joglekar Vs Commissioner
of Police Greater Bombay, (the Constitution Bench of Supreme
Court) that “When a Statute requires that something
shall be done ‘forthwith’ or ‘immediately’ or
even ‘instantly’, it should probably be understood
as allowing a reasonable time for doing it”.
Therefore ‘Forthwith’ does
not mean a precise time but should be within a reasonable
time without avoidable and unreasonable delay.
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Q29.
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What
do you means by ‘Principal Court of Original Civil
Jurisdiction’ Under Section 13 for dissolution of
a society under the Societies Registration Act 1860? |
Ans.
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‘Principal
Court of Original Civil Jurisdiction’ under Section
13 of the Act means the Principal Court of Civil Jurisdiction
of the District where the Registered Office of the society
is situated. In case of any dispute relating to adjustment
of affairs of a society in case of dissolution, the matter
has to be referred to the Principal Court of Civil Jurisdiction
of the District where the Registered Office of the society
is situated.
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Q30.
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How
can a society be dissolved? |
Ans.
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A
Society can be dissolved by: |
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its
members, |
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the
Registrar, |
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the
Court or |
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by
the Government. |
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Q31.
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Under
what circumstances can a registrar dissolve a society? |
Ans.
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The
registrar of societies (as per the respective state acts)
can dissolve a society. These circumstances may be:
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The
society has done unlawful activities |
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According
to the memorandum of association governing the society: |
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• Society’s
object clause has not been fulfilled
• Office of the society has ceased to be in state of registration
• Members of the society are below the required number of seven
• Society has ceased to function for a particular period of time
• Society has been declared insolvent(not able to pay its liabilities) |
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Society’s
activities are against the Governmental or the state
policy |
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Society
has become insolvent |
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Society
has contravened any law or the provisions of the Societies
Registration Act 1860 |
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Q32.
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When
can a court dissolve a society? |
Ans.
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Section
25 of West Bengal Act gives the provisions for dissolution
by Court where the court may on an application of the registrar
or on the application of not less than one tenth of the
members, make an order for the dissolution of a society
in the following cases:
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If
there is a contravention of the provisions of the Societies
Act by the society. |
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If
the number of members are below seven. |
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If
the society has ceased to function for more than three
years. |
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Society
is unable to pay its debts or meet its liabilities. |
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If
it is proper that the society should be dissolved. |
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Q33.
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Can
a member of the society receive profits? |
Ans.
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It
is specifically stated under Section 14 of the Societies
Registration Act (corresponding to the Section 30 of the
Literary and Scientific Institutions Act 1854 (English)
) that members are not to receive profit.
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