societies

Society Act

The device of "society" was evolved to fulfill the need of an institution of non-commercial nature for promotion of numerous charitable activities like education, art, religion, culture, music and sport etc.
Associations, clubs or societies are formed to help further these causes because they work on non-profit basis.
The need for a legal entity, which could own, possess and manage the funds and assets for achievement of charitable or promotional objects, as laid down by donors, is the result of these endeavours. Asociety can be formed to achieve this end.
A society has been variously defined. It has been described as a company or association of persons (generally unincorporated) united together by mutual consent to deliberate, determine and act jointly for common purpose.

accounts

Purposes For Which A society Can Be Formed
A society can be formed for the promotion of literature, science or the fine arts or the diffusion of useful knowledge/political education or for charitable purposes. Section 20 of the principal Act specifies the following purposes for which societies may be registered under the Act:

1. Grant of charitable assistance
2. Creation of Military orphan funds
3. Societies established at the General Presidencies of India
4. Promotion of
5. Science,
6. Literature,
7. Fine Arts,
8. Instructions or diffusion of useful knowledge,
9. Diffusion of political education,
10. Foundation or maintenance of libraries or reading rooms,
11. Public museum and galleries of paintings,
12. Works of Act,
13. Collections of natural history,
14. Mechanical and philosophical inventions,
15. Instruments,
16. Designs

Formation For Profit Motive Prohibited
For a society registered under Societies Registration Act, 1860 or under the Section 25 of Companies Act, profit motive for personal use is disentitled. Whatever profit is made through the working of such a society, is accountable for, and is necessary to put back the profit in the working of such a society. The Companies Act under section 25 also prohibits any payment of any dividends of its members as part of profit earned.

Formation of society

Memorandum Of Association The memorandum of association is a document depicting and describing the objective of its existence and its operation. It defines the permitted range of enterprise. Care must be taken to draft this document so meticulously as to confer all powers on the society, which will be reasonably required for total attainment of the objects. Format Of Memorandum Of Association The Memorandum of Association as per the principle Act and Acts passed by various State Governments should contain: name of the society the objects of the society the names, addresses and occupation of the members of the governing body and the place of registered office of the society Guidelines For Drafting Memorandum Of Association Name Of Society The Registrar of Society may be approached with alternative names to ascertain whether the same are not undesirable and are not being used by other existing societies, It should not suggest obscenity or the decency and decorum It should not be likely to promote disharmony or feelings of enmity or hatred or ill-will between different religions, racial or regional groups or casts or communities It should not be identical or nearly resemble with the name of existing registered society It may end with the word ‘trust’ The name should be such that it does not attract the provisions of emblems and names (prevention of improper use) Act, 1950. It should not suggest or be calculated to suggest the patronage of the Government of India or connection with local authority or any corporation or body constituted by the government under any law for the time being in force. If it is proposed to give all India character to the society and words ‘all India’ or "Akhil Bharatiya" are to form part of name the society must have its constituents in atleast eight different states of Indian union. Words ‘cooperative’, ‘land development’, ‘reserve bank’, ‘union’, ‘state’, or any other word expressing or implying the sanction approval or patronage of the central or any state government and ‘Municipal’ or ‘Chartered’ or any word which suggests or be calculated to suggest connections with any municipality or other legal authority may not be used without the previous sanction in writing of such authority. The above provisions while selecting a name for the proposed society may guide the subscriber of the Memorandum of Association. The Registrar has the power to refuse registration if the name is inconsistent with these guidelines. Registered Office of the Society Even though the principle Act does not require the mentioned of the address of the registered office in the Memorandum of Association of the society, it is always better to mention the address of the registered office in the memorandum so that communication or notices may be sent to the society at such address. Objectives of the Society The society once formed has to act within the framework of the object clause. Any action of the society outside the framework of the object clause may be declared as beyond the permitted scope of the society besides being null and void. Therefore, it is advisable to draft the object clause with full caution and care keeping in view the present and future requirements of the society. Names & Address Of Governors, Councils, Directors of Committee Principle Act and the State Act require that the Memorandum should contain the names, addresses and occupation of the above captioned. Whether a member is called a governor or director or president, it does not affect his status. These office bearers have distinct existence from individual members. The administration and management of the society is interested to them jointly. Rules & Regulations of the Society The rules and regulations of the society are framed to guide the members of the governing body or the persons interested with the management of the society to regulate the functions of the society and for its internal management. The rules help the management in carrying out the objects of the society. They are binding on the members of the society. The rules, which are inconsistent with the provisions of the Act, are inoperative although registered with the Registrar of Societies. Signature on Rules & Regulations The rules should be signed by atleast three members of the governing body.

society