Society is an association established under the Societies Act of 1860, driven by altruistic purpose and comprising a minimum of seven members. In simple words, it means an institution that is working for the betterment of the community. They do not work with profit-centric intentions. They got legal recognition under the Societies Act as a registered society once they got society registration from the registrar. These societies are founded with various goals and intentions.
Societies enjoy legal recognition and operate through their members as their representatives. Societies are formed for charitable purposes only, not for making money. There are many importance and aspects of society registration in India like advancing science, encouraging art and literature, maintaining libraries, helping military orphans, sharing knowledge, running museums and galleries, providing help and aid to those individuals who are in need, promoting education, and any other causes that are approved by the Indian government. Few of the importance and aspects of society registration are discussed in the current blog.
Governing Law of Societies in India
Society Registration Act of 1860 is the governing law of the societies in India. It is one of the importance and aspects of society registration in India. Because without the knowledge of this act, one cannot register a society in India. It gives proper process, documentation, importance and aspects of society registration in India. Society Registration Act is an act that governs the registration of different types of societies like literary, scientific, and charitable societies. As per act mentioned above, societies should be made to improve the poor condition of the society. Mainly societies are established for the promotion of literature, science, or arts, or for the diffusion of knowledge, or for charitable purposes. Charitable purposes mean the following:
- Relief of poverty
- Education
- Advancement of religion
- Other purposes beneficial to the community not at large
Importance of Society Registration in India
Out of importance and aspects of society registration, importance are discussed below. There are several importance of society registration in India due to which people prefer to register a society for charitable purposes in India. Some of the common benefits of the society registration are given below:
Property of society how vested
Any property, whether movable or immovable, owned by a society registered under this Act, but not held by trustees, shall be considered as currently under the authority of the society’s governing body. In all legal and non-legal matters, this property can be referred to as belonging to the governing body of the society for their rightful ownership.
Suits by and against societies
Every society registered under the Societies Act may sue or be sued. But it will be in the name of the President, Chairman, Principal Secretary, or trustees of the registered society. Its authorized person will be liable for the wrong actions of the society. Similarly, they can help others who have done something wrong against the society. Whether it is about suit by the society or against the society, in both cases authorized person of the societies plays a very important role.
Recovery of penalty accruing under bye-law
If any pecuniary penalty is levied for the breach of any rule or bye-law of the registered society, such penalty can be recovered in any court which is having jurisdiction. Jurisdiction can be either with the court where society is registered or where the defendant lives.
No member is to receive profit after the dissolution
After the dissolution of any society that is registered under the Societies Act, debts and liabilities will be satisfied first. And after satisfying the liabilities and debts if anything that is profitable remains, then the same shall not be distributed among the members of the registered society. Instead, all of them shall be given to some other society that is working for the same cause.
File Memorandum with Registrar of Joint-stock Companies
The governing body of the society is expected to file with the Registrar of Joint-stock Companies a memorandum. That memorandum must show the name and object of the society, as well as the names, addresses, and occupations of the governing body. With all these, a copy of the rules and regulations of the society must be attached.
Aspects of Society Registration in India
There are many aspects of society registration in India. All these aspects are given under the Societies Act. These aspects help with the better management of the society. Out of importance and aspects of society registration, aspects are discussed below:
Memorandum of association and registration
Any seven or more persons associated with any such purpose given under section 20 of the Societies Act can form a society. Two important aspects of society registration are subscribing the names to a memorandum of association, and filing the MOA with the Registrar of Joint-stock Companies.
Memorandum of association
The memorandum of association shall contain the following things regarding the society in India:
- Name of the society
- The object of the society
- A copy of the rules and regulations of the registered society
- Name of the governor, directors. Committees etc
- Address of the governor, directors. Committees etc
Registration and fees
Once the file is submitted for the society registration with all the documents it will be verified by the registrar. After verification, if everything is correct, registration will be granted. Registration fees must be submitted to the registrar because without submitting registration fees registration is not possible.
Annual General Meeting
It is one of the legal compliance of every registered society to have an annual general meeting. In this meeting, maximum participation of the members is expected. In this meeting, various problems and issues regarding the society will be discussed. Any member who wants to discuss any new thing can do so with the permission of the chairman of the society.
Alter, extend, or abridge Society’s purposes
Societies are free to alter, extend, or abridge their purposes or objectives. But they cannot do it informally. There is a proper process for the same which is given under the Societies Registration Act. Without completing the formal process one cannot alter, abridged, or extend the purpose or objective of the society.
Inspection of documents
When the file for the registration of society has been submitted to the registrar of societies, it has been examined by the registrar. Inspection of all the documents attached to the file is done very carefully. Even small mistakes regarding documents can either result in the cancellation of the application or clarification. Any mistake with respect to documents can delay society registration. Hence it is an importance and aspects of society registration to check all the documents twice before submitting the file for registration.
Conclusion
Society registration under the Societies Act of 1860 plays a crucial role for charitable organizations. There are many importance and aspects of society registration which has been discussed in the current blog. Registered societies must distribute remaining assets to other charities upon dissolution and maintain transparency through proper documentation and annual general meetings. They can adapt their objectives within the legal framework. Accurate document inspection during registration is vital to avoid delays. Some of the importance and aspects of society registration include legal recognition, establishing property ownership guidelines, enabling legal action under authorized representatives’ names, and facilitating penalty recovery for rule violations. Overall, society registration ensures accountability and structured operation for organizations dedicated to societal betterment in India.
