11) What are the things to be kept in mind while proposing a name of the society?
Ans. - things to be kept in mind while proposing a name for the society are :
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 connsection with Government of India, or Government of State or any connection with legal authority
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.
There is prohibition of use of any name, emblems, official seals specified under the Names and Emblems Act without permission of the appropriate authority.
There is prohibition of the use of the name of the national heroes or other names mentioned in the Names and Emblem Act, 1950.
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.
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
12) Who all can form a society?
Ans. - 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of association, and filing the same with registrar of Joint Stock Companies (The word Joint Stock Companies has been replaced by respective state acts as either Registrar of Societies or Inspector General of registration or as the respective State Act may specify) form themselves into a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".
13) What is the eligibility to form a society?
Ans. - Apart from individuals the following persons are also eligible for subscribing to the memorandum of the society :
Foreigners can subscribe to the memorandum of the society.
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.
Limited company :
Company can subscribe to the memorandum of society
Registered society :
A registered society can subscribe to memorandum of association of proposed society.
14) What is the purpose for which a society can be formed?
Ans. - According to Section 20 of the Societies registration Act 1860 the society may be registered for the following purpose :
1) Grant of charitable assistance
2) Creation of military orphan funds
3) Societies established at the general presidencies of India
4) 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.
15) What are the steps for alteration, extension or abridgement of the aims and objectives of a society?
Ans. - 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 :
1. Submission of the proposal by the governing body to the members of the society
2. 10 days notice to members about holding of a special meeting,
3. Convening a special meeting for the consideration of the proposal,3.Convening a special meeting for the consideration of the proposal,
4. Approval of the proposal by 3/5th of members,
5. Convening second special meeting after a month, and
6. Confirmation by 3/5th of members present at the second special meeting
16) What is the procedure for change of the name of the society?
Ans. - In general, various state acts under section 12,12A,12B give the following procedure for change of the name of the society :
1. Convene a general meeting for the purpose of the change of the name
2. A resolution should be passed by a majority
3. 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.
17) What are the books of accounts to be maintained by a society?
Ans. - Generally the following books of account to be maintained by the society on Single Entry/Double Entry basis are:
1. Cash Book/Bank Book giving the daily receipts
2. Voucher files
4. Receipt books
18) Should a society get the books of accounts audited by a society?
Ans. - 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.
19) In which form should a society maintain its books of accounts?
Ans. - 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 :
1. Cash Basis of Accounting
2. Accrual Basis of accounting
3. Hybrid/Mixed basis of Accounting
20) What are the specific rules for Accounting and Audit of Foreign Contribution received by a registered society under the FC(R) A?
Ans. - 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 :
1. an account of any foreign contribution received by it, and
2. a record as to the manner in which such contribution has been utilized by it.
Rule 8 of the Foreign Contribution Regulation (FCR) Rules 1976 states that :
A separate set of accounts and records shall be maintained, exclusively for foreign contribution received and utilized-
(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;
(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;
(c) In Form FC-7, where the foreign contribution relates to foreign securities.
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.
21) What do you means by 'Forthwith' Under Section 13 for dissolution of a society under the Societies registration Act 1860?
Ans. - '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.
22) 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. - 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.
23) How can a society be dissolved?
Ans. - A Society can be dissolved by:
1. Its members,
2. The Registrar,
3. The Court or
4. By the Government.
24) Under what circumstances can a registrar dissolve a society?
Ans. - The registrar of societies (as per the respective state acts) can dissolve a society. These circumstances may be:
According to the memorandum of association governing the society:
1. Society's object clause has not been fulfilled
2. Office of the society has ceased to be in state of registration
3. Members of the society are below the required number of seven
4. Society has ceased to function for a particular period of time.
5. Society has been declared insolvent(not able to pay its liabilities)
6. Society's activities are against the Governmental or the state policy
7. Society has become insolvent
8. Society has contravened any law or the provisions of the Societies Registration Act 1860
25) When can a court dissolve a society?
Ans. - 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:
1. If there is a contravention of the provisions of the Societies Act by the society.
2. If the number of members are below seven.
3. If the society has ceased to function for more than three years.
4. Society is unable to pay its debts or meet its liabilities.