Voluntary Action & NGO Management Unit III
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Questions and Answers

What is the general definition of an organization?

An organization is defined as people who work toward a common purpose.

What are the defining characteristics of an organization?

  • A common purpose. (correct)
  • Meeting informally.
  • Large membership.
  • Rules and procedures. (correct)
  • Division of labor. (correct)
  • A formal structure. (correct)
  • A structure and hierarchy. (correct)

    • What is the primary purpose of a nonprofit organization?

  • To provide employment.
  • To serve the community. (correct)
  • To generate revenue.
  • To conduct research.

    • Why are articles of incorporation, corporate bylaws, and meeting minutes important for nonprofits?

    <p>The IRS requires nonprofits to have these documents in case they are ever questioned by the government.</p> Signup and view all the answers

    What is a common example of a nonprofit subgroup?

    <p>Volunteer team.</p> Signup and view all the answers

    What is the definition of an association?

    <p>An association is a group organized for the pursuit of a common interest or group of interests.</p> Signup and view all the answers

    Associations can only be formed formally.

    <p>False</p> Signup and view all the answers

    What is the main purpose of an association?

    <p>To connect people who share a common interest.</p> Signup and view all the answers

    What are some examples of associations?

    <p>Sports teams.</p> Signup and view all the answers

    What are the characteristics of an association? (Select all that apply)

    <p>A group of people.</p> Signup and view all the answers

    What does 'co-operative spirit' refer to in the context of associations?

    <p>This refers to a commitment among members to work together towards common goals, fostering cooperation and mutual support.</p> Signup and view all the answers

    Membership in an association is mandatory.

    <p>False</p> Signup and view all the answers

    What are the aims of an association?

    <p>To assist members in achieving their organizational objectives, promote the development of an international curriculum, provide opportunities for professional development, and meet the needs of the labor market.</p> Signup and view all the answers

    What are some of the objectives of an association?

    <p>To help decision makers understand and cope with challenges, create a better educated public, establish a library of articles, assist local government, bring together working groups, support a discipline of analysis, and work in co-operation with other groups.</p> Signup and view all the answers

    Which of the following is NOT a key difference between an organization and an association?

    <p>Organizations must have a written document while associations do not need a written document.</p> Signup and view all the answers

    What are some key similarities between organizations and association?

    <p>Both may have a leader.</p> Signup and view all the answers

    Nonprofits are considered organizations.

    <p>True</p> Signup and view all the answers

    How can an association be thought of as a user's manual for a company?

    <p>Articles of association define the company's purpose, outlining the methods necessary for day-to-day operations.</p> Signup and view all the answers

    What does 'ultra vires the company and void' mean?

    <p>This signifies that if a company acts outside the scope of its memorandum of association, its actions are invalid and void, potentially leading to legal consequences.</p> Signup and view all the answers

    What is the purpose of the name clause in a memorandum of association?

    <p>The name clause specifies the title of the company, indicating whether it is a private limited company, a government company, or a company under section 8 of the act.</p> Signup and view all the answers

    The registered office clause in a memorandum of association specifies the exact location of the company's branch.

    <p>True</p> Signup and view all the answers

    What is the main purpose of the object clause in a memorandum of association?

    <p>It outlines the company's motto, activities, and operations, explaining the purpose and scope of its existence.</p> Signup and view all the answers

    What is the main focus of the liability clause in a memorandum of association?

    <p>It specifies the nature of liability for the company's members, whether it is limited or unlimited, and how it is determined.</p> Signup and view all the answers

    What is the purpose of the association clause in a memorandum of association?

    <p>It summarizes the primary idea and goal of the company's owner, capturing the intended vision and ambition of the entity.</p> Signup and view all the answers

    Which of the following is NOT a change that will lead to the alteration of a company's memorandum of association?

    <p>Change in the company's financial statements.</p> Signup and view all the answers

    What are the steps involved in the process of altering a memorandum of association?

    <p>The process involves holding a board meeting, a general meeting, filing a special resolution with the ROC, and finally obtaining approval from the ROC.</p> Signup and view all the answers

    What is the primary function of a memorandum of association?

    <p>To define the relationship between the company, its shareholders, and third parties.</p> Signup and view all the answers

    What is the primary function of an article of association?

    <p>To define the relationship between the company and its internal management.</p> Signup and view all the answers

    Memoranda of association and articles of association are drafted according to the Companies Act 2013.

    <p>True</p> Signup and view all the answers

    A memorandum of association has higher authority than articles of association.

    <p>True</p> Signup and view all the answers

    Which of the following is NOT a common component of an article of association?

    <p>Marketing strategy.</p> Signup and view all the answers

    What is the primary purpose of the FCRA?

    <p>To regulate the acceptance of foreign funds by organizations operating in India, ensuring such contributions are used ethically and do not pose a threat to national security.</p> Signup and view all the answers

    What are some of the difficulties that the FCRA addresses by removing some inadequacies and practical difficulties?

    <p>Possible difficulties include misuse of foreign funds for political purposes, the lack of transparency in the source and use of such funds, and the potential for foreign influence on the decision-making processes of organizations.</p> Signup and view all the answers

    The FCRA applies only to organizations registered in India.

    <p>False</p> Signup and view all the answers

    Which of the following is NOT covered under the FCRA?

    <p>Government agencies.</p> Signup and view all the answers

    What is the significance of bylaws in an organization?

    <p>Bylaws are internal rules that guide the organization's operations, ensuring a transparent and efficient structure for decision-making and governance.</p> Signup and view all the answers

    The purpose of the NGO in the bylaws is typically a restatement of the mission statement but can include additional details.

    <p>True</p> Signup and view all the answers

    What types of meetings are addressed in bylaws?

    <p>Bylaws address both internal meetings for the organization and external meetings for the public and stakeholders.</p> Signup and view all the answers

    What is the purpose of 'voting qualifications' in bylaws?

    <p>Voting qualifications determine who is eligible to vote in elections for the board or other decision-making bodies within the organization.</p> Signup and view all the answers

    Bylaws are typically fixed and cannot be amended.

    <p>False</p> Signup and view all the answers

    Why is it beneficial to review local government rules for society registration?

    <p>Local government rules provide specific regulations and guidelines for forming and operating societies within a particular state or region, ensuring compliance with legal requirements.</p> Signup and view all the answers

    What information needs to be included when an application for society registration is filed?

    <p>An application for society registration should include details such as the members, society's name, registered office, objectives, rules, affidavits, NOCs, power of attorney, ID proofs, and registration fees.</p> Signup and view all the answers

    The registrar for society registration will always approve the name proposed by the society.

    <p>False</p> Signup and view all the answers

    What is the role of the court in the context of a society?

    <p>The court primarily intervenes to address issues of unfairness, oppression, or abuse of power, ensuring that societal operations remain within the bounds of ethical conduct and legal principles.</p> Signup and view all the answers

    What are the three individuals involved in the creation of a trust?

    <p>The settlor.</p> Signup and view all the answers

    What is the primary difference between a public and a private trust?

    <p>A public trust serves the benefit of the broader community, while a private trust focuses on the specific needs of individuals or families.</p> Signup and view all the answers

    Private trusts can only be established for the benefit of direct family members.

    <p>False</p> Signup and view all the answers

    What is the purpose of a trust deed?

    <p>A trust deed serves as a legal document that outlines the terms and conditions of the trust, clarifying the responsibilities of the trustee and the intended benefits for the beneficiaries.</p> Signup and view all the answers

    The registration of a trust requires a copy of the property's registration, utility bills, and ID proof for both the trustee and the trustor.

    <p>True</p> Signup and view all the answers

    What are the two main categories of companies?

    <p>Public and private.</p> Signup and view all the answers

    What is the primary distinction between a public and a private company?

    <p>A public company's shares are available for trading on the stock market, allowing the public to invest in the company, while a private company's shares are limited to a select group of investors.</p> Signup and view all the answers

    What is the main characteristic of a company limited by shares?

    <p>The owners bear limited liability for company debts, with each share representing a specific portion of liability.</p> Signup and view all the answers

    Companies limited by guarantee are primarily focused on generating profits for their owners.

    <p>False</p> Signup and view all the answers

    What is the purpose of a section 25 company?

    <p>A section 25 company is formed without the intention of generating profits; it is dedicated to a specific social or charitable purpose, operating as a non-profit entity.</p> Signup and view all the answers

    A section 25 company requires a license from the Central Government to operate.

    <p>True</p> Signup and view all the answers

    What are the two key conditions for obtaining a license for a section 25 company?

    <p>The company must intend to apply its profits or income for promoting its objectives, prohibiting dividend payments to its members, and it must be essential to form a limited company for its specific purpose.</p> Signup and view all the answers

    What are the key steps involved in the process of registering a section 25 company?

    <p>The process involves applying to the Central Government for a license, fulfilling the required conditions for the license, and then applying to the registrar of companies for incorporation, filing the necessary documentation.</p> Signup and view all the answers

    What is the definition of a trade union?

    <p>A trade union is a combination or association of persons based on mutual confidence, understanding, and cooperation, established for the purpose of safeguarding common interests.</p> Signup and view all the answers

    Trade unions can only be formed by groups of workers.

    <p>False</p> Signup and view all the answers

    A trade union must be a permanent combination.

    <p>False</p> Signup and view all the answers

    What are the two main purposes for which trade unions are formed?

    <p>Firstly, to regulate relations between workers and employers, workers and other workers, or employers and other employers. Secondly, to impose restrictive conditions on the conduct of any trade or business and include any federation of trade unions.</p> Signup and view all the answers

    At least ten members are required to form a trade union.

    <p>False</p> Signup and view all the answers

    What are the two key conditions that must be met to register a trade union?

    <p>The trade union must have at least 10% or 100 workers employed in the establishment, whichever is less, and it must have at least seven members who are workers employed in the establishment.</p> Signup and view all the answers

    What information is required in an application for trade union registration?

    <p>The application must include details such as the names, occupations, and addresses of the members, the trade union's name and head office address, and the titles, names, ages, addresses, and occupations of the office bearers.</p> Signup and view all the answers

    Which of the following is NOT included in the general rules of a trade union?

    <p>The company's financial performance.</p> Signup and view all the answers

    What are the key steps involved in appealing the rejection of a trade union registration application?

    <p>An appeal against rejection must be filed within 60 days of receiving the commissioner's order, and it should be submitted in form 36.</p> Signup and view all the answers

    Study Notes

    Voluntary Action & NGO Management (Vocational/Skill Development) UNIT III

    • Voluntary Action & NGO Management is a vocational/skill development unit.
    • Organizations are defined as groups of people working towards a common purpose, whether large or small, and meeting formally or informally.
    • Organizations typically have a structure, defining leader roles, responsibilities, and division of labor.
    • Policies and procedures guide organizational operations and function.
    • Non-profit organizations and corporations are examples of organizations.
    • Non-profits aim for community benefit, while corporations aim for revenue generation.
    • Non-profits are legally required to hold articles of incorporation, corporate bylaws, and meeting minutes.
    • Organizations often have subgroups (departments) like Human Resources, Accounting, Shipping and Receiving, Marketing, Operations, and IT.
    • Organizations often have a hierarchy within their departments, with managers, supervisors, and workers, and frequently have subgroups in teams or committees.
    • Examples of organizations include nonprofits, neighborhood associations, charities, foundations, unions, corporations, and school groups.
    • An association is a group of people organized for a common interest or group of interests.
    • Associations have existed for centuries to connect people with similar interests like farmers, quilters, and athletes.
    • Associations generally have a written document, such as articles of association, outlining their creation and governance.
    • A minimum of two people must sign the document, which must be dated to be considered valid.
    • Various examples of associations include homeowners, condominium associations, social advocacy groups, sports teams, family groups, coworkers, reading groups, bingo groups, prayer meetings, and sewing circles.
    • Associations have specific characteristics like voluntary membership, a degree of permanence, some regulations, common aims and objectives, organization, a group of people, and a limited significance.

    Organization - Introduction

    • An association is essentially a group of people with common objectives.
    • Organization refers to an organized group of people working toward a common interest, in contrast to a general group.
    • Common aims and objectives are crucial for an association.
    • Rules and regulations govern organizational interactions and member conduct.
    • Cooperation and a shared interest propel an association's effectiveness.

    Association - Introduction

    • Associations are created to follow a common interest.
    • Religious groups, athletic organizations, social cause groups, and more are common examples of associations.
    • Associations have a written document, such as articles of association, that officially establishes their existence.
    • At least two people must sign the document to confirm organization and must also be dated.
    • Definitions of association often emphasize the collective effort toward a common interest or set of interests.
    • The members are related by their organization focused on the stated interest of the organization.

    Characteristics of Association

    • Voluntary membership is a key characteristic of associations; individuals join due to interest or purpose.
    • Permanence varies, from temporary to permanent organizations.
    • A variety of legal statuses exist among associations.
    • Associations are overseen by office bearers, with terms, guidelines, and responsibilities.
    • They generally aren't naturally occurring but are explicitly created.
    • Associations often serve specific interests of their members.
    • Their significance and impact on individuals and society are limited in scope.

    Association - Aims

    • The association supports its members in pursuing their organization's aims and goals.
    • It promotes a universal curriculum for business education.
    • It creates opportunities for staff development from member institutions.
    • The association intends to meet labor market needs for employees with appropriate skills, business knowledge, and linguistic capabilities.

    Association - Objectives

    • Associations aim to assist decision-makers by understanding social and technological challenges.
    • They strive for a more informed and engaged public which understand public interest and good decision making..
    • Associations also aim to build a library, facilitate discussions, support local and government decision making.
    • They aim to bring together various groups to share knowledge and expertise.
    • They aim to expand and enhance analytical skills relating to the particular area of focus of the organization.
    • They aim to collaborate with various groups and associations with related interests.

    Organization vs. Association

    • Organizations are entities with members, while associations are groups with members.
    • Members of organizations may incur liability for organizational losses, while members of some associations don't.
    • Organizations typically have clear leadership structures, while associations may not.
    • Organizations have a specific mission, while associations may primarily focus on resource sharing, collaboration, or similar communal activities.
    • Organizations typically hold formal meetings, while associations may have informal gatherings.
    • Organization meetings are usually held in public or private locations.
    • Association's meetings may be held at a member's homes or other locations.

    Organization and Association - Similarities

    • Organizations and associations alike need at least two individuals to function effectively.
    • Both share a common goal or purpose, aiming to achieve desired outcomes.
    • Regular meetings and activities are common characteristics of both organizations and associations.
    • All members of an organization or association are generally motivated to participate in the common goal or purpose.
    • Both must legally operate within established societal guidelines.

    Nonprofits: Association or Organization?

    • Nonprofits are considered organizations because they require a board of directors for legal tax-exempt status
    • Nonprofits have organizational structures and leaders.
    • Nonprofits operate with the intent to further their mission or specific purpose or goals.
    • Nonprofit board meetings are usually held in public or private locations.

    Articles of Association

    • Articles of association outline regulations for a company, defining operations and purpose.
    • The document details tasks, appointment processes for directors, and handling of financial records.
    • It acts like a user's manual for operational procedures, guiding day-to-day activities, tasks, and policies.
    • Articles include information on company name, objectives, organizational structure, provisions for shareholder meetings, etc.
    • Companies use Articles of Association to register with the Government and obtain legal status.

    Memorandum of Association

    • A group unites to create a company with a defined purpose, often pursuing profits.
    • An application to the Registrar of Companies, accompanied by specified documents, is required for registration.
    • Companies use memoranda of association as part of their registration process to define their purpose, operation, and legal standing.
    • A memorandum of association clearly states all the powers and rights of the stated company and its members.
    • It defines the company's scope, operations, and governance.
    • It is a public document.
    • There are various different types of memoranda of association, categorized by factors such as company structure, types, or forms.

    Object of Registers

    • A company's memorandum of association (MoA) defines its purpose.
    • MoAs outline the scope of operations, setting limits for the company.
    • MoAs are crucial public records; individuals interacting with the company are expected to understand them,
    • MoAs are essential for maintaining consistent company operations and procedures.
    • Any change of company procedures requires an alteration of the MoA.

    Types of MOA

    • Various types of memoranda of association (MoAs) exist for different company types, differentiating by factors like share capital and limited versus unlimited guarantees.

    Contents of MOA

    • The name clause specifies the company title's format (e.g., "private limited").
    • The registered office clause states the location of the registered office precisely, including the branch if relevant.
    • The object clause outlines the organization's core mission and activities.
    • Appropriate changes to the name or purpose of the organization need to be made within six months to avoid penalties.
    • The capital clause identifies the capital invested and how shareholders participate.
    • The liability clause defines the extent of member responsibility (e.g., limited or unlimited liability).
    • The association clause specifies the overall goals and purpose intended by the organization.

    Alteration/Amendment of MOA

    • Modifications to the memorandum of association (MoA) require specific procedures, including board meetings and shareholder approvals.
    • Companies must file any necessary changes with the registrar of companies within a certain timeframe.
    • Common reasons for MoA alteration include renaming the company, changing the location of the registered office, modifying company objectives, updating the liability of members, or adjusting the authorized capital.

    The Procedure of Alteration of MoA

    • Companies alter their memoranda of association by holding board meetings, general meetings, and requesting formal alterations.
    • Formal documents, such as special resolutions, must be submitted to the competent authorities.
    • These resolutions must be approved by the relevant authorities and are publicly documented.

    Memorandum of Association V/s Articles of Association

    • Memorandum of association (MoA) defines the relationship between the company and external parties, outlining the company's legal standing.
    • Articles of association (AoA) define the relationship between the company and its internal management, providing rules and procedures for governance.
    • Sections 4 and 5 of the Companies Act, 2013, govern the MoA and AoA, respectively.
    • MoAs hold a higher legal standing over AoAs.
    • The MoA and AoA delineate appropriate company structure, operations, and member rights under the applicable laws.

    Memorandum of Association V/s Articles of Association - Structure

    • MOA is structured into 6 different clauses, covering information such as name, address, objectives, liability, and capital structure.
    • AoA's format is categorized into different formats, specifically structured for varying company types (e.g., limited by share, unlimited).

    NGOs' formation and funding

    • NGOs can register as trusts, societies or companies under specific acts.
    • Funding for NGOs can come from several sources including the Indian government, international sources and private funding.
    • There is a legal framework for registration, and this involves appropriate legal compliance to be in accordance with stated regulations.

    Law Applicable to NGOs

    • Different acts apply to NGOs; these include the Society Registration Act, Indian Registration Act, Registration of Trusts, Charitable and Religious Trusts Act, Religious Endowments Act, and Indian Trust Act.
    • These acts cover various aspects of registering, regulating, and governing NGOs.

    NGOs registration procedure

    • NGOs can be registered in three ways: Through trusts under the Indian Trust Act of 1882, through societies under the Societies Registration Act of 1860, or as companies under the Companies Act of 2013.
    • This reflects a variety of ways for NGOs to be registered, and registered status is beneficial for legitimacy, accountability, regulatory compliance, and receiving donations.

    Registration Procedure

    • The registration process generally involves basic registration, income tax registration, FCRA registration, and registration with the ministries.
    • It also involves obtaining approvals from relevant authorities.

    Highlights of Letter from Department

    • Documentation of income for charitable activities, including details of beneficiaries.
    • Undertaking that there will be no violation of provisions of sec 2(15) of IT act.
    • Detailed copy of MoA (Memorandum of Association).
    • Documents verifying ownership.
    • Outline of charitable activities and projected plans for the next two years.
    • Activities conducted since inception, backed by supporting documents.
    • Justifying registration under sections 12AA and 80G of the act.

    Registration under sections 12A and 80G

    • All voluntary organizations must register for tax exemptions under the Income Tax Act.
    • This registration involves the relevant authorities, and appropriate documentation.

    Procedure for Registration (Section 12AA)

    • An application to the Income Tax department must be filed, along with a covering letter.
    • Form 10A, specifying details of the trust/institution seeking registration, must be included with the application to the relevant authority.
    • Form 10G is also required to indicate power to issue the penalty and contempt for noncompliance.
    • Relevant MoA (Memorandum of Association) and trust deed (if applicable) are also needed.
    • Resolution for authorized individuals, records of ordinary and special meetings.
    • Three-year audited accounts from the accounts department are to be included.

    Society Registration Act, 1860

    • The act outlines the registration process for societies.
    • Registrar may issue a public notice if there are any objections.
    • Transfer of immovable property requires court approval for societies.
    • Multi-state societies must register to use funds.

    Society Registration - Purposes

    • Societies can be formed for charitable causes, military orphan funds, promoting science and literature, fine arts, and political education.
    • Facilitation for the development of libraries and museums under the scope of the act also fits within the purpose of the act.

    Society Registration Procedure

    • Review of state government rules related to registration is necessary.
    • Members, society name, registered office, and objectives should be determined.
    • Create an official memorandum of association (MoA) according to legal requirements.
    • Society members are needed to sign the MoA and provide proof of address and identity.
    • Submit the MoA, rules, and documents to relevant authorities.
    • Documents will require the correct format.

    Society Registration Procedure - Requirements

    • Covering letter is a key requirement.
    • The MoA is a necessary component, along with rules, and regulations.
    • An affidavit is vital, stating the president's and other relationships to any members of the society.
    • Clear evidence of the registered office location, required by the governing authorities is necessary
    • Evidence of power of attorney and identity documents for all involved individuals is a key requirement to register the society.
    • Registration fees are needed for registration.

    Society Registration Procedure - Name of Society

    • Society names must conform to regulations and should not already be in use, according to regulations preventing misuse.
    • Names containing words related to government entities, ministries, banks, etc. are usually restricted.

    Society Registration Procedure - MoA

    • The MoA is a recognized step in registering a society and is discussed in previous slides.

    Society Registration Procedure - Other Procedures

    • The court oversees fairness and appropriate exercise of power within societies.

    Creation of Trust - Types

    • Trusts are formed when a trustor transfers property to a trustee to benefit the beneficiaries.
    • Trusts need trustor, trustee, and beneficiary.
    • The trustee executes trust activities according to state laws and has authority over trust property.

    Trust's Classification

    • Public trusts for the benefit of the community or general public are further categorized into charitable trusts and religious trusts.
    • Private trusts primarily benefit specific individuals or families.

    Documents Needed for Trust Registration

    • Trust deed on a stamp is required.
    • Copies of property registration are important.
    • Proof of address and identity is usually necessary .
    • Utility bills or other service records are needed to verify the property address.
    • These documents help demonstrate legitimacy of the trust and compliance with state or local regulations.

    Companies

    • Companies can be categorized as incorporated or unincorporated.
    • Further categories of companies differentiate by liability levels.

    Company's structure

    • Company structure is categorized by liability considerations.
    • Distinctions are categorized by the level of liability whether limited or unlimited and whether based on shareholders or the guarantee of members.

    Association Not For Profit

    • Associations not focused on profit are not required to register as a company unless they have limited liability.

    Sec 25 of the Companies Act

    • The act specifies conditions for granting a license for not-for-profit companies.
    • Companies intending to reinvest profits or other income for charitable causes can apply for a license under section 25.
    • Companies must show their intention not to distribute profit as dividends and must use their profit for the purposes stated in the MoA.

    Procedure for registration under Section 25

    • Promoters apply to the central government for a license.
    • The promoters must meet specific conditions for the license to be granted.
    • Companies then register with the Registrar of Companies.

    Trade Unions Act, 1926

    • A trade union is an association of workers or employers based on shared interests, cooperation, and mutual trust.
    • This type of association does not necessarily have to be permanent.

    Purposes of Trade Unions

    • Unions are typically formed to regulate relations between employers and workers, to set conditions for trade, or to establish businesses or labor unions.

    Mode of Registration (Trade Unions)

    • Seven or more members may apply for trade union registration, adhering to legal guidelines.
    • Minimum 10% or 100 of the workplace workers, whichever is lower, need to be members of the union at the time of application.
    • Unions can register with appropriate regulatory bodies under the terms of the Act.

    Application for Registration (Trade Unions)

    • The application includes members' details, names, occupation, contact information.
    • The application also includes details of the union, its head office, and office bearer information (title, name, age, address, and occupation).
    • The Act prescribes specific requirements for applications for union registration.

    Provisions to be contained in Trade Union Rules

    • The name of the trade union is necessary.
    • The entire range of the objectives of the trade union must be stated; why it was formed.
    • The purposes for which the general fund of the trade union will be used should be stated.

    The Department's Decision

    • The governing body may accept or reject the registration or application proposal.
    • Individuals have the right to appeal a rejection decision within 60 days.
    • The appeal should be in a specific required format or form.

    Foreign Contribution Regulation Act (FCRA)

    • The Act aims to prevent misuse of foreign funds by controlling the flow of foreign funds.
    • It controls foreign contributions and activities related to organizations, including trusts, societies, companies, etc.
    • The FCRA defines foreign contributions and foreign sources.

    FCRA Provisions

    • The FCRA's main objectives are to prevent anti-national activities using foreign funds and to establish control over the source and nature of financial transactions and sources for contributions.
    • Applicable to all organizations in India.
    • It governs the handling of foreign contributions to organizations.

    By-laws

    • By-laws are internal documents for NGO operations.
    • They clearly detail the NGO's purpose, membership procedures, meeting frequency, and other operational aspects.
    • They also include governance aspects for the NGO's board, including board members, responsibilities, nomination, and election processes.
    • They typically address governance and operational requirements.
    • Details on record-keeping, financial reporting, amendments, dissolution, and a commitment to fair and transparent governance.

    Renewal of Registration

    • NGOs need annual government permission to operate.
    • Guidelines and procedures for renewal are usually similar across various types (trust, society, company).

    Documents Needed to Renew an NGO as a Society

    • The current name of the society is a key requirement.
    • Identity documents for all society members are needed for renewal.
    • Proof of ownership of premises must be submitted.
    • Copies of both an MoA and bylaws should be submitted.

    Documents Needed for Renewal (Trust)

    • Documents specifying the trust's objectives are required.
    • Proof for trustees will be required, along with the most recent photographs.
    • The trust deed is needed to support the documentation of the trust.
    • A copy of the Trust Deed, certified by a registrar's office and supported by copies of required documents (photocopies, signatures, witnesses) is required.
    • Proof of valid identity and proof of address, such as utility bills or government-issued identification, are needed for trustees and the trustor.

    Documents Needed for Renewal (Company)

    • Company directors' identification and address documentation should be provided.
    • Copies of utility bills to verify physical address are needed.
    • Filing of INC-14 & 15 declarations with the authorities.
    • The MOA and AoA are central to registration.
    • Necessary financial documents should be submitted as is necessary based on the instructions.
    • All required proof of compliance and proof of fulfillment of conditions in the act should be submitted.

    Necessity for NGO Registration

    • Registered organizations have increased credibility and attract more donors.
    • Renewals enhance a local NGO's legitimacy and capacity to expand.
    • Registered NGOs usually experience increased volunteer involvement due to trustworthiness.
    • More donors lead to more volunteers due to improved authenticity.
    • Registered organizations have added credibility and attractiveness to potential funding and investment opportunities.
    • Tax exemptions are available for registered organizations, enhancing financial management and promoting investment in charitable projects.

    Powers of Registrar of Companies

    • Registrars' powers vary greatly and can include extending AGM timeframes.
    • They have the authority to inspect company records and request additional information.
    • They can also seek specific details from the companies and can hold them accountable for the accuracy of the information provided.
    • They can issue orders about preserving or reviewing documents and records belonging to a company's procedures.
    • They can also remove companies from official company registers when necessary.

    Committee's Duties

    • Committees manage society affairs, including legal claims, administrative rules, accounting, and annual general meetings.
    • Legal claims involve initiating lawsuits, defending lawsuits, and settling disputes.
    • Administrative rules involve establishing rules and policies for society operations.
    • Accounting includes maintaining financial records and fulfilling reporting requirements.
    • Annual general meetings involve organizing meetings of members.

    Core Duties of the Managing Committee

    • The committee collects fees (property, parking, services), manages funds (building funds, sinking funds), determines the rate of insurance for members, issues collection for late payments, and insures the property of the society.
    • The committee manages member communications, processes membership changes, and supports the society's documents (allotment letters, membership papers).
    • The committee handles member concerns, reviews complaints, and organizes society events, and maintains regular committee meetings.

    Operational Duties of the Managing Committee

    • The committee manages documents (attestation, leases, shares, certificates), property maintenance and renovations, service staff, applications for vendors, and operational aspects of society functions.
    • The committee enforces rules/policies, manages parking, and handles committee issues.

    Office Bearers

    • Key members, such as the Chairman, President, Member Secretary, and Treasurer, have specific responsibilities related to the overall functioning.

    Executive Committee Composition

    • The executive committee has a specific number of members ranging from (10–15), including the Chairperson, and excludes those appointed under other rules.
    • The secretary of the ministry of health is an ex-officio member of the committee.
    • The committee can also include individuals not part of the General Body, in accordance with rules.
    • Interim members can serve if a member resigns or is removed from the committee.

    Elections for the Executive Committee

    • Elections for committee members follow specific rules outlined in official guidelines.
    • Nomination committees formally submit recommendations to the general body.
    • The general body approves the selections.
    • Any committee member's resignation or removal does not affect any committees' function.
    • Specific provisions for elections of interim members are outlined in succession rules to ensure the timely replacement and functioning of the committee.

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