NGO Management - Unit III PDF

Voluntary Action & NGO Management (Vocational/Skill Development) UNIT III Organization- Introduction What Is an Organization? In a general sense, we define an organization as people who work toward a common purpose. Organizations can be large or small, and they...

Voluntary Action & NGO Management (Vocational/Skill Development) UNIT III Organization- Introduction What Is an Organization? In a general sense, we define an organization as people who work toward a common purpose. Organizations can be large or small, and they may meet formally or informally. Generally, organizations have some type of structure. The structure defines the leaders’ duties and describes how to divide the labor. Policies and procedures outline the organization’s rules and the way it functions. Overall, the primary distinctions of an organization are that it has a structure and some type of hierarchy. Nonprofits and corporations are good examples of organizations. The general purpose of a nonprofit is to serve the community, while a corporation’s purpose is to generate revenue. The IRS requires nonprofits to have articles of incorporation, corporate bylaws, and meeting minutes. If the government ever questions a nonprofit it must be able to produce these documents. Your board management solution provides an accessible platform where board members can access these documents at all times. Subgroups within Organizations: Mid-sized and large organizations often have sub-groups. For example, a business may have the following departments: – Human resources – Accounting – Shipping and receiving – Marketing – Operations – IT  Organization - Introduction There is commonly a hierarchy within each department such as managers, supervisors, and workers. Nonprofits can also have subgroups which are usually in the form of teams or committees. For example, nonprofit subgroups may include: – Board of Directors – Executive Committee – Standing or ad hoc committees – Fundraising teams – Marketing teams – Volunteer teams Examples of an Organization: Here are some examples of organizations: – Nonprofit – Neighborhood association – Charity – Foundation – Union – Corporation – School groups Association - Introduction What Is an Association? An association is “a group organised for the pursuit of an interest or group of interest in common”. Associations came into being to connect people who had a common interest in a topic or activity. Farmers, quilters, athletes, singers, and people with various religious faiths have been meeting informally for centuries to share information, practice skills, and learn from one another. In general, an association is a group of persons banded together for a specific purpose. The association must have – a written document, such as articles of association, – showing its creation. At least two persons must sign the document, – which must be dated. Definition of Association: As per R.M MacIver, “an organisation deliberately formed for the collective pursuit of some interest or a set of interests, which its members share”. According to Morris Ginsberg, an association is “a group of social beings related to one another by the fact that they possess or have instituted in common an organisation with a view to securing a specific end or specific ends”. Association - Introduction Examples of an Association: Here are some examples of types of associations: – Homeowners associations – Condominium associations – Social advocacy groups – Sports teams – Family groups – Coworkers – Reading groups – Bingo groups – Prayer meetings – Sewing circles  (6) Voluntary Membership (5) Co-operative (7) Degree of (8) Legal Status Spirit Permanent (4) Some rules and (9) Office Bearers regulations (3) Common Aims (10) Artificial and Objectives Nature (11) Limited (2) Organization Significance Characte ristics (12) Association performs a variety (1) A group of of functions for its People members as well as for society.  Characteristics of Association (1) A group of People: An association is basically a group of people who have some common objectives. Without a group of people no association can be formed. Hence a group of people is important. (2) Organization: Association does not refer to any ordinary group of people rather it refers to an organized group of people. In other words when a group of people organize themselves for the pursuit of some common interest an association is formed. Hence association is called as an organized group. There is certain rules which guide the people. (3) Common Aims and Objectives: It is the most important characteristic of association. Because association does not refers to a mere collection of human beings rather it refers to those group of individuals who have some common aims and objectives. All the members tries to achieve the common objectives. Hence association is a means to achieve common objectives. For example people having similar political objectives may join in a particular political party. (4) Some rules and regulations: We know association is an organised group. Every organised group or organization based on some rules and regulations. This body of rules and regulations governs and guides the relations of its members. These rules and regulations are either written or unwritten. Members or officials of an association obey these rules and works according to these rules and regulation. (5) Co-operative Spirit : Association is the result of cooperative spirit of some organised individuals. Hence the other name of association is co-operation. Here people work together with a cooperative spirit to fulfil some common purposes. This co-operative spirit helps them to realize their objectives. When this spirit is lacking there is no co-operation and no association. Characteristics of Association (6) Voluntary Membership : The membership of an association is voluntary in nature. People voluntarily join in an association to fulfill their desired aims and objectives. They can also withdraw their membership when they feel so. Similarly no one can compel them to be a member of any association. But he have to obey the rules and regulations of the association. (7) Degree of Permanency: The degree of permanency varies from association to association. Some association may be temporary where as some are permanent. There exists some long lived association like family or state. Similarly there exists some temporary associations like flood relief association. (8) Legal Status : Association is an organised social group which has responsible members. This shows that association has legal status. It can sue and be sued. Legal action can also be taken against the members as well as officials if disobey it’s rules and regulations. (9) Office Bearers : An association have office bearers who manage it’s affairs and guides it’s functioning. These office bearers are elected for a definite period of time by it’s members. (10) Artificial Nature: Association is an artificial creation. It is man made in nature. Some individuals deliberately form association to fulfill their common objectives. It does not grow naturally or spontaneously. There exists no natural bond between the members of association. Rather there exists a bond of self interest. (11) Limited Significance: Membership of an association has limited significance. Because association is a temporary group organised for the fulfillment of specific interests of its members. It has significance for its members so far it serves their purpose. When it fail to serves the purpose it lose it’s significance. (12) Association performs a variety of functions for its members as well as for society.  Association: Aims The aims of the Association are: To assist members in achieving their organisational aims and objectives associated with transnational activities. To promote the development of an international curriculum for all students undertaking studies in the field of business education. To provide opportunities for the staff employed in its member institutions to further their professional development. To meet the needs of the labour market for employees with appropriate business knowledge and linguistic and work related skills.  Association: Objectives These objectives include (but are not limited to) the following: – To help decision-makers understand and cope with the challenges that rapid technological and social change presents. – To create a better educated public able to recognise and support good decision-making in the public interest. – To establish a library of articles, and provide a forum for discussion of their content. – To assist local government, state and federal government, as well as private and not-for-profit, entities in their decision-making – To bring together the many groups, associations and disciplines that are currently working in the decision space so that their knowledge and perspectives may be shared and magnified – To initiate, grow and support a discipline of analysis. – To work in co-operation with all groups and associations who share our aims.  Organization vs. Association Organization Association An entity A group Members must be invited Anyone can join Members may be affected by losses Members don’t have liability for losses May not have a formal leadership Has a formal leadership structure structure Must work toward their mission Does not have a mission Has goals May meet to share resources only Holds formal meetings Holds informal meetings Typically meets in a public or private space May meet at someone’s home  Organization and Association Similarities Both must have two or more people in them Both have a common purpose and meet regularly Both are interested in a common purpose, goal, or aspiration Both may have a leader or may share leadership responsibilities Both are legally allowed to make a profit. In the case of nonprofits, any profit made is reinvested back into the organization.  Nonprofits: Association or Organization? If we stick to the true definitions of each term, nonprofits are considered organizations. Why? Because nonprofits are entities that – must have a board of directors to legally be considered a non-taxable body. As such, they have a structure and leaders. – Nonprofits are required to work toward the benefit of their missions. – The board sets goals for the organization to achieve. – While boards may meet at someone’s home, they generally hold meetings in public or private spaces.  Articles of Association Articles of association form a document that specifies the regulations for a company's operations and defines the company's purpose. The document lays out how tasks are to be accomplished within the organization, including the process for appointing directors and the handling of financial records. Articles of association can be thought of as a user's manual for a company, defining its purpose and outlining the methodology for accomplishing necessary day-to-day tasks. The content and terms of the "articles" may vary by jurisdiction, but typically include provisions on the company name, its purpose, the share structure, the company's organization, and provisions concerning shareholder meetings. Articles of Association  Articles of Association Definition of Articles of Association of a Company: As per Section 2 (5) of the Companies Act, 2013, Articles of Association have been defined as “The Articles of Association (AOA) of a company originally framed or altered or applied in pursuance of any previous company law or this Act.” Objectives of the Articles of Association Sec 5 of the Companies Act, 2103 states that the Articles of association: – Must include the regulations for the management of the company – Include matters that have been prescribed under the rules They do not prevent a company from including additional matters in the AOA or from doing any alterations as may be considered necessary for the functioning of the company affairs. Common Components of the Articles of Association: It includes the following: – Company name and form of business – Purpose of the company – Capital structure – Corporate governance – Administration of corporate records  Articles of Association Forms of Articles of Association (AOA) The forms for Articles of Association (AOA) in tables F, G, H, I, and J for different types of companies have been mentioned under Schedule I of the Companies Act, 2013. AOA must be in the respective form. Table F- AOA of a company limited by shares Table G- AOA of a company limited by guarantee and having a share capital Table H- AOA of a company limited by guarantee and not having a share capital Table I- AOA of an unlimited company and having a share capital Table J- AOA of an unlimited company and not having a share capital  Memorandum Of Association A group of people come together to form a company to achieve a specific purpose and is usually established to earn profits and is commercial in nature. An application must be filed with the Registrar of Companies (ROC) along with certain documents to register a company. One crucial document required to be submitted to the ROC while applying for registration is the company’s Memorandum of Association (MoA).  Memorandum Of Association Memorandum of association of the company deals with all aspects of that particular organisation such as the operations delegation of duties and policies, principles, etc. In the year 2013, section 399 of the companies act, designed to form an MoA, which is the public document. The memorandum of association definition explains that all the powers and the rights should be mentioned in this public document and no one should depart from the contract as well as not to violet the rules and regulations specified in the MoA. The Memorandum of Association or MOA of a company defines the constitution and the scope of powers of the company. The memorandum of association meaning refers to a document that defines a company’s objectives and scope of operations. It serves as a company’s constitution and governs its external affairs. Object of registering a Memorandum of Association or MOA The MOA of a company contains the object for which the company is formed. It identifies the scope of its operations and determines the boundaries it cannot cross. It is a public document according to Section 399 of the Companies Act, 2013. Hence, any person who enters into a contract with the company is expected to have knowledge of the MOA. It contains details about the powers and rights of the company. Under no circumstance can the company depart from the provisions specified in the memorandum. If it does so, then it would be ultra vires the company and void.  Types of MOA Based on their form, there are five main types of memorandum of association and they are as follows: Table A - if shares end up limiting a company. Table B - if a guarantee limits a company. Table C - if a guarantee along with share capital limits a company. Table D - if it is an unlimited company. Table E - if it is an unlimited company and has a share capital.  Contents of MOA Name Clause:- the name clause of moa specifies that the titles of all the private limited companies should end with 'private limited'. On the other hand, the titles of all the government companies should end with 'limited'. The companies under section 8 of the act, may need not to follow these rules. These companies can be identified by certain words like- – Association – Federation – Foundation – Confederation – Forum – Chamber – Council – Electoral trust. Registered Office Clause- indicates the state of the registered office where the organisation is located exactly. It is very important to specify the branch of the registered office where the organisation got registered. Object Clause: this segment of the memorandum of association explains the motto of the organisation and its activities. After a few months if there is a change in activities and operations, then the head of the institution needs to change the name of that organisation within 6 months. Otherwise, it will become an offence.  Contents of MOA Capital Clause: it concentrates on the capital invested by two or more shareholders of one company. We need to furnish the information regarding the amounts of share between the shareholders and how they formulated their rules etc. in the memorandum of association. Liability Clause: it is another important class of memorandum of association. Here we need to explain the liability of the members either limited or unlimited in the firm. If the company is limited by shares, it needs to specify the amounts held by the shareholders and whether they are paid or unpaid. All these aspects need to be mentioned clearly in the MOA. If the company is restricted by guarantees, the Moa specifies that all contributors with a bonus have equal rights. Even during the winding up of a company, both assets and liabilities which include all the expenses while demolishing the firm need to be distributed equally. Association Clause: It is the last but not least, class of the memorandum of association. Here one should mention the exact idea and goal of the owner of the company. Alteration/Amendment of MoA If there are any changes in the clauses of the MoA, the MoA must be altered or amended to include the changes. The following changes will lead to the alteration of the MoA: Change in the company name Change in location of the registered office Change in company objects Change in the nature of liability of company members Change in the maximum limit of authorised capital of the company or division of authorised capital  Process of Alteration/Amendment of MoA The process of alteration of the MoA is as follows: Hold board meeting: The company must hold a board meeting to approve the alterations to the MOA. Hold a general meeting: A general meeting should be conducted to obtain the approval of the shareholders for the alterations to the MOA. Filing of a special resolution: A special resolution to alter the MoA should be filed with the ROC within 30 days of the passing of the resolution. Approval of ROC: The ROC will scrutinise the special resolution and approve the MoA alteration. Memorandum of Association V/s Articles of Association Points of Memorandum of Association Articles of Association Difference Objective The major objective of creating the MOA of a The major objective of creating the AoA of Company is to define the relationship between a Company is to define the relationship the Company, its shareholders, all third between the company and its internal parties. management. Purpose The MOA contains all the foundational legal The AOA contains the rules, regulations, information about the company available with and procedures involved in the internal the ROC, like its name, registered address, management of the company. capital, liability, and primary business activity. Legal Section 4 of the Companies Act deals with the Section 5 of the Companies Act deals with Provisions provisions for MOA of a Company. the provisions for AOA of a Company. Supremacy The MOA is drafted in accordance with the The AOA is drafted in accordance with the provisions of the Companies Act, 2013. So, Companies Act, 2013, and the MoA of the beyond the Act, the MoA is the most supreme Company. So, it cannot contain any document of the company, and any other provisions which violate the provisions of draftings or filings cannot contain any the Companies Act, or the MOA of the information or provision which violates the Company. content of the MOA.  Memorandum of Association V/s Articles of Association Points of Memorandum of Association Articles of Association Difference Structure & The content of the MOA is divided into 6 The format of AOA is categorized into Content different clauses, containing specific different tables, applicable for information in each of these clauses. different kinds of companies. For Among these clauses are, the name clause instance, the AOA of a Company containing the legal name of the company, limited by shares is drafted according the situation clause containing its registered to TABLE F format. Further, each of address, the objective clause containing all these tabular formats are divided its business activities, the clauses for into articles containing the rules and liability and capital containing details regulations for the internal regarding the liabilities of the shareholders management of the company. and their capital subscription respectively. Applicability It is mandatory for all types of companies to Although it is mandatory for all types draft their Memorandum of Associations in of companies to draft their Articles of the prescribed formats and submit to the Associations, it is not mandatory to ROC during their incorporation. submit the same to the ROC during incorporation.  Other name of the NGOs NGDOs - Non VDO- Voluntary Non Govt VO –Voluntary Govt NPO Development Organisation Organisation Development Organisation Organisation TYPES OF NGOs Sec. 25 /SEC Society Trust 8 Companies All India State Level Charitable Religious Private Trust Level  Law Applicable to NGOs 1. Society Registration Act,1860. 2. Indian Registration Act,1908. 3. Registration Of Trust Under Public Trusts Act. 4. Charitable And Religious Trusts Act,1920:- This is central act which applies to all religious and charitable trusts. Provides facilities for obtaining information regarding public charitable and religious trust. 5. Religious Endowments Act,1863:- This act enables the govt. To divest itself of the management of certain religious institution. 6. Indian Trust Act,1882:- This act governs private or family trusts and excludes from its ambit Wakfs and charitable or religious endowments. How an NGO in India Can be Registered Some set of rules and regulations are to be followed in proper ways to direct an NGO properly and efficiently in the form of trusts, societies, and companies. This can be done in three separate ways by following the below-mentioned acts which are as follows: – Trust Registration under the Indian Trust Act, 1882. – Society Registration under Societies Registration Act, 1860. – Section 8 Company Registration under Companies Act, 2013.  Registration Procedure BASIC REGISTRATION INCOME TAX REGISTRATION FCRA REGISTRATION MINISTRY OF STATE GOVT, & CENTRAL GOVT. OTHERS -----PLANNING COMMISSION  Highlights of the letter from department 1. Justify with the bill/ vouchers of the income applied for charitable activities along with beneficiaries. 2. Please file the undertaking that there should be no infringement to provision of Sec 2(15) of the IT Act. 3. Original MoA/ Registration Certificate. 4. NOC from landlord along with ownership proof. 5. Focus area of Charitable activities/ Projection Plan for next two years. 6. Activities carried out since inception or last 3 years with supportive document evidence. 7. Please justify your claim for registration u/s 12AA & 80G.  Highlights of the letter from department 8. Please furnish the details of donation including corpus donation received & made giving name, address, PAN no. of donors. 9. Copy of IT Return for last 3 years. 10. A certificate from the M. Trustee that there is no change in the objectives or activities of the trust. In case there has been any change in objectives that may be pointed out [80G]. 11. An affidavit from M. Trustee that there is no infringement of provisions of Sec.13 of the IT since its inception of society [80G]. Registration U/S 12A & 80G - INCOME TAX ACT All voluntary organisations irrespective of whether a Trust/ Society/ Company/ AOP are required to get themselves registered with CIT to claim exemption from Income Tax.  Procedure For Registration- Sec 12AA INCOME TAX ACT Make Application to CIT/ DIT (Exempt). Covering Letter. Form 10A in triplicate for Trust/Institution Registration. Form 10G in triplicate for Power to punish for contempt. MoA/ Trust Deed/ MoA of Company. Power of Attorney. Resolution in respect of Authorised to person.- Ordinary and special meetings where all the important decisions are taken. 3 Year Audited Accounts.  Society Registration Act 1860 The Act also states that: – The Registrar may issue a public notice or notice to certain people to invite objections to the proposed registration – The governing body of a society or any of its members cannot transfer any immovable property belonging to the society without the previous approval of the court – No existing multi-state society can use its funds unless it is registered under this bill  Society Registration - Purposes As per Section 20 of the Societies Act, 1860, a Society can be registered for the following purposes: ➤ Grant of charitable assistance. ➤ Creation of Military Orphan funds. ➤ Promotion of Science. ➤ Promotion of Literature. ➤ Promotion of Fine Arts, Promotion or Instruction or Diffusion of useful Knowledge, Diffusion of Political Education. ➤ Foundation or maintenance of libraries or reading rooms. Foundation or maintenance of Public Museum or Galleries. Review Review your state governments rules for Registration Decide Decide on the members, name of society, registered office and objects. Draft Draft the memorandum of Association and Rules of the society -using a legal professional Sign Sign- all members of the society must sign the MOA & Rules of the society and provide address and identity proofs. File File the MoA, rules and other documents with the registrar of societies or other concern Authorities in your state to obtain society registration (I) Society Registration Procedure i) Society:- All India (8 Members of Different States) State Level (7 Members in One State) ii) Requirements:- – 1. Covering Letter. – 2. MoA. – 3. Rules & Regulations. – 4. Affidavit of President stating relationship of subscribers – 5. NOC from Premises owner of registered office. – 6. Proof of Registered Office. – 7. Power of Attorney in our Favour. – 8. ID Proof of all desirous persons (Self Attested). – 9. Registration Fees  (I) Society Registration Procedure iii) Name Of Society:-Registrar considers the “emblems and name(prevention of misuse act,1950) & so registrar can object:- a) The name of the society already exist. b) Registrar will object to name containing words like Govt., Ministry, bank, etc. c) NOC From Govt. Departments. iv) MOA:- Already discussed in previous slides. v) Courting The Society:- The court interferes only to prevent unfairness or oppression and to ensure bonafide exercise of power.  Creation Of Trust – Types The creation of Trust depends on the three types of individuals:- The trustor who declares the confidence A trustee who accept the confidence The beneficiary is the individual who avails benefits from the Trust. A trust is created when the property owner i.e. trustor, transfers property to a person (trustee) to benefit the beneficiaries. The settlor is a primary member of the trust who has more power at the disposal than trustees. The trustee cannot administer the trust for the sake of personal interest. It is subjected to specific regulations prescribed by state law  Trust’s Classification Public Trust: As the name suggests, Private Trust: Unlike a public trust, public trust is formed for the benefit private trust is formed to benefit of the general public instead of a families or individuals. Moreover, such specific individual. The public trust is trust is categorised into two parts: further divided into two parts: Private Trusts whose heirs Public Charitable Trust and their important offers both can be resolved Private Trusts who’s both or either the heirs and their Public Religious Trust critical offers can’t be resolved  Association not for profit Association not for profit: An "Association not for profit" means a association which is formed not for earning profit but for commerce, art, science, charily, religion or other useful social purpose. These associations may or may not be registered as a company under the companies Act. When such type of the association are registered as a company as a company with limited liability, they must be granted a license by the Central Government  Sec 25 of the Companies Act Section 25 of the companies Act, 1956 however allows the registration under a license granted by the Central Government, of an association not for profit with limited or the words Private Limited to its name Condition for the grant of license: When the following two conditions are satisfied than only the Central Government will grant the license to an association, conditions are as follows:- – 1. Intends to apply or use its profits of other income in promoting its objects and to prohibits the payment of any dividend to its members and – 2. Is important to form a limited company for promoting commerce, science, religion charity or for other useful object. Procedure for registration of a Company under section 25 As per section 25 the first step is that the promoter must apply to the Central Government for a license. The second step for the registration of a company is that the promoters must fulfill all the conditions subject to which the license is to be issued Thereafter he should apply to the registrar of companies for the incorporation of a company in same way as the other companies are registered e filling the documents like MOA, AOA, list of first director, declaration in prescribed form  Trade-Union - Introduction Trade-Union as contained in Section 2(h) of the Trade-Unions Act, 1926 indicates that it is any combination or association of persons based on mutual confidence, understanding and co-operation for safeguarding common interests. It may be any association of workmen or employers. It need not be permanent combination, it can be formed even for a shorter period.  (a) workmen and employers; or Purposes of the Formation of Firstly, for regulating the (b) workmen and relations between: workmen; or Trade Unions (c) employers and employers Secondly, for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more Trade-Unions.  Mode of Registration According to section 4 of Trade-Unions Act, 1926, any seven or more members of a Trade Union in accordance with the provisions of the Act may make an application apply for registration of the trade union. There are two conditions subsequent to the same, – firstly no trade union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its members on the date of making of its application and – secondly no trade union shall be registered unless on the date of making of application, minimum seven of its members who are workmen are employed in the establishment or industry.  Application for registration According to section 5 of the Act, every application for the registration of the trade union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars namely- 1. The names, occupations and addresses of the members making the application; 2. The name of the trade union and the address of its head office, and 3. The titles, names, ages, addresses and occupations of the office- bearers of the trade union.  Provisions to be contained in the rules of a Trade Union 1. The name of the trade union; 2. The whole of the objects for which the trade union has been established: 3. The whole of the purposes for which the general funds of the trade union shall be applicable; 4. The maintenance of a list of the members of the trade union: 5. The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the trade union is connected; 6. The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members; 7. The manner in which the rules shall be amended, varied or rescinded; 8. The manner in which the members of the executive and the other office bearers of the Trade Union shall be elected and removed; 9. The safe custody of the funds of the trade union, an annual audit, in such manner, as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office bearers and members of the trade union, and; 10. The manner in which the trade union may be dissolved. The department may accept or reject the proposal. APPEAL AGAINST THE REJECTION:- If Reject Appeal within 60 Days in Form 36 from the date on which the order of commissioner is received.  FOREIGN CONTRIBUTION REGULATION ACT - FCRA Old Act – FCRA ACT – 1976 New Act – FCRA ACT 2010(W.E.F. 1-MAY-2011) Objective: To remove some inadequacies and practical difficulties in administration of old act Act talks about: If any person received “Foreign Contribution” from “Foreign Sources” FCRA (Foreign Contribution Regulation Act )–Provisions Main objective:- To avoid the use of foreign fund and hospitality for anti-national activities. FCRA ACT, 1976 (w.e.f 01-05-2011 FCRA ACT 2010) which applicable to whole of India including the state of J & K. All Charitable, Educational, Social, Cultural, Religious, Political organisation, Societies, Trusts, Companies, etc. are covered under the act. FCRA applies if foreign contribution received from foreign sources.  By-laws Bylaws are internal documents, a set of rules that enables each organization to conduct its affairs. It is important they be written clearly and in language that is easily understood by all organization stakeholders. Typical items addressed in the bylaws are: Name and purpose of the NGO. The Purpose is usually a restatement of the NGO's Mission Statement, but can contain additional details The frequency, notice, and quorum requirements for organizational meetings. These can be internal or regular meeting of the NGO, or external meetings such as those for the general public, with other stakeholders etc. Voting qualifications, proxies, and procedures for approval of boards. This is related to the governance structure of the NGO's board. The number and term for members of the board, scope of authority, method of nomination and election to the board, and provision for filling vacancies.  By-laws List of board officers, method of nomination and election, terms of office, powers, duties, and succession. Membership and authority of committees or working groups. Many of an NGOs' work is done through sub-committees or groups, and provisions need to be made for such committees. Title and scope of authority for the executive director and other staff members who are responsible for the day to day functioning of the NGO. Record-keeping and financial reporting responsibilities. In many countries this is necessary for the maintenance of the tax-exempt status of an NGO. Amendment procedures for the bylaws and provisions for dissolution of the organization. Writing and gaining approval for a set of bylaws takes thought, time, and the involvement of the organization’s constituents. Bylaws should be written with an emphasis on fair Strategy and transparent governance.  Renewal of Registration Basic Requirements for Renewal of Registration of an NGO Permission of operation from the government authorities is needed on an annual basis to remain operational throughout the year. The renewal, as well as the registration process, is more or less similar in many ways. Here we mention the various procedures and documents required for an NGO as a society, as a trust and as a company. Documents Needed to Renewal Documents Needed to Renew an NGO as a Society – The name of the society is required at first using which one wants to form an NGO. – Secondly, Identity proof of all the respective members is required which may be an Aadhaar card, voter card, pan card or any legal id card provided by the government authority. – Thirdly you need to provide all the necessary valid proofs required by the authority against the premises which the society wants to use. – Fourthly the society has to provide two copies of the Memorandum of Association of the society and the By-laws of the society as proof to support their renewal process. Documents Needed to Renewal Documents Needed to Renew an NGO as a Trust – Firstly before applying for renewal the objective of the trust is required. – The second most important thing is all the details of the trustee and settlor members are to be given which may be an identity and address proof along with other documents that provide all the necessary information related to their occupation. – Thirdly, copies of the latest colour photographs of the trustee and settlor members have to be given along with this application. – Fourthly you need to provide a trust deed on a stamp paper. (As a Trust, one needs to prepare the trust deed on stamp paper. Depending on the total value of the trust’s property, a requisite percentage of the stamp paper is needed which may vary in different states. As an instance, one needs to pay a fee of ₹1100/- as a fee, of which ₹100/- is for the renewal fee and the rest ₹1000/- as the charges of the sub-registrar for storing a copy of it. Further one has to submit the papers after collecting a certified copy of the trust deed from the registrar’s office within a week. Finally, submit the trust deed supported by properly attested photocopies to the local registrar along with a signature on every page and a mandatory presence of two witnesses at the time of renewal. – Fifthly trustee and the settlers have to provide their pan card proof to the authority during the renewal process. – Lastly address proof is a must for renewing a trust because in the case of rented property no objection certificate is a must from the land owner.  Documents Needed to Renewal Documents Needed to Renew an NGO as a Company – First of all the need to provide the respective copy of the identity & address proof which may be the Aadhar card, epic card or pan card provided by the government authority. – Secondly, DIR-2 contains the consent of all the directors of the company along with their valid identity and address proof. – Thirdly, providing any kind of utility bill which is not more than two months old is required during the NGO registration renewal of a company. – Fourthly no objection certificate is necessary if the registered office is taken on rent from the land owner or respective authority. – Fifthly an estimated annual income proof done by a consultant can be provided at the time of renewal. – At the time of renewal, the company has to provide two essential documents called Memorandum of Association or MOA and Articles of Association or AOA that define a company’s objectives, rules, the scope of work and internal management. – The company have to provide an affidavit regarding deposits in various financial institutions; – All necessary documents can be given as proof of the registered office address of the company. – All the necessary particulars of the promoters and other board members of the company for which registration is applied. – Form INC -14 declarations by professionals are required in the case of Section 8 Companies. – Finally, form INC-15 declarations by promoters are required on the stamp paper, duly notarised.  What is the Necessity of NGO Registration? There are several reasons for the necessity of NGO organisations to be registered in order to operate fully and functionally. Some of them are: This gives enough credit to the organisation and thus donors become more interested in providing donations to those NGOs which are registered. Having a renewal gives a sense of authenticity to the NGO. A renewal might be helpful for a local NGO to expand its scope or territory of operations. More volunteers like to involve themselves with a registered NGO and that eventually helps in the growth of that organisation. Not only that, but it will also bring financial and manpower resources. A registered NGO get exempt from several taxes from the government and that may encourage that NGO to save taxes & further invest the money in various kind of well-being projects. The Powers Of Registrar The powers of Registrar of Companies as conferred by the Companies Act, 2013: (1) To extend the time of holding Annual General Meeting (AGM), other than the first AGM by a_period not more than 3 months, if request letter is received from the company to extend the time for holding AGM, (2) The Registrar has the power to inspect or call for books of accounts, other books, and papers. He has the power to ask for additional information necessary for inspection. (3) He has the power to seek in writing any information or explanation in respect to any document furnished to his office. (4) The Registrar has the power to seek the Special Court to issue an order for seizure of books and papers of a company if he comes to the conclusion that such records may be destroyed, altered, or falsified. (5) He has the power to remove the name of the liquidated company from the Register of the Companies.  The Committee's Duties The Societies Registration Act of 1860 allows for the formation of a management committee to manage a society's affairs. The committee's duties include: Legal claims: Making legal claims, defending claims, and reaching settlements Administrative rules: Creating administrative rules for the society and implementing them after receiving approval from the general meeting Accounting: Keeping regular accounts in a form approved by the Registrar Annual general meetings: Organizing annual general meetings The Core Duties Of The Managing Committee Once the registration and selection of the first committee have taken place, the regular functions of the MC include monetary transactions, daily management, obligatory membership servicing and compliance with the laws. 1. Financial duties To collect society charges, including but not limited to property tax, water charges, lift/parking/service charges, non-occupancy charges, repair and maintenance charges. These rates are fixed by the committee from time to time (on the basis of proportion stated in bye-laws) upon discussion with the members; To raise funds and deposits from the member; To decide the rates of contribution, manage and collect Reserve Fund and Sinking Fund; To fix the rate of insurance premiums to be paid by members in case if there is a commercial use of the flat; To collect interest from defaulting members; To insure the property of the society. 2. Duties towards the members To consider and decide resignations from members/office-bearers and record nominations and revocations that may follow after; To issue allotment letters of flats once a member buys them and make available to members the papers of the society; To take required action once a membership ends; To refund shares and associated interest if and when due in case they have been acquired by the society; To review complaints registered by the members and take necessary actions to resolve them; To organize events, festivals and special days to encourage camaraderie and friendships among the members.  The Core Duties Of The Managing Committee 3. Operational duties To authorize a Committee member to attest any document that bears the seal of the society, such as lease agreements, deed of conveyance, share certificates, etc. To look after the lift operations, manage and instruct service staff about their duties and take care of their compensations and accommodation (if any). To maintain, inspect the property of the society and carry out renovations, repairs as and when needed. To review and finalise vendor applications for services needed in the society, e.g. produce stalls, dry cleaning services, etc. To regulate parking To supervise compliance of bye-laws and society rules by the members and suggest fines or penalties in case if a consistent breach is found To review the Secretary’s report on inspection of flats To hold election of a new committee in a timely manner, to elect new office-bearers, consider their resignations and replacements To organise and recommend general body meetings and hold annual/special general body meetings To hold a Committee meeting at least once a month 4. Executive duties To execute a deed of conveyance of the land and building/s; To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned; To scrutinise tenders received for construction work and to submit the same along with the committee’s report to the meeting of the General Body and to enter into a contract with the contractor; To enter into a contract with the Architect of the society in case of redevelopment; To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid.  OFFICE BEARERS 1 Chairman A. The members of the Executive Committee will elect the Chairman from amongst themselves provided that the Chairman shall be a Member of the General Body as well. The Chairman shall preside over the meetings of the Executive Committee and the General Body. An individual may hold the post of Chairman for a period of three (3) years and may be reelected as Chairman for an additional tenure of three (3) years. B. In the event of any casual vacancy in the office of the Chairman, the Executive Committee shall forthwith elect an interim chairman from among the members of the Executive Committee to fill the vacancy. The interim chairman will hold office till such time as the Nomination Committee may recommend a new chairman to the Executive Committee and the General Body elects the proposed chairman as a member of the Executive Committee. C. Unless there is an unexpected vacancy in the office of the Chairman which is filled in accordance with Rule 14.1(b), the Nomination Committee will deliberate on the appointment of the next Chairman, one (1) year before the expiry of term of the Chairman. The Nomination Committee shall identify candidates to the post of Chairman six (6) months prior to the close of term of the existing Chairman. Thereafter, the Executive Committee shall consider the recommendations of the Nomination Committee and appoint a Chairman-Elect from amongst the members of the Executive Committee, provided that the Chairman-Elect must be a member of the General Body. The Chairman-Elect will closely observe the functioning of the Executive Committee and prepare himself to take over the responsibilities of the position of the Chairman.  OFFICE BEARERS 2 President The President of the Society will be the chief executive officer of the Society. The Executive Committee will frame rules and processes for the selection, appointment and appraisal of the President. It is hereby clarified that the appointment of the President shall be ratified by the General Body. The President of the Society be made a member of both the Finance and the Audit Committees, and will have the status of a Non-Voting Member in the Audit Committee. 3 Member Secretary The President of the Society shall be designated as the Member Secretary of the Society. The Member Secretary will be responsible for the proper management of the Society including organising the Annual General Meetings. The Member Secretary will function under the directions of and be accountable to the General Body. 4 Treasurer The Treasurer will be an individual having sufficient knowledge and expertise with regard to managing finances of an entity similar in size or larger to the Society. He will be the Chairman of the Audit Committee. He will be appointed by the Executive Committee and his appointment will be ratified by the General Body at its next meeting. The Executive Committee may, at its discretion, request the Nomination Committee to suggest possible candidates to the post of Treasurer  EXECUTIVE COMMITTEE COMPOSITION OF THE EXECUTIVE COMMITTEE The Executive Committee will consist of a minimum of ten (10) members and a maximum of fifteen (15) members including the President but excluding the members appointed in accordance with The appointees to the Executive Committee, other than the members appointed in accordance with Rule 12.2, must be the Members of the Society. The Secretary of the Ministry of Health and Family Welfare, Government of India will be an ex- officio member of the Executive Committee. Notwithstanding anything in Rule 12.1, the members of the Executive Committee appointed in accordance with Rule 13 may, at their absolute discretion, nominate three (3) individuals who are not Members of the General Body, as members of the Executive Committee. In addition to the members nominated in accordance with Rule 12.2, the Executive Committee may also invite individuals to attend meetings of the Executive Committee as and when it may deem fit, provided such invitees will not have the right to vote in the meetings of the Executive Committee. The President will be the non-voting, ex-officio member of the Executive Committee and shall hold the position of the Member Secretary.  EXECUTIVE COMMITTEE ELECTIONS FOR THE EXECUTIVE COMMITTEE Subject to Rule 12.2, the members to the Executive Committee will be elected by the General Body. The Nomination Committee will recommend the names of individuals who may be appointed to the Executive Committee ("Recommendations"). The Nomination Committee would place its formal report before the General Body giving its Recommendations. The General Body would elect the members to the Executive Committee from the Members identified in the Recommendations. Notwithstanding anything in Rule 12 and 13, the number of Government Representatives in the Executive Committee shall not exceed one third (1/3) the total members of the Executive Committee. Resignation or removal of any member from the Executive Committee shall not affect the composition of the Executive Committee or the validity of any actions taken by the Executive Committee. Provided that in case any member is removed or resigns from the Executive Committee ("Leaving Member"), the Chairman will forthwith inform the Nomination Committee to recommend a new member to the Executive Committee. The Executive Committee may accept such recommendations and appoint the new members as interim members. Appointment of the interim member would be placed before the General Body at its next meeting for its approval and once the General Body approves the same, the interim member would serve the Executive Committee for the remaining tenure of the Leaving Member END - Unit III