Society is an organized group of people with the only purpose and goals of non-profit service. Societies are more resilient than other forms of business, but there are still a number of reasons why societies may need to

CS Professional · CSR and Social Governance · PYQS · June 2025
Society is an organized group of people with the only purpose and goals of non-profit service. Societies are more resilient than other forms of business, but there are still a number of reasons why societies may need to cease trading like a society can be dissolved by its members on the appropriate basis and adoption of the procedures set forth by laws and an act, if any, applicable. It may also be obtained by the Registrar, Court or Government if applicable law is provided. If the company is created to achieve a specific objective, it will be disbanded when it achieves this objective. Required: Write the circumstances when a court may order for dissolution of the society.

Answer & Explanation:

The Society Registration Act does not provide for dissolution of societies by the Court. But in some States, the Court may order for dissolution of a society on application by 10% of its members or the Registrar on having been satisfied that any one or more of the following circumstances exist: (1) If there is any contravention by the society of the provisions of the Act, or (2) If the number of members is less than seven, or (3) If the society has ceased to function for more than three years, or (4) If the society is unable to pay its debts or meet its liabilities, or (5) If it is proper that the society has to be dissolved on the ground of its activities, or (6) If proposed activities have been or will be opposed to the public policy, (7) If the activities of the society constitute a public nuisance, (8) If the activities of the society are otherwise opposed to public policy.

Topics: Non-Corporate Entities

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