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: What are the consequences of dissolution of the society ?
Answer & Explanation:
Dissolution of a society results in cessation of its activities. Its liabilities are to be settled suitably and its surplus assets are to be given to another society or the Government in terms of its rules and regulations. If the rules do not provide in the matter, the governing body of the society shall take appropriate steps with requisite majority vote or as directed by the Registrar or the Court. But in no circumstances, the surplus assets of the dissolved society can be paid or distributed amongst its members or any of them.
Topics: Non-Corporate Entities
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