Write short notes on the following: Dissolution of Society.
CS Professional · Advanced Company Law and Practice · PYQS · December 2020
Write short notes on the following: Dissolution of Society.
Answer & Explanation:
Under Section 13 of the Societies Registration Act, 1860, a society can be dissolved. Dissolution of a society becomes necessary where the objects for which it is formed, has been fulfilled or where the purposes for which it is formed, have become irrelevant, invalid or inoperative or by passing of a resolution by 3/5th majority of the members present at a meeting to dissolve the society for utilisation of its assets for some other better use. A society may be dissolved forthwith or within the agreed time. The following steps are to be taken for dissolution of society: Decision of the governing body; Convene a special general meeting of the members by giving a requisite notice for consideration and passing resolution by 3/5th majority of the members present thereat; Decision as to dissolve it forthwith or at a later time agreed upon by them. Decision for the actions to be taken for disposal of properties and settlement of claims and liabilities as per the rules and regulations of the society, and Delegate authority to the person(s) of the governing body to comply with the decisions accordingly Where any Government is a member of the society or has contributed the funds to the society or is otherwise interested therein, the society shall have to obtain prior consent of such Government for the purpose. Where any dispute arises on dissolution of a society relating to adjustment of its affairs, it should be referred to the principal Court of the original civil jurisdiction of the District where the chief building of the society is situated. 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 for the same, 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: Societies Registration Act
Related Questions in this Topic
- SKD an employee of Moreh Ltd. met with an accident and died. The accident occurred when SKD was on Company's duty. He he...
- Mr. M, a member, appointed Mr. P as his proxy for the annual general meeting of a company in the form as set out in Form...
- The directors of XYZ Limited are responsible for calling a general meeting and having failed to call such a meeting and ...
- Audit committee has to review certain information mandatorily, what are these items ?
- State the provisions of Australian Corporation Law in respect of Auditors.