Chapter 5 AMALGAMATION AND DISSOLUTION OF SOCIETIES

Procedure for amalgamation of societies.—(1) Whenever it appears to the governing body of the society registered under this Act, which has been established for any particular purpose, that it is advisable to alter, extend or abridge such purpose to or for other purposes, subject to the provisions of this Act, or to amalgamate such society, with any other society, such governing body may submit the proposition to the members of the society in a written or printed report, and may convene a special general body meeting for the consideration thereof according to the rules and regulations of the society.

1. (2) No such proposition under sub-section
2. (1) shall be deemed to have been approved unless, such report shall have been delivered or sent by post or by electronic mode to every member of the society in the manner, as may be prescribed, twenty one days prior to the date of the special general body meeting convened by the governing body for the consideration thereof, and such proposition shall have been agreed to by the votes, cast in person in favour of the proposition by members who being entitled to do so, or where proxies are allowed, by the proxy and such votes are not less than three fourths of the number of votes, if any, cast against the proposition by members so entitled and voting and confirmed.

Power to call for accounts and inspection of books etc.—(1) The Government or the Registrar shall call upon the society to submit accounts of income and expenditure and of the assets and liabilities of the society for any period. The Registrar in cases where the Government directed to do so or on the direction of the Registrar, the Inspector of the society shall periodically examine the accounts and other books of the society and submit to the Government or the Registrar a report on the result of such inspection, as may be prescribed. The inspecting officer may enter any of the premises during working hours of the society and the governing body and the servants of the society shall furnish him with all information he may call for and shall also render him all the assistance necessary to enable him to conduct the examination and make the report and to produce before the officer so deputed all books and documents in their custody or authority relating to the society and to answer any question relating to the affairs of the society.

1. (2) Whenever the inspecting officer, has reason to believe that the accounts or other books and documents of the society are witheld without sufficient cause, he may after recording the reason and grounds of his belief, enter and search any place or may seize any such account books or documents.
2. (3) The Government may, for the efficient and better management of the society, review the report submitted under sub-section
3. (1) and pass such orders, as they deem fit, other than those referred to in clauses
   • (a) to
   • (c) of sub-section
4. (1) of section 32.

Power to fine any member of the governing body or servant of the society and dismiss him for disobedience.—(1) The Government may impose a fine on any member of the governing body or servant of the society who wilfully or consciously disobeys any order passed by them under section 27, shall be liable to pay a fine not exceeding one thousand rupees, as may be prescribed, and the said member or servant fails to carryout the said order within two weeks from the date of receipt by him of the order imposing the fine, the Government may dismiss him. The governing body of the society shall be bound to give effect to the order passed by the Government under this section and any failure on their part to give effect to such order such governing body shall be liable to pay fine under this section.

1. (2) The person dismissed under sub-section
2. (1) shall be disqualified to be elected or nominated as a member of the governing body of any society for a period of five years from the date of such removal unless the disqualification is removed by the Government.

Vacancy to be filled up in accordance with the rules and regulations of the society.—(1) In cases in which member of the governing body is removed under section 28, the vacancy shall be filled up in accordance with the rules and regulations of the society.

1. (2) In any circumstance where the number of members falls below the minimum prescribed in Section 4, the same shall be filled within six months in accordance with the memorandum and regulations of the society, and the Registrar shall be informed immediately.

Dissolution of societies and management of their affairs.—Not less than three-fourths of the total members of the society may determine that the society shall be dissolved, and thereupon it shall be dissolved forthwith or at the time agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities, according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient and the details thereon shall be filed before the Registrar along with related documents in thirty days:

Provided that, in the event of any dispute arising among the said governing body or the members of the society regarding the management of its affairs shall be referred to the Civil Court of original jurisdiction of the district in which the registered office of the society situate, and the same shall be disposed by the order of the court:

Provided further that no society shall be dissolved unless three-fourths majority of the members, by their votes cast in person, or where proxies are entrusted, by proxy, at a special general body meeting convened for the purpose:

Provided also that whenever the Government is a member of or a subscriber to, or otherwise interested in, any society registered under this Act, such society shall not be dissolved without the sanction of the Government.

Upon dissolution, no member to receive profit.—(1) If upon the dissolution of any society there shall remain any property, whatsoever, after the satisfaction of all its debts and liabilities, on the basis of mutual agreement or conditions or for utilizing for the purpose of section 3, the same be given to the Government and shall be decided upon the majority of members by their votes cast in person or where proxies are allowed, by proxy at the time of dissolution.

1. (2) Any society registered under this Act, there shall remain any property after the satisfaction of all its debts and liabilities, the same shall not be paid to, or distributed among the members of the said society or any of them, and shall be given to some other society which for objects, furtherance of aims similar as far as may be to the object of the dissolved society to be determined by the voters not less than three-fourths majority of the members present, personally or where proxies are allowed, by proxy at the time of dissolution or in default thereof, by the decision of the Civil Court of original jurisdiction.

Application to court for dissolution, framing a scheme or appointing new general body etc.—(1) When an application is made by the Government or ten per cent of the members on the rolls of a society to the District Court within the jurisdiction of which the society is registered for framing a scheme, for better administration or appointing a new governing body or dissolution of the society, the court may, after enquiry and on being satisfied that, it is just and equitable, pass any of the following orders,—

1. (a) removing the existing governing body and appointing a new governing body; or
2. (b) framing a scheme for the better and efficient management of the society; or
3. (c) dissolving the society.

1. (2) Where the application under sub-section
2. (1) is submitted by the members of the society, the applicant shall deposit in the court along with the application a sum, as may be prescribed, as security and costs.

Inspection of documents.—Any person may inspect all documents filed with the Registrar under this Act on payment of such fee, as may be prescribed, and any person may require a copy of extract of any document or any part of any document to be certified by the Registrar, on payment of such fee, as may be prescribed, and such certified copy shall be prima facie evidence of the matters therein contained in all legal proceedings whatever.