We’ve discussed 6 simple steps on how to form an Alumni Association in the previous article. Registering an Alumni Association involves several legal and administrative steps to be followed. Here are the legalities of forming an Alumni Association under the Societies Registration Act of 1860.
Legal Structure
Generally, Alumni Associations are registered as “Not-for-Profit Organizations” or as “Societies” under the Societies Registration Act of 1860. This provides certain tax benefits and legal recognition.
Advantages of a Society
- A simple process of registration.
- Simple record-keeping and even simpler regulations.
- Low possibility of interference by the regulator.
- Exemption from tax due to the charitable nature of operations.
Registration
- Registration can be done either at the State level (i.e., in the office of the Registrar of Societies) or at the District level (in the office of the District Magistrate or the local office of the Registrar of Societies)
- Seven Persons are required to subscribe to a Memorandum of Association (MOA) to register a society.
- Select members and set up a Managing committee that will oversee the association’s activities.
Documents Required for Society
- Memorandum of Association (MOA) and Rules & Regulations.
- Consent letters from all the members of the Managing Committee.
- Authority letter duly signed by all the members of the Managing Committee.
- An Affidavit sworn by the President or the Secretary of the Society on non-judicial stamp paper of 20 ₹, together with a court fee stamp.
- A Declaration by the members of the Managing Committee that the funds of the society will be used only for the purpose of furthering the aims and objectives of the Society.
Memorandum & Rules of Society
- The Memorandum should include the following:
- The decided names of the society
- Its objectives
- Names, addresses, and occupations of those members subscribing to it as well as the first governing body to be constituted on registration.
- The MOA should be accompanied by the Rules and Regulations, which should include details such as the procedures:
- Enrolling and removing various categories of members
- Forming the governing body, the conduct of meetings, election, and removal of office bearers
- Conducting annual general body meetings, etc.
- The society has a perpetual existence and common seal, and can sue or be sued in the name of the office bearer as prescribed under its rules (sec.6). This enables its effective participation in public life.
- In order to ensure compliance with the purpose and by-laws or memorandum of association, a democratic process is provided by allowing the general body meeting of members to decide the composition of the governing body and control their acts through deliberations in the meeting (Sec 12&15 of the Act).
- Alteration, extension, or abridgment of the purpose of the association or any decision on amalgamation can be effected when the proposition of such measure made by the governing body is approved by the votes of three-fifths of the members present in the special meeting convened for this purpose with due notice (Sec 12 of the Act).
- For the dissolution of the society, similar approval is required (Sec 13 of the Act).
- All the documents filed by the society with the Registrar are open to inspection by any person (Sec 17 of the Act). This enables transparency and democratic control.
- The members that are guilty of offenses against the property of the society are punishable with imprisonment or a fine (Sec10 of the Act).
- While the Central Act has abstained from providing for extensive governmental control, except for routine matters of filing annual statements, many of the state legislations have gone for widespread governmental controls to deal with abuses, malfeasance, and nonfeasance of societies. The legal measures include:
- State’s Power of Inquiry
- Investigation and Surcharge: Cancellation of registration and consequent dissolution of societies
- Supersession of the Governing Body
- Appointment of Administrators
- Dissolution &
- Removal of Defunct Societies.
If you have any further questions or need assistance in forming your Alumni Association, it is recommended that you consult a Chartered Accountant.
Require help in enhancing the value & boosting the engagement of your Alumni through your Alumni Association? Get in touch with us at hello@vaave.com or +91 9666 131 555