Can we spend more than 50% money of our union fund?
DKTAZILANOM9909
(Querist) 08 November 2014
This query is : Resolved
Dear Sir,
We are the members of a registered trade union under The Trade Union Act , 1926. We have general funds of the union of few lakhs. Recently we have decided to celebrate the foundation day of our union in December, 2014 where we want spend more than 50% of our fund in the form of gifts, community lunches etc to our members. Some of members have raised objections that this huge amount of money can be spent as it is violation of sec-15(j) of The Trade Union Act.
[ sec-15(j)- the payment, in furtherance of any of the objects on which the general funds of the trade union may be spent, of contributions to any cause intended to benefit workmen in general provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the trade union during that year and of the balance at the credit of those funds at the commencement of that year;]
Sir Kindly advice us whether spending of more than 50% of our fund in the form of gifts, community lunches etc is violation of sec-15(j) of The Trade Union Act.
Regards,
Sankar
DKTAZILANOM9909
(Querist) 09 November 2014
Sir, kindly advice us also if there is any way so that we can spend more than 50% of our fund in the form of gifts, community lunches etc for our general members of our union.
regards,
Sankar
Devajyoti Barman
(Expert) 09 November 2014
AS FAR AS ' General Fund' of the Union is concerned you can not use the same let alone half of it for this purpose. Read the whole section 15 of the ct wherein it has been specifically specified the area where the Fund can be used.
However of you want to organise community feast, prize distribution etc as you proceed then you can separately collect fund in the form of ' Chanda' for this purpose alone and to organise the same.
Rajendra K Goyal
(Expert) 09 November 2014
Agree with the expert Devajyoti Barman.
DKTAZILANOM9909
(Querist) 10 November 2014
Sir,
Kindly see the following section of the trade union act (form D: Submission of annual return).
Form D : Annual Return Prescribed Under Section 28 Of The Indian Trade Unions Act, 1926, For The Year Ending On 31st March,
Here one provision is made in head expenditure : Other expenses (to be specified)
Can spend more than 50% of our fund in the head “Other expenses (to be specified)”?
regards
T. Kalaiselvan, Advocate
(Expert) 13 November 2014
Your query has been properly addressed by expert Mr. Barman. You were advised to collect separate funds for social celebration and distribution of gifts or serving food during the function organised for some special purpose. If you do not understand the opinions or the embedded law, you may consult your auditor and take decision.
