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Gourang M Haldipur   08 October 2017

Merger of a private society with a public charitable trust.

Dear Sirs, I have been recently coopted as a Trustee on the board of a public charitable educational trust registered under The Indian Trust Act. There are 9 trustees in the board of trustees and 5 of them are office bearers namely President, Vice President, Secretary, Joint Secretary and Treasurer. The Secretary of the trust and his family run a private school separately under a Society which is registered under the state cooperative societies act. His wife is the Principal of that school. The Secretary of the trust is also an office bearer in his private society.He has moved a proposal in the Trust seeking to merge his family run society/ private school with the Trust. Is such a merger of a private society with a public charitable educational trust permitted in law.? The board is divided over the matter. Some trustees are of the opinion that a private educational society cannot merge with a trust registered as a public charitable educational trust under the Indian Trust Act. Some trustees are of the opinion that though it is a private society, it can still be merged with the trust. As I am new to this subject, I request for a solution.



Learning

 1 Replies

Siddharth Srivastava (Advocate)     08 October 2017

Yes, the private society can be merged with charitable trust if the rules so provide. The trust deed is to be examined. Consult an advocate with details.

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