[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Bye Laws



I was speaking to Vijay Asthana, a chartered accountant friend,
about our Bye Laws problem. He suggested that we form a trust instead
of a society. And I started wondering why I did not think of it in
the first place - having helped form scores of them over the past few years.

A trust is not a society. It is a settlement made by one person in favour
of some other persons of some property, say, cash of Rs.1,000. The
settlement
can be made on any conditions.

Typically, a not-for-profit trust (a charitable trust, as we call it) is
formed
with a small corpus like Rs.1,000.

The trust has one or more settlor/s and trustees.

Trusts are governed by the Indian Trusts Act, 1882. Fortunately, this law
does
not specify any form of meetings etc. The manner in which the trust may
govern/manage itself is left to the settlor and the trustees. Thus, the
trust deed may contain its own rules. Even the trustees may be authorised to
make their own rules of management.

Enormous flexibility is permitted and there are no straight jacket
regulations
governing this.

It would be an ideal solution for our problem.

However, a trust is generally not known to have 'members'.
The concept of membership to trusts is not known. Yet, I do not
think it is impossible. I shall be talking to some lawyer/accountant
friends to explore this possibility. We should be able to find an acceptable
solution.

You may then want the name of IP to be India Policy Foundation.

In the meanwhile, how do you all react to this idea?

I have asked Vijay Asthana to join in as a member. With him and Vikram, we
now
have three of us here in Hyderabad. If there are any more on the list I do
not know,
but would like to.

Ajay Gandhi



----------------------------------------------------------------------------
This is a posting to India_Policy Discussion list:  debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/
---------------------------------------------------------------------------