5. Property of society how vested.—The property, movable and immovable, belonging to a society registered under this Act, if not vested in trustees, shall be deemed to be vested, for the time being, in the governing body of such society, and in all proceedings, civil and criminal, may be described as the property of the governing body of such society for their proper title. State Amendments
(Bihar) —In section 5, for the words “civil and criminal” the words “civil, criminal and revenue” shall be, and shall be deemed always to have been, substituted. [Vide Bihar Act 2 of 1960, sec. 2 (w.r.e.f. 8-2-1960).] Section 5A
(Assam) —After section 5, insert the following new section, namely:— “5A. Books of account and audit.—(1) Every society shall keep at its registered office proper books of account in which shall be entered accurately—
(a) all sums of money received and the source thereof and all sums of money expended by the society and the object or purpose for which such sums are expended,
(b) the assets and liabilities of the society.
(2) Every society shall have its account audited once every year by a duly qualified auditor and have a balance-sheet prepared by him. The auditor shall also submit a report showing the exact state of the financial affairs of the society. Three copies of the balance-sheet and the auditor’s report shall be certified by the auditor. Explanation.—A duly qualified auditor means a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 or a person approved by the Registrar of Societies in this behalf.
(3) If the President, Secretary or any other person authorised in this behalf by a resolution of the governing body of the society fails to comply with the provisions of sub-section (1) or sub-section (2) he shall be punishable with fine which may extend to twenty rupees for every day after the detection of the default during which the default continues.” [Vide Assam Act 13 of 1967, sec. 4 (w.e.f. 18-8-1967).] Section 5A Uttar Pradesh.—After section 5, insert section 5A as follows:— “5A. Restriction on transfer of property.—(1) Notwithstanding anything contained in any law, contract or other instrument to the contrary, it shall not be lawful for the governing body of a society registered under this Act or any of its members to transfer without the previous approval of the Court, any immovable property belonging to such society.
(2) Every transfer made in contravention of sub-section (1) shall be void. Explanation I.—The word ‘Court’ shall have the meaning assigned to it in section 13. Explanation II.—The expression ‘transfer’ shall for the purposes of this section mean—
(a) a mortgage, charge, sale gift, of exchange;
(b) lease for a term exceeding five years: or
(c) “irrevocable licence.” [Vide U.P. Act 26 of 1979, sec. 2 (w.e.f. 16-7-1979).] comments The right of the members over the property of a registered society is not personal but merely of management over it in the capacity analogus to that of trustees; Pamulapati Buchinaidu College Committee, Nidubrolu v. Government of Andhra Pradesh, AIR 1958 AP 773.
Complete: The Societies Registration Act, 1860
