KARACHI: Societies may face action for flouting by-laws
By Muzaffar Qureshi
KARACHI, Feb 18: The registrar of welfare societies has recommended to the law department to authorise the registration wing to cancel registration of those societies, including educational and medical, which do not follow the relevant by-laws.
The Societies Act 1860 requires the registered societies to submit their audit report, along with the report of annual general body meeting and elections, to the registrar on an annual basis. Although, most societies flout the Act and by-laws, no action has been taken against them as the registration wing does not have the powers.
Sources at the Registration Wing, Directorate of Industries, Sindh, told Dawn that about 80 to 90 per cent of these societies were lying dormant with no word about their performance or even existence although they were registered about 20 to 25 years ago.
The registrar has now asked the law department to give the registration authority the powers to take action, including cancellation of registration, against the defiant societies.
The misconduct of a registered society comes to the light only when there is a dispute among its members. The registrar intervenes to settle the dispute but in the event of disagreement among its founding members, an inquiry officer is appointed to look into its affairs. In cases of serious nature, an administrator is appointed to run the affairs of the society. Administrators for as many as seven societies have been appointed in a span of 23 months.
The welfare societies are registered under the Act with the consent of at least seven founding members, who undertake to use the society for public welfare in accordance with the by-laws. The registration fee for societies is Rs15,500. The number of welfare societies registered during 2005 is 158 compared to 146 registered in 2006.
The registration wing also enlists partnership firms under Partnership Act 1932, which was once a legal binding under the Companies Ordinance, but is now only a security exercise by the partners as the registration document forms the basis of settlement of disputes among the partners at any forum. The fee for an urgent registration certificate is Rs110 (Rs55 for ordinary cases) granted on an application presented on a Rs500 stamp paper.
According to sources the registration of partnership firms has not reduced despite the withdrawal of rebate admissible to partners on the income tax paid by them. Previously, the registration certificate was also required for getting National Tax Number (NTN). The number of partnership firms registered during 2005 is 1,647 compared to 1,693 enlisted during 2006.
