Procedural Aspects of registration of Trade Union by CS Komal Jain & Karuna Jain


Introduction:

Trade Union as per Trade Union Act, 1926 is a combination whether temporary or permanent, formed for regulating the relations not only between workmen and employers but also between workmen and workmen or between employers and employers.

Registration of Trade Union is not compulsory under Trade Union Act, but registration under act renders lawful organisation of labour to enable collective bargaining. It also confers on a registered trade union certain protection and privileges.

Legal Status of a Registered Trade Union:

  • A registered trade union is a body corporate with perpetual succession and a common seal.
  • It can acquire, hold sell or transfer any movable or immovable property and can be a party to contracts.
  • It can sue and be sued in its own name
  • No civil suit or other legal proceeding can be initiated against a registered trade union in respect of any act done in furtherance of a trade dispute under certain conditions.
  • No agreement between the members of a registered trade union shall be void or voidable merely on the ground that any of its objects is in restraint of trade.

Application for registration:

An application for registration of trade Union shall be admissible under the said act only if the following two conditions are satisfied:

  • Atleast10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its members on the date of making of its application,
  • Application is required to be made by minimum 7 members who are employed in that establishment or industryat time of making application.

Documents for registration:

The application so made for registration of trade Union shall be accompanied with:

  1. Application form A
  2. Prescribed Fees
  3. Copy of Rules signed by at least 7 members,
  4. PAN, of all the Aadhar Card and Company Identity Proof members.
  5. Statement containing the names, addresses and occupations of the members making the application,
  6. Statement containingthe name of the trade union and the addresses of its head office,
  7. Statement containing the titles, names, ages, addresses and occupations of its office bearers.
  8. If the union has been in existence for more than a year, then a statement of its assets and liabilities in the prescribed form should be submitted along with the application.
  9. At least 50% of the office bearers of a union should be actually engaged or employed in the industry with which the trade union is concerned, and the remaining 50% or less can be outsiders such as Lawyers, politicians, social workers etc.
  10. The Membership register in form J
  11. Undertaking to open bank account attached
  12. Minutes Register displaying the date, time, place and number of members present in meeting of trade union.
  13. The Amount of Subscription received by members.

Application in Form A together will all the supporting Documents is required to be submitted to Registrar of Trade Unions of the respective Jurisdiction. Upon Receipt of application Registrar will scrutinize the form, documents and on being satisfied with the proofs and other information submittedwill issue the Certificate of registration.

Points to be included in Copy of Rules:

(a) the name of the Trade Union;

(b) the whole of the objects for which the Trade Union has been established;

(c) the whole of the purposes for which the general funds of the Trade Union shall be applicable.

(d) the maintenance of a list of the members of the Trade Union.

(e) the admission of ordinary membersand also the admission of the number of honorary or temporary members as 11 [office-bearers]

(f) the conditions under which any member shall be entitled to any benefit assured

(g) the manner in which the rules shall be amended, varied or rescinded;

(h) the manner in which the members of the executive and the other 11 [office-bearers] of the Trade Union shall be 13 [elected] and removed;

(i) the duration of period being not more than three years, for which the members of the executive and other office-bearers of the Trade Union shall be elected;

(j) the safe custody of the funds of the Trade Union, an annual audit of the accounts thereof, and adequate facilities for the inspection of the account books.

(k) the manner in which the Trade Union may be dissolved.

Change of Name & Registered Office

  • Change in Name:

A registered trade union may change its name with the consent of at least 2/3rds of the total numbers of its members.

Notice of change of name in writing, signed by the secretary and 7 members of the union, should be sent to the registrar.

The Registrar shall register the change in name if he is satisfied that the proposed name is not identical with the name of any other existing union and the requirements with respect to change of name have been complied with.

The change of name shall not affect any rights and obligations of the trade union or render any legal proceeding by or against the trade union as defective.

  • Change in Registered Office:

Notice of change in registered office address should be given to the Registrar in writing within 14 days of such change.

Obligations of Registered Trade Unions

The general funds of a registered trade union should be spent only for the objects specified such as, payment of salaries, allowances and expenses of its office bearers, its administrative and audit expenses, prosecution or defenceof any legal proceeding for securing or protecting its rights, etc.

The account books and membership register of the union should be kept open for inspection by any of its office-bearers.

A copy of every alteration made in the rules of the union should be sent to the Registrar within 15 days of making the alteration.

An annual statement of receipts and expenditure and assets and liabilities of the union for the year ending on the 31st December, prepared in the prescribed forms and duly audited should be sent to the Registrar within the prescribed time. This statement should be accompanied by a statement showing changes in office bearers during the year and a copy of the rules as amended upto date.

Write-ups Compiled by:-

Komal Jain, ACS                               Karuna Jain, ACS
K K Jain &Co. LLP                              K K Jain &Co. LLP
Practicing Company Secretary           Practicing Company Secretary
Mumbai                                               Surat
komal.jain.cs@gmail.com                   karuna.jain.cs@gmail.com

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