socitiy funds utilisation

Oct 11, 2025 108 views 3 answers
Business Law
Anonymous
Oct 11, 2025
Business Law
► Can the secretary of a registered society under societies Registration Act 1860 take any money for his [personal use from the societties funds or balnce in the accounts of the society
108 views
3 answers

3 Answers

Oct 13, 2025

Dear Sir, as per your query,

 

Under the Societies Registration Act, 1860, and the general principles governing registered societies in India, the secretary or any office-bearer is a fiduciary, meaning they hold society funds in trust for the benefit of the society and its members — not for personal use.

 

If the Secretary takes society funds for personal use:

It amounts to criminal breach of trust under Section 316 of Bharatiya Nyaya Sanhita, 2023. 

He can be held personally liable to repay the amount.

The society’s governing body or members can:

 

1. File a police complaint for criminal breach of trust,

2. Pass a resolution for suspension or removal of the Secretary, w.e.f

 

For further clarification and details, feel free to contact our OLQ Team for a detailed discussion. 

Oct 13, 2025

Dear Sir,

If the Secretary takes money for personal use, it amounts to:

(a) Criminal breach of trust – Section 405 / 406 IPC

“Whoever, being entrusted with property or with any dominion over property, dishonestly misappropriates or converts it to his own use... shall be punished with imprisonment up to 3 years, or fine, or both.”

(b) Criminal misappropriation – Section 403 IPC

“Dishonestly misappropriating or converting to one’s own use any movable property belonging to another.”

(c) Civil liability

The society can recover the amount with interest.

The Registrar of Societies can order an inquiry under Section 12D (in states like Karnataka, Maharashtra, etc.), and may even deregister or suspend the society’s governing body.

Oct 13, 2025

Hello, 

 

No, he cannot. 

If he has that is violation of the act and rules. 

If you wish to take appropriate steps and measures, feel free to get in touch with me through OLQ. 

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