18 April 2015
A club may be a members club or a proprietary club. In the former case the properties of the club vest in the members, while in the latter case an individual or a firm or a limited company owns the property while the members are allowed to make use of that property on certain terms. The members' club may be an unincorporated society or may be registered under the Indian Companies Act, or Societies Registration Act. In a proprietary club the owner or the owners, as the case may be, run it for the purposes of gain, while in a members' club it is not so. Such. a club is not a partnership nor even a quasi-partnership. It may be noted that under the Societies Registration Act it is permissible for the registration of a club for the purposes of promotion of science, literature, or the fine arts, for instruction, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for the use of members or for promotion of other allied objects; It is necessary in a society or club so registered that the Memorandum of Association should contain the name of the society, the objects of the society, the names, addresses and occupations of the governor's council, directors, committee or other governing body to whom, by the rules of the society. the management of its affairs is entrusted. A copy of the rules and regulations of the society, certified to be a correct copy by not less than three members of the government body has to be filed with the Memorandum of Association with the Registrar of Joint Stock Companies of the State. The proceedings of such a society must conform to the provisions of the Society Registration Act XXI of 1860. If the members' club is registered under the Indian Companies Act. it must also conform to the provisions of that Act.
Some fundamental rules
In framing rule for an unincorporated members club it must be borne in mind that unless the constitution of the club provides for amendment of the rules when necessary no alteration of the rules thereafter is possible, in such matters as subscription or other fundamental objects of the company. For instance, If the rules do not provide for alteration in the monthly or annual subscription. a resolution by the majority of the members of a club enhancing the rates of such subscriptions is not operative on the dissentient members of the club. The amended rules, however, operate even against the old members if otherwise valid and not incompatible with the fundamental objects of the club though passed at a subsequent time. It is usual to provide for the admission of members, their resignation md re-admission.
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