Voluntary winding up of Societies



Step 1: As per provisions of section 13 of Societies Registration Act, 1860, a society can close its operations and affairs with the consent of not less than three-fifths of the members delivered in person, or by proxy, at a general meeting convened for the purpose. After the approval of the members for the dissolution of the society all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities according to the rules of the said society applicable thereto, if any, and if not, then as the governing body shall find expedient.

Step 2:. The resolution passed by the members may provide for the dissolution forthwith or upon a agreed time and no dissolution shall be effected without the consent of the Government of the State, where such Government is a member of, or a contributor to, or otherwise interested in any society registered under this Act.

Step 3: Any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the principal Court of original civil jurisdiction of the district in which the chief building of the society is situated; and the Court shall make such order in the matter as it shall deem requisite.

Step 4: If upon the dissolution of the society registered under this Act, there shall remain, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of the said society or any of them, but shall be given to some other society, to be determined by the votes of not less than three-fifths of the members present personally or by proxy at the time of the dissolution, or, in default thereof, by such court as aforesaid.

Above Steps are applicable all over India, however there are some additional steps which will be applicable for some states whcih are as follows:

State Amendments

Applicable for Assam Only

Step: In section 13 after the words “as the governing body” insert the words “or special committee formed to replace the governing body in respect of all matters affecting the winding up of the affairs of the society”.

Step: After the words “the said governing body” insert the words “should it not have been replaced by the aforesaid special committee in respect of all matters affecting the winding up of the society or the said special committee;”

Step: After section 13, insert the following as the first proviso— “Provided that any matter decided by three-fifths of those present either in person or by proxy at any meeting of the members of the society of the governing body thereof or of any special Committee appointed at a general meeting for the purpose of winding up of the affairs of a society shall not be deemed to be a matter of dispute within the meaning of this section.” [Vide Assam Act 15 of 1948, sec. 2 (w.e.f. 20-10-1948).]

Applicable for Uttar Pradesh (U.P) Only

Step: In section 13, for the words “chief building of the society” substitute the words “registered office of the society”. [Vide U.P. Act 52 of 1975, sec. 7 (w.e.f. 10-10-1975).] Sections 13A and 13B After section 13, insert following new sections, namely:— “13A. Power of Registrar to apply for dissolution.—(1) Where in the opinion of Registrar, there are reasonable grounds to believe in respect of a society registered under this Act that any of the grounds mentioned in clauses (a) to (e) of sub-section (1) of section 13B exists he shall send to the society, a notice calling upon it to show cause within such time as may be specified in the notice why the society be not dissolved.

Applicable for both Assam and Uttar Pradesh (U.P)

Step: If on or before the date specified in the notice or within such extended period as the Registrar may allow the society fails to show any cause or if the cause shown is considered by the Registrar to be unsatisfactory, the Registrar, may move the Court referred to in section 13 for making an order of the dissolution of the society.