Page 251 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes The same year, the Legislative Assembly adopted a resolution moved by N.M. Joshi, the then
general secretary of the AITUC, urging immediate steps for registration of trade unions and
protection of the legitimate trade union activities. Subsequently, the local governments were
requested to ascertain the view of public bodies and private persons on certain connected issues
such as the principle of proposed legislation, recognition of strikes, protection of trade unions
from civil and criminal liabilities, management of unions, and others. After receiving the view
of the local governments, the Government of India drew up a Bill which was introduced in the
Legislative Assembly on 31st August 1925. The Bill was passed the next year as the Indian Trade
Unions Act, 1926. The Act with subsequent amendments is still in force in the country.
As a result of this legislation, the Indian trade unions escaped that long process of prosecution
which the trade unions in Great Britain had to undergo, for about hundred years under the
Common Law and the Combination Acts. It is apparent that legal protect to trade unions was
made available very early in the history of the Indian trade unions movement. It may not be
derogatory to the Indian trade unions to say that, because of this early protection, they have
come to miss much of the tightening of muscles, the toughness and the solidarity which the trade
unions in Great Britain came to acquire during their struggle for existence.

The Trade Unions Act, 1926 and Legal Framework

Registration

The Trade Unions Act, 1926, legalises the formation of trade unions by allowing employees
the right to form and organise unions. It permits any 7 persons to form their union and get
it registered under the Act. They must agree to abide by the provisions of the Act relating to
registration and submit a copy of the rules of the trade union in their application to the Registrar
of Trade Unions. If the union has been in existence for more than one year, the application must
be accompanied by a statement of assets and liabilities of the union. The application must contain
(a) the names, occupations and addresses of the members (b) name of the union, its head offi ce
(c) details about office bearers. After verifying the particulars, the Registrar will issue a certifi cate

of registration in the prescribed form.
Status of a Registered Union

A trade union enjoys the following advantages after registration:
1. It becomes a body corporate
2. It gets a common seal
3. It can buy and hold movable and immovable property
4. It can enter into contracts with others

5. It can sue and be sued in its name.

Cancellation of Registration (Sec. 10)

The Registrar of Unions can cancel the registration of a union on the following grounds:
1. On the application by the union
2. Where the application was obtained by fraud or mistake
3. Where the union has ceased to exist

246 LOVELY PROFESSIONAL UNIVERSITY