Page 252 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 11: Trade Union Act, 1926

4. Where it has willfully and after notice from the Registrar contravened any provisions of Notes
the Act or allowed any rule to continue in force which is inconsistent with any provisions
of the Act
5. Where the union has rescinded any rule providing for any matter, provision for which is
required by Section 6
6. Where the primary objects of the union are no longer in agreement with the statutory
objects.
Obligations (Sec. 21)

Under the act it is obligatory for the union to:
1. Allow anyone above the age of 15 years to be a member of the union
2. Collect membership fees not less than 25 paise per month and per member

3. Specify that 50% of office bearers must be from the persons actually employed
4. Maintain membership register, get the books of account audited and make them available
to members
5. State the procedure for change of its name, its merger with other unions and its
dissolution
6. Spend uniform funds for the purposes specified in the Act.

Rights (Sec. 18)

1. Claim immunity from civil and criminal prosecution for bonafide trade union activities
2. Create a political fund
3. Spend general funds on salaries of staff and meet certain other expenses as stated in the
Act
4. Can represent workers to the works committee
If a union is formed by giving wrong information or registration is obtained through fraudulent
means, the Registrar of Trade Unions can cancel such registration by giving 2 months’ notice
stating reasons.

Liabilities

1. A registered union should maintain books of account and a list of members
2. Should keep books and the list open for inspection by members

3. Should have office bearers who do not suffer from the disqualifications prescribed under

the TU Act, 1926
4. Should submit statements of receipts, expenditure, assets, liabilities etc., to the registrar of
trade unions
5. Should give correct information to persons intending to become members.

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