Fisheries Administration and Legislation (2+0)

1.7 Producer companies & Trusts

Unit 1 Public administration

1.7 Producer companies
It is intermediate between cooperative society and companies. There is no limit for the contribution of share by the members. Two methods of distributions of profits

• Based on the share capital
• Based on patronage

Trusts
Joint families can form trusts, where the members of the family can be member of trust. The trusts work for the welfare of the people. The membership of the trusts is decided by the trustees.
Indian Trusts Act 1882
The Act provides for Electronic contracts will be legally valid, Legal recognition of digital signatures, Digital signature to be effected by use of asymmetric crypto system and hash function, Security procedure for electronic records and digital signature, Appointment of Certifying Authorities and Controller of Certifying Authorities, including recognition of foreign Certifying Authorities, Controller to act as repository of all digital signature certificates, Certifying authorities to get License to issue digital signature certificates, Various types of computer crimes defined and stringent penalties provided under the Act, Appointment of Adjudicating Officer for holding inquiries under the Act, Establishment of Cyber Appellate Tribunal under the Act, Appeal from order of Adjudicating Officer to Cyber Appellate Tribunal and not to any Civil Court , Appeal from order of Cyber Appellate Tribunal to High Court, Act to apply for offences or contraventions committed outside India, Network service providers not to be liable in certain cases, Power of police officers and other officers to enter into any public place and search and arrest without warrant, Constitution of Cyber Regulations Advisory Committee who will advice the Central Government and Controller.
Societies: Societies Registration Act 1860
This is also same as that of trusts but the membership of the societies is not decided by the member of society. Membership is open. These are social organizations. If these organizations promote any business oriented companies (like joint stock companies), then the profit goes to the social organizations and the profit is used for social welfare. Purpose of the Act is to provide for registration of literary, scientific and charitable societies.
Societies Registration Act is a Central Act. However, ‘unincorporated literary, scientific, religious and other societies and associations’ is a State Subject (Entry 32 of List II of Seventh Schedule to Constitution, i.e. State List). Thus, normally, there should have been only State Laws on this subject. However, Societies Registration Act was passed in 1860, i.e. much before bifurcation of power between State and Centre was specified. Though the Act is still in force, it has been specifically repealed in many States and those States have their own Acts. Thus, practically, the Central Act is mainly of academic interest.
Societies to which the Act applies charitable societies, Military orphan funds or societies, Societies established for promotion of science, literature, or for fine arts, Societies established for instruction and diffusion of useful knowledge, diffusion of political education, Societies established for maintenance of libraries or reading rooms for general public, Societies established for Public museums and galleries for paintings or other works of art, collections of natural history, mechanical and philosophical inventions, instruments or designs [section 20].

Trade associations
Non profit
Can promote business