Is IMA a trust or NGO or society ?

 We are very much often confused regarding trust and society and NGO. 

Remember, our IMA is not a trust but its a  SOCIETY.

so, what it means to be a society?

Society is a group of persons (DOCTORS in IMA)who are associated together for a common purpose. The purpose may be related to promoting any literary, charitable or scientific work.

How It forms? Does all local IMA branches get registered as a society? 

The incorporation of a society is very simple which requires minimum seven members who sign the memorandum of association (MOA) and then files it to the Registrar of Companies (ROC). In this way, the society is legally formed under the Societies Registration Act, 1860.

The memorandum contains all the details related to the name and the object of the society. In addition to this, the memorandum contains the names, addresses, and profession of the governing body and its members. Committee, governors, directors, council, trustees and others, are the part of the governing body of the society.

 Yes its advisable that  all local IMA branches get registered under societies act as a society.

 At least two trustees are required to register a public charitable trust. However, a minimum of seven members are required for formation of a society.

What is the difference between a society and a trust and a Section 8 company?

A trust must have at least two trustees, while a society requires seven (in the case of a state-level society) and eight (in the case of a national-level society). On the other hand, a section-8 company requires two members for a private limited company and seven members to register it as a public limited company.

 A trust is a legal bond between two parties where one party holds property for another in complete confidence. In comparison, a society is an association of parties who jointly fulfil a common purpose mentioned under The Indian Societies Registration Act of 1860.

A Non-Governmental Organisation (NGO) and a society work towards the same thing, i.e. the welfare of society, but they are different entities. An NGO is a non-profit organization run by volunteers, while a society is formed by a group of people who come together for a common purpose.

 

Key Differences Between Trust and Society

The following are the differences between trust and society:

1.    A trust is an agreement between parties, whereby one party holds an asset for the benefit of another party. Society is a collection of persons, who come together for the initiating any literary, scientific or charitable purpose.

2.    Trusts are registered under Indian Trusts Act, 1882 while Societies are incorporated under the Indian Societies Act, 1860.

3.    There can be minimum two members in a Trust, whereas there should be minimum seven members in society.

4.    Trust Deed is the root document, in the case of Trust, but in the case of the Society, the details are provided in the Memorandum of Association and Rules & Regulations.

5.    There is a single man control in trust. However, there exist a democratic control in the society where decisions are taken by voting.

6.    The board of management of trust contains trustees, but in the case of society, there is a governing body which comprises of committee, trustees, council, directors, governors, etc.

Conclusion

The purpose for which a trust is created is that a person will hold the property of another person for the benefit of a third person while society is set up to promote any scientific, literary, charitable and similar another objective. The purpose of the two differentiates them.