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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

Asha Vikas Samiti is a registered society running a literacy programme in a rural block. It is not a company, has no share capital, and applies its surplus only to its stated objects. For the purpose of social governance, how is the Samiti best classified?

The Samiti is a non-corporate entity contributing to social governance. It is a registered society, not incorporated as a company, has no share capital and applies surplus to its objects. Registration under society law does not convert it into a corporate body.

  1. AA non-corporate entity contributing to social governanceCorrect
  2. BA corporate entity because it is registered
  3. CA government company because it serves the public
  4. DA listed entity because it raises donations

Explanation

Entities not incorporated under company law, such as societies, trusts and partnership firms, are treated as non-corporate entities. Registration under a society law does not make an entity a company. It has no share capital or listing, so the other classifications fail.

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