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

Sunrise Sahayata Samiti, a registered society in Pune, runs free evening classes for slum children and has no share capital or profit distribution to members. Which description best fits its role in social governance?

The society is a non-corporate entity contributing to social governance. It is not incorporated as a company, delivers welfare such as education to children, and does not distribute profits. It is neither a regulator nor a dividend-paying business.

  1. AA corporate entity whose governance is exclusively regulated by the Companies Act, 2013
  2. BA non-corporate entity that contributes to social governance by delivering social welfare outside the corporate formCorrect
  3. CA profit-making entity formed to distribute dividends to members
  4. DA statutory regulator supervising other societies

Explanation

A registered society is not a company, so it is a non-corporate entity. Its non-profit education work is a contribution to social governance. It does not distribute profit and is not a regulator, and the Companies Act does not exclusively govern it.

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