Model Code for Meetings of Non-Corporate Entities issued by ICSI
Companies deals with more stringent regulations as compared to Non-corporate Entities which majorly pursue common objectives or formed to provide benefits/services to its members. Non-corporate Entities may be incorporated in the form of society, trust, club, welfare association, civic bodies etc.
Usually the Governing Body/Council of Non-corporate Entities comprises of members chosen from among the members of such entities or in some cases, nominee appointed by the Government. The affairs of Non-corporate Entities are managed by the Governing Body/Council by taking appropriate decisions at its meeting. To achieve the objectives of any entity, the effective decision making is inevitable and the same equally applies to Non-corporate Entities.
The legal principles and procedures with respect to Non-corporate Entities are laid down in the respective laws applicable to such entities or enshrined in their Bye-laws. In addition to applicable legal requirements, this Model Code provides essential governance practices in convening and conducting the Meetings of the Governing Council/ Management Committee of such entities and aims to harmonize the prevalent diverse practices.
This model code does not seek to substitute or supplant any existing laws applicable to Non-corporate Entities. It strives to supplement such laws for promoting better governance in convening and conducting the Meetings of such entities.
I place on record my sincere thanks to CS Pavan Kumar Vijay, former Chairman-Secretarial Standards Board (SSB) and all Members of the SSB for their tireless efforts and contribution made during the preparation and finalization of this Model Code for Meetings of Non-corporate Entities.
I also wish to place on record my appreciation for the efforts put in by CS Rakesh Kumar, Assistant Director under the leadership of CS Banu Dandona, Joint Director, Directorate of Corporate Laws & Governance and under the overall guidance of CS Ashok Kumar Dixit, Offciating Secretary of the ICSI, in bringing out this Model Code.
I urge upon the readers of this Model Code to voluntarily adopt and disseminate the best practices in convening and conducting the Meetings of Non-corporate Entities, so as to promulgate good governance.
Improvement is a continuous process and therefore, suggestions of the readers to improve this Model Code are most welcome.
Place: New Delhi CS Ranjeet Pandey
Date: 20th March, 2019 President ICSI