FCRA procedure to be adopted, to remove Trustees as per new ACT

Dear SRRF Dialogue members,

We have received a query under FCRA from, Mr. A.C. Sridharha, Akshara Foundation

‘’In our organization, around 50% of the trustees who hardly attend BOT meetings will be replaced. Please let me know what procedure we have to adopt as per new Act. If I am correct, as per earlier provisions, we have to obtain prior permission if more than 50% of the original trustees have to be replaced. Please enlighten on this as we are having BOT in a couple of days’’.

Looking forward to your response

Thanks and regards,
Tanvi Dogra
SRRF Dialogue, Coordinator

Socio Research and Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044
e-mail: socio-research@sma.net.in

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4 Responses to FCRA procedure to be adopted, to remove Trustees as per new ACT

  1. CA Martin Pinto says:

    Dear Sir,

    Please refer to item ii of the Declaration and Undertaking in the New FC -3 Form for Registration or
    Old FC-8 form reproduced below – it is self explanatory on this issue

    “(ii) to obtain prior permission for change of Members of the Executive Committee / Governing Council,
    if, at any point of time, such change causes replacement of 50% or more of such Members as were
    mentioned in the application no.___________________________ dated _____________ for
    registration under the Foreign Contribution(Regulation)Act, 2010 (42 of 2010) and undertake further
    not to accept any foreign contribution except with prior permission till the permission to replace the
    office-bearer(s) has been granted. ”

    CA Martin Pinto

  2. Subhash Mittal says:

    Dear Sridhar,

    I saw your mail, but due to various preoccupations could not respond to your mail and hence posted it on SRRF Dialogue. I see you have already rec’d a number of responses. Under FCRA Act there is no direct provision asking for permission whenever changes in Board members. It is written on the Form which you would have filed while applying for Registration. It is like a requirement that you have agreed to take necessary permission from the FCRA Dept. whenever more than 50% change in the Board / Trusttes becomes effective as compared to at the time of declaration given by you in your application for registration.

    Hence whether you make one time change or in installments, it does not matter.

    Hope this and the information provided by other SRRF Dialogue members you have found useful.


    subhash mittal

  3. Ravistan Anthony says:

    Dear Mr. Sridhara,

    Yes, I agree with the Soma Sastry\’s suggestion.

    It will be a very painful process to get permission from FCRA department for change of 50% of the trustees.
    So, if 20-30% of the non-performing trustees leave annually in the board meeting, will solve this issue and no need to take prior permission from FCRA department.

    With warm regards,
    Ravistan Anthony
    UnLtd, India

  4. B V Soma Sastry says:

    Dear Mr. Sridhara,

    Greetings from Hyderabad!

    If 50% or more of the BoT resign at one go, it is incumbent upon the organizatin to inform the ministry for such change. As you are aware, Trustees are the legal holders of the organization and such a drastic step would mean an upheavel in the organization. In worst case scenario, the Government would take over the Trust in such cases.

    My suggestion would be that let the trustees leave 2 at a time or so. This way you can phase out the so callled “no performing trustees” from the organization.

    Thanks and regards,

    B V Soma Sastry

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