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 harmonise 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.