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Jayanta Bandyopadhyay   29 September 2021

Dissolution of trade union and distribution of surplus

Due to merger , member strength of trade union of employees of tranfereror company has got reduced to 3 but there exists an huge surplus courtesy earlier corpus. There is no audit and return due to less interest.

How to dissolve trade union and allocate surplus

Is there any other alternative where ex members now promoted to Mgt Cadre can get have share in the kitty.

Please guide

Jayanta Bandyopadhyay





 4 Replies

Dr J C Vashista (Advocate)     30 September 2021

Memorendum of Association and Articles of Association shall have to be perused by a local prudent lawyer for proper analyses, opinion and advise.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     30 September 2021

To get dissolved the union should be officially and legally certified with the registration of such union. A notice of dissolution signed by any seven members and the secretary of the union should be sent to the registrar within 14 days of the dissolution.

Pradipta Nath (Advocate)     30 September 2021

In case it is a registered trade union, refer to the rule book on the dissolution process. 

Regarding funds of the union, the rule book or the Registrar is to decide it in accordance with the law laid down. In case the Registrar is exceeding his limit of jurisdiction, you can take the intervention of the Judiciary.

Jayanta Bandyopadhyay   30 September 2021



It was initially registered trade unions. However, with existing strength hovering around 3 to 4 members -down from 300 plus, union became almost defunct over the last 5 years. There was no audit of accounts, no meeting. How to regularise backlog .Management is pushing for deregistration for some unknown reasons, as Transferee I.e amalgamated company does not want other than rubber stamp activity. This Union, being talked about, belongs to Transferor company in merger. New mgt ignores this union. 

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