APPENDIX 349 



REGISTERED v. NON-REGISTERED 

 SOCIETIES 



The difference between registered and non-registered 

 societies is very clearly brought out in a leaflet (No. 28) 

 issued in December, 1905, by the Agricultural Organiza- 

 tion Society, to the following effect : 



ADVANTAGES OF REGISTRATION. 



There is a large number of Agricultural Societies formed for 

 specific purposes throughout the country, which, through not being 

 incorporated (registered), do not exist in law. Some of these 

 societies engage in trading operations, and the responsibility for 

 these trading operations may fall entirely on the secretary or other 

 individual found to be taking an active part in the business, which 

 may lead to serious loss to him personally, besides the unpleasant- 

 ness, in case of any difficulty, of having to collect a loss by a levy 

 from the members. 



An unregistered society is incapable of entering into contracts, 

 and therefore cannot, as a body, sue or be sued. It, therefore, is 

 possessed of no credit in the ordinary sense of the term. 



The business of a voluntary society is usually carried on by the 

 secretary, and he, being purchaser of the goods as well as vendor, 

 has consequently to incur a responsibility to which no secretary or 

 official should be subjected. He may find himself saddled with 

 deteriorated goods, or he may make some involuntary mistake for 

 which his society may decline to be responsible, and which may 

 leave him with a heavy loss. 



A creditor may take action against him personally, leaving him 

 to get what contribution he can from the individual members of the 

 committee, or the creditor may take proceedings against any 

 member of the association upon whose instructions he finds the 

 secretary or manager acted. Everyone who takes part in the 

 management of the business of an unregistered society is con- 

 stantly incurring personal liabilities, and, even however much he 

 may trust to the good faith of his fellow- members, many incidents 



