Section 15 and 16 of the Trade Unions Act, 1926 lay down the provisions relating to the general fund and political fund respectively.


General Fund

Political Fund


According to Section 15 of the trade unions act 1926, a Registered Union can create a General Fund.

 According to Section 16 of the Trade Unions Act, A Registered Trade Unions can create a separate fund for the purpose of promoting Civil and political interests of its members


Member of the trade union have to contribute, to the general fund.

 The contribution to political funds must be collected separately. Contribution to the political fund cannot be compelled or be made as a condition precedent for admission of a person as the member of the trade union. Even those member who have not contributed anything to the political fund.  


The General Fund can be utilized only for the purposes authorized by Section 15 of the Trade Unions Act 1926.

A registered trade union is not entitled to utilize its general fund or political causes of its members



     (a) the payment of salaries, allowances, and expenses to office-bearers of the trade unions;

    (b) the payment of expenses for the administration of the trade union, including audit of the accounts of the general funds of the trade union;

    (c) the prosecution or defense of any legal proceeding to which the trade union or any member thereof is a party, when such prosecution of defense is undertaken for the purpose of securing or protecting any rights of the trade union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;

   (d) the conduct of trade disputes on behalf of the trade union or any member thereof;
   (e) the compensation of members for loss arising out of trade disputes;

   (f) allowances to members or their dependants on account of death, old age, sickness, accidents or unemployment of such members;

   (g) the issue of, or the undertaking of liability under, policies of assurance on the lives of members, or (under) policies insuring members against sickness, accident or unemployment;

   (h) the provision of education, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;

   (i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such;

     (j) the payment, in furtherance of any of the objects on which the general funds of the trade union may be spent, of contributions to any cause intended to benefit workmen in general provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the trade union during that year and of the balance at the credit of those funds at the commencement of that year; and

    (k) subject to any conditions contained in the notification, any other object notified by the 18[appropriate government] in the Official Gazette.

Objects -

   (a) the payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under the Constitution or of any local authority, before, during or after the election in connection with his candidature or election; or

   (b) the holding of any meeting or the distribution of any literature or documents in support of any such candidate; or

   (c) the maintenance of any person who is a member of any legislative body constituted under the Constitution or for any local authority; or

    (d) the registration of electors or the selection of a candidate for any legislative body constituted under the Constitution or for any local authority ; or

    (e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.


Post a Comment

See Also..