Section 5C of EPFMA : Section 5C: Board Of Trustees To Be Body Corporate

Explanation using Example

Imagine a company, XYZ Pvt. Ltd., which is covered under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The government has established a Board of Trustees to manage the provident fund of the employees of XYZ Pvt. Ltd. This Board is named "XYZ Provident Fund Trust" as specified in the notification.

Now, suppose the Board decides to enter into a contract with a bank to manage the provident fund accounts. As a body corporate, the "XYZ Provident Fund Trust" can enter into this contract under its own name, use its common seal, and ensure that the contract is legally binding. Additionally, if there is a dispute with the bank regarding the management of the funds, the "XYZ Provident Fund Trust" has the legal authority to sue the bank or be sued in its own name in a court of law, without involving the individual trustees or the employees of XYZ Pvt. Ltd.