Section 15 of TUA, 1926 : Section 15: Objects On Which General Funds May Be Spent

Explanation using Example

Example Application:

Imagine a scenario where a registered Trade Union, 'XYZ Workers' Union', is deciding on its annual budget and the activities it will fund. The treasurer of the Union consults Section 15 of The Trade Unions Act, 1926, to ensure that the allocations are lawful.

• They set aside funds to cover the salaries and travel expenses of their office-bearers.
• A portion of the budget is allocated for administrative expenses, including the cost of auditing the Union's accounts.
• The Union also reserves funds to cover legal costs for any member who might need to defend their employment rights in court.
• Money is allocated to support members involved in trade disputes, such as strikes or negotiations with employers.
• They plan to provide financial assistance to members who suffer a loss of income due to such disputes.
• The Union decides to offer sickness and accident benefits to members, as well as financial support to families in case of a member's death.
• Additionally, they plan to publish a monthly newsletter to keep members informed on labor issues.
• Finally, they ensure that the total contributions to causes that benefit workmen in general do not exceed one-fourth of the Union's income and reserves for that year.

This budget planning exercise demonstrates the Union's compliance with Section 15, which mandates that general funds be spent only on permissible activities.