| Question And Answer | |
|---|---|
| Subject: | mutuality |
| Category: | Income-Tax |
| Querist: | bks |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | club, Mutual Concern, Mutuality, Principle of mutuality |
| Date: | June 29, 2023 |
Is mutuality a right or duty for any club formed u/s 8 of Companies act?
can any club say that we don’t follow mutuality and simply doing business ?
The principle of mutuality postulates that all the contributors to the common fund must be entitled to participate in the surplus and that all the participators in the surplus are contributors to the common fund. However, a club is not bound to follow such a principle.
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