Section 19: Application of funds

19. Application of funds (1) Subject to this Part, no registered association shall apply its funds except for— (a) the furtherance of its objects; and (b) the payment of— (i) reasonable emoluments to its employees; (ii) reasonable allowances or expenses to its officers; and (iii) reasonable expenses for its administration, including the auditing of its accounts. (2) The committee of a registered association shall not incur any expenditure— (a) during the period between the accounting date and the next annual general meeting, in excess of one sixth of the expenditure in the preceding accounting period; (b) at any other time— (i) in excess of 1,000 rupees under any one item; (ii) in excess of 4,000 rupees in any year, unless the expenditure has been previously approved by a general meeting. (3) Except with the approval of the Minister, no mutual aid society shall, in any accounting period, incur expenditure— (a) under subsection (1) (b) (i) and (ii), in excess of 12 per cent; or (b) under subsection (1) (b) (i), (ii) and (iii), in excess of 15 per cent, of the revenue of the society during that period. (4) A registered foreign association shall not— (a) collect funds, or act as an agent, in Mauritius on behalf of any person; (b) except— (i) with the approval of the Minister; and [Issue 1] R16 – 10 Revised Laws of Mauritius (ii) in compliance with the Exchange Control Act, transfer its property or funds to any country outside Mauritius; and (c) make any payment in Mauritius— (i) on behalf of a person not resident in Mauritius; or (ii) in respect of any activity of the association other than its activities in Mauritius. (5) Where any payment is made in contravention of subsection (4), the Registrar may, on behalf of the foreign association, recover the amount paid from the person making the payment or from the payee. (6) Notwithstanding any other enactment, a suit by the Registrar under subsection (5) shall be entered before the Supreme Court by plaint with summons.