Board Members of an FCRA Registered Organization

Board Members of an FCRA Registered Organization

1. WHETHER GOVERNMENT SERVANTS, JUDGES AND EMPLOYEES OF GOVERNMENT OWNED/ CONTROLLED COMPANY/ BODY CAN BE ON THE EXECUTIVE COMMITTEE/ BOARD OF AN ASSOCIATION

Yes. The legal entity of a ‘person’ under FCRA, 2010 is distinct from an individual person. Therefore, individuals who cannot receive foreign contribution may happen to be on the executive committees/boards of such an association.

There is no legal disqualification of an organisation if debarred persons are on the board of an organisation. However, it is advisable to ensure that such persons are not the key functionaries of the organisation or engaged in direct management

2. CAN FOREIGNERS BE ON THE BOARD OF AN ORGANISATION

The FCRA Act and the Rules are silent about admission of foreign nationals on the Board of an FCRA Registered organization. However, as per the FAQ issued by the ministry of Home Affairs, foreigners as a board member in a governing structure are permitted with the prior approval of Central government only if such member is admitted due to certain conditions.

Further The FAQ issued by MHA has mentioned the Following content regarding the foreigner as a board members:

Organizations having foreign nationals, other than of Indian origin, as members of their executive committees or governing bodies are generally NOT permitted to receive foreign contribution. However, foreigners may be allowed to be associated with such associations in an ex-officio capacity, if they are representing multilateral bodies, foreign contribution from whom is exempted from the purview of the Foreign Contribution (Regulation) Act, 2010, or in a purely honorary capacity depending upon the person’s stature in his/her field of activity.

Relaxation may be considered on case to case basis by an authority higher than the competent authority, if any of the following grounds is met:

• The foreigner is married to an Indian citizen;
• The foreigner has been living and working in India for at least five years;
• The foreigner has made available his/her specialized knowledge, especially in the medical and health related fields on a voluntary basis in India, in the past.
• The foreigner is a part of the Board of Trustees/Executive Committee in terms of the provisions in an inter-governmental agreement.
• The foreigner is part of the Board of Trustees/Executive Committee, in an ex-officio capacity representing a multilateral body which is exempted from the definition of foreign source.

It may be noted that the above five type of foreigners are generally eligible to be on the board of organisations with prior permission. However, the Central Government may also permit other category of foreigners on case to case basis. It may also be noted that any category of foreigner shall be appointed/elected only after receiving prior permission.

3. A FOREIGNER OF INDIAN ORIGIN CAN BE A BOARD MEMBER

It may be noted that a foreigner of Indian origin can be a Board Member without prior approval. In other words, a foreigner having a OCI or PIO status can become board members even if they are foreign citizen without having Indian passport.