Section 16 of Trade Unions Act 1926

16. Constitution of a separate fund for political purposes

(1) A registered trade union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interests of its members, in furtherance of any of the objects specified in sub-section (2).

(2) The objects referred to in sub-section (1) are:

(a) the payment of any expenses incurred, either directly or indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under 19[* * *] 20[the Constitution] or of any local authority, before, during or after the election in connection with his candidature or election; or

(b) the holding of any meeting or the distribution of any literature or documents in support of any such candidate; or

(c) the maintenance of any person who is a member of any legislative body constituted under 19[***] 20[the Constitution] or for any local authority; or

(d) the registration of electors or the selection of a candidate for any legislative body constituted under 19[***] 20[the Constitution] or for any local authority ; or

(e) the holding of political meetings of any kind, or the distribution of political literature or political documents of any kind.

21[(2A) In its application to the State of Jammu and Kashmir, references in sub-section (2) to any legislative body constituted shall be construed as including references to the Legislature of that State].

(3) No member shall be compelled to contribute to the fund constituted under sub-section (1); and a member who does not contribute to the said fund shall not be excluded from any benefits of the trade union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the trade union (except in relation to the control or management of the said fund) by reason of his not contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the trade union.


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