Question

The Trade Union cannot spend its common fund on:

• A. Education of children of its members
• B. Funding of a political party
• C. Payment of salary to its office bearers
• D. Legal Proceedings related to Union or its members

Hint:

A trade union's general fund is for the day-to-day welfare and activities of the union and its members. Political activities require a separate, optional political fund.

Answer 1

The Correct Option is B

Step 1: Understand the rules for Trade Union funds.
The Trade Unions Act, 1926, has specific rules about how a union can spend its money.
It distinguishes between a general fund and a political fund.

Step 2: Know what the general fund can be used for.
Section 15 of the Act lists the permissible objects for spending the general fund.
This includes administrative expenses, payment of salaries, legal expenses, compensation for loss from trade disputes, and social benefits for members like allowances for sickness, unemployment, or death, and the education of their children.
Options (A), (C), and (D) are all allowed under Section 15.

Step 3: Know the purpose of the political fund.
Section 16 allows a trade union to constitute a separate fund for political purposes.
This means that direct funding of a political party or for political activities must come from this separate, voluntary fund, and not from the general common fund.