MANDATE & FUNCTIONING
The Funds and Assets Management Committee (FAMC) was
created in 1996 on request from the Governing Board to the Working Committee
of the Auroville Residents' Assembly.
This request was based on Clause 8(1) of the Rules
of the Auroville Foundation, which stipulate that:
a) the Governing Board should constitute a Finance
Committee under section 16(1) of the Act;
b) the Residents' Assembly should constitute a Funds
and Assets Management Committee (FAMC) under section 19(3) of the
Act, "which will advise the Governing Board on all matters specified
in these Rules and those relating to.
i.) the utilisation of funds and the management
ii) taxes and audits,
iii) the sale, acquisition and utilisation
of immovable assets"
The Rules also specify that one member of the Governing
Board, the Secretary of the Auroville Foundation and a representative
of the Financial Advisor, Ministry of Human Resource Development, or their
nominees have the right to attend the meetings of the FAMC as ex-officio
2. FAMC Mandate as specified in the Rules of the Auroville Foundation
Clause 5, "Powers of the Governing Board", in the Rules stipulates
that the Governing Board shall have the power to enter into agreements,
to take over or acquire immovable and moveable property, to invest funds
of the Auroville Foundation, to dispose of immovable property, and to
borrow funds for the Auroville Foundation in consultation with the Working
Committee and the FAMC.
Under Clause 5 of the Rules "Powers of the Governing Board"
the FAMC is referred to as follows:
(1) The Governing Board shall have powers:
5.1.c: to enter into agreements with the Central
Government, State Governments and pubic and private organisations and
individuals and other foreign nationals and international non-governmental
organisations, Government or Non-Government organisations or International
Intergovernmental organisations for furtherance of the Foundation's
objectives, for implementation of its programmes and for securing and
accepting endowments, grants-in-aides, donations or gifts on mutually
agreed terms and conditions in consultation with the Working Committee,
provided that as far as commercial transactions are concerned, the FAMC
would be the nodal mechanism involved.
5.1.d: to acquire by purchase, lease, gift or otherwise
any immovable property that may be necessary or convenient for the purposes
of the Foundation and in consultation with the Working Committee and
5.1.e: to acquire by purchase, lease, gift or otherwise
any moveable property and/or equipment which may be necessary or convenient
for the purposes of the Foundation and in consultation with the Working
Committee and the FAMC;
5.1.g: to invest the funds of the Foundation or
any other investable funds at the disposal of the Foundation in such
securities or in such manner as may, from time to time, be determined
by the Governing Board and, from time to time, to sell or transfer such
investments in consultation with the Working Committee and the FAMC;
5.1.h to take over and acquire by purchase, gift
or otherwise from Central Government or State Governments and other
public or private organisations or individuals or, subject to compliance
with the other laws and approval of the Central Government, from foreign
nationals and international non-Governmental organisations moveable
and immovable properties or other funds together with any attendant
obligations and engagements not inconsistent with the objects of the
Foundation in consultation with the Working Committee and the FAMC
Prior approval of the Central Government shall be
necessary in those cases where the value of immovable assets exceeds
Rs 1 crore.
5.1.i. to sell, transfer, lease or otherwise dispose
of any immovable property of the Foundation in consultation with the
Working Committee and the FAMC.
Provided that no immovable property shall be sold
without the previous sanction of the central Government if its value
is more than Rs 5 lakhs.
5.2 Where a decision is required to be taken by
the Governing Board in consultation with the Working Committee or FAMC,
then such consultation shall be completed within a period of 60 days
time and the decision of the Governing Board after such consultation
shall be final.
5.3 The Governing Board may with the previous
sanction of the Central Government borrow, on the security of the properties
of Auroville or any other assets, for carrying out the purposes of the
Act in consultation with the Working Committee and the FAMC.
3. FAMC Mandate as specified by the Residents' Assembly
(For the purpose of this document the Residents' Assembly
is defined as all Aurovilians over 18 years. When policies or decisions
require ratification by the Residents' Assembly, the FAMC will publish
them in the Auroville News and give two weeks for feedback. All feedback
will be considered and where possible incorporated. To entirely change
or drop a policy, a part of policy or a decision would require a objection
from a minimum of 50 people.)
Within the ever-changing context of Auroville's internal
organisation the FAMC has taken up several functions related to the actual
management of funds and assets of the Auroville Foundation.
More specifically, the FAMC has, on behalf of the Residents' Assembly,
become Auroville's nodal body to:
a) Recommend the creation and closure of Trusts
and Units or other corporate bodies under the Auroville Foundation;
b) Recommend the appointment, resignation and removal of Trustees and
Executives of Trusts and Units under the Auroville Foundation;
c) Define and oversee the functioning of Trusts and Units under the
d) Assess the financial viability of Trusts and Units under the Auroville
e) Address and resolve problems arising with respect to the management
of Trusts and Units or the allocation of assets.
f) Assess and oversee the financial viability of collective housing
and public building projects;
g) To manage and allocate housing through the agency of its sub-group,
the Housing Service.
h) To recommend the sale or exchange of land;
i) Approve requests for loans from the Auroville Maintenance Fund above
Rs 5 lakhs;
j) To formulate policies relating to the use of funds and assets for
ratification by the Resident's Assembly
k) To create groups and sub-groups to facilitate the FAMC in fulfilling
the above functions
4. Constitution of the FAMC
a) The FAMC shall consist of not more than 21 members:
i) 15 members shall be representatives of Auroville
working groups designated by the Residents Assembly and these working
groups shall appoint their representatives. The Residents' Assembly
will also determine how many representatives of each working group will
constitute the FAMC;
ii) A maximum of 3 members co-opted by the representative
members of the working groups. Co-opted members do no not need to be
representative of a working group;
iii) One member of the Governing Board, the
Secretary of the Auroville Foundation and a representative of the Financial
Advisor, Ministry of Human Resource Development, or their nominees as
b) The term of office of each representative member
shall terminate either at the time his or her membership of the working
group represented terminates or after 3 years. A working group may re-nominate
its representative for a subsequent 3-year term. Co-opted members may
be member for a period of up to 3 years, and are also eligible for re-nomination.
c) Each working group will designate another of its
members to replace the member-representative whenever s/he is not able
to attend a meeting.
d) A member may resign by giving a one-month notice
to the other members of the FAMC, who will request the working group represented
to nominate the member's successor.
e) Only residents, who have been living in Auroville
for minimum 5 years, may be nominated as member of the FAMC. The FAMC
may, in exceptional cases, decide to accept a nominee who does not fulfil
5. Functioning of the FAMC
a) The FAMC shall meet at least once every two weeks.
b) The members will nominate or elect a Chairperson who will serve in
this capacity for a period of 3 years.
c) Any 5 members of the FAMC can requisition the Chairperson to call a
meeting to discuss any issue.
d) Seven members shall constitute a quorum for a meeting.
e) If within half an hour from the time appointed for holding a meeting,
a quorum is not present, the meeting can discuss the topics on the agenda
but cannot take any decision. In this case the meeting will automatically
stand adjourned to the same day one week later, at the same time and place.
f) If at the adjourned meeting also, a quorum is not present within half
an hour from the time appointed for holding the meeting, the members present
shall be a quorum.
g) Decisions in meetings of the FAMC shall preferably be made by consensus.
In case no consensus can be reached, decisions shall be made by consent,
which implies that all arguments concerning the decision under discussion
have been presented, and that no one of the persons present has any reasoned
objection against the decision proposed. If the FAMC cannot arrive at
a decision by consent the issue can be referred to the Auroville Council
and the Residents Assembly.
h) The Chairperson will be responsible for calling meetings, maintaining
the minutes of the meeting, and for regular publishing of meeting reports
in the Auroville News and AV Net.