What’s a Profit Bureau?

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An office of profit is an executive position with benefits, and laws prohibiting those in such positions from being members of the legislature exist in several countries, including England, the United States, and India. The definition of an office of profit varies by country, and decisions on disqualification are made by committees and courts.

A profit office is any executive position to which a benefit is attached. The term appears in several national constitutions, each with a slightly different definition. Governments generally do not allow those in positions of profit to be members of the legislature, which enforces the government’s separation of powers. Otherwise, a legislator could be unduly influenced by the executive office.

Some of the first laws relating to offices of profit were written in England in the early eighteenth century. The Settlement Act 1701 and the Act of Union 1707 stipulate that no one having an office of profit or a royal pension may be a member of the House of Commons. There is no such law for the House of Lords. While England was one of the first countries to ban it, it no longer strictly observes the law. Some positions which still disqualify someone from serving in the House of Commons are listed in the House of Commons Disqualification Act.

The United States Constitution states that no one holding an office of profit can be a member of Congress until he or she resigns from office. Likewise, a member of Congress cannot accept an office for profit unless he resigns from Congress. This law reinforces the checks and balances upon which government is based, where neither the executive, legislative or judicial branch has more power than the other two branches.

The Indian constitution also bans those in this type of position from being members of both houses of the Indian Parliament, but does not define the office of profit. In the 1950s, the legislature passed the Prevention of Disqualification Act, an Act of Parliament specifying particular positions that do not qualify. Financial advantage, local authority and influence, and supervisors are also taken into consideration. If a position receives only compensation for expenses, it is typically not considered a profit charge.

Decisions on what qualifies as a profit bureau have challenged some 60 members of India’s parliament since 2000, including former Indian National Congress Speaker Sonia Gandhi. A joint committee has been formed to consider whether various positions should disqualify a person from the legislature. This committee advises Parliament on these offices, although some decisions are made by the courts.




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