CHAPTER II

PRELIMINARY

                                                                 REGISTRATION OF SOCIETIES
  3 Application For Registration
   
   
  1

Every application for registration of a society under sub-section (1) of section 6 shall be made in triplicate in From A. In Hindi, English or local language and shall subject to be provision of sub—rules (2) and (3), be duly signed by the applicants in accordance with the provisions of clauses (a) and (b) of sub-section (2) of section 6 and accompanied by :-

a Four copies of the proposed bye-laws of the society,
b A certificate from the financing bank stating the credit balance in favour of the proposed society there in,
c  A list of persons who have contributed to the share capital, together with the amount contributed by each of them and the entrance fee paid by each of them,
d Such other documents as may be specified by the Registrar by a special or general order
2 A scheme showing the details explaining as to the economic soundness of the proposed society
Where any member of society to be registrar is a registered society, a member of the committee of such registered society shall be authorized by the committee by a resolutions to sign on its behalf the application for registration and the bye-laws for registration and a copy of such resolution duly certified by the Secretary of the society shall also be appended to the application.
3 Where any member of a society to be registered is a firm, company, corporate body, Societies Registration Act, 1860 or a public trust registered under any law for the time being in force or local authority, then such firm company, corporate body, society, public trust or local authority shall duly authorized any person to sign on its behalf the application for registration and the bye laws and duly certified copy of the resolution giving such authorized shall be appended to the application
4 The application for registration shall mention the name and address of one of the applicants to whom correspondence may be addressed by the Registrar.
5 The application shall be sent to be Registrar to registered post be delivered in the office by hand.
   
   
4 Registration
1 On receipt of an application under 3 the registrar shall enter particulars of the application in the register of application to be maintained in From B. give a serial number to the application and issue a receipts in the acknowledgment thereof.
2 The Registrar may give, wherever necessary. Opportunity to the promoters to modify the proposed bye-laws before finally registering the society or rejecting the application for registration of the society.
3 On registering a society and its bye laws under sub section (1) of section 8 the Registrar shall within six month from the date of registration, notify the registration of a society in the Official Gazette and grant to the society a certificate of registration signed by him and bearing his official seal and containing the registration number of the society and the date of its registration. The registrar shall also furnish the society with a certified copy of the bye laws approved and registered by him.
   
   
5 Refusal to register
  If the Registrar refuses to register a society, he shall communicate the order of refusal together with the season therefore, by registered post to the applicant referred to in sub rule (4) of rule 3.
   
   
6 Matter in respect of which Registrar May direct Society to make bye or a Society may make bye-laws.
1 The Registrar may require a society to make bye laws in respect of all or any of the following matters, namely;
a)  name, address and the branches of the society
b) Area of operation of the society;
c) Objects of the society;
d) The manner in which and the limit upto which funds of the society may be raised, the maximum share capital which anyone member may hold and purpose to which funds may be made applied;
e) Terms and qualifications for admission to membership including entrances fees, if any;
f) Privileges, right, duties and liabilities of members including nominal members;
g) Consequences of default in payment of any sum due by a member to the society;
h Conditions regarding sale or disposal of produce of members, wherever applicable:
i In ease of credit societies:
j Maximum loan admissible to a member;
ii  maximum rate of interest on loan to member;
iii condition on which loans may be granted to members and penalties for misapplication of loans so advanced;
1v procedure for granting extension of time for repayments of loans and advances
v consequences of default in payment of any sum due;
vi circumstances under which a loan may be recalled;
j In case of non-credit societies, the mode of conducting business such manufacture, purchase, sale, stock taking and other like matters:
k In case of composite society, that is to say, a society having both credit and non credit functions, matters referred to in clauses (i) and (j).
l Mode of holding general body and committee meeting;
m Procedure for expulsion of member;
n Manner of making, altering and amending bye laws;
o Mode of appointment, either by election or otherwise, removal of member of members of committee and other officers and their duties powers;
p Chairman’s powers, and duties function and his removal;
q Method of recruitment, condition of service and the authority competent to fix, revise or regulate scales of pay and allowances of employees (including officers) and servants of the society and the procedure to be followed on disposal of disciplinary cases against them;
r Mode of custody and investment of funds and mode of keeping accounts and records
s Disposal of net profits;
t Manner in which penalty should be levied on a member who is found to be guilty of breach of the bye laws;
u appointment of a provisional committee, where necessary;
v mode of convening annual and special general meetings, issue of notices and the business which may be transacted threat;
w in the event of winding up of the society, the manner in which surplus assets, if any, shall be utilized;
x conduct of elections to committee and other bodies of a society, number of members to be elected by a different constituencies and appointment of Returning officers;
y any other matter incidental to be management of business of a society;
2 A society may also make bye-laws in respect of all or any of the following matters
a the circumstance under which withdrawal for membership may be permitted;
b procedure to be followed in cases of withdrawal, ineligibility and death of member,
c conditions under which transfer of share or interest of a member may be permitted;
d method of appropriating payments made by members from whom moneys are due;
e authorization of an officer or officers to sign document and to institute and defend suits and other legal proceeding on behalf of the society;
f constitution and maintenance of various funds required to be maintained under the provision of the Act and these Rules.
g Constitution of representative body consisting of delegates of members of a society and mode of election of such delegates to exercised by such smaller body;
   
   
7 First bye laws of a Society
  When a society has been registered, the bye-laws of a society as approved and registered
   
   
8 Model by-laws
  The Registrar may prepare model bye-laws of each class or sub-class of societies Which may be adopted by societies with or without changes.
   
   
9 Classification of Societies :
1 After Registration of a society the Registrar shall classify a society into one or other of the following classes and sub-classes of societies according to the principle object provided in its bye-laws;
2 Resources society’ means a society formed with the objects of obtaining from it member the credit, goods or services required by them such as
i Thrift and Urban Credit Society
ii Agriculture Credit Society.
iii Agricultural Non-Credit Society.
iv Multi- purpose Society which includes amongst its primary object, the object of societies referred in (ii) and (iii) above.
v Urban Thrift and Credit co-operative Bank.
vi Cooperative bank.
b Producers Society’ means a society such as, i. Industrial Producers Society, ii. Weavers Society, iii. Labour and Construction Society, iv. Motor Transport Society,
v Industrial Service Society, formed with the object of producing and disposing of goods as the collective property of its members and includes a society formed with the object of the collective disposal of the labour of the members of such society.
c Consumer Society’ means a society formed with the object of obtaining and distributing goods to or of performing services for its members, as well as to other consumers within the area operation specified in the bye-laws, and of dividing among its members and customers in a proportion prescribes by the rules or the bye laws of such society, the profits accruing from such supply and distribution.
d Processing Society’ means a society the object of which is the processing of goods by mechanical or manual process.
e ‘Marketing Society’ means a society formed for the purpose of marketing agricultural or other produce and includes amongst its object, the supply of the requisites of such production,
f Joint Farming Society’ means a society is which the object of increasing agricultural producing, employment, income and better utilization of resources, land held by members is pooled together and is jointly cultivated by the members on behalf of the society.
g Collective Farming Society’ means a society in which with the object of increasing agricultural producing land is acquired from outside in the name of the society and is collectively and jointly cultivated by the members themselves on the behalf of the society.
h Co-Operative Union’ means a society which has its principal object the undertaking of co-operative education education, propaganda and training.
  Others
  Note ; If any society classified as above is a federal society it may be classified as apex society.
2 If the Registrar alter the classification of the society from one class of society to another, or from one sub-class thereof to another. He shall issue the society a copy of his order Provided that no such order shall be made without sufficient opportunity being given to the society to express its views in the matter and the views so expressed are taken into consideration by the Registrar.
3 A society may, in its general body meeting resolve by a two- third majority to convert it—self into a society of a class different from the one to which it belong. Such 1resolution shall also include amendments to the bye-laws proposed for adoption by the society on such conversion and a copy of the resolution shall be sent to all members and creditors of the society
4 Any member or creditor may, within a period of one month from the date of receipt by him of the resolution mentioned in sub-rule (3), intimate in writing his intention to withdraw his share or interest in a society.
5 After the expiry of two month from the date of dispatch of the resolution referred in sub-rule (3) to its members and creditors, the society shall convene a general meeting by giving fifteen days considering such resolution. If, at such meeting the said resolution is confirmed by two-thirds of the members present and voting. Either with or without changes, the Registrar, on receipt of a copy of such resolution duly certified and after satisfying himself that the claims of members who desires to withdraw their shares or interest under sub rule (4) have been met in full register the amendment to the bye laws and on such registration the conversion shall be deemed to have taken effects.
   
   
Maintenance of Register:
1  The Register shall maintain a register of all societies or deemed to be registered under the Act in From C.
2 The Registrar shall assign for each or sub of societies a code symbol for giving registration number to societies and the societies shall be registered from the date specified by him.
   
   
Registration File :
1 Every societies shall keep at its registered office a registration file containing:-
a Registered bye-laws of the societies.
b An index of amendment to the bye-laws
c An index of amendment to the bye-laws duly entered in the index along with certificates of registration of amendment.
d An index of amendment of bye-laws
e a copy of the Act.
f A copy of these Rules.
2 The above file shall be open for inspection at all times during working hours to the Registrar or any other officer authorized by him and every member of the society
   
   
12  Amendment of Bye-laws
1 Subject to the provisions of this rules and section 11 (1) of the at, the bye—laws of a society may be amended by passing a resolution at the general meeting of the society held for the purposed.
2 The society shall give notice of not less than 14 days of the proposed amendment to all the members for their considerations.
3 An amendment shall be deemed to have been duly passed if a resolution in that behalf is passed at general meeting by not less than two –third of the members present voting.
4 After a resolution is passed a cop[y therefore shall, within a period of two month from the date of the meting at which the resolution was passed, be furnished to the Registrar along with.
a a copy of the bye laws in forces with amendment proposed to be made in pursuance of the resolution together with reasons for which amendment:
b four copies of the text of the amendments, certified by officers duly authorized in this behalf by the committee of a society:
c a copy of notice given to members of the society of the proposal to amend the bye laws; and
d such other information as may be required by the registrar.
5 On receipt of a copy of the resolution and other particulars referred to in sub-rule
4 the registrar shall examine the amendment proposed by the society and if he is satisfied that amendment are not contrary to the provision of the Act and these Rules, and if he is he may register the amendment and issue to the society a copy of the registered amendment together with a certificate signed by him under sub-section (3) of section 11. Where the Registrar is of the option that the proposed amendment may be accept subject to any modification. Be may indicate to a society such modification after explaining in written the reasons therefore and required the general body to pass a fresh resolution adopting the modified amendment,
6 where the Registrar refuses to register the proposed amendment to the bye-laws he shall issue an order stating the reasons for the refusal and such order shall be sent by registered post to the society.
7 An appeal against the Registrar’s order refusing to register any amendment to the bye—laws of a society shall be made only after a meeting of the general body of the society has reconsidered the matter and has decided to prefer an appeal which shall be signed by an officer of a society authorized in this behalf by the general meeting. A copy of the resolution of the general body shall be attached with the memorandum of appeal.
   
   
Procedure for direction by Register for amendment of bye-laws:
1  Where it appears to the registrar that an amendment of the bye-laws of a society is necessary, he shall indicate the reason therefore, and issue a notice calling upon the committee of such society to convener a general meeting to consider such amendment.
2  The notice referred to in sub-rule (1) shall specify-
a the text of the existing bye law and the amendment proposed to it, or the text of the existing bye-laws is proposed to be deleted; and
b the period within which such amendment should be sent to the registered for registration after getting it passed by the general meeting.
3 Where a society files and objection to the proposed amendment, such an objection shall be duly considered by the Registrar and if the committee desire to be heard, it shall be given an opportunity of being heard. The Registrar may, after considering the representation of the society, register the amendment with or without any modification as he shall deem fit.
   
   
Change in name of Society:
1 The name 0f the society may be changed under Section 14 so however that it does not refer to any caste or religion denomination and is not inconsistent with the objects of a society.
2  Every change in the name of a society shall be made by an amendment of its bye-laws and shall be notified in the Official Gazette.
3 After the change in the name is approved by the Registrar, the society shall send to the Registrar original certificate to the society after duly amending to same.
4  The Registrar shall enter the new name in the register of societies maintained by him.
   
   
Change of liability
1 An amendment to the bye-laws of a society to change the form and extent of its liability shall be made by passing a resolution in the behalf at a general meeting of the society. Thirty days notice in written of such meeting shall be given to all its members together with copies of the resolution proposed to be moved at the meeting. After the resolution is duly passed, a copy thereof shall be sent to be Registrar within thirty days of its passing.
2 The notice to be given by a society under sub-section (3) of section 15 shall be sent by post under certificate of posting to the address of each of its members and creditors as recorded in the books of the society. A copy of such notice shall be exhibited on the notice broad of the society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office,, and thereupon, the notice under sub section (3) of section 15 stall be deemed to have been duly given to all its members and creditors, notwithstanding that any of them has not received the notice for any reason whatsoever.
 
3  For the purpose of determining the claims a member under clause (b) of sub-section (4) of section 15 the value of the shares of a member in the society shall be ascertained as follows :-
a In the case of a society with limited liability, the value of the share shall be the actual amount received by a society in respect of such share,
b In the case of a society with limited liability, the value of the share shall be the amount arrived at by a valuation based on the financial position to the society as shown received by a society in respect of such share.
4 Any member or creditors desiring his option under dub-section (2) of section 15 shall inform a society accordingly in writing and when he does not propose to withdraw his entries shares, deposits or loans, the member or creditor shall clearly indicate in writing the extent of his withdrawal. A society shall examine and drawn up a scheme for orderly payment of all claims in an equitable manner including shares. The scheme may also provide for settlement of claims by mutual agreement or undesirability, the resolution passed by a society under sub rule (1) shall be ineffective and the form and extent of liability of a society shall not to be deemed to be changed in accordance with resolution passed aforesaid.
5 After the Registrar approves the scheme, a society shall make payments to members and creditors as provided in clause (b) of sub-section (4) of section 15 make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of a society duly passed in that behalf on receipt of the proposal the Registrar shall register amendment in accordance with the provisions of section 15,
   
   
 Amalgamation, transfer of assets and liabilities or division of societies :
1 Every society desiring to effect amalgamation, transfer of assets and liabilities or division shall make an application to the Registrar in that behalf giving full details about such amalgamation, transfer or division as the case may be.
2 On receipt of such application the Registrar may, after examining the details furnished in the application and other particulars which the may call upon the society to furnish, give his approval to the proposal, if he is satisfied that the proposal is in the interest of the society.
3 After the receipt of Registrar’s approval under sub-rule (2),, the society shall convene a special general meeting by giving 15 days notice to all its members and pass a resolution for such amalgamation, transfer of assets and liabilities shall contain all the details as provided in sub-section (3) of section 16.
4 The society shall on complying with all the requirement of sub-section (4). (5) and (6) of section 16 of the Act, submit a report to the Registrar of such compliance and request him to give effect to its decision for amalgamation, transfer or division, the registration of the societies which have been amalgamated or whose whole of the assets and liabilities have been transferred.
5 On receipt of the report from the society under sub-rule (4) the Registrar shall after satisfying himself that the society has complied with all the requirements of section 16, register the amalgamated or divided society/societies and divided or whose whole of the assets and liabilities have been transferred.
   
   
Direction by Registrar for amalgamation and reorganization of societies:
1

Before issuing any other under sub-section (1) of section 17 providing for amalgamation or reorganization of any society, the Registrar shall prepare a draft scheme in respect of such amalgamation or reorganization, stating in particular the manner in which the new committee or committees of the society or societies resulting from such order and notice, by registered post to such society or societies,
Every society or receiving a copy of an order and notice shall exhibit it on its notice broad calling for objections or suggestions, if any, the scheme from the members, depositors, employees, creditors or other persons concerned within 15 days from the date the notice is put on the notice broad.
The society or societies concerned shall submit to the Registrar such objection, or suggestions together with its own suggestion or objections, if any, within a period of two month from the date on which a copy of the draft aforesaid was received by it.

2 The Registrar shall also expeditiously send a copy order to the financing back of which such society or societies may be member or members.
3 The Registrar shall consider all such suggestions and objections and make the modification in the draft order as it may seem to be desirable in the light of those suggestion and objections and them issue a final order sub-section (1) of section 17
   
 
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