Sikkim Government, Cooperation Department , Cooperative society of sikkim

BYE-LAWS OF THE CO-OPERATIVE CREDIT SOCIETY LTD.

Bye-Laws of the .......................................................
Ltd. ( Registered under the Sikkim Co-Operative Societies Act, 1978,

Preliminary

(a)

'Act' means the Sikkim Co-operative Society Act 1978 and as shall be amended from time to time.

(b)

'Rules' means the Sikkim Coop. Societies Rules 1981 framed under the Act and as shall be amended from time to time.

(bb)

'Section' shall mean a section in the Act.

(c)

'Rule' shall mean a rule in the Rules.

(ci)

'Society' means the ...........................................
..............................Credit Society Ltd.

(cii)

'Government' and/or 'State Government' shall mean the Government of Sikkim.

(ciii)

'Registrar' means registrar appointed under section 3 of the Act and includes any other person appointed under section to assist the Registrar.

(civ)

‘Member' shall mean a person joining in an application for registration of a coop. Society or a person admitted to the membership of a coop. Society after registration in accordance with the provision of the Act and the Rules and the Bye-Laws made thereunder and includes a joint member and subject to the provision of the Act nominal members and delegates of members.

(cv)

'Nominal members' shall mean any person admitted to the membership of a coop. Society as a nominal member under the Act.

(cvi)

'Audit Officer/Auditor' shall mean any government official or qualified auditor or Chartered Accountant appointed be the Registrar under the Act and such number of other persons appointed to assist him, as it may deem fit.

(cvii)

'Chief Executive Officer' shall means the Govt. Officer deputed in the service of the society under the Act.

(cviii)

'Chief Executive of the Society' means the highest paid staff of the society.

(cix)

' AGM' means annual general meeting.

(cc)

Words used in the masculine gender include the feminine gender.

(cci)

Words in the plural include the singular and vice-versa.

(ccii)

'Prescribed' shall mean prescribed by Rules made under the Act.

(cciii)

'R.B.I.' means the Reserve Bank of India.

(cciv)

'Financing Bank' means the Sikkim State Cooperative Bank.

(ccv)

'State Cooperative Bank' means the Sikkim State Co-operative Bank Ltd.

NAME

The name of the society is the ....................................
................... Co-operative Credit Society limited.

ADDRESS

The registered office of the society will be situated at...........
............................(Place of business) Post Office......
..............Police Station........................in the district of .......................... Any change in the registered address shall be made by a resolution of the board and such change shall be reported within 30 days in prescribed manner to (i) The Registrar, (ii) The society to which it is a affiliated, (iii) Financing bank, if any, (iv) the R.B.I. in case of having any banking business.

OBJECTS

the objects of the society are-

(a)

Primarily, to create funds for lending money to its member;

(b)

To provide facilities for the exercise of thrift and saving; and

(c)

Generally to encourage self-help and mutual aid among members.

(2)

In furtherance of the above object the society shall be at liberty-

(a)

To receive money by way of loans, deposits or otherwise from members, and to secure the repayment thereof either by mortgaging, assigning or pledging, the properties of society or otherwise.

(aa)

to receive money by way of loans from Financing Bank of any other sources for the purpose of business of the society.

(b)

To purchase, take on lease or in exchange or otherwise acquire land, building or any movable, immovable property necessary for the business of the society; and

(c)

Generally to do all such other things as are incidental and conductive to the promotion or advancement of these objects and of the business of the society.

AREA OF MEMBERSHIP

The area of the membership of the society shall be confined to
......................................................................

MEMBER

6 .(1)

Membership of the society is open to individuals above the age of 18 years and of good character, competent to contract and residing within the registered are of membership.

(2)

The following shall be members of the society namely-

(a)

Persons duly qualified who have joined in the application for registration; or

(b)

Persons who may hereafter be admitted according to these byelaws;

(c)

State Government.

Every person other than the State Govt. admitted to membership shall -

(a)

Pay an admission fee of Rs. 10/-

(b)

Hold at least one share

(c)

Name a place to be registered as his address, such address shall for all purposes be deemed to be his residence.

(4)

No person shall be admitted to membership if he is a member of or is indebted to any other such Society until he has obtained in writing the consent of the society of which he is already a member and of Registrar.

(5)

No person shall be the member of the Society if he is a moneylender by profession.

(1)

Member shall include a joint member, a nominal member, and delegates, of member.

Explanation: - For the purpose of this clause 'joint-member' shall mean any one of two persons jointly admitted as per following pair and conditions under the Act.

(a)

Husband and wife.

(b)

Father and son or unmarried daughter.

(i)

On the death if a joint member, the surviving person shall be recognized as joint-member.

(ii)

On joint member of any share be liable severally, as well jointly for all payment, which are due to be made in respect of such share or shares.

(iii)

Any one of such joint-members are per member register shall enjoy all the rights of a member and be responsible for all the liabilities of a member. The survivor shall be entitled to receive the annual dividend and notice of the General Meeting.

(iv)

Where a share of the bank is held jointly by more than one person, any one of them, shall have the right to attend the meeting and vote.

(7)

Member shall include a nominal member on the following conditions -

(1)

The Society may in its interest, admit any person as a nominal member who shall not be entitled to any share in any form in the assets of profits of the Co-operative Society and shall not be eligible to be elected as a director of the board and shall have no right to attend the General Meeting of the Co-operative society but shall have such rights and privileges and shall be subject to such liabilities of a member as specified in clause 15 of the bye-laws.

(2)

Any person residing in the registered area of membership of the society may for nominal membership apply, which g\shall be supported by at least two members. The Board of Directors shall, after due consideration, sanction or refuse an application within 45 days from the date of receipt of the application.

(3)

A nominal member shall be entitled to receive a special type of certificate against the payment of usual admission fee Rs. 10/- and of the membership fee of Rs. 100/-, which shall never be refunded.

(4)

A nominal member shall have to sign members' register and have to undertake to abide by the provision of these byelaws.

(5)

Apart from the provisions of these bye-laws the provisions of the Act and the Rules will be equally applicable to nominal members also as are usually applied to all other members but the liability of the nominal members for meeting the deficit in the assets of the society shall be limited to the amount actually paid or to be paid as membership fee.

Admission of Membership

7.(1)

Every person desirous of becoming a member shall submit an application to the Society in the prescribed form and manner of the Society. The Society thereafter shall arrange to procure necessary information for the purpose of admission to membership.

(2)

The society shall hang up a copy of the application on the date of its receipt on its notice board and written objection, if any thereto from any member of the society shall be received within 7 days from that date. The application shall be granted within a period of forty-five days form the date of receipt thereof if no written objection thereto is received by the society within 7 days from the date of its receipt.

(3)

When an objection is received against any such application for membership, the objection shall be placed in the next board meeting for decision provided that the board shall before coming to a decision afford the applicant and the objector an opportunity of being heard.

(4)

The decision on the application for membership shall be communicated to the applicant within thirty days from the date of decision. If no such communication is made, the application shall be deemed to have been refused by the Co-Operative Society.

(5)

Any applicant whose application for admission as a member has been refused or deemed to have been refused by the Co-Operative Society may appeal to the Registrar within 60 days from the date of communication of the decision or within 90 days from the date of application, if there is no communication of any decision.

(6)

The Society shall not admit a member or transfer share to an intending member within thirty days prior to the date of the Annual General Meeting in which election of the directors of the board is to be held and till assumption of charge by the new board.

Rights of Membership

A person shall not acquire the rights and privileges of membership until he has -

(a)

Signed declaration to the effect that he shall be bound by these byelaws;

(b)

Signed the register of membership.

(c)

Paid the admission fee;

(d)

Subscribed at least one share and has made payment due on account of such share.

Nominee of Member

(9) 1

A member may nominate in writing any person belonging to his family to whom the share or interest or the value of share or interest, on his death be paid or transferred.
Provided further that if a member has no family he may nominate any person to whom such share or interest or the value of such share or interest shall be paid or transferred.

(2)

The member may from time to time, revoke such nomination and make a fresh nomination.

(3)

This Society shall keep a register of all persons so nominated.

(4)

In case the nominee of a member dies the member shall report the death to the Society and make a fresh nomination if he so desires.

A family shall be deemed to be consisting of husband, wife, sons, daughters, dependent widow of a predeceased son-sons and minor daughter of a dependent parents.

Withdrawal from membership

A member, if he is not in debt to the Society or is not a surely for any debt due to the society may withdraw from the society after giving in writing one month's notice to the Secretary.

Removal of a member

A member who ceases to be qualified to be a member may be removed by the Board of Directors.

Fine, Suspension and Expulsion of a Member

The Board of Directors may after due investigation into conduct of a member and after taking such evidence as may be necessary fine, suspend or expel him for any of the following reasons - Provided that no such action shall be taken without giving the member concerned an opportunity of being heard and the decision is taken by resolution in the meeting of being passed by two-third of the members of the board present.

(a)

Willful contravention of the Act, the Rules and Byelaws of the Society.

(b)

Willful default, dishonesty or infringement in terms of any of the contract entered into as a member of the Society.

(2)

A member suspended shall not be entitled to exercise any of the right of enjoy the privileges of membership during the period of suspension.

(3)

An expelled or suspended member may appeal to the General Meeting and decision of the General Meeting, on such appeal shall be final.

Cessation of Membership

A member shall cease to be a member if he -

(1)

Dies.

(ii)

Resign in accordance with the Act, the Rules and the Bye-laws;

(iii)

Transfer his share in favour of some other persons in full

(iv)

Is adjudged an insolvent.

(v)

Is adjudged a bankrupt.

(vi)

Turns a lunatic;

(vii)

Loses the qualification for membership;

(ii)

Has been punished with imprisonment for an offence involving moral turpitude.

Payment to a Member Withdrawing, Removed or Expelled

Subject to the provisions of the Act and Rules a member withdrawn, removed or expelled from the Society shall be entitled to repayment with or without interest within such period not exceeding two years as the Board of Directors may decide of any money paid by him or his predecessors in interest towards the purchase of share.

Liability

The liability of the members for the debt of the Society shall be limited to the nominal value of the shares held by them.

Funds

Subject to the provisions of the Act, the Rules and the Bye-laws the funds of the Society may be raised by-

Issuing share;

Receiving deposits from members;

Taking loans from financing bank and other sources;

Obtaining shares, grants, donations and subsidies from government and other sources;

Deriving income from properties, investments and other sources;

Relishing subscription from members.

Share Capital

(1) The nominal share capital of the Society shall be Rs. 50,000,00/- (Rupees Fifty lakhs) divided into 40,000/- ‘A’ class shares of Rs. 100 each and Rs. 10,000/- ‘B’ class shares shall be available for subscription only to the State Govt.

(2)

No member except the State Govt. shall hold more than one-fifth of the paid-up share capital or on Rs. 10,000/- whichever is less.

Payment of Share

18 (i)

For every ‘A’ class share Rs. 100/- shall be paid on allotment;

(2)

The reserve liability shall become payable;

(a)

In case of liquidation of the society; or

(b)

On call made by the society by a resolution of a General Meeting and with the approval of Registrar.

(3)

If a sum called in respect of a share is not paid before or on the day appointed for payment thereof the member from whom the sum is due, shall pay interest upon the sum at the rate of – percent per annum from the day appointed for the payment thereof to the day of actual payment but the Board of Directors shall be at liberty to waive payment of that interest wholly or in part.

Share Certificate

(1) Every member excepting nominal member shall free of charge be entitled to a share certificate under the seal of the Society specifying the shares held by him. The Chairman or Vice-chairman and the Secretary/Chief Executive shall sign such certificate.

(2)

If a share certificate is defaced lost or destroyed, it may be renewed on payment of such fee, if any, not exceeding Rs. 50/- and on such terms, if any, as the Board of Directors may determine.

Transfer of Share

(1) Share may, with the approval of the Board of Directors by an instrument in writing and such form as the Board of Directors may determine, be transferred to another member or to a non-member, who is eligible for membership and whom the Board of Directors is willing to admit as a member.

(1)

The transfer is not complete and the transferor shall be deemed to remain a holder of the share until the transferee is admitted to membership and his name is entered in the register of members.

Forfeiture of Shares

(1) If a member fails to pay any call or installment of a call on or before the day appointed for payment thereof, the Board of Directors may, at any time thereafter during such time as the call or installment remains unpaid, serve a notice on him to pay the same together with any interest that may have accrued and any expenses that may have been incurred by Society by reason of such non-payment.

(1)

The notice shall name a further day (not earlier than the expiration of thirty days from the date of the notice) on or before which the payment required by the notice is to be made and shall state that in the event of non-payment on or before the day appointed the shares in respect which the call was made, will be liable to be forfeited.

(2)

If the requirements of, any such notice as aforesaid are not compiled with, any share in respect of which the notice has been given may at any time thereafter before the payment required by the notice has been made, be forfeited by a resolution of the Board of Directors to that effect. Such forfeited shall include all dividends declared in respect of the forfeiture shares and not actually paid before the forfeiture.

(3)

A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the Board of Directors thinks fit and at any time before sale or disposition the forfeiture may be cancelled on such terms as the Board of Directors thinks fit.

(4)

A person, whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but shall notwithstanding remain liable to pay to the Society all moneys, which, on the date of forfeiture were presently payable by him to the Society.

Borrowings

(1) The Society may borrow in accordance with the law from either members or non-members and all borrowings subject to such restrictions as the General Meeting may impose shall be regulated by the Board of Directors.

(2)

The Society shall not by accepting deposits or loans or in any other way incur liabilities exceeding twenty-five times the sum of the paid-up share capital and the reserve fund for the time being separately invest outside the business of the Society.

(3)

The maximum amount the Society may borrow in any one year shall be determined annually at the Annual General Meeting and the Society shall not borrow beyond the maximum amount so determined and in force for the time being provided with the permission of the Registrar and under such conditions as he may impose the Society may incur liabilities irrespective of the amount of its paid-up share capital and reserve fund separately invested outside the business for the purpose of providing loans to its members for production, marketing and processing of any agricultural or industrial commodity.

(4)

The Society shall not incur liabilities to non-members in excess of maximum limit to be fixed from time to time in the General Meeting and approved by the Registrar.

Fluid Resources or Liquid Cover of the Society

The society shall keep a minimum liquid cover to meet the calls of the depositors according to the following scale: -

(11)

40% of deposits at call or on current account and cash credit and over-drafts sanctioned but not drawn;

(iii)

25% of the Saving Deposits;

(iv)

25% of the Fixed Deposits maturing within the next three months; and

(v)

121/2 of the Fixed Deposits maturing after next three months but within the next six months

Employment of Fund

The funds of Society may be applied in-

(i)

Giving loans and advances to members;

(j)

Making investments for the benefits of members;

(k)

Purchasing lands and buildings and the construction of buildings for office and other purposes necessary for the proper conduct of business;

(l)

Paying the establishment and contingent charges, interest, bonus, audit fee and all other usual working charges;

(m)

Creation of reserve, bad debts and other funds and in paying dividend, bonus, remuneration and

(n)

Any other proposes incidental or conducive to the attainment of the object.

Members’ Thirft Fund

(a) It shall be compulsory for every member of the Society to subscribe to this Fund at the rate of Rs. As decided in per month until he ceases to be member and that monthly subscription shall be placed at the credit of the member in the Fund.

(b)

The society shall allow and interest on the amount at credit at a rate not exceeding – percent to be fixed at the General Meeting.

(c)

The money at credit of the member of the Society in this fund shall be paid to him or his nominees or heirs as the case may be, after setting or its dues against his liability in the Society, if any, at the time of cessation of membership.

Loan to Members

Loans shall be granted to members only.

(a)

Loans shall be of three types, namely-

(b)

Short term loans – a Short term loan, repayable within a period of 12 months

(c)

Intermediate term loan, repayable within a period of three years;

(d)

Long-term loan repayable within a period of 60 months subject to clause 27.

(10)

No loan shall be granted to a member exceeding twenty times of the amount of share paid up by him and not exceeding. Month substantive pay to be fixed at a General Meeting from time to time.

(11)

An application for loan shall be in such from as may be required by the Board and shall state the purpose for which the loans are required shall be submitted to the Secretary for consideration by the Board at the next meeting or son soon thereafter as practicable.

(12)

(a) A member applying for loan shall furnish a full statement of his.

(b)

Property and debts;

(iii)

Annual income and in case of short/intermediate term and loan term loan ; expected annual income from the proposed outlay on development ;

(iv)

Annual expenditure including installment principal incurred and proposed to be incurred ; and

(v)

(b) The Board of Directors after due consideration and on proper grounds, may reject an application for loan in part, or in full, or may require an application to furnish with such further information in respect of the applications as may be necessary.

Period of repayment

Every loan, which is granted to member of the Society, shall be repayable within 5 years.

Provided, however, that the Registrar may, on the application from the society, for sufficient grounds being made out in appropriate cases extend the period of repayment up to 7 ½ years in the total.

Credit to Members

The Board of Directors shall in accordance with the Rules from time to time or as and when required determine the maximum credit of a member and shall make no -

(a) short term loan, and

Intermediate or long term loan in excess of the maximum credit, so determined for each member.

Interest of Loan

The rate of interest on loan shall be determined from time to time by the General Meeting but shall not exceed 18%

The rate of interest on loan shall be determined from time to time by the Board of Directors of the Society subject to the directives of Reserve Bank of India as applicable.

Purpose of Loan

(1) Loans may be granted for any of the following purposes, namely

(a)

Consumption

Loan - (a) Medical Expenses;

(f)

Liquidation of Debts;

(g)

Ceremonial expenses;

(h)

Purchase of durable commodity viz, Fan, TV, Radio, Freeze, Furniture etc.

(ii)

Education of self or dependent –

(i) Housing loan

(a)

Purchase of land/building/flat etc.

(b)

Development of Land

(c)

Repair of the existing building

Cottage/Small scale industries.

iii

Road/Water/transport

Retail Trade

Small Business Enterprise.

(1)

The Board shall frame detail loan regulations of each purpose i.e. types of security, to be accepted, sanctioning authority, the maximum limit, period of repayment of loans, margins to be maintained against securities, interest to be charged and any other matter the board may deem fit.

Security of Loan

For every loan a member shall furnish.

(b)

One surety if the loan is less than Rs. 15,000/-

(c)

Two sureties if the loan is less than Rs.1, 00;000/-

I n addition to the personal surety the board may take any or all securities mentioned below or securities approved by the Board for purposes in bye-law 30(i) (iii) to

(ee)

Mortgage of immovable property accordingly to sec. 20 of Indian Trusts Act, 1882.

(ff)

Collateral security of movable and immovable property.

(gg)

Industrial, mercantile, agricultural or other marketable commodities or machinery under pledge, hypothecation or charge of the society.

(hh)

Pledge of Govt. trustee securities, shares of approved companies, debentures and fixed deposits with the society.

(ii)

Insurance policy assigned to the society with the surrender value.

Instalment of Repayment

(1) The instalment for the board shall fix the repayment of a loan at the time of loan is granted.

(1)

The instalment for the repayment of a loan shall not be excess of the annual surplus income of the applicant estimated by the board.

(2)

If a member fails to pay interest or any part of instalment of principal on or before the due date and if the board does not grant any extension of time the entire loan may, at the option of the board become immediately repayable irrespective of any condition on which the loan was made.

(3)

Every wage earner member shall at the time of taking loan or standing as surety of any loan shall sign a written contact to repay the monthly installments by deduction from salary through his disbursing officer, if necessary.

Guarantee Fund & sinking Fund

(1) (a) The Society may maintain a guarantee fund calculated @ Rs………….. for every Rs……….or part thereof on the amount of loan sanctioned and it shall be opened in the name of every borrower and such fund shall be refundable only in the event of retirement, death or loss of service either in cash or by adjustment against his subsisting liability in the society.

Society shall allow interest on the amount at credit at a rate of…...% to be fixed at the General Meeting.

(1)

The society shall maintain a sinking fund calculated @ 50 paise per 100 rupees or part thereof on the loan sanctioned. This fund shall be utilized in the manner as determined by the A.G.M.

Recalling of a loan in Special Cases

(1) Any sum outstanding, against the member who has been expelled or who has otherwise ceased to be a member shall immediately be payable irrespective of any condition on which the loan was granted

(2)

Where the Board of directors considers that the solvency of a member has in any way been diminished, the Board of Directors shall recall any sum due from the member at once.

(3)

Notwithstanding anything contained in any Bye-Laws, the Society reserves to itself the right of calling in any outstanding sums on 30 days’ notice; but such power shall not be generally exercised save when there is a general run upon the society by its creditors or in other exceptional circumstances.

Renewal and Extension of loans

The Board of Directors with consent in writing of sureties, in special cases on good causes shown and on the application of the borrower may grant extension of time for repayment of a loan or the existing loan may be renewed for any acceptable purpose. No renewal except in case of cash credit shall however be granted unless…………..% of the loan is repaid with interest due.

Custody of funds

The funds of the Society not used in or invested outsides, the business shall be kept in the custody of any official to be appointed by the Board on such condition of the Board may determine.
Provided that any person in charge of the keeping of accounts shall not be placed in charge of the cash.

Investment of Fund

Provided the fund of the Society not used in business may be invested or deposited-

(a)

In a Govt. Savings Bank ; or

(b)

In any security specified in Sec.20 of Indian Trust Act, 1882; or

(c)

In the shares or debentures or securities of any other primary Cooperative Society with the previous sanction of the Registrar;

(d)

With the West Bengal State Cooperative bank Ltd.,

(e)

With the Central Cooperative bank operating in the area of the Society;

(f)

In any other manner permitted by the Registrar.

The supreme authority of the Society shall vest in the general body of the members. It shall examine the annual report regarding working of the Society and in particular the acts of Board of Directors and shall be competent to take all steps that may be considered necessary in the interest of the Society.

Annual General Meeting

5 .1

The Annual General Meeting of the Society shall be held at least once in every co-operative year and not later than 12months from the last A.G.M. On the failure of the Society to call the Annual General N\Meeting within 12 months from the last proceeding A.G.M. the Registrar shall call, or authorize any of his officers to call it within a period of three months from the date of expiry of aforesaid 12w months without prejudice to the penal measures that maybe taken against the directors of the board for not holding the said meeting as per time frame. Ever after the expiry of fifteen months from the date of last proceeding Annual General Meeting the State Government may permit the Registrar to call the Annual General Meeting.

(2)

The first Annual General Meeting of the society shall be held within fifteen months from the date of its registration.

(3)

The Annual General Meeting shall be called for: -

(a)

Election, if any, in the prescribed manner, of the Directors of the Board ;

(b)

Consideration and record of the proceeding of the last proceeding Annual General Meeting;

(c)

Approval of the budget, the consideration of the annual report and the programme of activities of the Coop. society for the following Coop. year prepared by the Board.

(d)

Consideration of the audit report referred in Sec. 91 of the Act

(dd)

Examination of the scope of inter-cooperative cooperation;

(e)

Consideration of any report of inspection or enquiry made in accordance with the provisions of this Act or the rules, if any;
(i) Fixation of the minimum levels of participation in the activities of the society by the members and extent of patronage rebate to be paid to members.

(f)

(i) Consideration of matters relating to loans and advances made to the Directors of the Board and their relatives and in case of default, actions to be taken for recovery thereof;

(ii) Approval of appointments, if any, of the relatives of the directors of the board;

(g)

Distribution of net profit, if any;

(gg)

Fixation of borrowing limit as may be necessary;

(h)

To consider any other matter which may be brought at the General Meeting in accordance with the Rules and Byelaws

(4)

The Annual General Meeting or a Special General Meeting shall be convened by the Secretary or any other official performing the duties of secretary in accordance with the direction of the board.

(4)

If the board fails to take steps or does not give direction to convene any Annual General Meeting at least two months before the expiry of the period allowed, the Chairman or in his absence the Vice-chairman or in absence of both, the Chief Executive officer or the Chief Executive or Managing Director shall convene the meeting.

Special General Meeting

(1) A Special General Meeting of the Society may be called as often as may be necessary.

(i)

By a majority of the directors of the board and shall be called;

(j)

On the requisition in writing of one-third of the members or the delegates;

(k)

At the direction of the Registrar as provided in the act and the Rules;

(2)

The special meeting shall be called within two months from the date of the requisition or the direction, as the case may be.

(3)

A requisition for a Special General Meeting by the members shall state the
Object of the meeting, shall be signed by the requisitionist and shall be presented at a sent to the registered office of the society.

(4)

At a special General Meeting, on business other than that specified in the
Relevant notice shall be considered.

Notice of General Meeting

A notice of the meeting stating the place, date and hour of the meeting together with a statement of business to be transacted at it shall be sent to every member not less than 21 days before the date of the meeting.

(2)

Any accidental omission to give notice to any member or the non-receipt of the notice by any member shall not invalidate the proceeding of any meeting.

Chairman of General Meeting

(1)

The Chairman, or in his absence the vice-chairman shall preside over the general meeting and in absence of both, one of the directors in the panel of chairman in order to their names, shall preside over the meeting. And in absence pf all in the panel the present shall elect one amongst themselves to be the chairman of the meeting.

(b)

Where there is no Board or the Board cannot function for any reason, the member present shall select one from amongst themselves to be the Chairman of the meeting

(1)

If the Chairman of the meeting is a candidate for election, that item of the agenda shall be presided over in terms of (1) Clause as if the Chairman is absent

(2)

The Chairman of the meeting shall maintain order in the meeting and shall control and conduct the proceedings in such manner as may be conducive to expeditious and effective disposal of business and shall decide all points of order and his decision thereon shall be final.

(3)

The Chairman may direct any member to withdraw for improper conduct and the member so directed shall immediately withdraw and shall not participate in the deliberations of the meeting and shall not be entitled to vote without the permission of the Chairman.

(5)

(a) In the event of disorder only the Chairman may adjourn the meeting to a date not later than one month from the date of adjournment. The meeting shall not be adjourned for the second time.

(b)

In the case where the business of the meeting cannot be completed in the course of one sitting the Chairman shall adjourn the meeting to the same day in the next week at the same place and time.

(6)

The board may by resolution invite any person whose expert opinion may be beneficial to the Society to remain present at any meeting for expressing his opinion, if called for by the Chairman.

(7)

At the conclusion of the meeting the proceedings shall be signed by the Chairman/Chairmen

Quorum of General meeting

(1) The quorum for a General Meeting shall be 1/5 th or ------------- of the total members as on the date of giving notice of the meeting. (Minimum 1/5 the of the total members is required for quorum-). Members include delegates, where applicable.

(2)

No business shall be transacted at any meeting unless there is a quorum and the meeting shall stand adjourned ordinarily to the same day, time and place of the next week.

(2)

If within half-an- \hour from the time appointed for the meeting quorum is not present, the meeting, if convened upon the requisition of members shall be dissolved. In any other case, it shall be adjourned to the same day in the next week at the same place and time and the members present shall form a quorum.

(3)

If at any time during the meeting sufficient members are not present to form a quorum, the chairman of the meeting on his attention being drawn to this fact, shall adjourn the meeting ordinarily to the same day, time and place in the next week.

(4)

No business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

(5)

When a meeting is adjourned for more than a week, notice of the adjourned meeting shall be given as in the case of original meeting.

Voting in General Meeting

(1) Every resolution at the General meeting shall be decided by a majority of votes and if the votes be equal, the matter shall be decided by the casting vote of the chairman of the meeting except in case of election of directors which shall be decided by lot.

(1)

Every member present at the meeting shall have one vote. All voting excepting in the case of an election, shall be by shown of hands, for the purpose of election, a poll shall be held if demanded at least 10 percent of the members or delegates as on the date of notice of the declaration by the Chairman that a resolution has been carried or lost and an entry to that effect in the minutes of the proceedings shall for the purpose of the Act be conclusive proof of the fact that such a resolution has been duly carried or lost.

(2)

If a poll is demanded, the vote shall be taken by ballot in such manner and at such time as the Chairman directs.

(3)

When a poll is taken, the number of members voting for or against shall be recorded in the minutes of the proceedings.

Minutes of General Meeting

(1) The Society shall cause minutes of proceeding of General Meeting to be entered in the book kept for that purpose.

(1)

The minutes shall be drawn up and signed by the chairman of the meeting within 72 hours from the time when the meeting terminated.

(2)

Until the contrary is proved every General Meeting of the Society in respect of he proceedings whereof minutes have been so recorded shall be deemed to have been duly called and held.

Board of Directors

(1) The affairs of the Society shall be carried on and managed by the Board of Directors who may pay all expenses incurred in setting up and registering the Society and may exercise all such powers of the Society as are required by the General Meeting and as are provided in the Act and Rules.

Subject to the provisions of the Act, the Rules and these Bye-laws and also resolutions, made in General Meeting and in force for the time being, the board shall enter onto all such agreements, make all such proceedings and do all such acts and things as may be necessary and proper for the due management of the affairs of the society and for carrying out the due management of the affairs of the society and for carrying out the objects for which it has established and for securing and furthering its interest in everyway.

Qualifications and Disqualifications of Board Members

Subject to the provisions of the Act, the Rules and these Bye-laws every member of the Society attaining the age of 21 years on the first date of filing nomination shall be qualified to be elected or appointed as director.

(a)

A member shall not be eligible for election or appointment as director if he;

(6)

Has been adjudged by a component court to be insolvent on of unsound mind; or

(c)

Has been convicted by a court of any offence involving moral turpitude and sentenced to fine or imprisonment or both; or

(d)

Holds and office of profit in the Co-operative Society; or

(e)

Has any interest in any business of the kind carried on by the Society; or

(f)

Is in default of payment of instalment of loan on the date of filing nomination; or

(g)

Has any direct or indirect interest in any agreement or contract to which the Society is a party; or

(h)

Receives emoluments or allowances (other than traveling allowances or sitting fees) or honorarium without the approval of the General Meeting and in excess of the prescribed limit or rate;

(i)

is disqualified under sub-section 5 of the Sec 26 of the Act ;

(j)

Has been a member of the Society for less than 12 months immediately preceding the first date of filling nomination.

Constitution of Board of Directors

(1) The Board of Directors shall consist of 9 directors of which 7 shall be elected by the members in the Annual General Meeting according to provisions of the Act and other directors nominated/elected according to the other provisions of the Act by govt. in case of State govt. holding at least 10% of paid up share capital.

(2)

(2) A director elected under Cl. (1) in a General Meeting or as per provision of the Act or nominated under the other provision of the Act shall hold office for a period of three years from the date of his election or nomination, as the case may be. But the director elected by members in the General Meeting shall be eligible for re-election. The directors elected of the Act shall not be eligible for re-election or re nomination, as the case may be within a period of three years from the date of expiry of their terms of offices expecting those under sub-Sections (2) and (5A).

(3)

No director who has been or but for his voluntary resignation could have been an office-bearer for two consecutive terms or 72 months whichever is less, shall be eligible for re-election, appointment, co-option or nomination, as an office-bearer until after expiry of three years from the date of occurrence of the disqualification or of retirement.

(4)

Any casual vacancy in the office of the director elected amongst members shall be filled up by co-option by the remaining directors within one month from the date of such vacancy. If they fail to do so, the Registrar shall have the power to fill up the vacancy by appointment. The director so co-opted or appointed shall retire at the Annual General Meeting where election is to be hoed next.

(5)

No director shall receive any emoluments or allowance (other than following allowances and sitting fees) or honorarium without the approval of the members of the Society at General Meeting.

Power of the Board

72.

Without restricting the general power conferred by these Bye-laws the following powers and authorities are expressly given to and conferred upon the board namely;

(a)

To admit new members;

(b)

To fine, suspend, remove or expect members provided that the board shall give the member concerned an opportunity of being heard and such decision shall be taken by a resolution in the meeting passed by two-thirds of the members of the board present ;

(c)

To raise funds;

(d)

To invest funds;

(e)

To allocate duties and define responsibilities of the employees;

(f)

To appoint, discharge or to dismiss or to remove employees of the Society after and enquiry in which thee employees has been informed of the charges against him and given reasonable opportunity of being heard in respect of those charges, and h\where it is proposed after such enquiry, to dismiss or remove him until he has been given a reasonable opportunity of making representation on the penalty proposed;

(g)

To allocate

(h)

To determine the securities to be furnished by the officers and other employees.

(i)

To compound, abandon, or suspend the enforcement of an debt or demand of the society with prior permission of the Registrar.

(j)

To institute, defend or compromise legal proceedings

(k)

to dispose of application for shares.

(l)

To dispose of application for loans and to determine the security to be taken

(m)

To appoint committees as may be deemed necessary from time to time and to confer powers and impose duties upon such committees and

(n)

To appoint salaried and non-salaried officers.

The board shall observe in all their transactions the provisions of the Act, Rules, and these bye-laws and shall cause to perform the following duties namely

(a)

to receive and disburse money.

(b)

To maintain true accounts of money received and expended and accounts of the assets and liabilities.

(c)

To prepare for submission to the annual general meeting

An annual report on the working of the society.

An annual statement of accounts including a balance sheet.

III

A statement of loans and defaults made by the directors of the board and their relatives and actions taken for recovery thereof and a statement of appointments, if any, of the relatives of the directors of the board.

Cash account of the last proceeding quarters per rules

To prepare the statement of accounts required for audit and to place those along with relevant vouchers and other connected papers before auditors..

(d)

To prepare and submit all statements and returns in the prescribed forms and in such other forms as may be required by the Registrar.

To maintain register of members-up –date.

To faciliate the inspection of books by those entitled to inspect them.

To watch that the loans and advances are utilized for the purposes for which those are meant and that those are dully repaid.

To take prompt action for realization of realization of loans and advances.

To perform such other duties as may be entrusted by the general meeting.

(j)

To convene general meeting in due time.

(k)

To remove and rectify all defects and irregularities pointed out to audit.

(l)

To perform such other duties as may be entrusted by the general meeting.

MEETING OF THE BOARD

The board shall meet for the transaction of the business of the society at least once in every two months.

(2)

Notice of meeting of the board shall be given in writing , subject, to the provisions of the Act by the secretary , to every director specifying the place, date and hour of meeting together with a statement of business to be transacted thereat, not less than seven days before the date of the meeting. In case of urgency, the chairman may convene a meeting of the board with clear three-day’s notice. Provide that any urgent business, not included in the statement accompanying the notice may be brought up and considered with the consent of two-third of the directors present at the meeting.

(2)

The chairman of the society or in his absence the vice-chairman or in absence of the both, one member of the panel of chairman, in order of their names, shall preside over the meeting.

(3)

The quorum of the board meeting shall be one-third of the total number of directors on the date of issue of the notice for the meeting. No business shall be transacted at any meeting including an adjourned meeting of the board unless there is a quorum at the time when the business of the meeting is scheduled to commence or within half-an-hour from the time appointed for the meeting.

(4)

Every proposal at a meeting of the board shall be decided by a majority of votes and if the votes be equal, the matter shall be decided by the casting vote of the chairman of the meeting
The director elected under section27 (3) of the Act shall have no rights to vote in any meeting of the board and shall not hold any office in the board but shall have the right to record his as views in the minute book.

One third of the directors may requisition a special meeting of the board by
giving seven day’s notice. The requisition shall specify the object of the meeting and shall be signed by the requisition its and shall be delivered at the office of the society. If the Secretary does not convene the meeting within 7 days from the date of receipt of the requisition, a notice of 7 clear days signed by the requitionists specifying the object and the date, time and place of the meeting shall be sent to all directors, At such requisition meeting no business other than that specified in the requisition meeting shall be transacted and if there is no quorum within half an –hour from the time appointed , the meeting shall stand dissolved.

(7)

The minute which shall record the names of the directors present at the meeting and the proceeding of each meeting of the board, shall be drawn up and duly signed by the chairman immediately after the meeting but within 72 hours from the time when the meeting terminated and shall be laid before the next meeting for confirmation.

(8)

Every director present at any meeting shall sign his name in a book to be kept for that purpose.

OFFICE BEARERS.

52)

1) The board of directors in its first meeting to be held within a period not exceeding thirty days after general meeting shall elect a chairman and a vice-chairman , a panel of chairman not exceeding three for presiding over its meeting in absence of the chairman, and the vice-chairman , a secretary, and such other office-bearers as may be necessary.

in the case of equality of votes in the election of office bearers the result shall be determined by lot.

The outgoing board shall stand dissolved when the new office-bearers are elected.

The secretary of the outgoing board or the administrator or the special officer, as the case may be, shall call the first meeting of the board, so reconstituted.

Any casual vacancy occurring in the office of any office-bearers shall be filled from among the directors eligible by the board.

An office –bearer may be removed from office by a resolution of the board at a meeting specially convened for the purpose.

POWERS AND DUTIES OF CHAIRMAN AND VICE-CHAIRMAN.

53)

(1) The Chairman and the Vice-Chairman shall exercise such powers and perform such duties as are conferred on them by the Act, the Rules and these Bye-Laws and from time to time be conferred or required by the General Meeting or board

(2)

The Chairman, or in his absence the Vice-Chairman shall for the transaction of the business of the society in case of urgency, exercise all powers and perform all duties required to be exercised and performed under the Act, Rules and these Bye-Laws by the board except the power of sanctioning loans, bonus or ex-gratis payments.

(3)

(10) All orders passed and all acts done by the Chairman or by the Vice-Chairman in the absence of the Chairman in exercise of his powers and in the performance of his duties under rules shall be placed for confirmation before the board it its next meeting.
Provided that the Chairman, Vice Chairman, as the case may bane shall not act in contravention of any order given or decision taken by the board in any meeting or exercise any power or perform any duty which is expressly required to be exercised or performed by the board.

POWER AND DUTIES OF THE SECRETARY.

Subject to the general direction of the Board of the Directors the Secretary shall conduct the business of the society and this purpose:-

(1)

The Secretary shall exercise the following powers, namely –

(x)

Control the staff of the society:

(y)

Institute, defend and conduct legal proceedings in law courts and other places:

(z)

Call the general Meeting and the meetings of the Board of the Directors and attend such meetings; and

(2)

He shall perform the following duties, namely-

(x)

Prepare and place before the Board of Directors an estimate;

(a)

Of the expenditure which should in his opinion be incurred by the Society in the next financial year; and

(ii)

Other receipt from all sources during the said year, in such form and at such time as the Board of Directors may direct.

(y)

Receive all moneys on behalf of the society and to issue receipts (other than contractual receipts) in effectual discharge of the money stated to have been received therein.

(z)

Pay all costs of management and working expenses out of the funds of the society such as salaries, \bonus of the staff, legal expenses charges on account of postage, telegrams, stationary, printings advertisement, traveling, rent and like expenses;

(aa)

Deposit all money and other properties received on behalf of the society and its accounts;

(bb)

Maintain proper and accurate record of the working of the society and its accounts;

(cc)

Place from time to time before such authorities as the Board of Directors may direct.

A director shall cease to hold office, if he-

(a)

Dies; or

(b)

Resigns his office; or

(c)

Is removed by the General Meeting from directorship; or

(d)

Loses membership of the Society; or

(e)

Becomes subject6 of any disqualification which debars him from seeking election as a director; or

(dd)

Fails to attend six consecutive meetings of the board;

(2)

The cessation of directorship shall the deemed to occur at, and be effective from the time when the disability concerned, referred to above occurs

TRAINING AND EDUCATION

The Board of Directors shall in consultation with the Sikkim State Co-operative Union or the District Co-operative Union as the case may be, arrange training of the staff and arrange educational classes for the directors of the board, ordinary and prospective members of the society.

(2)

The Society shall be affiliated with the Sikkim State Co-operative Union and or the District Co-operative Union, as the case may be and may take affiliation of SIMFED.

(3)

The society may also in collaboration with the State and of the District Co-operative Union celebrate All India Co-0operative Week and take appropriate steps to propagate the Co-operative principles and such other steps, as may be incidental for betterment of the co-operative Movement in the State.

(4)

The Secretary shall remit the amount of the Society’s contribution towards Co-operative Education Fund to the Sikkim State Co-operative Bank Ltd. within 3 month from the date of receipt of the audited account with intimation to the Co-operative Education Fund Committee.

Disposal of Profits

(57)

Subjects to the provision of the Act and the Rules the net profits of
the Society shall be distributed in the following order, namely –

(a)

In each Co-operative year, the Society transfer not less than ten percent
Of its net profit to Reserve Fund and shall transfer not less than fifteen percent of its net profit to Bad Debt. Fund:

(b)

An amount equal to five percent of its net profit subject to a maximum of Rupees Seven thousand five hundred shall be contributed to the Co-operative Educational Fund, within a period of 90 days from the receipt of the audited account.

The balance of the realized profits as certified by the audit officer may subject to the provisions of the Act and Rules and in accordance with the decision of the General Meeting be applied to all or any of the following purposes, namely –

(a)

To the payment of a dividend on the paid up share capital provided that the dividend paid shall not exceed 12 percent:

(b)

To the making of a charity to the SIMFED at a rate not exceeding 1% p.a. of net profit subject to a maximum of Rs. 1,000/-;

(c)

To any other charitable purpose permitted by the Act and The Rules and

(d)

To carry forward to next year’s account or to such special fund for any other purpose as may be determined by the General Meeting.

Reserve Fund and Bad Debt Funds

The Society shall maintain a reserve fund and a bad debt fund in respect of the profits if any derivable from its transaction.

(2)

The reserve fund shall consists of :-

(a)

not less than 10% or such higher proportion of the net profits annually carried to the fund.

(xxiv)

admission fee after deducting preliminary expenses incurred in constitution the society.

(xxv)

The value of all shares forfeited : and

(xxvi)

The lapsed dividend :

(c)

The Bad Debt Fund shall consist of not less than 15% or such higher proportion of the net profits annually carried to the fund.

(3)

The Reserve fund and the Bad Debt Fund shall belong to the society and shall be indivisible and no member shall have any claim to a specified share in it.
Provident that in case of division of the society in two or more the Reserve Fund and Bad Debt Fund may with the sanction of the Registrar, be distributed equitable amongst the new societies.

Uses of Reserve Fund and other Funds.

Fund in business :

(a)

The society may with the approval of the Registrar and no such conditions as he may impose, use in its business :-

(a)

upto one-forth of its Reserve Fund, when the owned capital it less than borrowed capital.

(ii)

upto on-half of its Reserve Fund when the owned capital is equal or exceeds, the borrowed capital ;

(iii)

the entire Reserve Fund, when there is no borrowed capital.

(b)

The Society shall utilize Bad Debt Fund in any business if it has no outside liability in the form of Bad Debt certified by the audit as prescribed or in such other manner as may be permitted by the Registrar.

Investment of Reserve Fund & other Fund

the society may invest its fund ;-

(a)

in a Government savings Bank.

(ii)

in any security specified in section 20 of Indian Trust Act, 1882 ;

(iii)

in the share or debenture or security of any other cooperative society with the previous sanction of the Registrar.

(xxvii)

with the West Bengal State Cooperative Bank Ltd.

(xxviii)

with the Central Cooperative Bank Ltd. of the area concerned ; or

(xxix)

in any other manner permitted by the Registrar.

Dividend

(1) the society in General Meeting may declare dividend but no dividend shall exceed the amount recommended by the board and the board’s recommendation shall not exceed 12% on paid up share capital.

(1)

No dividend shall be paid otherwise than out of net profits actually realized and certified as such by the auditor.

(2)

All dividends shall be declare and paid according to the amounts paid on shares.

(3)

No dividend shall bear interest against the society.

Supply of Bye-Laws and Balance Sheet to Members.

(1) the society shall supply to all members ;-

(a)

a copy of the bye-laws and.

(b)

A copy of annual balance sheet on payment of such fees, if any, as the board may determine.

(2)

The society shall publish its audited Balance Sheet within one month of from the date on which it is adopted by the General Meeting by displaying it in any conspicuous place, in the registered office of the society and in branch offices, if any.]

Inspection of Books by Members.

the society shall keep open for inspection by its members the following books and documents, namely;-

(a)

A copy of the Act

(b)

A copy of the Rules

(iii)

A copy of the Bye-law

(iv)

(v)

(viii)

Such other books and documents as mentioned in the Rjules;

(2)

Certified copies of the books and documents as mentioned in (1) shall be supplied to members on payment of fees at the rate of Rs. 3/- for each foolscap page typed in double spaces.

Settlement of Disputes.

Any dispute as providend in the Act, which cannot be decided by he Board shall be referred to the Registrar in the manner as prescribed in the Rules

Amendment of Bye-Laws

Any of these Bye-Laws may be altered or rescinded or new Bye-Laws may be made at a General Meeting in accordance with the Rules in this behalf and such amendment will come into force after it has been registered by the Registrar.

Accounts

(1) The Board of Directors shall cause proper books of accounts to kept with respect to:-

(a)

All sums of money received and expended by the society and the matter in respect of which the receipt or expenditure takes place.

(b)

The assets and liabilities of the society ; and

(c)

All vouchers, documents, receipts and such other papers and books to support the entries in the books of account.

(24)

The books of accounts shall be kept at the registered office of the society and shall always be open to inspection officers on duty.

Internal supervision

The Board of Directors may arrange for such iternal supervision and audit as it may deem proper and shall introduce such “Internal Check” as the Registrar may from time to time direct.

Representation

The chairman and the Secretary, or either the chairman or the Secretary alongwith any one of the officers authorized by the Board shall execute and sign all deeds, documents creating, disposing or otherwise negotiating the properties and funds of the society and in particular shall draw accept, make endorse and negotiate all bills of exchange, promissory notes debentures, securities and other documents standing in the name or held by the society.

Seal

69)

(1) the Board of Directors shall provide common seal for the purpose of society. The seal shall be in the custody of the Secretary.

(1)

The Seal shall not be affixed to any instrument or documents except under the authority of the Board of Directors, and in the presence of Directors, and in the presence of Directors may appoint for the purpose, and that Director and Secretary or other person as aforesaid shall sign every instrument of document to which the seal of the society is so affixed in their presence.

Evidence

On the trial on hearing of any dispute or action or suit to be brought by the society against any member or his representative to recover any debt or money claimed or to be due to the society in respect of his shares, it shall be sufficient to prove that the name of defendant or of the person whom the represents is or was, when the claim arose, on the register of members of the society as a holder of the shares in respect of which such claim is made and that the amount claimed is not entered as paid in the books of the society, and it shall not be necessary to prove the appointment of the Board of Directors who made any call or that a quorum of the Board of Directors was present at the meeting at which any call was made or was duly convened or constituted or any other matters whatsoever, but the proof of the matter aforesaid shall be conclusive evidence of the debt.

Notice

(1) Any notice required to be saved by society upon a member shall subject to the provisions of the Act, Rules and these Bye-Laws be given in writing and delivered or sent by post to the registered address of the member.

Where a notice is sent by post, service of the notice shall be deemed to be effected by properly addressing, prepaying and proof of posting a letter containing the notice.

All notice to be given on the part of any member shall be left at or sent through the post to the registered office of the society.

The non-receipts of any notice by a member shall not effect the validity of the proceedings of any meeting or of the liability attaching to such notice.

Every person, who by the operation of law of transfer or by other means whatsoever shall become entitled to any share shall be bound, by any and every notice or other documents, which previous to his name and address being entered upon the register in respect of the share, may have been given to the person from whom he derived his little and who is registered.

When any notice or documents, in accordance with these bye-laws is delivered at or sent to the registered address of a member or to his agent as above provided, then notwithstanding he be then deceased and whether or not the society has notice of his demise, such service of notice or other documents shall for all purposes of the bye-laws, be deemed service thereof on his nominees, heirs, executors administrators or other legal representatives.

Dissolution

24)

The society may be wound up, with the approval of the Registrar, upon a resolution carried by three-fourths of the members present at special Generals Meeting called for the purpose.

General

25)

All matters not specifically provided for these Bye-laws shall be decided according to the terms of the Act and the Rules and if there is no provision in the Act or the Rules applicable to such matters, then subject to these bye-laws and the approval of the Registrar shall be decided by the Board of Directors.

SL. NO	NAME	ADD./PHONE NO	FATHER’S NAME	AGE OR DOB