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(a) |
'Act' means the Sikkim
Co-operative Society Act 1978 and as
shall be amended from time to time. |
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(b) |
'Rules' means the Sikkim Coop.
Societies Rules 1981 framed under
the Act and as shall be amended from
time to time. |
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(bb) |
'Section' shall mean a section
in the Act. |
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(c) |
'Rule' shall mean a rule in the
Rules. |
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(ci) |
'Society' means the
...........................................
..............................Credit
Society Ltd. |
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(cii) |
'Government' and/or 'State
Government' shall mean the
Government of Sikkim. |
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(ciii) |
'Registrar' means registrar
appointed under section 3 of the Act
and includes any other person
appointed under section to assist
the Registrar. |
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(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. |
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(cv) |
'Nominal members' shall mean any
person admitted to the membership of
a coop. Society as a nominal member
under the Act. |
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(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. |
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(cvii) |
'Chief Executive Officer' shall
means the Govt. Officer deputed in
the service of the society under the
Act. |
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(cviii) |
'Chief Executive of the Society'
means the highest paid staff of the
society. |
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(cix) |
' AGM' means annual general
meeting. |
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(cc) |
Words used in the masculine
gender include the feminine gender. |
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(cci) |
Words in the plural
include the singular and vice-versa. |
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(ccii) |
'Prescribed' shall mean
prescribed by Rules made under the
Act. |
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(cciii) |
'R.B.I.' means the Reserve Bank
of India. |
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(cciv) |
'Financing Bank' means the
Sikkim State Cooperative Bank. |
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(ccv) |
'State Cooperative Bank' means
the Sikkim State Co-operative Bank
Ltd. |
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NAME |
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2 |
The name of the
society is the
....................................
................... Co-operative
Credit Society limited. |
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ADDRESS |
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3 |
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. |
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OBJECTS |
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4 |
the objects of the society are- |
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(a) |
Primarily, to create funds for
lending money to its member; |
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(b) |
To provide facilities for the
exercise of thrift and saving; and |
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(c) |
Generally to encourage self-help
and mutual aid among members. |
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(2) |
In furtherance of the above
object the society shall be at
liberty- |
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(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. |
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(aa) |
to receive money by way of
loans from Financing Bank of any
other sources for the purpose of
business of the society. |
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(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 |
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(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. |
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AREA OF MEMBERSHIP |
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The area of the membership of
the society shall be confined to
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MEMBER |
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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. |
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(2) |
The following shall be members
of the society namely- |
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(a) |
Persons duly qualified who have
joined in the application for
registration; or |
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(b) |
Persons who may hereafter be
admitted according to these byelaws; |
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(c) |
State Government. |
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3 |
Every person other than the
State Govt. admitted to membership
shall - |
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(a) |
Pay an admission fee of Rs. 10/- |
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(b) |
Hold at least one share |
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(c) |
Name a place to be registered as
his address, such address shall for
all purposes be deemed to be his
residence. |
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(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. |
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(5) |
No person shall be the member of
the Society if he is a moneylender
by profession. |
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(1) |
Member shall include a joint
member, a nominal member, and
delegates, of member. |
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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. |
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(a) |
Husband and wife. |
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(b) |
Father and son or unmarried
daughter. |
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(i) |
On the death if a joint member,
the surviving person shall be
recognized as joint-member. |
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(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. |
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(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. |
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(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. |
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(7) |
Member shall include a nominal
member on the following conditions - |
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(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. |
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(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. |
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(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. |
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(4) |
A nominal member shall have to
sign members' register and have to
undertake to abide by the provision
of these byelaws. |
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(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. |
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Admission of Membership |
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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. |
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(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. |
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(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. |
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(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. |
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(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. |
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(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. |
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Rights of Membership |
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A person shall not acquire the
rights and privileges of membership
until he has - |
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(a) |
Signed declaration to the effect
that he shall be bound by these
byelaws; |
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(b) |
Signed the register of
membership. |
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(c) |
Paid the admission fee; |
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(d) |
Subscribed at least one share
and has made payment due on account
of such share. |
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Nominee of Member |
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(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. |
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(2) |
The member may from time to
time, revoke such nomination and
make a fresh nomination. |
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(3) |
This Society shall keep a
register of all persons so
nominated. |
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(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. |
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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. |
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Withdrawal from membership |
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10 |
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. |
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Removal of a member |
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11 |
A member who ceases to be
qualified to be a member may be
removed by the Board of Directors. |
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Fine, Suspension and
Expulsion of a Member |
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12 |
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. |
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(a) |
Willful contravention of the
Act, the Rules and Byelaws of the
Society. |
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(b) |
Willful default, dishonesty or
infringement in terms of any of the
contract entered into as a member of
the Society. |
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(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. |
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(3) |
An expelled or suspended member
may appeal to the General Meeting
and decision of the General Meeting,
on such appeal shall be final. |
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Cessation of Membership |
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13 |
A member shall cease to be a
member if he - |
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(1) |
Dies. |
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(ii) |
Resign in accordance with the
Act, the Rules and the Bye-laws; |
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(iii) |
Transfer his share in favour of
some other persons in full |
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(iv) |
Is adjudged an insolvent. |
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(v) |
Is adjudged a bankrupt. |
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(vi) |
Turns a lunatic; |
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(vii) |
Loses the qualification for
membership; |
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(ii) |
Has been punished with
imprisonment for an offence
involving moral turpitude. |
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Payment to a Member
Withdrawing, Removed or Expelled |
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14 |
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. |
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15 |
Liability |
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The liability of the members for
the debt of the Society shall be
limited to the nominal value of the
shares held by them. |
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16 |
Funds |
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Subject to the provisions of the
Act, the Rules and the Bye-laws the
funds of the Society may be raised
by- |
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a) |
Issuing share; |
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b) |
Receiving deposits from members; |
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c) |
Taking loans from financing bank
and other sources; |
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d) |
Obtaining shares, grants,
donations and subsidies from
government and other sources; |
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e) |
Deriving income from properties,
investments and other sources; |
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f) |
Relishing subscription from
members. |
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Share Capital |
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17 |
(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. |
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(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. |
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Payment of
Share |
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18 (i) |
For every ‘A’ class share Rs.
100/- shall be paid on allotment; |
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(2) |
The reserve liability shall
become payable; |
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(a) |
In case of liquidation of the
society; or |
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(b) |
On call made by the society by a
resolution of a General Meeting and
with the approval of Registrar. |
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(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. |
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Share Certificate |
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19 |
(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. |
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(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. |
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Transfer of Share |
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20 |
(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. |
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(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. |
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Forfeiture of Shares |
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21 |
(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. |
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(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. |
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(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. |
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(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.
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(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. |
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Borrowings |
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22 |
(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. |
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(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. |
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(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. |
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(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. |
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Fluid Resources
or Liquid Cover of the Society |
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23 |
The society shall keep a minimum
liquid cover to meet the calls of
the depositors according to the
following scale: - |
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(11) |
40% of deposits at call or on
current account and cash credit and
over-drafts sanctioned but not
drawn; |
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(iii) |
25% of the Saving Deposits; |
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(iv) |
25% of the Fixed Deposits
maturing within the next three
months; and |
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(v) |
121/2 of the Fixed Deposits
maturing after next three months but
within the next six months |
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Employment of Fund |
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24 |
The funds of Society may be
applied in- |
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(i) |
Giving loans and advances to
members; |
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(j) |
Making investments for the
benefits of members; |
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(k) |
Purchasing lands and buildings
and the construction of buildings
for office and other purposes
necessary for the proper conduct of
business; |
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(l) |
Paying the establishment and
contingent charges, interest, bonus,
audit fee and all other usual
working charges; |
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(m) |
Creation of reserve, bad debts
and other funds and in paying
dividend, bonus, remuneration and |
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(n) |
Any other proposes incidental or
conducive to the attainment of the
object. |
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Members’ Thirft Fund
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25 |
(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. |
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(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. |
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(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. |
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Loan to Members |
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26 |
Loans shall be granted to
members only. |
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(a) |
Loans shall be of three types,
namely- |
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(b) |
Short term loans – a Short term
loan, repayable within a period of
12 months |
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(c) |
Intermediate term loan,
repayable within a period of three
years; |
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(d) |
Long-term loan repayable within
a period of 60 months subject to
clause 27. |
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(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. |
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(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. |
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(12) |
(a) A member applying for loan
shall furnish a full statement of
his. |
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(b) |
Property and debts; |
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(iii) |
Annual income and in case of
short/intermediate term and loan
term loan ; expected annual income
from the proposed outlay on
development ; |
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(iv) |
Annual expenditure including
installment principal incurred and
proposed to be incurred ; and |
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(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. |
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Period of repayment |
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27 |
Every loan, which is granted to
member of the Society, shall be
repayable within 5 years. |
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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 ˝ years in the
total. |
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Credit to Members |
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28 |
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 - |
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(a) short term loan, and
|
| |
|
Intermediate or long term loan
in excess of the maximum credit, so
determined for each member. |
| |
|
|
| |
|
Interest of Loan |
| |
2 |
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 |
| |
30 |
(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 |
| |
|
|
| |
ii |
Cottage/Small scale industries. |
| |
iii |
Road/Water/transport |
| |
iv |
Retail Trade |
| |
v |
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 |
| |
31 |
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 |
| |
4 |
(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 |
| |
33 |
(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. |
| |
d |
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 |
| |
34 |
(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 |
| |
1 |
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 |
| |
2 |
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 |
| |
3 |
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. |
| |
|
|
| |
4 |
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 |
| |
40 |
(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 |
| |
41 |
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. |
| |
|
|
| |
42 |
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 |
| |
43 |
(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 |
| |
44 |
(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 |
| |
45 |
(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 |
| |
46 |
(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. |
| |
a) |
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 |
| |
47 |
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 |
| |
48 |
(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. |
| |
|
|
| |
73 |
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 |
| |
|
|
| |
I |
An annual report on the working
of the society. |
| |
II |
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. |
| |
IV |
Cash account of the last
proceeding quarters per rules |
| |
V |
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. |
| |
e) |
To maintain register of
members-up –date. |
| |
f) |
To faciliate the inspection of
books by those entitled to inspect
them. |
| |
g) |
To watch that the loans and
advances are utilized for the
purposes for which those are meant
and that those are dully repaid. |
| |
h) |
To take prompt action for
realization of realization of loans
and advances. |
| |
i) |
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 |
| |
51 |
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. |
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(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. |
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(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. |
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5) |
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. |
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(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. |
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(8) |
Every director present at any
meeting shall sign his name in a
book to be kept for that purpose. |
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OFFICE BEARERS. |
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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. |
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1) |
in the case of equality of votes
in the election of office bearers
the result shall be determined by
lot. |
| |
2) |
The outgoing board shall stand
dissolved when the new
office-bearers are elected. |
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3) |
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. |
| |
4) |
Any casual vacancy occurring in
the office of any office-bearers
shall be filled from among the
directors eligible by the board. |
| |
5) |
An office –bearer may be removed
from office by a resolution of the
board at a meeting specially
convened for the purpose. |
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POWERS AND DUTIES OF CHAIRMAN
AND VICE-CHAIRMAN. |
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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 |
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(2) |
