Preparation & Amendment of Bye Laws
Every co-operative society may make its bye-laws consistent with the provisions of this Act and the rules made thereunder.
In particular and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely :-
- The name, address and area of operation of the society;
- The objects of the society.
- the services to be provided to its members.
- the eligibility for obtaining membership
- the procedure for obtaining membership
- the conditions for continuing as member
- the procedure for withdrawal of membership
- the transfer of membership
- the procedure for expulsion from membership
- the rights and duties of the members
- the nature and amount of capital of the society
- the manner in which the maximum capital to which a single member can subscribe
- the sources from which the funds may be raised by a co-operative society
- the purpose for which the funds may be applied
- the manner of allocation or disbursement of net profits of co-operative society
- the constitution of various reserves
- the manner of convening general meetings and quorum there of other than those provided under this Act
- the procedure for notice and manner of voting in general and other meetings
- the procedure for amending the bye-laws
- the number of members of the committee not exceeding twenty one
- the term of office of elected members of a committee shall be three years
- the procedure for removal of members of the committee and for filling of vacancies
- the manner of convening committee meetings, its quorum, number of such meetings in a year and venue of such meetings
- the frequency of committee meetings
- the powers and functions of the paid executive
- the manner of imposing the penalty
- the appointment, rights and duties of auditors and procedure for conduct of audit
- the authorisation of officers to sign documents, operate of bank accounts and to institute and defend suits and other legal proceedings on behalf of the society
- the terms on which a co-operative society may deal with persons other than members
- the terms on which a co-operative society may associate with other co-operative societies
- the terms on which a co-operative society may deal with organisations other than co-operative societies
- the procedure and manner for transfer of shares and interest in the name of a nominee in case of death of a member
- the educational and training programmes to be conducted by the co-operative society
- the principal place and other places of business of the co-operative society
- the minimum level of services, to be used by its members
- any other matter which may be prescribed.
Amendment of bye-laws of a co-operative society
- No amendment of any bye-laws of a co-operative society shall be valid unless such amendment has been registered or deemed to have been registered under this Act.
- Every proposal for such amendment approved by the general body and complete in all respect as prescribed shall be forwarded to the Registrar within thirty days of approval of the general body and if the Registrar is satisfied that the proposed amendment
a) is not contrary to the provisions of this Act and the rules;
- b) does not conflict with the co-operative principles; and
- c) will promote the economic, social and cultural interests of the members of the co-operative society; he may register the amendment
Provided that in case of amendment of bye-laws of a co-operative bank, prior approval in writing of the Reserve Bank shall be necessary.
- The Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
- Where the Registrar refuses to register an amendment of bye-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefor, to the co-operative society in the prescribed manner.
- In case the Registrar does not communicate any decision under sub-section (2) or sub-section (4) as above within the period of ninety days, the amended bye-laws shall be deemed to have been registered.
- Where it appears to the Registrar that amendment in the bye-laws of a co-operative society is necessary and desirable in the interest of the co-operative society or class of co-operative societies, the Registrar shall direct the co-operative society or the class of co-operative societies, as the case may be, to make amendment in the bye-laws within a period of sixty days, by convening a general body meeting of the co-operative society.
- After the expiry of the period specified in sub- section (6) and if the co-operative society fails to make the amendment, the Registrar after giving the co-operative society an opportunity of being heard, may register the amendment and issue to the co-operative society, a copy of such amendment certified by him with a certificate signed by him, with effect from the date of registration the amendment shall be binding on the co-operative society and its members, subject to appeal, if any.
