(1) No officer of a society shall have any interest, directly or indirectly otherwise than as such Officer;—
(2) No officer of the society shall purchase, directly or indirectly, any property of a member of the society sold for the recovery of his dues to the society.
(1) The requisition to call the special meeting of the committee of a society to consider a motion of no-confldence against the President, Vice-Ptesident, Chairman, ViceChairman, Secretary, Treasurer or other officer of the society, by whatever designation called, who holds office by virtue of his elections to that office, shall be made in Form M-18. The requisition shall be accompanied by;-
(2) The requisition referred to in sub-rule (1) shall be delivered in person to the Registrar. Such requisition or requisitions shall be delivered in duplicate in each case. The Registrar on ascertaining that the requisition or requisitions as the case may be, have been signed by not less than 1/3rd members of the committee who for the time being are entitled to sit and vote in any meeting of the committee of society;-
(3) Notwithstanding anything contained in the bye-laws of the society regarding the procedure for convening and holding meeting and recording of minutes, the procedure adopted by the Registrar, the Presiding Officer and the Authorised Officer under sub-rule (2), shall be deemed to be the proper procedure under the provisions of bye-laws of the society. If the Registrar deems it necessary, he shall require any Officer of the society to furnish any information to him and it shall be obligatory on the part of such officer to furnish such information. On failure of the officer to furnish the information, the Registrar may get it through any person authorising in that behalf. This failure on part of the officer of the society shall be construed as non-compliance of provisions as contemplated under sub-section (1) of Section 79. However, in case of the officer of the society who holds that office by virtue of his election, including the member of the committee of management, it shall be construed as breach of provisions under sub-section (1) of Section 79 and negligence of performance of duties imposed by the Registrar as contemplated under subsection (1) of Section 78.
(4) The time of the meeting shall be between Office hours of the authorised officer. The meeting shall be held either in the office of the society or at any other place which may, as far as possible, be public place or any other place specified by the District Deputy Registrar.
(5) No other subject, except the motion or motions of no-confidence shall be kept on the agenda.
(6) The Registrar or the officer authorised to preside over the meeting shall,
(1) No person shall be eligible for appointment, or election or nomination or co-option or being continued as member of the committee or District Loan Committee of State Land Development Bank, if he is in default to any society, in respect of any dues from him either as borrower or is a defaulter within the meaning of Section 73FF or has incurred disqualification under Clauses (ii), (iii), (iv), (v), and (iv) of sub-section (1) of Section 73FF.
(2) When any member incurs disqualification as mentioned in sub-rule (1) the Chief Executive Officer or whatsoever name called, shall communicate, the members, thathe has ceased to be a member of the committee, under certificate of posting. The Chief Executive Officer shall also report alongwith a copy of communication to the Registrar and also affix a copy thereof on the notice board of the society. The publication of such copy of the notice of the receipt of such copy of the notice in the office of the Registrar, shall be the conclusive proof of the fact that the person has duly received the communication. When any member ceased to be a member of the committee, the seat of such member shall be deemed to have fallen vacant from the date of such communication. The society shall not allow such persons to exercise any powers, enjoy any rights and privileges and perform functions as member of the committee, under the Act and the rules and bye-laws made thereunder. If the Chief Executive Officer fails to take action as contemplated above, the Registrar shall after giving an opportunity to the person disqualified, issue communication of cessation of membership of such person from the committee of the society under certificate of posting and also by publishing a copy on the notice board of his office.]
Every elected member of the Managing Committee shall execute a bond in Form M20 within fifteen days of his assuming the office. Such bond shall be executed on the stamp paper as provided under the Bombay Stamp Act, 1958. The expenditure on stamp paper shall be borne by the society. The Chief Executive Officer/Secretary of the society shall receive such bonds and keep them on record of the society and accordingly inform the Registrar within fifteen days from formation of the Committee.]
(1) Within three months from the date of registration of a society, the Chief Promoter thereof, shall convene the first general meeting of all persons who had joined in the application for registration of the society. Where the Chief Promoter fails to convene the meeting as aforesaid, it shall be convened by any person authorised in that behalf by the Registrar.
(2) At the first general meeting, the following business shall be transacted:-
(1) All general meetings of a society excepting the first general meeting shall be convened by the Secretary or any other officer authorised by and under the by-laws to convene such meetings under intimation to the Registrar, who may attend such meetings or authorise some person to attend such meetings on his behalf. The President of the Society or in his absence the Vice-President or, in the absence of both, a member elected by the members present at the meeting shall preside over the meeting unless the by-laws specify that the President of the meeting elected by the meeting.
(2) No general meeting shall be held or proceeded with unless the number of members required to form a quorum as specified in the by-laws are present.
(3) The Secretary or any other officer convening the meeting shall read out the notice convening the meeting and the agenda for the meeting and then the subjects shall be taken up for consideration in the order in which they are mentioned, in the agenda unless the members present, with the permission of the President, agree to change the order. Unless otherwise specified in the Act, these rules and the by-laws, the resolutions will be passed by a majority of the members present. The President will have a casting vote.
(4) When the members are divided on any resolution, any member may demand a poll. When a poll is demanded, the President shall put the resolution for vote.
(5) Voting may be by show of hands or by ballot as may be decided by the members present at the meeting, unless otherwise specified in the by-laws. Notwithstanding anything contained in the by-laws, election of office bearers of a Society having members share capital in excess of Rs. 10,000, including Government share capital, if any, shall be by ballot.
(6) When voting is to be by ballot, the President shall take necessary steps for the issue of ballot papers and counting of votes.
(7) The result of voting shall be announced by the President.
(8) If all the business in the agenda cannot be transacted on the date on which the general meeting is held, the meeting may be postponed to any other suitable date not later than thirty days from the date of the meeting as may be decided by the members present at the meeting.
(9) The remaining subject or subjects on the agenda shall be taken up for consideration at the postponed meeting.
(10) If the general meeting cannot be held for want of quorum, if shall be adjourned to a later hour on the same day as may have been specified in the notice calling the meeting or to a subsequent date not earlier than seven days and at such adjourned meeting the business on the agenda of the original meeting shall be transacted whether there is a quorum or not.
(11) No resolution regarding expulsion of a member of the society, removal of a member of the committee or amendment of by-laws shall be brought forward in any general meeting, unless dtie notice thereof is given in accordance with the provisions of the Act, these rules and the by-laws of the society.
Within forty-five days of the close of every co-operative year, or within such extended period as may be specified by the Registrar, in the case of any society or class of societies, the committee of every society shall prepare annual statements of accounts showing:-
(1) The balance sheet and the profit and loss account to be laid before the annual ‘general meeting of a society by the committee shall ordinarily be in Form N : Provided that it shall be competent for the Registrar to permit a society or class of societies to adopt such other form as he may deem fit.
(2) A copy of the balance sheet and profit and loss account to be presented at the annual general meeting under sub-section (2) of Section 75 and a copy of the report of the committee under sub-section (3) of Section 75 shall be fixed on the notice board of the society at least fourteen days before the date fixed for the annual general meeting.
If the annual general meeting of a society is not called in accordance with the provisions of Section 75 or if the Chairman or a majority of the committee of the society fail to call a special general meeting in accordance with the provisions of Section 76, the Registrar may authorise any person subordinate to him or any officer or employee of a federal society to call the annual general meeting or the special general meeting, as the case may be, and such officer or person shall have all the powers and functions of the officer of the society authorised to convene such annual or special general meeting, under its bylaws.
(1) Notwithstanding anything contained in the by-laws of a society but subject to the provisions of Section 78, the Registrar may 3 3 Deleted by G.N. of 18-6-1980. [by an order stating the reasons therefor:-]
(2) Before making any order under sub-rule (I), the Registrar shall consult the federal society to which the society is affiliated and give an opportunity to the committee or the member concerned to show cause, within fifteen days from the date of issue of notice, why such an order shall not be made.
(3) The member appointed under clause (c) of sub-rule (1) shall hold office so long as the member in whose place he is appointed would have held office, if the vacancy had not occurred.
(4) Notwithstanding anything contained in the by-laws regarding holding any meeting of the society, the Registrar may, by special or general order specify the procedure for holding meetings of the Committee appointed by him under clause (a) of sub-rule (1).
(5) Immediately after the appointment of a new committee or an administrator or administrators under sub-rule (I), the committee in whose place such appointment is made and officers of the society shall give the new committee or the administrator or administrators, as the case may be, the of the property, documents and accounts of the society .
(1) Every society shall keep the following accounts and books:-
6 Subs, by G.N. of 18-12-1979[(2) Where the State Government directs by order as provided under subsection (2A) of Section 81 that the cost audit of any society or class of societies shall be conducted, such society or class of societies shall, in addition to the accounts and books required to be kept under sub-rule (i), also maintain such books, records and accounts in such manner as the State Government may specify by general or special order from time to time for the purposes of cost audit.]
All Registered Co-operative Societies classified by the Registrar as Central Banks or as Urban Banks shall furnish to the Registrar every month a copy of each of the returns required to be furnished to the Reserve Bank of India under Sections 18, 24 and 27 of the Banking Regulation Act, 1949 (10 of 1949).]
(1) In addition to the periodical financial statements referred to in Rule 66, the Registrar may, by special or general order, require any society to furnish to him any other returns in such forms as may be specified by him, on such date or dates or at such interval or intervals as may be specified by him, in the order. The salarie officers of the society shall be responsible for the submission of these returns on’ due dates. If there are no salaried officers of the society or if the executive functions are attended to by the Chairman or any other member of the committee in an honorary capacity, the return shall be submitted by the Chairman or such member of the committee.
(2) On failure of the society to furnish any returns on due dates, the Registrar may, after giving due notice to the person or persons responsible for the submission of the same, depute an employee of the Co-operative Department or of the Federal Society to which the society is affiliated to prepare the return or returns and submit it or them to him. The members of the committee and other officers of the society shall furnish to the employee of the Co-operative Department or of the federal society entrusted with the work, all information necessary for preparing the return or returns. The expenses incurred by the Registrar in getting such return or returns prepared shall be borne by the society and shall be recovered from the society under Section 79 as if they were an arrear of land revenue.
(1) Where, in the course of, or as a result of audit under Section 81, or enquiry under Section 83, or inspections under Section 84 or Section 89A or supervision under Section 89A or visit or administrative inspection of any officer of the Co-operative Department or financial institution, or on the report of federal society or financial institution, or in any other way, or suo moto or otherwise, the Registrar is of the opinion that it is necessary, having regard to financial condition of the society or before after grant of Government financial assistance of any kind directly or indirectly, including Government guarantee or any other financial interest of Government accrue or likely to be accrued to regulate the manner of carrying on trade or business, the Registrar, after making such further enquiry if he deems necessary and after consulting the committee or any officer of the society and after examining the record of the society, shall:-
(2) The society shall frame the regulations on items specified by the Registrar and also in the manner specified by him, if he has so directed while forwarding regulations and forward the same personally along with copy of resolution within a period of three months from the date of issue of such directives.
(3) On receipt of regulations, the Registrar or the District Deputy Registrar on examination may issue an order approving them or modify, eliminate, delete or add as he deems fit in the interest of the society. The regulations shall be effective from the date of issue of order of approval by the Registrar and the society shall carry on its business in accordance with such regulations from the date of order of approval of such regulations.
(4) If any society fails to submit regulations to the Registrar on any or all the items forwarded by the Registrar or in the manner directed by him, the Registrar shall make the regulations on the items and in the manner if directed by him under sub-section (I) of Section 79AA and issue an order directing the society to carry on its business in accordance with such resolutions from the date of issue of such order. It shall be obligatory on the society to carry on its business and trade in accordance with the regulations so issued.
if:-
(1) Where taking possession of books, documents, securities, cash or other properties of a society is considered necessary and where taking of such possession is resisted or obstructed, the Registar, the Liquidator or any other person entitled to the same may take or cause to be taken order for seizing the books, documents, securities, cash or other properties of the society, as the case may be, in the manner provided in Section 80.
(2) Any person appointed by the Registrar as a Liquidator of a society or any person authorised by the Registrar to audit the accounts of a society under Section 81 or any person authorised by the Registrar to hold an inquiry into the constitution, working and financial conditions of a society under Section 83 or any person authorised by the Registrar to inspect the books of a society under Section 84 shall, in cases where the misappropriation of funds, breach of trust or fraud has been committed or where it is suspected or apprehended that the books, documents, securities, cash or other properties of a society are likely to be tampered with or destroyed or removed, and where taking of possession of such books, docurnents, securities, cash or other properties is considered necessary, shall follow the same procedure, with the previous permission of the Registrar, as is laid down in Section 80 for the purposes of obtaining such possession.
1. Subs. By G.N. pf 16-10-1987 .
2. Ins. by G. N. of 18-2-2002
3. Deleted by G.N. of 18-6-1980.
4. Subs, by G.N. of 8-11-1971.
5. Ins. by G.N. of 16-10-1987
6. Subs, by G.N. of 18-12-1979
7. Inserted by the G.N. 16-10-1987