Ultimate authority of society

Management of Societies

Ultimate authority of society: [Rule 21]

1. (1) (a) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a society shall vest in the general body : Provided that nothing in this clause shall affect the exercise by the committee or any officer of a society or any power conferred on such committee or officer by the Act, the rules or the bye-laws.
   • (b) Notwithstanding anything in clause (a), where the area of operation of a society is not less than such area as may be prescribed, or where the society consists of not less than such number of members as may be prescribed, the society-may and if so directed by the Registrar shall provide in its bye-laws for the Constitution of smaller general body designated as the representative general body consisting of such number of members of the society as may be specified in and elected in accordance with, the rules, to exercise all or any of the powers of the general body except the power to conduct elections of members of the committee as may be specified in the bye-laws ; and thereupon any reference in this Act to the general body meeting thereof shall be construed as a reference to the representative general body or its meetings : Provided that the representative general body shall not alter any provision in the bye-laws relating to its Constitution or powers.
   • (c) The exercise of any power by representative general body shall be subject to such restrictions and conditions as may be specified in the rules or the bye-laws,
2. (2) Subject to the other provisions of this Act, the following matters shall be dealt with by the 1[General Body in the manner prescribed]-
   • (i) election and removal of members of the committee and members
   • (ii) annual report to the Registrar ;
   • (iii) consideration of the audit report and the annual service ;
   • (iv) disposal of the net profits ;
   • (v) amendment to bye-laws ;
   • (vi) expulsion of a member ;
   • (vii) approval of the annual budget of income and expenditure ;
   • (viii) affiliation of the society to the financing bank or other societies ; 1[xxx]
   • (ix) 2[election of delegates to the financing Bank or other societies] 3[ Provided that where a delegate is not elected under this item the President shall be the delegate to the Financing Bank or other society until a delegate is elected ; Provided further that where a President is elected by direct election, he shall represent the society as a delegate to the Financing Bank or other Societies.] 4[(x) review of the loans and advances sanctioned to or the business done with the society by the members of the committee or their such near relatives as may be prescribed, and report to the Registrar about any default in the recovery of the amounts due to the society.] Provided that the general body may delegate, by a resolution, to the committee its powers in respect of 5[items
   • (viii) and (ix)] or to withdraw by a resolution such powers at any time. 6[(xi) appointment of two internal auditors from among its members other than the members of the committee ;
   • (xii) consideration of the report of the internal auditors appointed by it.] 7[(xiii) contribution to Cooperative Education Fund;
   • (xiv) consideration of report of inquiry under Section 51 or Inspection under Section 52 or under Section 53 or Special report of Audit under Section 50;
   • (xv) decision on bad debts considered irrecoverable;
   • (xvi) management of deficits in stocks or cash;
   • (xvii) appointment of members of supervisory council, entrustment of duties to the supervisory council and consideration of its reports; (xviii) decision on transfer of assets and liabilities, on division or amalgamation;
   • (xix) review of attendance of Committee members;
   • (xx) review of membership;
   • (xxi) review of the report on the disqualification of the members and the committee members;
   • (xxii) review of all overdue loans and defaulters; (xxiii) approval of the staffing pattern, pay and other allowances of the employees of the society and contingencies, subject to the availability of administrative and contingent fund and approval of the Registrar.