Chapter I PRELIMINARY

5fsuppo9 Gooperat Societies Act, 1996. (2) It extends to the whole of the State of Bihar. (3) It Shall come into force at once.

— in this Act, unless the context othetSe requires — (a) "State" means the State of Bihar; (b) "Board" means the Board of Directors of a Cooperatt 5ociety; (c) "By-laws" means the bye-laws of a registered Coopet 5ociety; (d) 'Chief executive" means an indiVidu who, subject to the superinteee control and direction of the board, has been entrusted with the 8flagement of the affairs of a Cooperative 5ociety (e) 0ooperative society" means an organization registered of deened to be registered under this Act; (f) oo perat1 basis" means the 0ooperative principles enumerated in section 3 (g) 'primary 0ooperate society" means a Cooperative 5 ociety whose member is of this Act; not a Cooperative SocietY (h) "Central Cooperative" means a Cooperative society which iS different from Federation and Union and which has any other 0ooperative 5ociety, and ,if the bye-laws so provides dividual5 as its members; (i) Federation means a Federation constituted under subsecti0n (2) of section 14 of this Act;

0) Union' means an Union constituted under sub-section (1) of section 14 of this Act; (k) "General body" means.. (i) in relation to Primary Cooperative Society, all the members of that Cooperative Society; (ii) in relation to a Central Cooperative Society, delegates of all the member Cooperative Societies, and, if the bye-laws so provide, individuals as its members; (iii) in relation to a Federation the delegates of all member, Cooperative Societies; (iv) in relation to the Union, the delegates of all the member Cooperative Federations and Cooperative Societies; (I) "General meeting" means a meeting of the general body of a Cooperav Society registered under this Act; (m) "Office-bearer" means a person elected or appointed by a Cooperative Sbcity to any office of-such Cooperative Society; 7n) "Registrar" means the Registrar of Self-suppoing Cooperative Societies appointed under Section 8 of this Act and includes any other person on whom all of any of the Powers of the Registrar under this Act are conferred; "family" means husband, wife, their unmarried daughters and dependent and dependent Sons; (p) "cooperative tribunal" means a tribunal constituted under section 39 this Act. CHAPTER/I COOPERA TIVE PRINCIPLES

Individuals or Cooperative Sociehes intending to form a Cooperative Society under this Act shall frame bye-laws conforming to the following Principles of Cooperation namely- (a) membership of a Cooperative Society shall be voluntary available without restriction of any social, politica' racial or religious discrimination, of all persons who can make use of its services and are willing to accept the responsibilities of membership; (b) Cooperative Societies are democratic organizaj0; their affairs shall be administered by persons elected or appointed in a manner agreed to by the members and accountable to them, Members of Cooperative Societies shall enjoy equal rights of voting (one member one vote) and paicipatjon in decisions affecting the Cooperative Societies of which they are members; (c) the economic results, arising out of the operations of a Cooperative Society belong to the members of that Cooperative Society and shall distributed in such a manner as would avoid Ofl member gaining at the expense of others which shall be achieved.. (i) by provision for development of the business of the Cooperative Society, (ii) by provision of common services, or (iii) by distribution among the members in propojon to their transactions with the Cooperative Society in addition to the distribution of dividend to the share..holders; (d) all Cooperative Societies shall make provision for the education of their members, office..bearers and employees and of the general public, in the principles and techniques of Cooperative, both economic and democratic; (e) all cooperative societies, in order to best see the interest of their members and their communities, shall actively cooperate in every practical way with

( J other cooperatives at local, national and international levels having as therein the achievement of unity of action by cooperators throughout the world.