Chapter III BYE-LAWS

functioning of every Cooperative Society shall be regulated by its bye-laws subject to the provisions of this Act. (2) The bye-laws of the Cooperative Society may provide for the following matters (a) the name, address and area of operation of a Cooperative Society, (b) the objectives of the Cooperative Society explicitly (Stated as a common central need of the members), (c) the Cooperative principles as described in section 3, (d) the services to be provided to its members, (e) eligibility for obtaining membership, (f) procedure for obtaining membership, (g) conditions for continuing as member, (h) the time limit before which a potential member must seek and obtain membership in order to continue to use the services of the Cooperative Society. (i) procedure for withdrawal! transfer of membership, U) procedure for termination and cessation of membership, (k) rights of members, (I) fixation of minimum performance required annually of each members vis-à-vis use of services, financial commitments and participation in meetings in order to be eligible to exercise the rights of membership including the right of vote., (m) the consequences of default in payment of any sum due by a member, (n) the nature and amount of capital, it any, of the Cooperative Society, (o) the maximum capital to which a single member can subscribe, (p) the nature and extent of the liability of the members for the debts contracted by the Cooperative Society, (q) the sources and types of funds to be raised by the. Cooperative Society, (r) the purposes for which the funds may be applied, (s) the extent and conditions under which deposits, loans, debentures and other funds may be mobilised, (t) the condition and purposes for which state aid and aid form other financial institutions may be sought and obtained, (u) the manner of disposal of surplus, (v) the constitutions of various funds, reserves and their purpose, (w) the manner of convening general and other special meeting and quorum thereof, (x) the frequency of general meetings, (y) the role of general body and the matters to be placed before the general body, (z) the manner of amending bye-laws, (aa) the procedure for conducting elections, (bb) the procedure for conducting election in case the Cooperative Society fails to do so, (cc) the size and constitution of the board, (dd) eligibility for becoming director,

(ee) conditions for retaining directorship, (if) the tenure of the directors, chairperson and other office-bearers, (gg) the procedure for removal of directors and for filling of vacancies, (hh) the manner of convening board meetings and quorum, (ii) the frequency of board meetings, (jj) powers and functions of the board, (kk) powers and functions of office-bearers including chair-person, (II) Powers and functions of the Chief-Executive, (mm) Penalties for acting against the interests of members and for non- fulfillment of duties by members, directors and staff, (nn) the appointment and role of auditor and procedure for conduct of audit where the Cooperative Society fails to make necessary arrangements and time limit for audit compliance, (oo) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedingsoflbehalfOtheC0oPerati'1e society, (pp) the terms on which a Cooperative Society may deal with non-members, (qq) the terms on which a Cooperative Society may associate with other Cooperative Societies, (rr) the terms on which a Cooperative Society may deal with organizations other than Cooperative Societies, (ss) the rights, if any, which the Cooperative Society may confer on any Cooperative Society or other federations and the circumstances under which these rights may be exercised by the federations, (tt) the manner of disposal, of funds if the Cooperative Society is under liquidation, (uu) the accounting year for the Cooperative Society, (vv) transfer of shares and interest in the name of a nominee in case of death of a member, (ww)the manner of dissolution of the Cooperative society, (xx) restriction, if any, on service to non-members, (yy) organize self-help, groups of people living in its area to conduct education and training programme. (zz) Special measures for women, scheduled castes and scheduled tribes and other weaker sections including provision for their representation of the board.

provisions of its bye-laws by a resolution of its general body, or by the representative of general body, where this exists of a majority of two-third members having voting right: Provided that no such resolution shall be passed unless atleast twenty clear days of written notice of the meeting has been given along with a copy of the proposed amendment to each member of the general body or representative general body, as the case may be, and such notice and proposed amendment is also displayed on the notice board of the Cooperative Society for a period of twenty days immediately preceding the date of the meeting: Provided further that the representative general body shall not alter any provision in the bye-laws relating to its own constitution and powers. (2) An application for the registration of the amendment shall be submitted to the Registrar within a period of thirty days from the date of resolution. (3) Every application submitted to the Registrar shall be signed by the chair-person and two members of the board and shall be accompanied by the following particulars :- (a) a copy of the resolution adopting the amendment, (b) the date of the general meeting at which the amendment was approved, (c) the date of the notice issued for the general meeting

(d) the total number of members on the rolls of the Cooperative Society having the right of vote on the date of such general meeting. (e) the number of members having the right of vote present at such general meeting, and (f) the number of members who voted for the resolution. (4) The Registrar, if the proposed amendment is in consonance with the provisions of the Act, shall register the amendment within a period of ninety days from the date of receipt of the application. (5) The Registrar shall forward to the Cooperative Society within a period of fifteen days after registration, a copy of the registered amendment together with a certificate signed and sealed by him, and such certificate shall be conclusive proof that the amendment has been duly registered. (6) The Registrar, if the proposed amendment is not in consonance with the provisions of the Act, Shall communicate the order of refusal together with the reasons therefore to the Cooperative Society within a period of ninety days from the date of receipt of the application: Provide that no order refusing to register the amendment shall be passed except after giving the Cooperative Society an opportunity of making its representation. (7) Where no order of refusal is communicated sub-section (6) within the period specified in that sub-section, the amendment, shall be deemed to be registered, and in that event the Registrar shall send a certificate of deemed registration and the original copy of deemed registered amendment signed and sealed by him within a period of one month.