Chapter IV MANAGEMENT OF CO-OPERATIVE SOCIETIES

(1) The final authority in a co-operative society shall vest in the general body of the members : Provided that where the bye-laws of a co-operative society provide for the constitution of smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, the smaller body shall exercise such power of general body as may be prescribed or as may be specified in the bye-laws of the society. (2) Notwithstanding anything contained in section 21, each delegate shall have one vote in the affairs of the society. (3) A general meeting of a co-operative society shall be held within a period of six months of close of the financial year for the purpose of – (a) approval of the programme of the activities of the society prepared by the committee for the ensuing year; (b) consideration of the audit report and the annual report; (c) review of the performance of the preceeding year; (d) review of the state of affairs of the society including list of defaulters along with amount of default; (e) creation of specific reserves and other funds and utilization thereof; (f) consideration of list of employees who are relatives of office bearers of the society; (g) conduct of election of the managing committee, when due; (h) amendment of bye-laws; (ha) appointment of auditor or auditing firm from the panel prepared by the State Government or authority authorised by the State Government; (i) consideration of any other matter in accordance with bye-laws: Provided that nothing in this sub-section shall affect any powers conferred on a committee or any office bearer of a society under the rules or the bye-laws framed under this Act.

(1) A co-operative society may, from time to time, call a general meeting or a committee meeting of a society and shall call such meetings within one month after receipt of a requisition in writing from the Registrar or from such member or members or proportion of total number of members as may be provided in the bye-laws in case of general meeting or such members of committee as may be prescribed in the bye-laws, in case of committee meeting. (2) If a general meeting or committee meeting of a co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorized by him in this behalf shall have the power to call such meeting. (3) If a general body meeting is not held within the period as specified in sub-section (3) of section 25 or the requirements of sub-section (1) of this section are not complied with, the Registrar shall, after giving an opportunity of being heard declare the members of the committee disqualified for continuing as members of such committee and for being elected as members of the committee of any society, for a period of five years; and if the default is committed by an office bearer or an employee of the society, the Registrar may, after giving him an opportunity of being heard, impose on him a fine not exceeding Rs. 10,000.

(1) The members of the committee of a co-operative society shall be elected in the manner prescribed and no person shall be so elected unless he is a member of the society : Provided that at least one member belonging to the Scheduled Caste and two women members shall also be represented through election in every committee of a co-operative society in the manner prescribed : Provided further that at least one member belonging to Backward Class shall also be represented through election in the committee, if their number is ten percentum or more of the total membership of the society, in the manner prescribed. (1A) The State Government may, by notification, constitute an election authority for the superintendence, direction and control of the preparation of electoral rolls for, and the conduct of all elections of a prescribed co-operative society : Provided that till the time such authority is constituted, the election of such society shall be got conducted by the Registrar or the existing committee of such society, as the case may be. (2) The election process once started shall not be postponed and disputes, if any, pertaining to the election, shall be entertained after the completion of the election process, in accordance with the provisions of this Act. Explanation:- The election process shall be deemed to have started from the date of the order of the election authority fixing the date of election. (3) The committee of each society shall, before the expiry of the term of its committee arrange for the election of a committee in accordance with its bye-laws failing which the Registrar shall arrange to hold such elections within a period of ninety days after the expiry of the term of the committee at the cost of the society and the elected members of the outgoing committee shall be debarred from contesting the elections of the committee of any co-operative society for a period of five years from the date of the expiry of the term of the outgoing committee: Provided that no such order shall be passed by the Registrar unless an opportunity of being heard has been given. (4) The committee shall, unless superseded earlier by the Registrar, hold office for a period of five years from the date of election and the term of office bearers shall be coterminous with the term of the committee: Provided that irrespective of anything contained in the bye-laws, the committee may fill a casual vacancy in the committee by election, if the term of office of the committee is more than half of its original term, or by co-option, if the term of office of the committee is less than half of its original term, as the case may be, out of the same class of members in respect of which the casual vacancy has arisen. (5) Notwithstanding anything contained in the bye-laws of a co-operative sugar mills, the members who are employees in the mills, shall constitute one separate zone for the purpose of election to the members of the committee thereof. In case no such member has been elected, the members of the committee shall co-opt one such member. If no such member is elected or co-opted as a member of the committee, the Registrar may nominate one such member as a member of the committee. (6) No individual shall, at any time, be a member of a committee of more than two primary societies, one central society and one apex society : Provided that nothing in this sub-section shall apply to a member nominated under sub-section (1) of section 29 or to a member of the committee of an apex or central society nominated to serve on the committee of another apex or central society, as the case may be, in accordance with the provisions of their bye-laws.

Notwithstanding anything contained in the bye-laws of a co-operative society, the members of the committee including those nominated under section 29, shall elect from amongst themselves office bearers within sixty days of the date of election of the members of the committee. The meeting for such election shall be summoned and presided over by the Presiding Officer appointed by the Election Authority : Provided that the election of office bearers shall not be postponed in case no person is nominated under section 29 to the said Committee : Provided further that the election of office bearers of a primary, central and apex milk producers‘ societies shall be conducted in accordance with their bye-laws : Provided further that where the Government have subscribed to the share capital of an apex co-operative society or co-operative sugar mill to the extent of Rs. 10,00,000 or more the Government may, notwithstanding anything contained in the bye-laws of the society, appoint one of the members nominated under section 29 as chairman of the committee of such society : Provided further that no committee member shall be eligible for election as Chairman or Vice-Chairman of any co-operative society if he has served as such, whether before or after or partly before and partly after the commencement of this Act, for a continuous period of ten years unless a period of not less than five years has expired since he last so served.

(1) Where the Government has subscribed to the share capital of a co-operative society to the extent of Rs. 10,00,000 or more, the Government may notwithstanding anything contained in the bye-laws of the society, nominate another member in addition to those nominated under section 29 and appoint him as Managing Director : Provided that no person shall be appointed as Managing Director of a co-operative society unless he is a member of the Indian Administrative Service or Haryana Civil Service (Executive Branch) or Class I or II Officer of the Co-operative Department, Haryana or any other professional having qualifications and experience as may be prescribed, except in the case of the Haryana State Co-operative Labour and Construction Federation Limited, the Haryana Housing Apex Finance Society Limited and the Haryana Co-operative Dairy Development Federation Limited where technical persons may be appointed as Managing Directors : Provided further that in case of a cooperative bank, the appointment of Managing Director shall be made in accordance with the guidelines of the Reserve Bank and such Managing Director who does not fulfil the criteria stipulated by the Reserve Bank shall be removed. (2) The Managing Director appointed under sub-section (1) shall exercise such powers as are assigned to him under the bye-laws or delegated to him by the committee. He shall also discharge all such functions consistent with the bye-laws as are assigned to him by the Government or the Registrar. He shall work under the superintendence and control of the committee. (3) The Managing Director of a co-operative society shall be its principal executive officer. All employees of the society shall function and perform their duties under his superintendence and control.

Notwithstanding anything contained in this Act, or the rules framed thereunder or the bye-laws of a co-operative society, the first committee of a newly registered society, shall be elected by the promoter members as contained in the application for registration. The tenure of the said committee shall not exceed one year from the date of its registration.

(1) Wherein any co-operative society, a committee constituted in accordance with the provisions of this Act, rules made thereunder or bye-laws of the society does not exist or has ceased to exist, the Registrar may, notwithstanding anything to the contrary contained in the Act, rules or bye-laws, appoint administrators not exceeding five for a period of six months or one year, as the case may be, as specified under section 34 of the Act or till a committee is constituted under section 28, whichever is earlier: Provided that the Managing Director appointed under section 31, if any, shall be one of the administrators: Provided further that the election authority shall cause the election to be held within the period of six months or one year, as the case may be, as specified in section 34 of the Act; (2) If the number of administrators so appointed is less than five, the Registrar, may from time to time, add an administrator or administrators. (3) The Registrar may fix such remuneration for the administrators as he may think fit. Such remuneration shall be paid out of the funds of the society. (3A) [Omitted] (4) The administrators shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers to exercise all or any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of the society.

(1) If, in the opinion of the Registrar, the committee of any co-operative society,- (i) is persistently making default; or (ii) is negligent in the performance of its duties imposed on it under this Act or the rules or the bye-laws framed thereunder; or (iii) has committed any act which is prejudicial to the interest of the society or its members; or (iv) has failed to conduct elections in accordance with the provisions of this Act; or (v) has caused a stalemate in the constitution or functions, the Registrar may, after giving the committee an opportunity to state its objections, if any marginal heading substituted by Act No. 10 of 2013. Sub section (1) substituted by Act No. 10 of 2013.

(1) If in the opinion of the Registrar, any member of the committee persistently makes default or is negligent in the performance of the duties imposed on him by this Act or rules or bye laws or commits any act which is prejudicial to interest of the society or its members, the Registrar may after giving the member an opportunity to state his objections, if any, by order in writing, remove the member and get the vacancy filled up for the remaining period of the outgoing member, according to the provisions of this Act, rules and bye-laws. (2) Where the Registrar while proceeding to take action under sub-section (1) is of the opinion that the suspension of the member during the period of the proceedings is necessary in the interest of the co-operative society, he may suspend the member: Provided that if the member so suspended is not removed, he shall be reinstated and the period of suspension shall count towards his tenure: Provided further that the period of suspension shall not exceed six months. (3) A member who is removed under sub-section (1) shall be disqualified for being elected to any committee for such period not exceeding five years as the Registrar may fix and the said period shall commence from the date of passing the order. (4) The Registrar at the request of the Reserve Bank/ National Bank shall remove such members of committee who do not fulfil criteria stipulated by the Reserve Bank.

No act of a co-operative society or any committee or any officer shall be deemed to be invalid by reason only the existence of any defect in procedure or in the constitution of the society or of the committee or any vacancy in the membership or office thereof or in the appointment or election of an officer or on the ground that such officer was disqualified for appointment or election.