Final authority in a co-operative society

(1) Subject to the provisions of this Act, the rules and the bye-laws, the final authority of a co-operative society shall vest in the general body of members: Provided that nothing contained in this sub-section shall affect the exercise by a board or any office bearer of a registered co-operative society of any power conferred on such board or such office bearer by this Act or the rules or the bye-laws. (2) Notwithstanding anything contained in sub-section (1),— (a) where the area of operation of a co-operative society is not less than the area that may be prescribed; or (b) where a co-operative society consists of not less than the number of members that may be prescribed, the general body of a cooperative society may amend its byelaws providing for the constitution of a smaller body consisting of such number of the members of the co-operative society as may be prescribed, elected in accordance with the rules (hereinafter referred to as the representative general body) to exercise all or any of the powers of the general body as may be specified in the bye-laws and any reference, by whatever form or words in this Act to the general body or a meeting thereof shall have effect as if such reference were a reference to the representative general body or a meeting thereof, as the case may be. (3)- The amendments of the bye-laws made under sub-section (2) shall be sent to the Registrar for approval under section 12. (2) Before approving such schemes of collaboration under sub-section (1), the Registrar [or Reserve Bank of India, as the case may be] shall have due regard to the following matters, namely:- (a) the scheme is economically viable; (b) It can be implemented without, in any way, altering the co-operative character of the co-operative society or the co-operative societies; (c) the scheme is in the interest of the members of the co-operative society or co-operative societies or is in the public interest or in the interest of the co-operative movement, in general; (d) in the case a of Co-operative Bank, the scheme is not detrimental to the interest of depositors or Banking Policy.