Chapter VII MANAGEMENT OF SOCIETIES

Subject to the provisions in this Act and the rules, the final authority of every society shall vest in the general body of members in general meeting, summoned in such a manner as may be specified in the bye-laws. Where the bye-laws of a society so provide, the general meeting shall be attended by delegates appointed by the members, and such meeting shall be deemed to be the meeting of the general body, for the purpose of exercising all the powers of the general body.

1. (1) The management of every society shall vest in a committee, constituted in accordance with this Act, the rules and bye-laws which shall exercise such powers and perform such duties as may be conferred or imposed respectively by this Act, the rules and the bye-laws.

(1AB) the members of the committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the society. The members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the society. Every such member shall execute a bond to the effect within fifteen days of his assuming the office, in the form as specified by the Sate Government by general or special order. The member who fails to execute such bond within the specified period shall be deemed to have vacated his office as a member of the Committee: Provided that, before fixing any responsibility mentioned above, the Registrar shall inspect the record of the society and decide as to whether the losses incurred by the society are on account of acts or omissions on the part of the members of the committee or on account of any natural calamities, accident or any circumstances beyond the control of such members: Provided further that, any member of the committee, who does not agree with any of the resolution or decision of the committee, may express his dissenting opinion which shall be recorded in the proceedings of the meeting and such member shall not be held responsible for the decision embodied in the said resolution or such acts or omissions committed by the committee of that society as per the said resolution. Such dissenting member, if he so desires, may also communicate in writing, his dissenting note to the Registrar within seven days from the date of the said resolution or decision. Any member, who is not present for the meeting in which the business of the society is transacted, and who has not subsequently confirmed the proceedings of that meeting, such member shall also not be held responsible for any of the business transacted in that meeting of the society.

(1-A) Notwithstanding anything contained in this Act, the rules made there under or in the bye-laws of any society or class of societies,—

1. (a) The first general meeting of a society shall be convened within three months from the date of its registration to appoint a provisional committee and to transact other business as may be prescribed. The term of the members of such provisional committee shall be for a period of one year from the date on which it has been first appointed or till the date on which a regular committee is duly constituted in accordance with the provisions of the rules or bye-laws made under this Act, whichever is earlier; and all the members of such provisional committee shall vacate office on the date of expiry of such period or such constitution of the committee:
2. (b) notwithstanding anything contained in clause (a), the provisional committees for the Co-operative Sugar Factories and Co-operative Spinning Mills and such other class of societies, as the State Government may, by special or general order, in the Official Gazette, specify in this behalf, shall be appointed by the State Government; and the members thereof shall hold office for a period of three years, which period may be extended by one year, at a time, so however that, the total period shall not exceed five years, in the aggregate; Provided that, the State Government shall have the power to change or reconstitute such committee or, any or all members thereof at its discretion even before the expiry of the period for which a member or members were nominated thereon: Provided further that, the member or members assuming office on such change or re- constitution of the committee shall hold office for the period for which the provisional committee has been appointed under this clause.
3. (c) pending the first constitution of the committee of a society, the provisional committee of the society shall exercise the powers and perform the duties of the committee of such society as provided in this Act, the rules and bye-laws and make necessary arrangements for holding election of the committee, before the expiry of its term.

1. (2) Notwithstanding anything contained in any bye-laws of a society or class of societies, the Registrar may, having regard to the area of operation, subscribed share capital or turnover of a society or class of societies, by general or special order, published in the Official Gazette, prescribed the maximum number of members on the committee of such society or class of societies, as may be specified in such order.
2. (3) (a) Notwithstanding anything contained in this Act or the rules made there under or in the bye- laws of any society or any other law for the time being in force, in a general election of members of the committee of a society, on the election of two-thirds or more number of members, the returning officer or any other officer or authority conducting such election shall within seven days after the declaration of results of the election of such members or where such election is held before the date of commencement of the Maharashtra Co-operative Societies (Second Amendment) Act, 1986, and such number of members have been elected but the committee has, for whatever reason, not been so far constituted, forward their names together with their permanent addresses to the Registrar, who shall, within fifteen days from the date of receipt thereof by him, publish or cause to be published such names and addresses by affixing a notice on the Notice Board or at any prominent place in his office; and upon such publication the committee of the society shall be deemed to be duly constituted. In determining two-Thirds of the number of members, fraction shall be ignored: Provided that, such publication shall not be deemed-
   • (i) to preclude the completion of elections of the remaining members and the publication of their names and the permanent addresses of the elected members likewise as and when they are available; or
   • (ii) to affect the term of the office of members of the Committee under the Act;
   • (b) The names of the remaining members after they are elected (together with their permanent addresses), may also thereafter be likewise published by the Registrar) 73-IA Election to more than one seat on committee of society including specified society.— If a person is elected to more than one seat on the committee of a society including a society belonging to any of the categories specified in section 73-G, then, unless within a period of fifteen days from the date of declaration of the result of the election he resigns all but one of the seats by writing under his hand address to the Election Officer, or as the case may be, the Collector, all the seats shall become vacant. On receipt of such resignation or on the seats becoming vacant as aforesaid, the Election Officer, or as the case may be, the Collector shall declare the candidate from the constituency or constituencies concerned securing the next higher number of votes as duly elected. 73-IB. Powers of State Government to postpone election.— Where due to scarcity, drought, flood, fire, or any other natural calamity or rainy season or any election program, of the State Legislative Assembly or Council or the House of the People or a local authority, coinciding with the election program of any society or class of societies or such other reasons as, in the opinion of the State Government, are exceptional, it is not in the public interest to hold elections to any society or class of societies, the State Government may, notwithstanding anything contained in this Act, or in any rules, or bye-laws made there under, or any other law for the time being in force, for reasons to be recorded in writing, by general or special order, postpone the election of any society or class of societies, for a period not exceeding six months at a time which period may further be extended so, however, that the total period shall not exceed one year in the aggregate. 73-IC Election to notified societies.—
3. (1) Where the State Government is satisfied that, having regard to the objects of the society or class of societies (other than the societies specified by or under section 73-G), or composition of membership thereof, or proper management and the interest of the members, it is necessary in the public interest to hold elections to any society or class of societies, the State Government may, notwithstanding anything contained in this Act, or in any rules, or bye-laws made there under, or in any other law for the time being in force, by general or special order, notify in the Official Gazette, such society or class of societies and the election to such society or class of societies shall be held by the Registrar in the prescribed manner.
4. (2) The Registrar shall recover the expenses of holding election to any such society or class of societies as is referred to in sub-section (1), in the prescribed manner. 73-ID Motion of no-confidence against officers of societies —
5. (1) A President, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer by whatever designation called who holds office by virtue of his election to that office shall cease to be such President, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer, as the case may be, if a motion of no-confidence is passed at a meeting of the committee by two-third majority of the total number of committee members who are entitled to vote at the election of such President, Vice-President, Chairman, Vice- Chairman, Secretary, Treasurer or any other officer and the office of such President, vice- President, Chairman, Vice-chairman, Secretary, Treasurer or any other officer, as the case may be, shall thereupon be deemed to be vacant.
6. (2) The requisition for such special meeting shall be signed by not less than one-third of the total number of members of the committee who are entitled to elect the President, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer or any other officer, as the case may be, of the committee and shall be delivered to the Registrar. The requisition shall be made in such form and in such manner as may be prescribed: Provided that, no such requisition for a special meeting shall be made within a period of six months from the date on which any of the officers referred to in sub-section (1) has entered upon his office.
7. (3) The Registrar shall, within seven days from the date of receipt of the requisition under sub- section (2), convene a special meeting of the committee. The meeting shall be held on a date not later than fifteen days from the date of issue of the notice of the meeting.
8. (4) The meeting shall be presided over by the Registrar or such officer not below the rank of an Assistant Registrar of Co-operative Societies authorised by him in his behalf The Registrar or such officer shall, when presiding over such meeting, have the same powers as the President or Chairman when presiding over a committee meeting has, but shall not have the right to vote.
9. (5) The meeting called under this section shall not, for any reason, be adjourned.
10. (6) The names of the committee members voting for and against the motion shall be read in the meeting and recorded in the minute book of committee meetings.
11. (7) If the motion of no-confidence is rejected, no fresh motion of no-confidence shall be brought before the committee within a period of one year from the date of such rejection of the motion. 73-A. Disqualification for being designated officer simultaneously of certain categories of societies or for being designated officer of the same society for more than ten years.—
12. (1) In this section and in sections 73C, 73D and 73E, "a designated officer" means the Chairman and the President, and includes any other officer of the society as may be declared by the State Government, by notification in the Official Gazette, to be a designated officer, but does not include any officer appointed or nominated by the State Government or by the Registrar.
13. (2) No person shall, at the same time, be or continue to be a designated officer of more than one society falling in Category I or Category II or Category III of the Categories mentioned below; and shall not be or continue to be a designated officer in more than two societies in the aggregate in the three Categories :- Category I - Societies, the area of operation of which extends to the whole of the State, Category II - Societies, the area of operation of which does not extend to the whole of the State,
    • (a) But extends to at least one whole district irrespective of their authorised share capital; or
    • (b) But extends to areas comprised in part or parts in one or more districts and the authorised share capital of which is more than Rs.10 Lakh. Category III - Societies, the area of operation of which does not extend to the whole of a district but extends to one whole Taluka, or the authorised share capital of which is not more than Rs.10 Lakh but is not less than Rs. 5 Lakh. Explanation - For the purposes of this sub-section, the expression "society" shall not include a society with no share capital and a society not engaged in commercial activities. (2A) If any question arises whether or not a society falls under any of the categories referred to in sub-section (2), such question shall be referred to and decided by the Registrar and his decision shall be final.
14. (3) Subsection (3) deleted
15. (4) If any person becomes, at the same time a designated officer of societies, in excess of the number prescribed under sub-section (2), unless he resigns his office in the society or societies in excess of the said number within a period of ten days from the date on which he is elected or appointed a designated officer of more than the permissible number of society or societies, or if the elections or appointments are held or made simultaneously, from the date on which the result of last of such elections or appointments is declared, he shall, at the expiration of the said period of ten days, cease to be a designated officer of all such societies, and thereupon, notwithstanding anything contained in any other provisions of this Act, a person so resigning or ceasing to be a designated officer of any or all such societies shall not be eligible fox being re-elected or re-appointed as a designated officer of such society or societies during the remainder of the term of office for which he was so elected or appointed; and at no point of time such person shall be a designated officer of societies in excess of the number prescribed under sub-section (2).
16. (5) No person shall be, or shall continue to be, a designated officer of any society of any of the categories referred to in sub-section (2), for a period of more than ten years in the aggregate and at the expiration of that period any such person shall cease to be a designated officer of that society, and shall not be eligible for being re-elected or re-appointed as a designated officer, until a period of one term of the committee has elapsed after completion of the aforesaid period of ten years. Explanation.-For the purposes of this sub-section;
    • (a) in calculating the aggregate period of ten years in office, any period for which the person concerned may have been such officer, before the commencement of the Maharashtra Co-operative Societies (Second Amendment) Act, 1969, shall be ignored;
    • (b) if any person resigns his office as a designated officer at any time within twelve months of the date on which the aggregate, period of ten years would, but for his resignation, have been completed, he shall be deemed to have completed the period ten years on his resignation.
17. (6) No member of the Council of Ministers shall be, or continue to be, a designated officer of any society of any of the categories referred to in sub-section (2): Provided that, nothing in this sub-section shall affect any member of the Council of Ministers who is a designated officer of any such society on the date of commencement of the Maharashtra Co-operative Societies (Second Amendment) Act, 1985, and he shall continue to hold office till completion of his term, unless he resigns or vacates the office of such designated officer for any reason whatsoever before the expiry of his term as such designated officer. 73AA Designated officer who is associate Councilor to cease to be designated officer on ceasing to be such Councilor — Where, after the commencement of the Maharashtra Zillah Parishads and Panchayat Samitis (Fourth Amendment) Act, 1974, designated officer of any society of any of the categories referred to in sub-section (2) of Section 73 A who is also an associate Councilor of any Zillah Parishad, ceases to be the associate Councilor of such Zillah Parishad by operation of the provisions of Section 82 of the Maharashtra Zillah Parishads and Panchayat Samitis Act, 1961, he shall also cease to be a designated officer of the said society from the date on which he so ceases to be an associate Councilor of the Zillah Parishad.

Where a person is elected, co-opted, appointed or nominated as a member of committee of any society by virtue of his holding office under the Central Government or the State Government or in any local authority in any body corporate or in any organisation, he shall cease to be such member on the date on which he ceases to hold such office. 73-B. Reservation of seats on committees of certain societies for Scheduled Castes, Scheduled tribes, Other Backward Classes, De-notified Tribes (Vimukta Jatis), Nomadic Tribes, Special Backward Classes and for members of weaker section and election thereto.—

1. (1) Notwithstanding anything contained in this Act or in the rules made there under or in any bye- laws of any society, on the committee of such society or class of societies as the State Government may, by general or special order, direct, four seats shall be reserved,—
   • (a) One for the members belonging to the Scheduled Castes or Scheduled Tribes;

(a -1) One for the members belonging to the Other Backward Classes;

(a -2) One for the members belonging to the De-notified Tribes (Vimukta Jatis), Nomadic Tribes or Special Backward Classes; and

1. (b) One for the members belonging to the weaker section.

1. (2) The four reserved seats referred to in sub-section (1), shall unless where the bye-laws of the society already provide for the reserved seats, be in addition to the strength of the members of the committee of such a society or class of societies.
2. (3) Any individual member of the society, or any elected member of the committee of a member- society, or any member of the committee of a member-society, whether elected, co-opted or appointed under this section, belonging to the Scheduled Castes or Scheduled Tribes, or Other Backward Classes or De-notified Tribes (Vimukta Jatis) or Nomadic Tribes or Special Backward Classes or as the case may be, weaker section, shall be eligible to contest the election to reserved seat and every person who is entitled to vote at the election to the committee shall be entitled to vote at the election to any such reserved seat.
3. (4) Where no person is elected to any of the four reserved seats, then;
   • (a) In the case of a society other than a society mentioned in clauses (b) and (c), the Chief Executive Officer such as the Chairman. Secretary or Manager or any other Officer by whatever designation called;
   • (b) In the case of a society notified under Section 73-IC, the Registrar; and
   • (c) In the case of a society specified under Section 73-G, the Collector; shall call a meeting of the elected members of the committee to co-opt a member or, as the case may be, members on the committee from amongst the persons entitled to contest the election under sub-section (3), and such meeting shall be presided over by the Chairman, if it is a society referred to in clause (a), or by the Collector or any other officer authorised by him, if it is a specified society, or by the Registrar or any other officer authorised by him, if it is a notified society. If no member is co-opted at such meeting, the Chairman or the Collector or, where the meeting is presided over by an officer authorised by the Registrar, such officer, as the case may be, shall, within a period of seven days from the date of such meeting, report the fact to the Registrar, and thereupon the Registrar shall, within a period of seven days from the date of receipt of such report by him or where the Registrar himself has presided over such meeting, within a period of seven days from the date of such meeting, appoint on the committee a person or persons, as the case may be, from amongst the persons entitled to contest the election to the reserved seats under sub-section (3). Explanation: For the purposes of this section;
   • (a) a general or special order, if any, issued by the State Government under Section 73- B as it existed before the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1983 shall be deemed to have been issued under sub- section (1) of this section and shall continue to be in force until duly repealed or amended:
   • (b) the expression "Scheduled Castes" includes "Nav-Boudhas" (b-1) the expression "Other Backward Classes, De-notified Tribes (Vimukta Jatis) and Nomadic Tribes and Special Backward Classes" means such classes or parts of or groups within such classes as are declared, from time to time, by the State Government to be Other Backward Classes, De-notified Tribes (Vimukta Jatis) and Nomadic Tribes and Special Backward Classes;
   • (c) the expression "members belonging to weaker section" means a member or such class of members as the State Government may, by general or special order from time to time, declare

1. (1) On the committee of such society or class of societies as the State Government may, by general or special order, direct where the number of permanent salaried employees of the society is 25 or more;
   • (a) if the number of members of the committee thereof is 11 or less-one seat; and
   • (b) if the number of such members is 12 or more - one additional seat for every 10 members over and above the first 11 members shall be reserved for such employees. The seat so reserved shall be filled by selection made by the recognized union or unions and where there is no union at all or where there is a dispute in relation to such issues including whether a union is recognized or not, then the seats so reserved shall be filed by an election by such employees from amongst themselves in the prescribed manner. Any person selected or elected as a member of the committee to any reserved seat shall not be entitled to be elected as an officer of such society, or to vote at any election of officers Explanation - for the purposes of this section the members of the committee shall mean and include elected, appointed, nominated, co-opted as well as ex-officio members of the committee but it shall not include the representatives of the employees
2. (2) No employee who is under suspension shall be eligible for being selected or elected or for being constituted as a member under subsection (1).
3. (3) Subject to the provisions of sub-section (2), the term of a member representing the employees shall be co-terminus with the term of the committee as provided under the bye- laws of the society and after every fresh election of the members of the committee a fresh selection or election, as the case may be, of a member under sub-section (1), shall be necessary.

thereto.—

1. (1) Notwithstanding anything contained in this Act, or in the rules made there under, or in the bye-laws of any society, there shall be reserved seats for women on the committee of each society to represent the women members in the following manner, namely:—
   • (a) One seat on the committee consisting of not more than 9 committee members;
   • (b) Two seats on the committee consisting of 10 or more, but not exceeding 19 committee members; and
   • (c) Three seats on the committee consisting of 20 or more committee members. Explanation - For the purpose of determining the number of committee members under this sub-section, committee members who are elected, co-opted, nominated, appointed or otherwise occupying the position on the committee under section 73B, 73BB and under this sub-section shall not be included.
2. (2) The reserved seats referred to in sub-section (1) shall be in addition to the strength of the members of the committee of a society : Provided that, where the bye-laws of a society already provide for reservation of seats for women on the committee thereof, the total number of seats to be so reserved for women shall be equal to the number of seats specified in sub-section (1).
3. (3) Any individual woman member of the society, or any woman member of the committee of a member society, whether elected, co-opted or appointed, shall be eligible to contest the election to a reserved seat on a committee of society; and every person who is entitled to vote at the election of the committee shall be entitled to vote at the election to any such reserved seat.
4. (4) Where no woman member or, as the case may be, women members are elected to the reserved seats, then,—
   • (a) in the case of a society other than a society mentioned in clauses (b) and (c), the Chief Executive Officer such as the Chairman, Secretary or Manager or any other Officer, by whatever designation called (hereinafter in this section collectively referred to as "the Chairman");
   • (b) in the case of a society notified under section 73-IC, the Registrar; and
   • (c) in the case of a society specified under section 73G, the Collector shall call a meeting of the elected members of the committee to co-opt a woman member or, as the case may be, women members on the committee from amongst the persons entitled to contest the election under sub-section (3), and such meeting shall be presided over by the Chairman, if it is a society referred to in clause (a), or by the Registrar or any other officer authorised by him, if it is a notified society or by the Collector or any other officer authorised by him, if it is a specified society. If no woman member is co- opted at such meeting, the Chairman or the Collector or, where the meeting is presided over by an officer authorised by the Registrar or the Collector, such officer, as the case may be, shall, within a period of seven days from the date of such meeting, report the fact to the Registrar, and thereupon the Registrar shall, within a period of seven days from the date of receipt of such report by him, or where the Registrar himself has presided over such meeting, within a period of seven days from the date of such meeting, appoint on the committee a woman member or women members, as the case may be, from amongst the women members entitled to contest the election to the reserved seats under sub-section (3).
5. (5) Nothing in this section shall apply to a committee of any society which exclusively of men members, or as the case may be, of women members.
6. (6) Where election to the committee of any society has been held without holding election to such additional reserved seats or where election to such additional reserved seat could not be held on or before the 30th September, 1992 on account of any directions issued under section 157, then unless the process for election to the committee including such additional reserved seats for women members has already commenced, or election to the committee is or will be due and will be held after the commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1992, such additional reserved seats of the committee shall be filled in by co-option of women members by the committee of the society.
7. (7) Notwithstanding anything contained in sub-section (6), no election to such additional reserved seats shall be held where the term of the committee of a society is to expire within six months from the date of the commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1991.
8. (8) The term of office of such women members elected, co-opted or as the case may be, appointed on a committee, shall be co-terminus with the term of the committee as provided under the bye-laws of the society and at the time of every fresh election thereafter, election shall be held to the additional reserved seats for women members in accordance with the provisions of this section. 73-C. Restrictions on representation of certain class of members on committees of certain societies and for being designated officers.—
9. (1) In the case of a district Central Co-operative Bank or an Apex Cooperative Bank of the District Central Co-operative Banks, there shall not be more than one representative to be elected by individual members from amongst themselves, on the committee of such Bank, and such representative shall not be eligible for being elected or appointed as a designated officer.
10. (2) In the case of an Agricultural and Rural Development Bank or an Apex Agriculture and Rural Development Bank there shall not be more than one representative on the committee of such Bank, of members, who have not taken any loans from the Bank, and such representative shall not be eligible for being elected or appointed as a designated officer.
11. (3) In the case of an Agricultural Credit Society which gives loans to individuals for the raising of crops, there shall not be more than one representative on the committee of such society; of members who have not taken any loans from the society; and that representative shall be elected only from amongst members, who have not taken loans. Such representative shall not be eligible for being elected as a designated officer. 73-D Society's nominee on other society not eligible to be designated officer except in federal society No member of a society, who is nominated to represent it on any other society, shall be eligible for being elected or appointed as a designated officer of the other society, unless the other society is its federal society. 73-E In specified societies members not having minimum number of transactions of certain monetary limits not entitled to be designated officers.— In the case of such class or classes of societies as may be specified by the State Government, by notification in the Official Gazette, no member shall be eligible for being elected or appointed as a designated officer, if he does not fulfill the minimum qualification relating to his transactions with the society of such monetary limits as may be laid down, from time to time, in such notification. 73-F. Member who or whose near relation in dealing in goods for purchase of which loans are given by a society not eligible to be on its committee.— In the case of a society, which gives loans to members for purchasing machinery, implements, equipments, commodities or other goods, or which deals in such goods, no member, who or whose near relation is a dealer in such goods or is director of a company or a partner in a firm carrying on business in such goods, shall be eligible for being elected or appointed as a member of the committee of such society. Explanation - For the purposes of this section, the expression "near relation" means a wife, husband, father, mother, son, daughter son-in-law, or daughter-in-law. 73-FF. Disqualification for membership of committee.—
12. (1) Without prejudice to the other provisions of this Act or the rules made there under, in relation to the disqualification of being a member of a committee, no person shall be eligible for being appointed, nominated, elected, co-opted or, for being a member of committee, if he-
    • (i) is a defaulter of any society; Explanation — for the purposes of this clause, the term "defaulter" includes—
    • (a) in the case of a primary agricultural credit society, a member who defaults the repayment of the crop loan on the due date;
    • (b) in the case of term lending society; a member who defaults the payment of any installment of the loan granted to him;
    • (c) in the case of any society;
      • (i) A member who has taken anamat or advance; or,
      • (ii) A member who has purchased any goods or commodities on credit or availed himself of any services from the society for which charges are payable; and fails to repay the full amount of such anamat or advance or pay the price of such goods or commodities or charges for such service, after receipt of notice of demand by him from the concerned society or within thirty days from the date of withdrawal of anamat or advance by him or from the date of delivery of goods to him or availing of services by him, whichever is earlier;
    • (d) in the case of non-agricultural credit societies, a member who defaults the payment of any installment of the loan granted;
    • (e) in the case of housing societies, a member who defaults the payment of dues to the society within three months front the date of service of notice in writing served by post under certificate of posting demanding the payment of dues;
      • (ii) Has, in the opinion of the Registrar, deliberately committed breach of co-operative discipline with reference to linking up of credit with co-operative marketing or co- operative processing; or
      • (iii) Has been held responsible under section 79 or 88 or has been held responsible for payment of costs of inquiry under section 85; or
      • (iv) Has incurred any disqualification under this Act or the rules made there under; or
      • (v) carries on business of the kind carried on by the society either in his name or in the name of any member of his family or he or any member of his family as a partner in a firm or a director in a company which carries on business of the kind carried on by the society; or Explanation.- for the purposes of this clause, the expression "family" means a wife, husband, father, mother, brother, sister, son, daughter, son-in-law, or daughter-in-law.
      • (vi) is a salaried employee of any society (other than a society of employees themselves) or holds any office of profit under any society, except when he holds or is appointed to the office of a Managing Director or any other office declared by the State Government by general or special order not to disqualify its holder or is entitled to be or is selected or elected to any reserved seat on the committee of a society under section 73-BB.
13. (2) A member, who has incurred any disqualification under subsection (1), shall cease to be a member of the committee and his seat shall thereupon be deemed to be vacant. 73-FFF Eligibility for re-appointment or re-election as member of committee.—
14. (1) A member of a committee, who has ceased to be a member thereof, on account of having incurred disqualification under clause (ii) of sub-section (1) of section 73-FF shall be eligible to be re-appointed, re-nominated, re-co-opted or re-elected as a member of the committee after the expiry of the period of two years from the date on which he has so ceased to be a member of the committee.
15. (2) A member of a committee, who has ceased to be a member thereof, on account of having incurred disqualification under clause (iii) of sub-section (1) of section 73-FF, shall be eligible to be re-appointed, re-nominated, re-co-opted, or re-elected as a member of the committee after the expiry of the period of five years from the date on which he has so ceased to be a member of the committee.
16. (3) A member of a committee, who has ceased to be a member thereof on account of having incurred any disqualification other than disqualifications referred to in sub-sections (1) and (2), shall, unless otherwise specifically provided in this Act, be eligible to be re-nominated, re-co- opted, re-appointed or re-elected as a member of the committee, as soon as such disqualification ceases to exist. 73-G. Provision for conduct of elections to committees and of officers of certain societies and term of office of member of such committees.—
17. (1) The election of the members of the committees and the officers by the committees, of the societies of the categories mentioned below, shall be subject to the provisions of Chapter XI- A and shall be conducted in the manner laid down by or under that Chapter:—
    • (i) such Apex societies, which the State Government may, by general or special order published in Official Gazette, from time to time, specify in this behalf, regard being had to the financial position and share capital of such societies ;
    • (ii) all District Central Co-operative Banks;
    • (iii) all Primary Agriculture and Rural Development Banks;
    • (iv) (a) All District Co-operative Sale and Purchase Organizations;
    • (b) All Taluka Co-operative Sale and Purchase Organizations;
      • (v) all Co-operative Sugar Factories;
      • (vi) all Co-operative Spinning Mills;
      • (vii) any other societies or class of societies, which the State Government may, by general or special order published in the Official Gazette from time to time, specify in this behalf, regard being had to the financial position and share capital of such societies or class of societies.
18. (2) When the election of all the members of the committee of any such society is held at the same time, the members elected on the committee at such general election shall hold office for period of five years from the date on which the first meeting is held, unless the period is extended by the State Government, for reasons to be recorded in writing, for a period not exceeding one year so however that the total period does not exceed six years in the aggregate.

(2A) the term of office of the members who are appointed or nominated or co-opted or selected or elected on the committee including to fill the vacancy shall be co-terminus with the terms of office of the elected members under sub-section (1), notwithstanding the date of their appointment, nomination, co-option, selection or election including to fill the vacancy. (2B) Where, for any reason whatsoever, the election of the members of the committee was not held or could not be held before the expiry of the term or the extended term, as the case may be, of the existing committee, the members including the officers of the committee shall cease to hold office on the expiry of its term or extended term, as the case may be, and they shall be deemed to have vacated their offices: Provided that where the Collector fails to hold election to the committee of any such society, the term of office of the members of the committee of that society shall be deemed to have been extended till the date immediately preceding the date of the first meeting of the newly constituted committee.

1. (3) Notwithstanding anything in the bye-laws of any such society, only the committee of management shall be elected by a general body of members of the society; and all other committees authorised by or under the bye-laws may be constituted only by electing or appointing persons from among the persons who are members of the committee of management, and all such committees shall be sub-committees of the committee of management, and shall be subordinate to it. 73-H. Responsibility of committee to hold election before expiry of term.—
2. (1) It shall be the duty of the committee of every society to arrange for holding the election of its members before the expiry of its term.
3. (2) Where there is a willful failure on the part of the committee to hold election to the committee before the expiration of its term, the committee shall cease to function on the expiration of its term and the members thereof shall cease to hold office and the Registrar may himself take over the management of the society or appoint an Administrator (who shall not be from amongst the members of the committee the term of which has so expired) and the Registrar or Administrator shall hold election within a period of six months and the committee shall be constituted before the expiration of that period.

Chief Executives Officer and Financial Officer for certain societies.—

1. (1) The qualifications for appointment of the Chief Executive Officer, Finance Officer, Manager, Secretary, Accountant or any other officer of a society or a class of societies and his emoluments and perquisites shall be such as may be determined by the Registrar, from time to time.
2. (2) In the society or class of societies, as the State Government may, from time to time, notify in the Official Gazette, there shall be a Chief Executive Officer and a Finance Officer, who shall be appointed by the society from a panel of persons selected by a body of such persons not exceeding five as may be prescribed.
3. (3) The Chief Executive Officer so appointed shall be ex-officio member of the committee but he shall have no right to vote at the meeting of the committee.

1. (1) Every society, shall within a period of three months next after the date fixed for making up its accounts for the year under the rules for the time being in force, call a general meeting of its members: Provided that, he Registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months however, in the case of the specified societies and urban co-operative banks such extension shall be granted only after recording the reasons in writing and after obtaining the previous approval of the Government for granting such extension: Provided further that, if in the opinion of the Registrar, no such extension is necessary, or such meeting is not called by the society within the extended period (if any) granted by him, the Registrar or any person authorised by him may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society, and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convene the general meeting.
2. (2) At every annual general meeting of a society, the committee shall lay before the society a statement showing the details of the loans (if any) given to any of the members of the committee or any member of the family (as defined in the Explanation to clause (v) of sub- section (1) of section 73FF of any committee-member (including a society or firm or company of which such member or members of his family is a member, partner or director, as the case may be), and the details of repayment of loan made, during the last preceding year and the amount outstanding at the end of that year, and a balance sheet and profit and loss account for the year in the manner, prescribed by the Registrar by general or special order for any class or classes of societies. Explanation.-In the case of a society not carrying on business for profit, an income and expenditure account shall be placed before the society at the annual general meeting instead of profit and loss account, and all references to profit and loss account, and to "profit" or "loss" in this Act, shall be construed in relation to such society as references respectively to the "excess of income over expenditure", and "excess of expenditure over income".
3. (3) There shall be attached to every balance sheet laid before the society in general meeting, a report by its committee, with respect to (a) the state of the society's affairs; (b) the amounts, if any, which, it proposes to carry to any reserve either in such balance sheet, or any specific balance sheet; and (c) the amounts, if any, which it recommends, should be paid by way of dividend, bonus or honoraria to honorary workers. The committee's report shall also deal with any changes, which have occurred during the year for which the accounts are made up, in the nature of the society's business. The committee's report shall be signed by its Chairman, or any other member authorised to sign on behalf of the committee.
4. (4) At every annual general meeting the balance sheet, the profit and loss account the audit memorandum submitted by the auditor appointed under section 81 and the committee's report, shall be placed for adoption, and such other business will be transacted as may be laid down in the bye-laws and of which due notice has been given.
5. (5) If default is made, in calling a general meeting within the period or, as the case may be, extended period, prescribed under sub-section (1), or in complying with sub-section (2), (3) or (4), the Registrar may by order, declare any officer or member of the committee whose duty it was to call such a meeting or comply with sub-section (2), (3) or (4) and who without reasonable excuse failed to comply with any of the aforesaid sub-sections disqualified for being elected and for being any officer or member of the committee for such period not exceeding three years, as he may specify in such an order and, if the officer is a servant of the society, impose a penalty on him to pay an amount not exceeding one hundred rupees. Before making an order under this subsection, the Registrar shall give, or cause to be given, a reasonable opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him.
6. (6) Any penalty imposed under sub-section (5) or under section 76, may be recovered in the manner provided by the Code of Criminal Procedure, 1973, for the recovery of fines imposed by a Magistrate, as if such fine was imposed by the Magistrate himself.

1. (1) A special general meeting may be called at any time by the Chairman or by a majority of the committee and shall be called within one month-
   • (i) on requisition in writing of one-fifth of the members of the society or of members the number of which is specified in the bye-laws for the purpose, whichever is lower, or
   • (ii) at the instance of the Registrar, or
   • (iii) in the case of a society, which is a member of a federal society at the instance of the committee of such federal society
2. (2) Where any officer or a member of the committee, whose duty it was to call such meeting without reasonable excuse, fails to call such meeting, the Registrar may, by order declare such officer or member disqualified for being a member of the committee for such period not exceeding three years, as he may specify in such order and if the officer is a servant of the society, he may impose on him a penalty not exceeding one hundred rupees. Before making an order under this sub-section, the Registrar shall give, or cause to be given, a reasonable opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him.
3. (3) If a special general meeting of a society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf, shall have power to call such meeting, and that meeting shall be deemed to be a meeting duly called by the committee.
4. (4) The Registrar shall have power to order that the expenditure incurred in calling a meeting under sub-section (3) shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convene the meeting.

1. (1) No act of a society or a committee or any officer, done in good faith in pursuance of the business of the society shall be deemed to be invalid by reason only of some defect subsequently discovered in the organisation of the society, or in the constitution of the committee, or in the appointment or election of an officer, or on the ground that such officer was disqualified for his office.
2. (2) No act done in good faith by any person appointed under this Act, the rules and the bye-laws shall be invalid merely by reason of the fact that his appointment has been cancelled by or in consequence of any order subsequently passed under this Act, rules and the bye-laws.
3. (3) The Registrar shall decide whether any act was done in good faith in pursuance of the business of the society; and his decision thereon, shall be final.

failure to elect member, to constitute committee or where committee does not enter upon office —

1. (1) Where the Registrar is satisfied that,—

(1a) a provisional committee has failed to make necessary arrangements for holding election for the constitution of the first committee, before the expiry of its term as specified in sub-section (1A) of section 73

1. (a) at the first constitution of the committee of any society there is a failure to elect all or any of the members of the committee;
2. (b) the term or extended term, as the case may be, of the committee of any society or of any of its members has expired or for any other reason election is held and there is a failure to elect all or any of the members required to fill the vacancies;
3. (c) any committee is prevented from entering upon office;
4. (d) a new committee has failed to enter upon office on the date on which the term of office of the existing committee expired; or
5. (e) a new committee cannot for any reason be constituted before the expiry of their term of the existing committee;
6. (f) where more than one group of persons in a society is claiming to be elected as the committee members and proceedings in respect thereof have been filed in the Co- operative Court; The Registrar may, either, suo-motu or on the application of any officer of the society, by order appoint-
   • (i) any member or members of the society to be the member or members of the committee to fill the vacancies;
   • (ii) a committee, consisting of not more than three members of the society, or one or more administrators, who need not be members of the society, to manage the affairs of the society till a new committee enters upon office : Provided that, before making such order, the Registrar shall publish a notice on the notice board at the head office of the society, inviting objections and suggestions with respect to the proposed order within a period specified in the notice and consider all objections and suggestions received by him within that period; Provided further that, it shall not be necessary to publish such notice in any case where Registrar is satisfied that immediate action is required to be taken or that it is not reasonably practical to publish such notice.

1. (2) The Committee or Administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may, from time to time, give, have power to discharge 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 to be taken in the interests of the society.
2. (3) The Committee or Administrator so appointed shall hold office for a period of six months from the date of assuming the management of the society and shall make necessary arrangements for constituting a new committee within the said period and for enabling the new Committee including any new Committee referred to in sub-clause (f) of sub-section (1), which is determined by the Court to have been legally elected, to enter upon office. Provided that, if a new committee is not, or cannot be constituted at the expiry or termination of the term of office of the committee or Administrator, for any reason beyond the control of the committee or Administrator, the term of office of the committee or Administrator, as the case may be, shall be deemed to be extended, until the new committee is duly constituted.
3. (4) The Registrar shall have the power to change the committee or any or all members thereof or any or all the administrators appointed under sub-section (1) at his discretion even before the expiry of the period specified in the order made under sub-section (1).
4. (5) The provisions of sub-section (2A) of Section 78 shall apply mutatis mutandis for fixation of remuneration to be paid to the members or administrators appointed under sub-section (1).

1. (1) If, in the opinion of the Registrar, the committee of any society or any member of such committee makes default, or is negligent in the performance of the duties imposed on it or him by this Act or the roles or the bye-laws, or commits any act which is prejudicial to the interests of the society or its members, or willfully disobeys directions issued by the State Government, 6r by the Registrar for the purposes of securing proper implementation of Co-operative policy and development program approved or undertaken by the State Government or is otherwise not discharging its or his functions properly and diligently or where a situation has arisen in which the committee or any member of such committee refuses or has ceased to discharge its or his functions and the business of the society has or is likely to come to a stand still, or where any member of such committee stands disqualified by or under this Act for being a member, the Registrar may, after giving the committee or the member, as the case may be, an opportunity of stating its or his objections, if any, within IS days from the date of receipt of notice, and after consultation with the federal society to which the society is affiliated by order-
   • (a) (i) remove the committee, and
     • (ii) appoint a committee consisting of three or more members (who shall not be the members of the committees so removed) of the society in its place, or appoint one or more Administrators who need not be members of the society, but who shall not be the members of the committee so removed to manage the affairs of the society for a period not exceeding six months, which period, at the discretion of the Registrar, be extended by a further period Dot exceeding three months so, however, that the total period does not exceed nine months in the aggregate: Provided that, the Registrar shall have the power to change the committee or any member thereof or the administrator or administrators appointed under paragraph (ii) at his discretion even before the expiry of the period specified in the order made under this sub-section;
   • (b) Remove the member and appoint any person as member of such committee ii his place, or direct the society to elect or appoint a member in his place, for the remainder of the term of office of the member so removed. Provided that, the member who has been so removed, shall not be eligible to be re-elected, re-appointed, re-nominated, or re-co-opted, as a member of any committee till the expiry of the period of next one full term of the committee from the date on which he has been so removed or till such lesser period as may be laid down under the provisions of section 73FFF or 144E, as the case may be. (1A) When a notice is issued against any committee or member under sub-section (1), if resignation from any office is tendered by the committee or member, it shall not be valid or effective until two months have elapsed from the date of issue of the notice or until it is permitted to be accepted by the Registrar, whichever is earlier.
2. (2) The committee or administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the committee of any officer of the society and take all such actions as may be required in the interests of the society. The committee or administrator appointed as aforesaid shall, notwithstanding anything contained in the bye-laws, have power to call a special general meeting of the society to review or to reconsider the decision of the resolution taken or passed at the general meetings called by the previous committee or to endorse action taken by it. (2A) The Registrar may fix the remuneration payable to the administrators and any expenses of management which shall be payable out of the funds of the society within such time and at such intervals as the Registrar may fix, and if such remuneration or expenses are not paid within such time or at intervals the Registrar may direct the person having custody of the funds of the society to pay to the administrators such remuneration and expenses in priority to any other payments (except land revenue, any arrears of land revenue, or any sum recoverable from the society as arrears of land revenue) and he shall, so far as the funds to the credit of the society allow, comply with the orders of the Registrar.
3. (3) If at any time during any period, or extended period referred to in sub-section (1), it appears to the Registrar, that it is no longer necessary to continue to carry on the affairs of the society as aforesaid, the Registrar may, by an order direct that the management shall terminate; and on such order being made, the management of the society shall be handed over to a new committee duly constituted.
4. (4) The committee or administrator shall, at the expiry or termination of its or his term of office, arrange for the constitution of a new committee in accordance with the bye-laws of the society Provided that, if a new committee is not, or cannot be constituted at the expiry or termination of the term of office of the committee or administrator, for any reason beyond the control of the committee or administrator, the term of office of the committee or the administrator, as the case may be, shall be deemed to be extended, until the new committee is duly constituted.
5. (5) All acts done or purported to be done by the committee or administrator during the period the affairs of the society are carried on by the committee or administrator appointed under sub- section (1), shall be binding on the new committee.

1. (1) The Registrar may direct any society or class of societies, to keep proper books of accounts with respect to all sums of money received and expended by the society, and the matters in respect of which the receipt and expenditure take place all sales and purchases of goods by the society, and the assets and liabilities of the society, and to furnish such statements and returns and to produce such records as he may require from time to time; and the officer or officers of the society shall be bound to comply with his order within the period specified therein.
2. (2) Where any society is required to take any action under this Act, |the rules or the bye-laws, or to comply with an order made under the Foregoing sub-section, and such action is not taken-
   • (a) within the time provided in this Act, the rules or the bye-laws, or the order as the case may be, or
   • (b) where no time is so provided, within such time, having regard to the nature and extent of the action to be taken, as the Registrar may specify by notice in writing, the Registrar may himself, or through a person authorised by him, take such action, at the expense of the society; and such expense shall be recoverable from the society as if it were an arrears of land revenue.
3. (3) Where the Registrar takes action under sub-section (2), the Registrar may call upon the officer or officers of the society whom he considers to be responsible for not complying with the provisions of this Act, the rules or the bye-laws, or the order made under sub-section (1) and after giving such officer or officers an opportunity of being heard, may require him or them to pay to the society the expenses paid or payable by it to the State Government as a result of their failure to take action and to pay to the assets of the society such sum not exceeding twenty-five rupees as the Registrar may think fit for each day until the Registrar's directions are carried out. 79- A. Government's powers to give directions in the public interest, etc.-
4. (1) If the State Government, on receipt of a report from the Registrar or otherwise, it satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other development programs approved or undertaken by Government, or to secure the proper management of the business of the society generally, or for preventing the affairs of the society being conducted in a manner detrimental to the interests of the members, or of the depositors or the creditors thereof, it is necessary to issue directions to any class of societies generally or to any society or societies in particular, the State Government may issue directions to them from time to time, and all societies or the societies concerned, as the case may be, shall be bound to comply with such directions.
5. (2) The State Government may modify or cancel any directions issued under sub-section (1), and in modifying or canceling such directions may impose such conditions as it may deem fit.
6. (3) Where the Registrar is satisfied that any person was responsible for complying with any directions or modified directions issued to a society under sub-sections (1) and (2) and he has failed without any good reason or justification, to comply with the directions, the Registrar may by order —
   • (a) if the person is a member of the committee of the society, remove the member from the committee and appoint any other person as a member of the committee for the remainder of the term of his office and declare him to be disqualified to be such member for a period of six years from the date of the order,
   • (b) if the person is an employee of the society, direct the committee to remove such person from employment of the society forthwith, and if any member or members of the committee, without any good reason or justification, fail to comply with this order, remove the members, appoint other persons as members and declare them disqualified as provided in clause (a) above: Provided that, before making any order under this sub-section, the Registrar shall give a reasonable opportunity of being heard to the person or persons concerned and consult the federal society to which the society is affiliated,

Registrar's powers to give directions to frame regulations.—

1. (1) If the Registrar or an officer not below the rank of District Deputy Registrar is of the opinion that having regard to the financial condition of the society and financial interest of Government therein, it is necessary to regulate the manner of carrying on its trade or business, he may, subject to any rules made in this behalf, direct such society to make regulations in that behalf and forward them to him for approval.
2. (2) On receipt of the regulations made by the society, the Registrar or such officer may approve them with or without modifications. On approval of such regulations, the society shall carry on its business in accordance with such regulations.
3. (3) If any society fails to forward such regulations to the Registrar or such officer when directed by him under sub-section (1) within a period of three months from the date on which the direction is given, the Registrar or such officer shall himself make or cause to be made such regulations and require the society to carry on its business in accordance with such regulations and thereupon the society shall be bound to comply with such requirement. 79-B. Registrar's power to remove member for failure to supply his agricultural produce to processing society.—
4. (1) Where any producer-member of a processing society fails to supply his agricultural produce to the society in accordance with the provisions of the bye-laws of the society, the Registrar may, on the complaint made by the society or suo motto, issue a notice to the member to show cause, within a period specified in the notice, why for such failure he should not be removed from the membership of the society.
5. (2) After holding such inquiry as he thinks fit and giving a reasonable opportunity of being heard to the member, if the Registrar is satisfied that the member has failed, without any good reason or justification; to supply his agricultural produce to the society in accordance with the provisions of the bye-laws, the Registrar may by order remove the person concerned as a member of the society with effect from such date as may be specified in the order, and thereupon the person shall cease to be a member of the society on and from that date.

Registrar's power to seize records etc.—

1. (1) Where the Registrar is satisfied that the books and records of a society are likely to be suppressed, tampered with or destroyed, or the funds and property of a society are likely to be misappropriated or misapplied, the Registrar or the person authorised by him may apply to the Executive Magistrate within whose jurisdiction the society is functioning for seizing and taking possession of the records and property of the society.
2. (2) On receipt of an application under sub-section (1) the Magistrate shall forthwith consider such application and, if satisfied that immediate action is required, shall authorize any police officer, not below the rank of a sub-inspector, to enter and search any place where the records and property are kept or likely to be kept, and to seize them and hand over possession thereof to the Registrar or the person authorised by him, as the case may be.
3. (3) Where the Registrar or an officer not below the rank of District Deputy Registrar (hereinafter referred to in this section as "the said officer") is satisfied that immediate action is required to be taken or that the Executive Magistrate having jurisdiction is not likely to be available at the head quarters for a consecutive period of three days or the books and records of a co- operative society are in the immediate danger of being tampered with or funds and property of a society are in the immediate danger of being misappropriated or misapplied, the Registrar or the said officer may, notwithstanding anything contained in subsections (1) and (2), make an order to seize such books, records or funds of the society either himself or through an officer authorised by him in this behalf, and for that purpose the Registrar or the said officer or the officer so authorised may after reasonable notice at any reasonable time enter and search without warrant any premises where he believes such books, records or funds to be and inspect and seize such books, records or funds, and the officer or officers of the society responsible for the custody of such books, records and funds shall deliver such books, records or funds forthwith to the Registrar, the said officer or the officer so authorised, who shall acknowledge receipt of the books, records or funds of the society so seized. The Registrar, the said officer or the officer so authorised, may, for the purpose of execution of the said order, request the officer in-charge of the nearest police station to give him necessary assistance and such police officer shall thereupon give him such assistance.