Chapter I PRELIMINARY

(1) This Act may be called the Uttarakhand Self Reliant Co-operatives Act, 2003. (2) It extends to the whole of the State of Uttarakhand. (3) It shall come into force on such date as the State Government may, by notification in the Uttarakhand Gazette, appoint in this behalf: Provided that while appointing such date, the State Government may declare that any provisions to be specified in the declaration shall not come into force from the date so appointed and in that case such provision shall come into force from such date or dates as the State Government may similarly appoint in that behalf.

In this Act, unless the context otherwise requires, (1) “arbitral tribunal” means a tribunal consisting of an individual or a group of individuals not being even in number, constituted by the general body of a co-operative for settlement of disputes, in accordance with the articles of association of that co-operative: (2) “articles of association” means the regulations of the co-operative as originally framed by the promoters of a co-operative or as amended from time to time by the general body of that co-operative, in accordance with this act, for the management of the affairs of such co-operative. (3) “Board” or “Board of Directors” means the governing body of a co-operative by whatever name called, to which the direction of the affairs of the co-operative is entrusted by the articles of association of that co-operative; (4) “chief executive” means that individual, in paid or honorary capacity, nominated or elected or appointed by the Board of a co-operative from among members, directors or others, in accordance with the articles of association, who is the person to sue or be sued on behalf of the co-operative, and who performs such functions, and has such responsibilities and powers as are specified in the articles of association, and assigned by the Board; (5) “common need” means that economic need which is common to all those who wish to form a co-operative, or have taken membership in a co-operative, and which the co-operative is expected to fulfil through the provision of core services; (6) “co- operative”, where used as a noun, means a self-reliant, self-help, mutual-aid, autonomous, voluntary, democratic, business enterprise registered under this Act, which is jointly owned, managed and controlled by its members, who may be individuals or Co-operatives, for their economic and social betterment, through the financially gainful provision of core services which fulfill a common need felt by them; (7) “co-operative business” means a business which is committed to functioning in accordance with the principles of cooperation, and includes all co-operatives registered under this Act ; (8) “co-operative identity” means the statement of Co-operative Identity specified in Schedule A of this Act. (9) “co-operative society” means a society registered under the U.P. co-operative Societies Act, 1965, before and after the appointed day of creation of Uttarakhand Under U.P Reorganization Act, 2000; (10) “ Co- operative society Act” means U.P. Co-operative Societies Act, 1965; (11) “core services” means those central services provided to members, through which a co-operative intends to meet that economic need common to all members for the fulfillment of which the co-operative was established, and the fulfillment of which is expected to result in the economic and social betterment of members; (12) “Court” means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its original civil jurisdiction; (13) “deficit” means the excess of expenditure over income, arrived at, at the end of a financial year; (14) “deficit charge” means the amount collected from/debited to the accounts of members, in proportion to the use and/or non-use of the services of the co-operative, in accordance with the articles of association and resolutions of the general body, to meet deficit, if any, in whole or part; (15) “delegate” means a member nominated by a co-operative to represent its interests at the time of promotion of a secondary co-operative, and/or at meetings of a secondary co-operative to which the co-operative is affiliated; (16) “director” means a member elected in accordance with the articles of association, to the Board of the co-operative; (17) “ Financial year” means the year commencing from the first day of April and ending on thirty first March next following, except if otherwise provided for in the articles of association; (18) “ general body” in relation to a co-operative, means all its members; (19) “general meeting” means a meeting of the general body called and conducted in accordance with the provisions of this Act and the articles of association of the co-operative; (20) “ government” means the Government of Uttarakhand; (21) “member” means a person who is in need of and is able to use the core services of a co-operative and who is admitted and continues a member of the co-operative, in accordance with the provisions of this Act and the articles of association of that co-operative, and includes a “member-co-operative”. (22) “Member-Co-operative” means a primary or secondary co-operative which is in need of and is able to use the core services of a secondary co-operative, and which is admitted as a member of that secondary co-operative, in accordance with the provisions of this Act and the articles of association of that secondary co-operative; (23) “memorandum of association” means the document expressing the desire of the promoters to form themselves into a co-operative; (24) “office-bearer” means a Director elected by the Board of a co-operative to any office of such co-operative in accordance with its articles of association; (25) “officer of the co-operative” means the president, vice president, chairmen, vice chairmen, secretary, chief executive, member of committee of management, treasurer, liquidator, or any other persons employed by a co-operative whether with or without remuneration to carry on the business of the co-operative or to supervise its affairs; (26) “ ordinary resolution” means a resolution of the general body which has the approval of the majority of members with the right of vote, present and voting at the general meeting; (27) “ person” means an individual or institution competent to contract; (28) “potential member” means a person who needs the core services being offered by a co-operative, and is eligible to be a member of that co-operative, but is not yet its member; (29) “president” means the president elected among the elected members of the Board to preside over its meetings and the meetings of the general body, and to perform such other functions and have such other powers and responsibilities as are specified in the articles of association and assigned by the Board; (30) “primary co-operative” means a co-operative whose members are individuals; (31) “ Registrar” means the person for the time being appointed as Registrar of Co-operatives by the State Government under this Act; (32) “ secondary co-operative” means a co-operative whose members are primary co-operatives; (33) “special resolution” means a resolution of the general body, at a meeting called with at least 15 days notice, which has the approval of more than half of all the members of the co-operative with right of vote at the time of the general meeting, or of at least two-thirds of members with right of vote at the time of the general meeting and present in the general meeting, whichever is less; (34) “surplus” means the excess of income over expenditure, arrived at, at the end of the financial year; (35) “surplus refund” means the refund from the surplus given/credited to the accounts of members, in proportion to their use of the services of the co-operative in accordance with the provisions of the articles of association made therein;