multi-State cooperative society - detailed discussion

Application for registration-

(1) An application for registration of a multi-State cooperative society under sub-section (1) of section 6 shall be made in Form 1 and shall, subject to the provisions of sub-section (2) of section 6 and sub-rules (2)and (3) be signed by the applicant and be accompanied by:

(a) four copies of the proposed bye-laws of the multi-State cooperative society, duly signed by each of the persons who sign the application for registration;

(b) a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the entrance fee paid by them;

(c) a certificate from the bank or banks stating the credit balance in favour of the proposed multi-State cooperative society;

(d) a scheme showing the details explaining how the working of the multi-State cooperative society will be economically sound;

(e) certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.

(2) Where any member of a multi-State cooperative society to be registered is a multi-State cooperative society or a cooperative society, the Chairman or Chief Executive of such multi-State cooperative society or cooperative society, as the case may be, shall be authorised by that board by a resolution, to sign the application for registration and bye-laws on its behalf, and a copy of such resolution shall be appended to the application.

(3) Where any member of multi-State cooperative society to be registered is a Government company, a corporate body or a society registered under the Societies Registration Act, 1860(21) of 1860 such member shall duly authorise any person to sign the application for registration and the bye-laws on its behalf and a copy of such resolution giving such authority shall be appended to the application.

(4) A copy of the resolution indicating the name of one or more applicants, who are authorised to make alterations or additions to the proposed bye-laws submitted with the application, as may be suggested by the Central Registrar, shall be submitted.

(5) The application shall either be sent by registered post or delivered by hand to the Central Registrar.

Registration-

(1) On receipt of an application under rule3, the Central Registrar shall enter particulars of the application in the register of applications to be maintained in Form II, give a serial number to the application and issue a receipt in acknowledgement thereof.

(2) If the Central Registrar is satisfied that the proposed multi-State cooperative society has complied with the requirements of the Act and the rules he may register the society and its bye-laws.

(3) Where the Central Registrar registers a multi-State cooperative society, he shall issue to the said society a certificate of registration signed by him and bearing his official seal containing registration number and date of registration of the said society, The Central Registrar shall also issue, alongwith the certificate of registration, a certified copy of the Bye-laws, as approved and registered by him, which shall be the registered bye-laws of the said society for the time being in force.

Extension of period of registration of societies and bye-laws, etc.-

The Central Government may, on the report of the Central Registrar, allow such further period not exceeding six months for registration of-

(i) the multi-State cooperative society under proviso to sub-section(3) of section7;

(ii) the amendment of bye-laws of the multi-State cooperative society under proviso to sub-section (2) of section 9; and

(iii) the amend of bye-laws extending the jurisdiction of the cooperative society under proviso to sub-section(2) of section 18.

Refusal of registration-

Where the Central Registrar refuses to register a multi-State cooperative society under sub-section(2) of section 7, he shall communicate the order of refusal together with reasons therefor to the person authorised under clause(e) of sub-rule (1) of rule 3 to the said society.

Subject matter of bye-laws-

The multi-State cooperative society may make bye-laws in respect of the following matters-

(i) the name and registered address of the multi-State cooperative society and its branches;

(ii) the area of operation;

(iii) the objects for which the multi-State cooperative society is established and the purpose for which its funds may be applied;

(iv) the privileges, rights, duties and liabilities of members including nominal members:

Provided that the nominal members shall not be entitled to any share in any form whatsoever in the assets or profits of the multi-State cooperative society and shall not have a right to vote:

(vi) the consequence of default in payment of any sum due by members;

(vii) the procedure for withdrawal, removal or expulsion of members;

(viii) the manner in which and the limits upto which the funds of the society may be raised the maximum share capital which any member may hold and the purpose to which the funds may be utilised;

(ix) the mode of appointment and removal of the directors and other officers of the multi-State cooperative society and the duties and powers of the board;

(x) the mode of convening and conducting annual and special meetings of the general body and of the board, issue of notices and the business which may be transacted thereat;

(xi) the disposal of net profits;

(xii) the manner of making, altering and abrogating bye-laws;

(xiii) the powers, duties and functions of the Chairman or President and his removal on his losing support of the majority;

(xiv) the powers and duties of the Chief Executive in addition to those mentioned in section 45;

(xv) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the multi-State cooperative society;

(xvi) the mode of custody and investment of funds;

(xvii) the mode of keeping the accounts;

(xviii) the strength of the board;

(xix) the manner in which penalty may be levied on a member found guilty of breach of the bye-laws;

(xx) the appointment of a provisional board, wherever necessary;

(xxi) the manner of sending notices;

(xxii) the formation or use of reserve fund;

(xxiii) the purpose for which surplus if any shall be utilised in the event of the winding-up of the multi-State cooperative society;

(xxiv) the conduct of elections to the board and other bodies of a multi-State cooperative society including the number of member to be elected by different constituencies and appointment of returning officers;

(xxv) the procedure to be followed in cases of withdrawal, ineligibility and death of members;

(xxvi) the condition, if any, under which the transfer of share or interest of a member may be permitted;

(xxvii) the method of appropriating payments made by members from whom money are due;

(xxviii) the constitution and maintenance of various funds to be maintained under the provisions of the Act or rules;

(xxix) the constitution of a representative general body consisting of delegates or members of the multi-State cooperative society and the method of election of such delegates to exercise the powers of the general body;

(xxx) the mode of conducting business such as manufacture, purchase, stock taking and other allied matters;

(xxxi) In the case of cooperative banks and multi-State thrift and credit societies;

(a) the maximum loan admissible per member;

(b) the maximum rate of interest on loans to members;

(c) the conditions on which loans may be granted to members;

(d) the procedure for grant of loans and advances and for the grant of extension of time and for repayment of such loans, advances, etc;

(e) the circumstances under which a loan may be recalled.

Amendment of bye-laws-

(1) the amendment to the bye-laws of a multi-State cooperative society may be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.

(2) No such resolution shall be valid unless notice of the proposed amendment has been given to the members of the multi-State cooperative society in accordance with the bye-laws.

(3) In every case in which a multi-State cooperative society proposes to amend its bye-laws, an application shall be made to the Central Registrar together with:

(a) a copy of the resolution referred to in sub-rule(1)

(b) the particulars indicating the date of the general meeting at which the amendments were made, the number of days notice given to convene the general meeting, the total number of members on the date of such meeting, the number forming the quorum, the number of members present at the meeting, the number exercising the right of voting and the number voting for the amendment;

(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together with reasons justifying such amendments

(d) four copies of the text of the bye-laws as they would stand after the amendment, signed by the officers duly authorised in this behalf by the board of the multi-State cooperative society;

(e) a copy of the notice given to the members of the multi-State cooperative society and the proposal to amend the bye-laws;

(f) a certificate signed by the presiding authority of the general meeting that the procedure specified in sub-rule,(I) and sub-rule(2)and in the bye-laws, has been followed; and

(g) any other particulars that may be required by the Central Registrar in this behalf.

(4) Every such application shall be made within sixty days from the date of the general meeting at which such amendment was passed.

(5) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society he shall pass an order of refusal together with the reasons there for and communicate the same by registered post to the Chief Executive of the multi-State cooperative society within seven days from the date of order of refusal.

(6) The procedure outlined above in this rule shall apply to the amendment of the bye-laws of cooperative society desiring to convert itself into a multi-State cooperative society as per provisions of section 18.

Maintenance of registration file by the society-

(1) Every multi-State cooperative society shall maintain at its registered address a registration file containing:

(a) the certificate of registration;

(b) the registered bye-laws;

(c) all registered amendments to the bye-laws alongwith the certificates of registration of amendments;

(d) a copy of the Act and the rules.

(2) The registration file shall be kept open for inspection at all times during working hours to the Central Registrar or any other officer authorised by him or any member of the multi-State cooperative society.

Change in name of multi-State cooperative society-

(1) The name of a multi-State cooperative society may be changed under section 11 so, however, that it does not refer to any caste of religious

denomination and is not inconsistent with the objects of the multi-State cooperative society.

(2) Every change in the name of the multi-State cooperative society shall be made by an amendment of its bye-laws.

(3) After the change in the name is approved by the Central Registrar the multi-State cooperative society shall send the original registration certificate for amendment to the Central Registrar who shall return the same to the multi-State cooperative society duly amended.