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MULTI STATE CO-OPERATIVE SOCIETIES ACT, 1984
51 of 1984
18th August, 1984
An Act to consolidate and amend the law relating to co-operative societies with objects not confined to one State and serving the interests of members in more than one State. BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may he called The Multi-State Co-operative Societies Act. 1984.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may. by notification in the Official Gazette, appoint.
SECTION 02: APPLICATION
This Act shall apply to-
(a) all co-operative societies, with objects not confined to one State, which were incorporated before the commencement of this Act. (i) under the Co-operative Societies Act. 1912 or (ii) under any other law relating to co-operative societies in force in any State pr in pursuance of the Multi-unit. Co-operative Societies Act. 1942. and the registration of which has not been cancelled before such commencement: and
(b) all multi-State Co-operative Societies.
SECTION 03: DEFINITIONS
- In this Act, unless the context otherwise requires.-
(a) "board" means the board of directors or the governing body of a multi State co-operative society by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted:
(b) "bye-laws" means the bye-laws for the time being in force which have been duly registered under this Act and includes amendments thereto which have been duly registered under this Act:
(c) "Central Registrar" means the Central Registrar of Co-operative Societies appointed under sub-section (1) of section 4-and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section:
(d) "Chief Executive" means a Chief Executive of a multi-State cooperative society appointed under section 44-.
(e) "co-operative bank" means a multi-State co-operative society which undertakes banking business:
(f) "co-operative principles" means the co-operative principles specified in the First Schedule:
(g) "co-operative society" means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State:
(h) "co-operative year", in relation to any multi-State co-operative society or class of such societies. means the year ending on the 30th day of June and where the accounts of such society or class of such societies are with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day:
(i) "Deposit Insurance Corporation" means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act. 1961-:
(j) "member" means a person joining in the application for the registration of a multi-State Co- operative society and includes a person admitted to membership after such registration in accordance with the provisions of this Act. the rules and the bye-laws:
(k) "multi-State co-operative society" means a society registered or deemed to be registered under this Act and includes a national cooperative society:
(1) "multi-State co-operative society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any unpaid on the shares respectively held by them or to such amount as they may respectively, thereby undertake to contribute lo the assets of the society, in the event of its being wound up:
(m) "national co-operative society" means .a multi-State co-operative society specified in the Second Schedule; ,
(n) "notification" means a notification published in Official Gazette:
(o) "officer means a president, vice-president, chairman, vice-chairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 48-and includes any other .person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of a multi-State co-operative society;
(p) "prescribed" means prescribed by rules:
(q) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934: .
(r) "rules" means the rules made under this Act.
SECTION 04: CENTRAL REGISTRAR
( 1 ) The Central Government may appoint a person, to be the Central Registrar of Co-operative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.
(2) The Central Government may by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified therein : Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national co-operative society : Provided further that no officer of a State Government below the rank of the Registrar of Co- operative Societies shall be empowered to exercise any power exercisable by the Central Registrar under Section 87-.
SECTION 05: MULTI-STATE CO-OPERATIVE SOCIETIES WHICH MAY BE REGISTERED
(1) No multi-State co- operative society shall be registered Under this Act unless the main objects of the society are to serve the interests of members in more than one State.
(2) Subject to the provisions of sub-section (1). a multi-State cooperative society which has as its objects the promotion of the economic and social betterment of its members through mutual aid in accordance with the co-operative principles or a multi-State co-operative society established with the object of facilitating the operations of other such societies or of co-operative societies or of both may be registered under this Act.
(3) The word "Limited" or its equivalent in any Indian language shall be suffixed to the name of every mulli-State co-operative society registered under this Act with limited liability.
SECTION 06: APPLICATION FOR REGISTRATION
(1) For the purposes of registration of a multi-State co- operative society under this Act an application shall be made to the Central Registrar in such form and with such particulars as may he prescribed.
(2) The application shall be signed-
(a) in the case of a multi-State co-operative society of which all the members arc individuals, by at least fifty persons from each of the States concerned:
(b) in the case of a multi-State co-operative society of which the members arc co-operative societies, by duly authorised representatives on behalf of at least two such societies as are not registered in the same State, and
(c) in the case of a multi-State co-operative society of which another multi-
Stale co-operative society and other co-operative societies are members, by duly authorised representatives of each of such societies:
Provided that not less than two of the co-operative societies referred to in clause (b) or clause (c). as the case may be, shall be such as are not registered in the same State.
(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi- State co-operative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.
SECTION 07: REGISTRATION
( 1 ) If the Central Registrar is satisfied-
(a) that the application complies with the provisions of this Act and the rules.
(b) that the proposed multi-Slate co-operative society satisfies the basic criterion that its objects are to serve the interests of members in more than one Slate:
(c) that there is no other multi-State co-operative society having similar area of operation and identical objects:
(d) that the proposed bye-laws arc not contrary to the provisions of this Act and the rules: and
(e) that the proposed multi-State co-operative society has reasonable prospects of becoming a viable unit. he may register the multi-State cooperative society and its bye-laws,
(2) Where the Central Registrar refuses to register a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor, to such number of the applicants and in such manner as may he prescribed.
(3) The application for registration shall be disposed of by the Central Registrar within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to dispose of the application within the period aforesaid. he shall make a report to the Central Government staling therein the reasons for his inability to do and the Central Government may allow him such further period or period as is considered necessary lo dispose of such application.
SECTION 08: RGISTRATION CERTIFICATE
Where a multi-State co-cooperative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him which shall be conclusive evidence that the society therein mentioned is duly registered under this Act unless it is proved that the registration of the society has been cancelled.
SECTION 09: AMENDMENT OF BYE-LAWS OF A MULTI-STATE CO-OPERATIVE SOCIETY
(1) No amendment of any bye-laws of a multi-State co-operative society shall he valid, unless such amendment has been registered under this Act.
(2) Every proposal for such amendment shall he forwarded to the Central Registrar and if the Central Registrar is satisfied that the proposed amendment-
(a) is not contrary to the provisions of this Act or of the rules:
(b) does not conflict with co-operative principles: and
(c) will promote the economic interests of the members of the multi-State co-operative society. he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to register the amendment within the period aforesaid he shall make a report to the Central Government staling therein the reasons for his inability to do so and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi- State co-operative society, he shall communicate the order of refusal together with the reasons therefor to the Chief Executive of the society in the manner prescribed within seven days from the date of such refusal.
SECTION 10: WHEN AMENDMENT OF BYE-LAWS COMES INTO FORCE
An amendment of the bye-laws of a multi-State co-operative society shall, unless it is expressed to come into operation on a particular day come into force on the day on which it is registered.
SECTION 11: CHANGE OF NAME
(1) A multi-State co-operative society may. by an amendment of its bye-laws, change in name hut such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State co-operative society by its former name may be continued or commenced by or against its new name.
(2) Where a multi-State co-operative society changes its name the Central Registrar shall enter the new name on the register of multi-State co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
SECTION 12: CHANGE OF ADDRESS
Every multi-State co-operative society shall have a principal place of business and an address registered in the manner prescribed lo which all notices and communications may be sent and any change in the principal place of business of a multi-State co-operative society shall be made with the previous approval of the Central Registrar.
SECTION 13: LIABILITY
(1) No multi-State co-operative society with unlimited liability shall be registered after the commencement of this Act : Provided that where a multi-unit co-operative society with unlimited liability was functioning before the commencement of this Act such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi- State cooperative society with limited liability by following the procedure specified in sub-sections (2)to(4).
(2) Subject to the provisions of this Act and the rules, a multi-unit cooperative society may, by an amendment of its bye-laws, change the extent of its liability.
(3) When a multi-unit co-operative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary any member or creditor .shall during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans as the case may be.
(4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed lo have assented to the change.
(5) An amendment of a bye-law of a multi-unit co-operative society changing the extent of its liability shall not be registered or shall not take effect until either
(a) the assent thereto of all members and creditors has been obtained: or
(b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied.
SECTION 14: AMALGAMATION OR TRANSFER OF ASSETS AND LIABILITIES OR DIVISION OF MULTI-STATE CO- OPERATIVE SOCIETIES
(1) A multi-State co-operative society may. with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose.-
(a) transfer its assets and liabilities in whole or in part to any other multi-State co-operative society or co-operative society:
(b) divide itself into two or more multi-State co-operative societies:
(c) divide itself into two or more co-operative societies.
(2) Any two or more multi-State co-operative societies may with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State co-operative society.
(3) The resolution of a multi-State co-operative society under sub-section ( 1 ) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation as the case may be : Provided that in the case of a co-operative bank, the Central Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
(4) When a multi-State co-operative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing lo all the members and creditors and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor, shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a multi-State co-operative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.
(b) The multi-State co-operative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditors who exercise the option within the period specified in sub-section (4).
(7) On receipt of an application for the registration of new societies formed by division in .accordance with the resolution passed under subsection ( 1 ) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof.
(8) On the issue of an order under sub-section (7), the provisions of section 17-, shall, so far as may be, apply to the multi-State cooperative society so divided or the multi-State co-operative societies so amalgamated.
(9) Where a resolution passed by a multi-State co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
SECTION 15: CENTRAL REGISTRAR TO PREPARE SCHEME OF AMALGAMATION OR REORGANISATION OF CO-OPERATIVE BANK IN CERTAIN CASES
When an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949in respect of a co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme-
(a) for the amalgamation of the co-operative bank with any other co-operative bank; or
(b) for the reorganisation of the co-operative bank.
SECTION 16: LIABILITY OF A CO-OPERATIVE BANK TO THE DEPOSIT INSURANCE AND CREDITGUARANTEE CORPORATION
Notwithstanding anything contained in section 14-or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay the depositors of the insured bank under sub-section (2) of section 16-of that Act, the bank with which such insured bank is amalgamated, or the new co-operative bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in Section 21-of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
SECTION 17: CANCELLATION OF REGISTRATION CERTIFICATE OF MULTI-STATE CO-OPERATIVE SOCIETIES IN CERTAIN CASES
(1) Where the whole of the assets and liabilities of a multi-State cooperative society are transferred to another multi-State co-operative society or to a co-operative society in accordance with the provisions of Section 14-, the registration of the first-mentioned multi-State cooperative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State co-operative societies are amalgamated into a new multi- State co-operative society in accordance with the provisions of section 14-, the registration of each of the amalgamation societies shall stand cancelled on the registration of the new society, and each of the amalgamation societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State co-operative society divides itself into two or more multi-State co- operative societies or two or more co-operative societies in accordance with the provisions of section 14-, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or render defective any legal proceedings by or against the multi-State co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the multi- State co-operative society or societies, as the case may. be, before the amalgamation or division may be continued or commenced by or against the resulting multi-State cooperative society or societies.
SECTION 18: CONVERSION OF CO-OPERATIVE SOCIETY INTO MULTI-STATE CO-OPERATIVE SOCIETY
(1) A co- operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State co-operative society : , Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment shall be forwarded to the Central Registrar.
(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment. fulfils the requirement of sub- section (2) of section 9-, he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to register the amendment within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate, signed by him and such certificate shall be conclusive evidence that the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a co- operative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.
(5) (a) Once the amendment of bye-laws has been registered by the Central
Registrar, the co- operative society shall, as from the date of registration of amendment become a multi-State co-operative society.
(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered as a multi-State co-operative society under this Act and also forward a copy
of the same to the Registrar of Co-operative Societies of the State concerned.
(c) The Registrar of Co-operative Societies referred to in clause (b) shall
thereupon make an order directing that the society had, as from the date of
registration by the Central Registrar, ceased to be a society under the law relating to. co-operative societies in force in that State.
SECTION 19: PERSONS WHO MAY BECOME MEMBERS
( 1 ) No person shall be admitted as member of a multi-State co-operative society except the .following, namely :-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872-;
(b) any multi-State co-operative society or any-co-operative society; (c) the Central Government; (d) a State Government;
(e) the National Co-operative Development Corporation established under the National Co- operative Development Corporation Act, 1962;
(f) any other corporation owned or controlled by Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956-.
(h) such class or classes of persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State co-operative society.
(2) Such number of individuals possessing such qualifications as may be prescribed may be admitted as members of the National Co-operative Union of India Limited, New Delhi.
(3) Save as otherwise provided in sub-section (2) and notwithstanding anything contained in sub-section ( 1 ), no individual shall be eligible for admission as a member of a national co-operative society.
(4) Any person eligible for membership of a multi-State co-operative society may, on his application, be admitted as a member by such society.
(5) Every application for admission as a member of a multi-State cooperative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision : Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-State co-operative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant. '
(6) Notwithstanding anything contained in this section, the Central Government may, having regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with the objects of any multi-State co-operative society or class of multi-State co-operative societies, by general or special order published in the Official Gazette, declare that any person or class of persons engaged in or carrying on any profession, business or employment shall be disqualified from being admitted, or for continuing, as members or shall be eligible for membership only to a limited extent of any specified multi-State cooperative society or class of multi-State co-operative societies, so long as such person or persons is or are engaged in or carrying on, that profession, business or employment, as the case may be.
SECTION 20: MEMBERS NOT TO EXERCISE RIGHTS TILL DUE PAYMENT MADE
No member of a multi-State co-operative society shall exercise the rights of a member, unless he has made such payments to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws.
SECTION 21: EXPULSION OF MEMBERS
(1) A multi-State co-operative society may by resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society: Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation, in the matter.
(2) No member of the multi-State co-operative society who has been expelled under sub-section (1 ) shall be eligible for re-admission as a member of that society, for a period of three years from the date of such expulsion : Provided that the Central Registrar may, on application of the multi-State co-operative society and if satisfied that in the special circumstances of the case, it is necessary so to do in the interests of the multi-State co-operative society, sanction the re-admission or admission within the said period, of any such member as a member of the said society.
SECTION 22: VOTES OF MEMBERS
-Every member of a multi-State co-operative society, including a member who is an employee of such society, shall have one vote in the affairs of the society: Provided that-
(a) a member who is an employee of such society shall not be entitled to vote-
(i)at an election of a member of the board of such society;
(ii)in any general meeting convened for framing the bye-laws of such society or any amendments thereto;
(b)in the case of an equality of votes, the Chairman shall have a second or casting vote;
(c)where any of the authorities referred to in clauses (c) to (g) of subsection (1) of section 19-is a member of a multi-State co-operative society, each person nominated by such authority, on the board, in accordance with the provisions contained in this Act and the rules, shall have one vote:
(d) a multi-State co-operative society, the members of which include cooperative societies or other multi-State co-operative societies, may provide for an equitable system of voting having regard to the membership of, and the extent of business carried on by such co-operative societies, or multi-State co-operative societies and other relevant circumstances.
SECTION 23: MANNER OF EXERCISING VOTE
Every member of a multi-State co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy: Provided that a multi-State co-operative society or a co-operative society which is a member of another multi-State co-operative society, may, subject to the provisions of sub-section (3) ofsection 29-and the rules, appoint its representative to vote on its behalf in the affairs of that other society.
SECTION 24: RESTRICTIONS ON HOLDING OF SHARES
No member, other than any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19-or a multi-State co-operative society or a co- operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed : Provided that the Central Government may, by notification, specify in respect of any class of societies a higher or lower maximum than one-fifth of the share capital.
SECTION 25: RESTRICTIONS ON TRANSFER OF SHARES OR INTEREST
The transfer of the share or interest of a member in the capital of multi-State co-operative society shall be subject to such conditions as to maximum holding as are specified in section 24-
SECTION 26: REDEMPTION OF SHARES
Shares held in a multi-State co-operative society by any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19-shall be redeemable in accordance with the bye-laws of such multi-State co-operative society and in a case where the bye- laws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-State co-operative society and such authority.
SECTION 27: TRANSFER OF INTEREST ON DEATH OF MEMBERS
(1) On the death of a member, a multi-State co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf, or if there is no person so nominated to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules : Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A multi-State co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfers and payments made by a multi-State co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
SECTION 28: LIABILITY OF PAST MEMBER AND ESTATE OF DECEASED MEMBER
(1) Subject to the provisions. of sub-section (2), the liability of a past member or of the estate of a deceased member of a multi- state cooperative society for the debts of the society as they existed,-
(a) in the case of a past member, on the date on which he ceased to be a member;
(b) in the case of a deceased member on the date of his death, shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section ( 1 ), where a multi-State co-operative society is ordered to be wound up under section 77-the liability of a past member who ceased to be member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be.
SECTION 29: GENERAL BODY, ITS CONSTITUTION, POWERS AND FUNCTIONS
(1) The general body of a multi-State co-operative society shall consist of all the members of such society: Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-State co-operative society shall vest in the general body of its members; Provided that nothing contained in this subsection shall affect the exercise by the board or any officer of a multi State co-operative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the general body or the board of a multi-State co-operative society, a co-operative society or another multi-State cooperative is to be represented, such co- operative society or other multi State co-operative society shall be represented in such meeting only through the Chairman or the Chief Executive of such co-operative society or other multi-State co-operative society, as the case may be, and where there is no board of such co-operative society, or other multi-State cooperative society, for whatever reasons, through the administrator, by whatever name called, of such co-operative society or other multi-State co-operative society.
SECTION 30: ANNUAL GENERAL MEETING OF THE GENERAL BODY
(1) Every multi-State co-operative society shall, within such period as may be prescribed, after the close of the year, call a general meeting of its members in the manner prescribed for the purpose of -
(a) consideration of the audit report and annual report
(b)disposal of net profits;
(c) approval of the programme of activities for the ensuing year:
(d) amendment of bye-laws;
(e) election, if any, of the members of the board, other than nominated members, subject to the provisions of section 35-. Provided that the Central Registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months: Provided further that if in the opinion of the Central Registrar no such extension is necessary or such meeting is not called by the multi-State co-operative society within the extended period, if any granted by him the Central Registrar or any person authorised by him in this behalf 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 Central Registrar may order that 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 Central Registrar, was or were responsible for the refusal or failure to convene the general meeting.
(2) At every annual general meeting of a multi-State co-operative society the Board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or-son or daughter of the member of the board.
SECTION 31: SPECIAL GENERAL MEETING OF THE GENERAL BODY
(1) The Chief Executive may, at any time on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the eye-laws.
(2) If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
SECTION 32: BOARD OF DIRECTORS
Subject to the provisions of this Act and the rules, there shall be a board of directors for every multi-State co-operative society consisting of such number of members as may be provided for under the bye-laws.
SECTION 33: ASSOCIATION OF EMPLOYEES IN THE MANAGEMENT DECISION MAKING PROCESS
Every multi- State co-operative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions, for association of the representatives of employees of such multi-State co-operative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard in the management decision making process.
SECTION 34: DISQUALIFICATION FORA MEMBER OF A BOARD
-No member of any multi-State co-operative society or nominee of a member-society on a national co-operative society shall be eligible for being chosen as or for being, a member of the board of such multi-State co-operative society or national co-operative society or of any other co-operative society to which the multi-State co-operative society is affiliated, if such member -
(a) has been adjudged by a competent court to be insolvent or of unsound mind:
(b) is concerned or participates in the profits of any contract with the society:
(c) has been convicted for an offence involving moral turpitude;
(d) holds any office or place of profit under the society: Provided that the Chief Executive or such full-time employee of the society as may be notified by the Central Government from time to time or a person elected by the employees of such society to represent them on the board of such society shall be eligible for being chosen as, or for being, a member of such board;
(e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment;
(f) has interest in any, business of the kind carried on by the society of which he is a member;
(g) has taken loan or goods on credit from the Society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted-
(i) in repayment of such loan or debt or in payment of the price of the goods taken on credit, as the case may .be, within, the date Fixed for such repayment or where such date is extended, which in no case shall exceed six months, within the date so extended, or
(ii) when such loan or debt or the price of goods taken on credit is to be paid in instalments, in payment of any instalment, and the amount in defaulter any part thereof has remained unpaid on the expiry of six months from the date of such default: Provided that a member of the board who has ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold office, for re-election as a member of the board of the multi-State co-operative Society of which he was a member or for election to the board of any other multi-State cooperative society;
(h) is a person against whom any amount due under decree, decision or order is pending recovery under this Act.
(i) is retained or employed as a legal practitioner on behalf of or against the multi-State co- operative society, or on behalf of or against any other multi-State co-operative society which is a member of the former society. .
SECTION 35: ELECTION OF MEMBERS OF BOARD
(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of elections of the members of the board of such multi-State co-operative societies or class of multi-State co-operative societies as the Central Government may. By general or special order, notify, shall be vested in such returning officers as may be appointed by the Central Registrar in this behalf.'
(2) The vote at such elections shall be by secret ballot.
(3) The term of office of the elected members of the board shall be such, not exceeding three years from the date of elections, as may be specified in the bye-laws of a multi-State co-operative society: Provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of this Act or the rules or the bye-laws and assume the charge of their office.
(4) No person shall be eligible to be elected as a member of the board of a multi-State co- operative society unless he is a member of the general body of that society.
(5) The Central Government may make rules generally to provide for or to regulate matters in respect of elections of members of the board.
SECTION 36: HOLDING OF OFFICE IN CO-OPERATIVE SOCIETY
Notwithstanding anything contained in this Act, no person shall be eligible to hold, at the same time, office of the president or chairman or vice- president or vice-chairman on the board of more than one multi-State co-operative society : Provided that any person holding, at the commencement of this Act, the office of a president or chairman or vice-president or vice-chairman in more than one multi-State co-operative society shall, within three months from such commencement by notice in writing signed by him, intimate the name of the multi-State co-operative society in which he wishes to serve and thereupon his office in the other multi-State co-operative society in which he does not wish to serve shall become vacant: Provided further that in default of such intimation, within the period referred to in the preceding proviso, his offices in all the multi-State co-operative societies shall at the expiration of the period aforesaid, become vacant.
SECTION 37: RESTRICTIONS ON HOLDING OF OFFICE
No person shall be eligible to hold the office of a president or chairman or vice-president or vice-chairman on the board of a multi-State co-operative society, after he has held the office as aforesaid during two consecutive terms, whether full or part: Provided that a person who has ceased to hold the office of a president or chairman continuously for one full term of three years shall again be eligible for election to the offices aforesaid.
SECTION 38: PAYMENT OF HONORARIUM
Honorarium may be paid to the elected chairman or president of the board out of the profits of the multi-State co-operative society in respect of specific services rendered by him, subject to such restrictions and conditions as may be prescribed.
SECTION 39: REMOVAL OF ELECTED MEMBERS BY GENERAL BODY
An elected member of a board who has acted adversely to the interests of multi-State co-operative society may on the basis of a report from the Central Registrar or otherwise be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two-thirds of the members present and voting at the meeting : Provided that the member concerned shall not be removed unless he has been given a reasonable opportunity of making representation in the matter.
SECTION 40: REMOVAL OF MEMBER BY CENTRAL REGISTRAR
If in spite of cessation of office under circumstances mentioned in S. 34, S, 36, S. 37 or S. 39 a member of the board refuses to vacate his office the Central Registrar shall, by order in writing remove him from such office.
SECTION 41: NOMINEE OF CENTRAL GOVERNMENT OR STATE GOVERNMENT ON THE BOARD
(1) Where the Central Government or a State Government has subscribed to the share capital of a multi-State co- operative society or has guaranteed the repayment of principal and payment of interest on debentures issued by a multi-State co-operative society or has guaranteed the repayment of principal and payment of interest on loans and advances to a multi-State co-operative society, the Central Government or the State Government in this behalf, as the case may be, or any person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons as may be prescribed.
(2) The bye-laws of a multi-State co-operative society may provide for the nomination of persons in excess of the limits prescribed under subsection (1).
(3) A person nominated under this section shall hold office during the pleasure of the Government by which he has been so nominated.
SECTION 42: POWERS AND FUNCTIONS OF THE BOARD
(1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing power, such power shall include the power-
(a) to admit members,
(b) to interpret organisational objecti
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