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BIHAR CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013
[Bihar Act 6, 2013]
BIHAR CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013
An Act to amend The Bihar Co-Operative Societies Act, 1935
PREAMBLE.—WHEREAS, voluntarily constituted Co-operative Societies can lead to the socio-economic betterment of their members based on their participation, democratic control and autonomous functioning so as to act more meaningfully in the interests of their members;
AND, WHEREAS, it is obligation of the State Government to promote voluntary formation, autonomous functioning, democratic control and professional management of the Co-operative Societies in the State and promote them and take such measures as are necessary for this purpose;
AND, WHEREAS, in pursuance of The Constitution (Ninety Seventh Amendment) Act,2011, many amendments are imperative in the Bihar Co-operative Societies Act, 1935; to keep in consonance with the above Amendment.
Be IT enacted by the legislature of the State of Bihar in the Sixty-Fourth year of the Republic of India as follows:-
1. Short title, extent and commencement.—
(1) This Act may be called the Bihar Cooperative Societies (Amendment) Act, 2013.
(2) It shall extend to the whole of the State of Bihar.
(3) It shall come into force at once.
2. Amendment in Section-2 of the Bihar Co-operative Societies Act, 1935 (Act VI, 1935)—
In Section- 2 of the Bihar Co-operative Societies Act, 1935 (Act VI, 1935) (herein after referred to as the said Act) shall be amended as follows, namely –
(1) Sub-section (e) shall be substituted by the following:-
“(e) “Board” means Board of Directors or Governing Body or Managing Committee by whatever name it is called to whom the management of the affairs of a Co-operative Society is entrusted;”
(2) Sub-section (gg) shall be substituted by the following:-
“(gg) “Office-bearer”- means a President, Vice-president, Chairperson, Vice-chairperson, Secretary or Treasurer of a Co-operative Society and includes any other person to be elected by the Board of any Co-operative Society.”
(3) After sub-section (p) following new sub-sections (q), (r), (s) and (t) shall be inserted:-
“(q) “General Body” - means all the members or delegates of all the members of that Co-operative Society collectively;
“(r) “Functional Directors”- means functional executive directors of the Society specified in Rules or Bye-laws of that Co-operative Society;”
“(s) “Backward Classes” – means and includes the list of Backward Classes of citizens specified in Annexure-2 of the Bihar Reservation of Vacancies in Posts and Services (for Scheduled Castes , Scheduled Tribes and other Backward Classes) Act, 1991 (Bihar Act No. – 3, 1992), as amended from time to time;”
“(t) “Extremely Backward Classes” –
means and includes the list of Backward Classes of citizens specified in Annexure-1 of the Bihar Reservation of Vacancies in Posts and Services (for Scheduled Castes , Scheduled Tribes and other Backward Classes) Act, 1991 (Bihar Act No. – 3, 1992), as amended from time to time;”
3. Amendment in Section- 13A of the Act VI, 1935. — In the said Act Sub-section (1) and sub-section (2) of Section- 13A shall be substituted by the following, namely:–
“(1) It shall be the duty of the State Government to encourage and promote the voluntary formation, autonomous functioning, democratic control and professional management of Co-operative Societies in the State and to take such steps in this direction as may be necessary.
(2) To encourage and promote the Co-operative Society, the State Government, if it deems necessary, may –
(a) With a view to aid the growth of a Co-operative Society in general or of any class of registered societies subscribe directly to the share capital of a Co-operative Society;
(b) assist in the formation and augmentation of the share capital of a Cooperative Society;
(c) give loans or make advances to a Co-operative Society or guarantee repayment of principal amount and payment of interest on debentures issued by a Co-operative Society or guarantee repayment of principal amount and payment of interest on loans or advances to a Co-operative Society.”
4. Amendment in Section- 14 of the Act VI, 1935. —In the said Act following amendment shall be made, namely -
(1) The proviso to sub-section (2) of Section-14 shall be substituted by the following, namely provisos:-
“Provided that there shall be reservation of two seats for the Scheduled Castes or the Scheduled Tribes, two seats for the Backward Classes and two seats for the Extremely Backward Classes on the Board of every Co-operative Society:
Provided further that for the purpose of reservation of seats as in the above proviso, the State Government may, by general or special order, exclude the Board of societies or class of societies not consisting of individuals as members or not having members from above categories of reservation:
Provided further that the total number of seats so reserved shall not exceed fifty percent of the total number of seats:
Provided further also that as nearly as but not exceeding fifty percent of the total number of seats so reserved shall be reserved for women belonging to the Scheduled Castes or the Scheduled Tribes, the Backward Classes and the Extremely Backward Classes, as the case may be:
Provided further also that as nearly as but not exceeding fifty percent of the total number of seats not reserved above for the Scheduled Castes or the Scheduled Tribes, the Backward Classes and the Extremely Backward Classes shall be reserved for women:
Provided further also that the total number of seats so reserved for women shall not be less than two.
The seats so reserved shall be filled up from amongst the members of Scheduled Castes or Scheduled Tribes, Backward and Extremely Backward Classes and women either by election or/and by co-option. This provision shall apply to all societies from the Primary Society and up to the Apex societies:
Provided further also that such reservation in Primary Society and up to the Apex Society shall be governed by the rules made under this Act for this purpose.”
(2) Sub-section (4) shall be renumbered as (4) (a)
(3) A new sub-section (4) (b) shall be added after sub-section (4) (a) as follows, namely: -
“(4)(b) Notwithstanding anything contained in any provision of this Act, or rules framed there under or the Bye-laws of any Co-operative Society, persons having experience in the field of banking, management, finance or specialization in any other field relating to the objects and activities undertaken by the Co-operative Society may be co-opted to the Board of the Society;
Provided that the number of such co-opted members shall not exceed two and that number shall be in addition to the specified maximum number prescribed in the sub-section (2.);
Provided further that such co-opted members shall not have the right to vote in any election of the Co-operative Society in their capacity as such members or to be eligible to be elected as Office-bearers of the Board.
Provided further also that the Functional Directors of a Co-operative Society shall also be the members of the Board and such members shall be excluded for the purpose of counting the total number of Directors specified in the sub-section (2.)”
(4) Sub-section (9) shall be substituted by the following, namely:-
“(9) Notwithstanding anything contained in any provision of rules or the Bye-laws of any Co-operative Society the term of office of elected members of the Board and its Office-bearers shall be five years from the date of election and the term of Office-bearers shall be co-terminus with the term of the Board:
Provided that the Board may fill a casual vacancy on the Board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of the Board is less than half of its original term;
Provided further that if the term of the Board remains for more than half of its original term and if any vacancy arises for elected members or Office-bearers for any reason whatsoever, the Bihar State Election Authority shall fill the vacancy for remaining period by holding bye-election.”
(5) Sub-section (10) shall be substituted by the following, namely:-
“(10) If for any reason Bihar State Election Authority has failed to conduct the election of the Board in any Co-operative Society where Government has provided share capital or loan or financial assistance or any Government guarantee, the Board shall be deemed automatically superseded from the date of expiry of its term and the Registrar, Co-operative Societies shall appoint any person as Administrator for a period of not more than six months for getting the new Board constituted by election. The Administrator so appointed shall provide every possible help to the Bihar State Election Authority to conduct the election. This arrangement shall be an interim arrangement and the Administrator shall hand over the management of the Society to the new Board after election within the prescribed period;
Provided that where the Government has not provided share capital or loan or financial assistance or any Government guarantee and where the Bihar State Election Authority fails to conduct elections before the expiry of the term of the Board, the Registrar of the Co-operative Societies may order to convene a special General Meeting of the members, for appointing an ad-hoc Board for the purpose of conducting elections:
Provided further that the outgoing members and Office-bearers of Board shall not be included in ad-hoc Board for the purpose of conducting elections;
Provided further also that the term of ad-hoc Board so appointed shall not exceed six months and the ad-hoc Board so appointed shall provide every possible help to the Bihar State Election Authority to conduct the election.
This arrangement shall be an interim arrangement and such appointed adhoc Board shall hand over the management of the Society to the new Board after election within the prescribed period.”
5. Substitution of Section-27 of the Act VI, 1935.—
Section-27 of the said Act shall be substituted by the following, namely:-
“ 27. Right of a Member.-
(1) Member of a Co-operative Society shall exercise the rights of a member after he has made such payment to the Society in respect of membership as may be prescribed in the rules or Bye-laws of the Society;
Provided that notwithstanding anything contained in any provisions of this Act, the member of a Co-operative Society can exercise the right to vote at the election of members of the Board of Society only after ensuring minimum attendance, as required in the meetings convened for participation in management of the Society and availing of minimum requisite services of the Society as may be prescribed by the rules or the Byelaws of the Society made under this Act.
(2) Every Co-operative Society shall provide access to every member to the books, information and accounts of the Co-operative Society kept in regular transaction of its business with such member.
(3) Every member of a Co-operative Society shall have the right to get all information/documents regarding books, information and accounts of the Cooperative Society kept in regular transaction of its business. The Chief Executive officer/manager of the Co-operative Society shall ensure access to the member to all required information/documents.
(4) The members of any Co-operative Society shall have the right to get Co-operative education and co-operative related training as per the rules or Bye-laws made under any provisions of this Act.”
6. Insertion of chapter IVA after chapter IV of the Act VI, 1935.—
In the said Act after
Chapter IV-the following Chapter IVA shall be inserted, namely–
“CHAPTER IV A.
Annual General Meeting and Annual Returns of the Co-operative Society 32A. Annual General Meeting.-
(1) Board of every Co-operative Society shall convene Annual General Meeting within six months from the closure of every financial year, which shall deal with all or any of the matter listed below except those in relation to the election of members and Office-bearer of the Board:-
(a) Consideration of the Annual Statement of Accounts presented by the Board for being filed before the Registrar,
(b) consideration of Annual Report presented by the Board,
(c) appointment and removal of Statutory Auditors and Internal Auditors,
(d) consideration of the auditor’s report and audited Statement of Accounts for being filed with the Registrar,
(e) consideration of audit/special audit compliance report,
(f) report on action taken on inquiry report, if any,
(g) disposal of net surplus,
(h) review of operational deficit, if any,
(i) approval of the long term perspective plan and the annual operational plan,
(j) approval of the annual budget,
(k) creation of specific reserves and other funds,
(l) review of actual utilization of reserve and other funds,
(m) report on membership of the Co-operative Society in other Co-operative Societies,
(n) appeal of a person whose application for membership has been rejected or whose membership has been terminated by the Board,
(o) remuneration payable to any Director, Auditor or Internal Auditor in connection with his duties in that capacity or his attendance at related meeting,
(p) membership of the Co-operative Society in Union/Federation,
(q) collaboration with other organisation,
(r) amendment of Bye-laws,
(s) formulation of code of conduct for the Directors and Office-bearers,
(t) note on admission and termination of membership of the members,
(u) dissolution of the Co-operative Society,
(v) such other functions specified in the Bye-laws.
(2) In accordance with the provisions for the works specified, under sub-section (1), the Annual General Meeting of the Co-operative Society shall be held at a time, date and place notified in accordance with the Bye-laws and if a quorum is present, the Chairman of the Co-operative Society shall preside the meeting;
Provided that in the absence of Chairman, Vice-Chairman, or in the absence of both Chairman and Vice-Chairman, a person elected by the members from among themselves shall preside the meeting:
Provided further that in case of a Society where the Managing Committee has either been superseded under the provision of the Act, the Administrator shall be the Chairman of the General Meeting and in his absence a person nominated by him shall be the Chairman of the meeting.
(3) The person presiding at the meeting shall conduct the proceedings in such manner as may be conducive to expeditious and satisfactory disposal of business and shall decide all points of order at the meeting.
(4) The quorum for a General Meeting shall be one fifth of the total membership of the Society on the date of issue of the notice of the meeting.
(5) If within an hour of the time scheduled appointed for the meeting the quorum is not present, the meeting shall stand adjourned to a date not earlier than seven days and not later than twenty- one days.
(6) No quorum shall be necessary for an adjourned meeting.
(7) All questions before a General Meeting shall be decided by a majority of votes and in the event of equality of votes, the Chairman of the meeting shall have a casting vote.
(8) Voting by proxy shall not be allowed, but the Registrar may permit this to be done in the case of any particular Registered Society or class of registered societies.
(9) Voting at a General Meeting shall be done by show of hands and only in exceptional case voting by ballot may be resorted to if the Registrar so directs, on his own motion, or on the application filed by the Society concerned.
(10) The minutes of proceeding of General Meeting shall be recorded in a book to be kept for the purpose and the minutes shall be signed by the person presiding at the meeting.
(11) An appeal shall lie to the Registrar on all matters relating to procedure followed at any General Meeting and his decision thereon shall be final.
32B. Filing Annual Returns-
Every Co-operative Society shall file Annual Returns before the Registrar within six months of the end of each financial year which shall include following subjects:-
(a) Annual Report of the activity;
(b) Audited Statement of the Accounts;
(c) Plan to deal with the surplus as approved by General Body;
(d) List of the amendments done, if any, in the Bye-laws of the Co-operative Society;
(e) Declaration relating to the conduct of election, if due, and date for the arrangement of General Body Meeting;
(f) Any other information, if required to carry out any of the provisions of the Act notified by Registrar.
7. Substitution of Section - 33 of the Act VI, 1935.— Section - 33 of the said Act shall be substituted by the following, namely:-
“33 Audit.-
(1) A Co-operative Society shall get its accounts audited by Auditor from a panel approved by State Government or the authority authorized by the State Government, at least once in every financial year. Such Auditor shall either be Chartered Accountants within the meaning of the Chartered Accountants Act, 1949 or Auditors from the office of the Registrar.
(2) The minimum educational qualification of the Auditors from a panel approved by State Government or an authority authorized by the State Government shall be Graduate (with Mathematics) or commerce Graduate from any recognised d University. Such Auditor or Chartered Accountants firm shall be required to have at least three years of audit experience. Only such Auditor or Chartered Accountants firm shall be eligible for the audit of the accounts of Co-operative Society.
(3) The audit of the accounts of every Co-operative Society shall be done by the Auditor or Chartered Accountant firm, specified under sub-section (2), appointed by the General Body of Co-operative Society.
(4) It shall be mandatory to audit the accounts of every Co-operative Society within six months of the end of the financial year to which accounts is related to.
(5) Apex Co-operative Society, with the approval of General Body, shall compulsorily submit the Audit Report, after the audit of its statement of accounts, to the Registrar within thirty days which shall be placed before the State Legislature in accordance with the procedure laid down for this purpose by the State Government.
(6) The Auditor’s Report in addition to the report on the accounts of the Co-operative Society shall also contain report on the attendance at Board meeting, by Directors, the loans and advances sanctioned to or the business done with the Co-operative Society by the Directors, expenditure on Board Meetings, remuneration paid to Directors, expenditure reimbursed to Directors, expenditure on education and training for members, staff, Directors and others.
(7) It shall be the duty of the Board to ensure that annual financial statements are prepared and presented for audit within forty-five days of closure of the financial year.
(8) The remuneration of an Auditor shall be fixed by the General Body;
Provided that if audit is done by the Auditor of the office of Registrar, the Co-operative Society shall pay the audit fee fixed by the Registrar.
(9) The General Body may, at a special meeting, remove an Auditor from office by a resolution passed by a majority of the members present and voting.
(10) Upon the demand of the Auditor of a Co-operative Society the present or former Office-bearers, Board members or employees of the Co-operative Society shall furnish-
(a) such information and explanation, as may be considered necessary, and
(b) each of the record, documents, books, accounts and vouchers of the Co-operative Society as are, in the opinion of the Auditor, necessary to enable him to make the examination and report.
(11) Where a Co-operative Society fails to get its Annual Accounts audited when due, Registrar shall get the accounts of the Co-operative Society audited within a period of ninety days from the date when the audit was due.
(12) The cost of conducting such audit shall be borne by the Co-operative Society.” 8. Insertion of Section - 33A and Section - 33B after Section - 33 of the Act VI, 1935.—
The following Sections - 33A and 33B shall be inserted after Section - 33 of the said Act namely:-
“33A. Special Audit.-
(1) A Co-operative Society dealing with funds from the Government or other external individual or institution may be subject to a special audit initiated by the Registrar at the request of such creditor or of his own motion with written specific order/direction.
(2) Special Audit under sub-section (1) shall be done by District Audit Officer/Senior level Audit Officers or any Committee of such Officers under the control of Registrar.
(3) Where the Special Audit reveals serious mismanagement in the Co-operative Society, costs of such Special Audit may be recovered from the Co-operative Society or the persons responsible for the mismanagement.
(4) Every Special Audit shall be completed and the report submitted to the Registrar within one hundred and twenty days from the date of issuance of the order.
(5) The Special Audit Report shall contain a statement of :-
(a) every payment which appears to the Auditor to be contrary to Act, Rules or Bye-laws of the Society,
(b) the amount of any deficiency, waste or loss which appears to have been caused by the gross negligence or misconduct of any person in the performance of duties,
(c) the amount of any sum received which ought to have been accounted for, but it is not brought into account by any person, and
(d) any asset or money to which any person related with the organization or management of the Co-operative Society or any former or present member of the Co-operative Society has misappropriated or fraudulently retained any property of the Society.
(6) The Registrar shall, within a period of thirty days from the date of the receipt of the Special Audit Report transmit copies of the same to –
(a) the applicant creditor,
(b) the Co-operative Society concerned, and
(c) the authorized Audit Officer to file proceedings of surcharge, where necessary, under Section -40.
33B. Maintenance of accounts and records.-
(1) Every Co-operative Society shall keep at its registered office the following accounts and records :-
(a) a copy of this Act with amendments made from time to time,
(b) the minutes book,
(c) registration certificate and a copy of the registered Bye-laws and the amendments registered from time to time with date of amendment,
(d) a copy of the authenticated Bye-laws of the Federation/Union of which it is a member and for each of its member Co-operative Societies,
(e) account of all sums of money received and expended by the Co-operative Society and their respective purposes,
(f) account of all purchases and sales of goods by the Co-operative Society,
(g) account of the assets and liabilities of the Co-operative Society,
(h) a register showing total membership and the member wise use of various services,
(i) a list of members with voting rights for the current year updated within thirty days of closure of the financial year,
(j) copies of the Board policies,
(k) Annual Report, Audit Report, Special Audit Report, Inquiry Report and their compliances,
(l) copies of other laws and regulations to which the Co-operative Society is subject,
(m) such other documents as are relevant to the functioning of the Society;
Provided that where a Co-operative Society has branch offices, accounts and records related to the branch, shall be available at the registered office for any period within twenty five days of the end of the financial year,
(n) all other documents, register, circulars, etc. required in accordance with the provisions and circulars issued by NABARD, Reserve Bank of India and Registrar from time to time.
(2) The books of accounts of every Co-operative Society together with supporting records and vouchers shall be preserved for such period as may be provided in the Bye-laws subject to any other laws for the time being in force.”
9. Amendment in Section-40 of Act VI, 1935. - In the first line of sub-section (1) of Section– 40 of the said Act after the words and figures “Audit under Section-33” the words and figures “and Special Audit under Section - 33A” shall be inserted.
10. Amendment in Section - 41 of the Act VI, 1935- Sub-section (1), (2), (3) and (4) of Section 41 of the said Act shall be substituted by the following, namely:-
“(1) In the opinion of the Registrar, the Board of any Registered Society, the State Government has contributed to the share capital therein, or loan or financial aid has been provided by the State Government or loan has been provided on Government guarantee,
(i) is persistently making defaults or
(ii) is negligent in the performance of its duties imposed on it by this Act, the Rules or the Bye-laws, or
(iii) has conducted against the interest of the Co-operative Society or its members or
(iv) there is stalemate in the constitution or functioning of the Board, he may, after giving opportunity to the Board/Managing Committee to state its objection, if any, by order with reasons in writing, supersede the Board of the Co-operative Society for a period not exceeding six months and order that all or any of its members may be disqualified from being elected to the Board of the Co-operative Society for a period to be specified in the order not exceeding five years. Registrar shall record every order passed under this Section in writing and inform the concerned Co-operative Society through registered post. The Board shall thereupon cease to function;
Provided that in case of Co-operative Society carrying on the business of banking, provisions of Banking Regulation Act, 1949 shall also apply;
Provided further that in case of Co-operative Society carrying the business of banking the maximum period of supersession shall be of one year; Provided further also that the dissolution of the Board of the Co-operative Society having banking operation shall be done in consultation with the Reserve Bank of India.
(2) where the Registrar while proceeding to take action under sub-section (1) is of opinion that suspension of the Board is necessary in the interest of the Registered Society, he may suspend the Board which shall thereupon cease to function and make such arrangement as he thinks proper for the management of the affairs of the Registered Society till the proceedings under sub-section (1) are completed;
Provided that if the Board so suspended is not superseded it shall be reinstated after six months and the period during which it has remained suspended shall count towards its term.
(3) When any Co-operative Society is under supersession under sub-section (1), the Registrar shall appoint an Administrator to conduct the affairs of the Society. The Administrator appointed under sub-section (1), shall take necessary action for the holding of fresh election of the Board of the Co-operative Society within the specified period as under sub-section (1) and shall hand over the management to the newly elected Board;
Provided that the Registrar shall have the power to change the administrator during the period of supersession.
(4) The Administrator appointed under sub-section (3) shall get remuneration, as may be fixed by the Registrar, as he deems fit to carry on the business of the Cooperative Society. The remuneration so fixed shall be payable from the accounts of Co-operative Society;
Provided that the Administrator appointed under sub-section (3) shall work under the service condition laid down by the Registrar and shall perform all the duties and carry on responsibilities assigned to the Board under this Act, Rules and the Bye-laws.
11. Substitution of Section - 42 of the Act VI, 1935. – Section - 42 of the said Act shall be substituted by the following, namely:-
“42. Winding-up order.–
The Registrar may, by notification, order a registered Co-operative Society to be wound up if –
(a) on receipt of a request for the winding-up of the Society by, special resolution passed by three-fourth of the members of the Society,
(b) after an inquiry has been held under Section - 35 or an inspection made under Section - 34, Section - 36 or Section - 37, the Registrar is of the opinion that winding-up of the Society is necessary in the interest of members, or
(c) if a Society has not commenced working after registration or has ceased working.
(d) if the number of the members of the Society has been reduced to less than ten contrary to the condition of registration;
Provided that such order can only be passed after giving a notice of one month and providing opportunity of hearing to the shareholder members and persons/institutions having interest in the Society.”
12. Amendment in Section - 43 of the Act VI, 1935. – Sub-section (1) of Section - 43 of the said Act shall be substituted by the following, namely:-
“(1) Any member of a Society or person/institution having interest in it, may appeal against an order passed under Section - 42 to the State Government, within two months from the date of the publication of such order in the Official Gazette.”
13. Amendment in Section- 45, of the Act VI, 1935. – Section – 45 of the said Act shall be substituted by the following, namely:-
“45. Offences and Penalties.–
(1) It shall be an offence under this Act if-
(a) a Co-operative Society or an officer or member thereof willfully makes a false return or furnishes false information, or willfully not furnishes any information required from him by a person authorised in this behalf or a Registrar under the provisions of this Act;
(b) any person willfully or without any reasonable cause disobeys any summons, requisition or lawful written order issued under the provisions of this Act;
(c) any employer who, without sufficient cause, fails to pay to a Co-operative Society amount deducted by him from its employee within a period of fourteen days from the date on which such deduction is made;
(d) any officer or custodian who willfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a Co-operative Society of which he is an officer or custodian, to an authorised person; and (e) any person who indulges in the corrupt practices before, during or after the election of the Office-Bearer or member of the Board of the Co-operative Society.
(2) Any offence under sub-section (1) of this Section shall be punishable with imprisonment for a period which may extend up to one year or with a fine which may amount to rupees two thousand or both;
Provided that where a person is guilty of misappropriation, fraud, breach of trust, cheating or any other act involving moral turpitude, resulting in a loss to the Co-operative Society, he shall also be punishable under the relevant provisions of the Indian Penal Code, 1860.”
14. Amendment in Section - 47 of the Act VI, 1935. – sub-section (2) of Section - 47 of the said Act shall be substituted by the following, namely:-
“(2) Every offence under this Act, except the offence under sub-section (1) (c) of Section - 45 shall, for the purpose of the Code of Criminal Procedure, 1973 (2 of 1974) be deemed to be a cognizable offence.”
15. Amendment in Section - 66 B of the Act VI, 1935. – Sub-section (1) of Section - 66 B of the said Act shall be substituted by the following, namely:-
“66B. Personnel policy of Co-operative Societies.–
(1) Co-operative Societies shall have autonomy in the formulation of the types of posts, their numbers and the procedure for recruitment of the personnel thereof. The Co-operative Society can frame personnel policy, for this purpose. Subject to provisions of its Bye-laws and personnel policy the Co-operative Society shall prescribe for the following, among others:-
(1) eligibility, age and experience,
(2) pay scale and other emoluments,
(3) procedure of recruitment,
(4) service condition, and
(5) disciplinary policy to be adopted.
(2) Any appointment made in contravention of the provisions of the Bye-laws and the personnel policy shall be void as if no such appointment ever existed and salary and other allowances paid, if any, shall be recoverable under Section - 40.”
