By-laws of the Bank Employees. Co-operative
Credit Bank Ltd.
[To be registered under the Co-operative Societies Act]
1. In these by-laws, unless there is anything repugnant in the subject
(a) Act. means the ________Co-operative Societies Act ___________;
(b) Rules. means the _____________Co-operative Societies Rules_____________;
(c) .Bank. means the Bank Employees. Co-operative Credit Bank Ltd.;
(d) Words and expressions defined in the Act and the Rules shall have
the meanings assigned to them in the Act and the Rules.
2. The name of the society is .The Bank Employees. Co-operative Credit Bank Ltd...
3. (1) The Registered office of the Bank will be situated at in the city of ____________________ .
(2) Notice of any change in the registered office shall be sent in the
prescribed manner, within 30 days of such change to the Registrar and to the financing bank, if any, of which the society is for the time being a member.
4. (1) The objects of the society are.
(a) primarily to create funds to be lent to members; and
(b) to provide facilities for the exercise of thrift and savings; and
(c) generally to encourage self-help and mutual aid among members.
(2) In furtherance of the above objects the society shall be at liberty.
(a) to receive money by way of loans, deposits or otherwise from members, non-members or any other source and to secure the repayment thereof either by mortgaging, assigning or pledging the properties of Society or otherwise ;
(b) to purchase, take on lease or in exchange, or otherwise acquire lands, buildings, or any moveable or immovable property necessary for the business of the society ; and
(c) generally to do all such other things as are incidental or conducive to the attainment of its objects.
Area of Membership
5. The area of membership of the society is ___________________
6. (1) Membership of the society is open to individuals above the age
of 18 years, of good character and residing in the registered area of
Membership /in the permanent employ of Scheduled and First Grade
(2) The following shall be members of the society, namely.
(a) Persons duly qualified who have joined in the application for
(b) Persons who may hereafter be elected according to these by-laws.
(3) Every person admitted to membership shall.
(a) Pay an admission fee of Rs.___________
(b) Hold at least _____________ share;
(c) Name a place to be registered as his address.
Such address shall for all purposes be deemed to be his residence.
(4) No person who is already a member of any other co-operative credit society shall be admitted to membership without previously obtaining the consent of the society of which he is a member and the approval of the Registrar.
Election of Members
7. (1) Every person desirous of becoming a member shall submit an
Application to the secretary in such form as the managing committee may determine. The application shall be supported by at least two members.
(2) The meaning committee may after consideration sanction or under
due cause refuse an application for membership.
(3) Notice of election, or of refusal to membership shall be sent to the
applicant within 30 days from the date of such decision.
(4) In case of rejection the applicant shall have a right of appeal to the
Rights of Membership
8. A person shall not acquire the rights and privileges of membership
until he has.
(a) paid the admission fee;
(b) Subscribed at least __________share and has made the payment due on account of such share ; and
(c) Signed a declaration to the effect that he shall be bound by by laws.
Nominee of a Member
9. (1) A member may nominate in writing any person to whom or to whose credit the share or interest or the value of such share or interest shall on his death be paid or transferred under the provisions of the Act and the
Provided that, the member may from time to time revoke or vary such nomination in writing.
(2) The Bank shall keep a register of all persons (if any) so nominated.
(3) In case the nominee dies the member shall report the death to the
Withdrawal from Membership
10. A member, if he is not in debt to the society or is not a surety for any debt due to the society, may withdraw from the society after giving in writing one month’s notice to the secretary.
Removal of a Member
11. A member who ceases to be qualified to be a member may be
removed by the managing committee.
Fine, suspension and expulsion of a Member
12. (1) The managing committee may after due investigation into the
Conduct of a member and after taking such evidence as may be necessary, fine, suspend or expel him for any of the following reasons:
(a) Wilful contravention of the Act, the Rules and the bye-laws of the bank.
(b) Acts which in the opinion of the managing committee are prejudicial to the interest of the bank.
(c) Wilful default, dishonesty or infringement of the terms of any of
the contract entered into as a member of the bank.
(2) A member suspended shall not be entitled to exercise any of the
rights or enjoy the privileges of membership during the period of suspension.
(3) A member fined, suspended or expelled may appeal to the general
meeting against the order of the managing committee within one month of the date of the communication of the order of punishment.
(4) The managing committee on receipt of the appeal shall convene a
special general meeting within 3 months of its receipt for disposal of the appeal provided, however, if an ordinary general meeting is held within this period, a special general meeting shall be held to consider the appeal immediately before the ordinary general meeting is held,
Cessation of Membership
13. A member shall cease to be a member if he.
(a) Transfers all the shares held by him ;
(b) loses the qualification for membership;
(c) Resigns his membership;
(d) Is expelled;
(f) Has been adjudged by a competent court to be insolvent or of unsound mind; and
(g) Has been punished with imprisonment for an offence involving
Payment to a Member withdrawing, removed or expelled
14. Subject to the provisions of the Act and the Rules a member
With drawing, removed or expelled from the society shall be entitled to repayment with or without interest and within such period not exceeding two years as the managing committee may decide of any money paid by him or his predecessors in interest forwards the purchase of shares.
15. The liability of the members for the debts of the society shall be limited to the nominal value of the shares held by them.
16. Subject to the provisions of the Act, the Rules, and these by-laws
the funds of the society may be raised by.
(a) Issuing shares;
(b) Receiving deposits from members and non-members;
(c) Taking loans from financing bank and other sources;
(d) Obtaining grants, donations and subsidies from Government and
other sources; and
(e) Deriving income from properties, investments and other sources.
17. (1) The nominal share capital of the society shall be Rs.____________ divided into ________ shares of Rs. _______each to be subscribed by members only.
(2) No member shall hold more than .______ of the share capital or rupees _________whichever is less.
Payment on Share
18. (1) For every share rupees _____________ shall be paid on allotment or in such instalments as the managing committee may call; and the balance shall represent the reserve liability of the members,
(2) The reserve liability shall become payable.
(a) In case of liquidation of the society; or
(b) On calls being made by the society by a resolution of a general meeting.
(3) If a sum called in respect of a share is not paid before or on the day appointed for payment thereof the member from whom the sum is due shall pay interest upon the sum at the rate of .......... per cent per annum from the day appointed for the payment thereof to the day of actual payment, but the managing committee shall be at liberty to waive payment of that interest wholly or in part.
19. (1)Every member shall free of charge be entitled to a share certificate under the seal of the society specifying the share or shares held by him. Such certificates shall be signed by the chairman or vice-chairman and the
(2) If a share certificate is defaced, lost, or destroyed, it may be renewed on payment of such fee, if any, not exceeding Rs.__________ and on such terms, if any, as the, managing committee determine.
Transfer of Share
20. (1) Share may, with the approval of the managing committee, by an instrument in writing and in such form as the managing committee may determine, be transferred to another member or to a non-member, who is eligible for membership and whom the managing committee is willing to admit as a member.
(2) The transfer is not complete, and the transferor shall be deemed to
remain a holder of the share, until the transferee is admitted to membership and his name is entered in the register of members.
Forfeiture of share
21. (1) If a member fails to pay any call or instalment of a call on or before the day appointed for payment thereof the managing committee may at any time thereafter during such time as the call or instalment remains unpaid, serve a notice on him to pay the same together with any interest that may have accrued and any expenses that may have been incurred by the society by reason of such non-payment.
(2) The notice shall name a further day (not earlier than the expiration
of thirty days from the date of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment on or before the day appointed the shares in respect of which the call was made will be liable to be forfeited.
(3) If the requirements of any such notice as aforesaid are not complied with, any share in respect of which the notice has been given may at any time thereafter, before the payment required by the notice has been made, be forfeited by a resolution of the managing committee to that effect. Such forfeiture shall include all dividends declared in respect of the forfeited shares and not actually paid before the forfeiture.
(4) A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the managing committee think fit, and at any time before sale or disposition the forfeiture may be cancelled on such terms as the managing committee think fit.
(5) A person whose shares have been forfeited shall cease to be a
member in respect of the forfeited shares, but shall, notwithstanding, remain liable to pay to the society all moneys which, at the date of forfeiture, were presently payable by him to the society.
22. (1) The society may borrow in accordance with law from either
members or non-members and all borrowings, subject to such restrictions as the general meeting may impose, shall be regulated by the managing committee.
(2) The society shall not by accepting deposits or loans or in any other
way incur liabilities exceeding ten times the sum of the paid up share capital and the reserve fund for the time being separately invested outside the business.
(3) The maximum amount the society may borrow in any one year shall be determined annually at a general meeting and the society shall not borrow beyond the maximum amount so determined and in force for the time being:
Provided that the Registrar may at any time revise the limit fixed by a
general meeting, and when he does so, the limit fixed by him shall not be exceeded.
(4) The society shall not incur liabilities to non-members in excess of a maximum limit to be fixed from time to time in the general meeting and to be approved by the Registrar.
Fluid Resources or Liquid Cover
23. (1) The society shall keep a minimum liquid cover to meet the calls of the creditors according to the following scale:
(a)____________. per cent of the amount held in fixed deposits repayable within the ensuing_________ . months;
(b)__________ of the amount held in savings deposit; and
(c)__________ of the amount in current account.
(2) Under special circumstances the managing committee may with the approval of the Registrar decrease the proportions of the liquid cover.
Employment of Funds
24. (1) The funds of the society may be applied in.
(a) Giving loans and advances to members ;
(b) Making investments for the benefit of the members ;
(c) Purchasing lands and buildings and in the erection of buildings
for office and other purposes necessary for the proper conduct of business ;
(d) Creation of .reserve. .bad-debt., and other funds and in payment of dividend, bonus, remuneration; and
(e) Any other purposes incidental or conducive to the attainment of the objects.
(2) Save with the permission of the Registrar no portion of the borrowed capital of the society shall be applied in payment of the charges specified in clause (c) to (f) except the audit fee.
Members Thrift Fund
25. (a) It shall be compulsory for every member of the society to
Subscribe to this fund at the rate of Rs. __________per month until he ceases to be a member and that the monthly subscription shall be placed at the credit of the member in the Fund.
(b) The Bank shall allow an interest on the amount on credit at a rate
not exceeding ___________ per centum to be fixed at the General Meeting.
(c) The money at credit of the member of the Bank in this Fund shall
be paid to him or his nominees or heirs as the case may be, after setting off its dues against his liability as borrower or surety in the Bank, if any, at the time of cessation of membership.
Loans to Members
26. (1) Loans shall be granted to members only.
(2) Loans shall be of two kinds, namely.
(a) Short term loan : repayable within a period of 24 months ;
(b) Long term loan : repayable within a period exceeding 24 months.
(3) No loan shall be granted to a member exceeding ten times the
amount of share capital paid up by him, and not exceeding six months. substantive pay.
(4) Save on such conditions as the Registrar may lay down no
intermediate or long term loan shall be granted to a member except out of the intermediate or long term capital.
(5) Application for loan in such form as the managing committee may
determine and stating the purpose for which the loan is required shall be submitted to the secretary for consideration by the managing committee at the next meeting or so soon thereafter as is practicable.
(6) A member applying for loan shall furnish a full statement of his.
(a) property and debts;
(b) Annual income;
(c) Annual expenditure (including instalment of principal and interest
on prior debts, if any); and
(d) Available surplus for repayment of the loan applied for.
(7) The managing committee, after due consideration and on proper
grounds may reject an application for loan in part or in full; or may require an applicant to furnish such further information in respect of the application as may be necessary.
(8) Every applicant must also sign a letter addressed to respective
Bank’s authorities authorising the deduction of the instalment fixed from his pay each month before he gets it and it will be applicable wherever the applicant is transferred.
Credit of Members
27. The managing committee shall in accordance with the Rules
annually determine the maximum and the normal credit of a member and shall make no.
(a) Short-term loan and excess of the normal credit; and
(b) Long-term loan in excess of the maximum credit, so determined for each member.
Interest on Loans
28. The rate of interest on loans shall be determined from time to time
by the general meeting. Alteration in the rate of interest on loans, if considered necessary, the managing committee, in the interest of the Bank may increase on reduce the rate of interest on loans but shall not exceed____________-per cent per annum. The Managing Committee shall decide the rate of interest on short term/long term Loans.
Purposes of Loans
29. Loans may be granted for all or any of the following purposes,
(a) Short-term loan:
(i) Medical expenses ;
(ii) Education of children ; and
(iii) Any other purpose the managing committee consider as
coming within the purposes of the society.
(b) Long-term loan:
(i) Liquidation of large debts ;
(ii) Purchase of landed properties ; and
(iii) House building or repairing or maintenance of such properties
involving large sums of money.
Security of Loans
30. (1) For every loan a member shall furnish one surety if the loan is
up to Rs____________, two sureties if the loan is up to Rs_________________, and three securities in other cases.
(2) In addition to the personal surety the managing committee in any
case may take other approved security.
(3) The managing committee may grant loans to a member without
personal sureties up to __________of the amount of his Fixed Deposit in the bank.
(4) No long-term loan shall be granted to a member except on the
security of a Life Insurance Policy or such other security as may be
approved by the managing committee.
Instalment of Repayment
31. (1) The instalments for repayment of a loan shall be fixed by the
managing committee at the time the loan is granted.
(2) The instalment for repayment of a loan shall not exceed the annual
(3) Except on such condition as the Registrar may lay down every loan shall be fully repayable within a period not exceeding three years.
(4) If a member fails to pay interest or any instalment of principal on or before the due date and if the managing committee does not grant an extension of time, the entire loan may at the option of the committee become immediately payable irrespective of any condition on which the loan was made.
(5) Every member shall at the time of taking loan sign a written contract to repay by monthly instalment loan taken and shall authorise the bank in writing to recover such instalments by deduction from salary through his disbursing officer.
32. A guarantee fund calculated at Rs. __________ for every Rs. ________________or part thereof received in cash on account of loan shall be opened in the name of every borrower and such fund shall be refundable only at the event of retirement, death or loss of service or cessation of membership either in cash or by adjustment against his subsisting liability as borrower or surety in the bank.
Recalling a Loan in Special Case
33. (1) Any sum outstanding against a member who has been expelled
or who has otherwise ceased to be member shall be immediately payable irrespective of any condition on which the loan was granted.
(2) Where the managing committee consider that the solvency of a
member has in any way diminished the managing committee shall recall any sum due from the member at once.
(3) Notwithstanding anything contained in any bye-laws the society
reserves to itself the right of calling in any outstanding sums on 30 days. notice ; but such power shall not be generally exercised save when there is a general run upon the society by its creditors, or in other exceptional circumstances.
Renewal and Extension of Loans
34. The managing committee may with the consent of sureties if any, in special cases on good cause shown and on the application of the borrower grant an extension of time for the repayment of a loan or grant a renewal of the loan.
Custody of Funds
35. The funds of the bank not used in or invested outside the business
shall be kept in the custody of a Cashier to be appointed by the managing committee on such conditions as to furnishing of security, if any, as the managing committee may determine: Provided that any person charged with the keeping of accounts shall not be placed in charge of the cash.
Investment of Funds
36. The funds of the society not used in the business may be invested
(a) in a Government Saving Bank ; or
(b) in any of the securities specified in section 20 of the Indian Trusts
Act, 1882 ; or
(c) with the sanction of the Registrar, in the share or debentures or on the security of any other co-operative society with limited liability; or
(d) in the Provincial Bank ; or
(e) in the shares of the Reserve Bank of India ; or
(f) in any other mode permitted by the Registrar.
37. The supreme authority of the society shall vest in the general meeting of members. It shall maintain a general supervision over the business of the society and in particular over the acts of the managing committee and shall be competent to take all steps that may be considered necessary in the interest of the society.
Annual General Meeting
38. (1) The Annual General Meeting of the society shall be held at least once in every co-operative year as provided in section .......... of the Act.
(2) The first Annual General Meeting of the society shall be held within __________ months from the date of registration.
(3) The business of the Annual General Meeting shall be.
(a) To consider the report of the managing committee;
(b) To consider the audit report and the audited statement of accounts;
(c) To fix maximum amount of borrowings for the ensuing year from.
(i) Financing bank ;
(ii) Members; and
(d) To distribute the profits;
(e) To pass the annual budget;
(f) To elect directors and such other officers as the meeting may think fit; and
(g) To transact any other business that may be laid before the meeting
by the managing committee: Provided that, save with the permission of the Registrar, no matter disposed of by a general or special general meeting can be taken up for by any general or special general meeting till after the lapse of six months from the date of which the subject was disposed of.
Notice of General Meeting
40. (1) A notice of the General Meeting stating the place, date and hour of the meeting together with a statement of business to be transacted at it shall be sent to every member at least 15 clear days before the date of the meeting.
(2) In the case of a meeting called on the requisition of members a copy of the requisition together with the names of the signatories shall be sent to all members along with notice of the meeting.
(3) Any accidental omission to give notice to any member or the non receipt of the notice by any member shall not invalidate the proceedings of any meeting.
Chairman of General Meeting
41. (1) The Chairman of the Meeting shall maintain order in the meeting and shall control and conduct the proceedings in such manner as may be conducive to expeditious and satisfactory disposal of business. He shall decide all points of order and his decision upon such points shall be final.
(2) The chairman of the meeting may direct any member to withdraw for disorderly conduct and the member so ordered shall forthwith withdraw and unless otherwise directed by the chairman shall remain absent during the remaining period of the meeting and shall not be entitled to vote without the permission of the chairman.
(3) In the event of disorder arising, the chairman of the meeting may suspend the meeting and adjourn it subject to the provisions of the Act and the Rules to such date or time as he may think fit.
Quorum of General Meeting
42. (1) The Quorum for a General Meeting shall be ____________ of the total number of members as on the date of giving notice of the meeting.
(2) No business shall be transacted at any meeting unless a quorum of
members is present at the time other the meeting proceeds to business.
(3) If within half an hour from the time appointed for the meeting a quorum is not present, the meeting, if convened upon the requisition of members, shall be dissolved in any other case it shall stand adjourned to the same day in the next week at the same time and place, and, at such adjourned meeting if a quorum is not present within half an hour from the time appointed for the meetings the members present shall be a quorum.
(4) If at any time during meeting sufficient members are not present to form a quorum the chairman of the meeting on his attention being drawn to this fact, shall adjourn the meeting to such convenient date, time and place as he thinks fit and the business to be transacted at this meeting shall be disposed of in the usual manner at the adjourned meeting and the
members present in such adjourned meeting shall be a quorum.
(5) The chairman may with the consent of any meeting at which a quorum is present (and shall if so desired by the members) adjourn the meeting from time to time and from place to place but no such adjournment shall be made for a period exceeding sixty days.
(6) No business shall be transacted in any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.
(7) When a meeting is adjourned for six weeks or more, notice of the
adjournment meeting shall be given as in the case of an original meeting. Save as aforesaid it shall not be necessary to give notice of an adjourned meeting.
Voting in General Meeting
43. (1) Every resolution at a general meeting shall be decided by a
majority of votes of members. In case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall be entitled to a second or casting vote.
(2) A resolution which is put to the vote of the meeting shall be decided on a show of hands, unless a poll is (whether before or after the declaration of the result of the show of hands) demanded by at least _________members and agreed to by the chairman ; and if no poll is so demanded, a declaration by the chairman of such meeting that a resolution has on the show of hands been carried or lost, and an entry to that effect in the book of the proceedings shall, be conclusive evidence of the fact that such resolution has been duly carried or lost but it shall not be proof of the number or proportion of the votes recorded in favour of or against such resolution ;Provided that any member may demand to have this name recorded as voting for or against any resolution.
(3) If a poll is duly demanded and agreed to by the chairman, it shall
be taken in such manner and at such time as the chairman of the meeting directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.
(4) A poll demanded on the election of a chairman, or on a question of
adjournment, shall be taken forthwith.
(5) When a poll is taken.
(i) The voting may be by ballot if the chairman of the meeting subject
ot the Rules, so decides ;
(ii) The number of members voting for or against a resolution shall be
recorded in the minute of the proceedings ; and
(iii) Any member may demand to have his name recorded as voting
for or against any resolution.
Minutes of General Meeting
44. (1) The society shall cause minutes of proceedings of General
Meetings to be entered in a book kept for that purpose.
(2) The minutes shall contain the names of the members present and
the resolutions and proceedings of the meeting, and shall be laid in the next ensuing general meeting.
(3) Unless the minutes are drawn up and are duly signed by the chairman of the meeting immediately on the termination of the meeting, the minutes, free from all alterations or corrections, shall be drawn up and shall be signed by the chairman of the meeting within 72 hours from the time when the meeting terminated. The minutes so signed shall be evidence of the proceedings of that meeting.
(4) Until the contrary is proved, every general meeting of the society in respect of the proceedings whereof minutes have been so recorded shall be deemed to have been duly called and held.
45. (1) The business of the society shall be carried on and managed by
the managing committee who may pay all expenses incurred in getting up and registering the society and may exercise all such powers of the society as are not required to be exercised by the society in a general meeting.
(2) Subject to the provisions of the Act, the Rules and these bye-laws
and also the Regulations, if any, made in a general meeting and in force for the time being the committee shall enter into all such agreements, make all such arrangements, take all such proceedings and do all such acts and things as may be necessary and proper for the due management of the affairs of the society and for carrying out the objects for which it has been established and for securing and furthering its interests in every way.
Qualifications and Disqualification of Members of Managing Committee
46. (1) Subject to the provisions of the Act, the Rules and these by-laws every member of the society above the age of .......... years shall be qualified to be elected or appointed as a director.
(2) A member shall not be eligible for election or appointment as a
director if he.
(a) Has been adjudged by a competent court to the insolvent or of
unsound mind; or
(b) is concerned or participates in the profits of any contract with the
(c) Has been punished with imprisonment for an offence involving moral turpitude; or
(d) Has failed to pay in three consecutive years immediately preceding
the election at least .......... an amount equivalent to .......... year.s
instalment fixed for repayment of loan; or
(e) Holds any office or place of profit under the society ; or
(f) Has been a member of the society for less than____________ months immediately preceding the date of such election or appointment.
Constitution of Managing Committee
47. (1) The Managing Committee shall consist of ___________ elected directors and such other number of additional directors, if any, appointed by the Registrar.
(2) At the first Annual General Meeting all the directors shall retire and shall be eligible for re-election.
(3) In subsequent Annual General Meetings ___________ of the elected directors shall retire from office by rotation and shall not be eligible for reelection for __________ year from the date of retirement.
(4) The vacancies caused by retirement of elected directors shall be filled up by election at the General Meeting at which they retire.
(5) The directors to retire by rotation during the first ___________ years after the First Annual General Meeting shall be determined by lot in a meeting of the Managing Committee within _________ months from the date of its constitution.
(6) In subsequent years the _________ who have been longest in office shall retire. As between ___________ or more directors who have been in office an equal length of time the directors to retire shall (in default of agreement between them) be determined by lot.
(7) The casual vacancy in the office of an elected director shall be filled up by co-option of a director by the remaining directors within six weeks from the date of vacancy. The director co-opted shall retire at the next Annual General Meeting and the vacancy shall be filled up by election of a director for the remainder of the term, if any, of the director in whose place the vacancy originally occurred.
(8) A casual vacancy in the office of an appointed director may be filled up by appointment by the Registrar. Any casual vacancy in the office of an appointed director shall forthwith be reported to the Registrar.
Powers of Managing Committee
48. Without restricting the general power conferred by these by-laws the following powers and authorities are expressly given to and conferred upon the managing committee, namely.
(a) To admit new members;
(b) To fine, suspend, remove or expel a member;
(c) To raise funds;
(d) To invest funds;
(e) To appoint salaried or non-salaried officers and to define their
(f) To fine, suspend, remove, and dismiss any salaried and nonsalaried
officers and employees appointed by the managing
(g) To compound or abandon or delay to enforce any debt or demand
of the society or to institute, defend or compromise legal proceedings;
(h) To dispose of applications for shares and of application for transfer
(i) To dispose of applications for loans and to determine the security
to be taken;
(j) To appoint sub-committees as may be deemed necessary from
time to time and define their powers and duties; and
(k) to frame regulations for the conduct of the business of the society.
Duties of Managing Committee
49. The Managing Committee shall observe in all their transactions the Act, the Rules and these by-laws and shall subject to any direction of the general meeting cause.
(a) to receive and disburse money ;
(b) To specify which of the officers shall keep books of accounts, keep
other books and registers, shall prepare returns and statements
and shall keep cash ;
(c) to enter the accounts of the society in proper books timely and
(d) To maintain true accounts of the money received and expended and the accounts of the assets and the liabilities ;
(e) to prepare and submit to the annual general meeting an annual report, the annual statements of accounts, the proposal for distribution of profit, if any, and the annual budget estimate ;
(f) To prepare the statements of accounts including detailed lists of assets and liabilities and lists of bad and doubtful debts if any required at audit and to place them before the auditors ;
(g) To prepare and submit all statements, accounts and returns
required by the Registrar in such forms as he may direct ;
(h) To maintain the register of members and other books and accounts up to date ;
(i) To facilitate inspection of books and accounts by those entitled to inspect them ;
(j) To convene general meetings on requisition ;
(k) To convene the Annual General Meeting in due time ;
(l) To watch that the loans and advances are applied for the purposes
for which they are made and that they are promptly repaid ;
(m) To examine and take prompt action in cases of all arrears and defaults in repayment of loans and advances ; and
(n) To remove and rectify all defects and irregularities pointed out at
Meeting of Managing Committee
50. (1) The Managing Committee shall meet for the transaction of the
business of the society at least once in every two months and as more often as may be necessary: Provided that if there be no business to be laid before the managing committee, the secretary with the approval of the chairman instead of calling the meeting, shall give notice of the fact to each director.
(2) Notice of a meeting in writing shall be sent to every director specifying the place, date and hour of the meeting with a statement of business to be transacted threat at least seven days before the date of the meeting.
(3) The chairman of the society shall preside over all meetings at which he is present. In the absence of the chairman, vice-chairman shall take the chair or in his absence the directors present shall elect one of their member to be the chairman of the meeting.
(4) The quorum at a meeting, shall be one-half of the total number of
(5) Every resolution at a meeting shall be decided by a majority of votes and if the votes be equal the chairman shall have a second or casting vote.
(6) Any three directors may requisition a special meeting of the
managing committee. The requisitions shall specify the object of the
meeting and shall be signed by the requisitionists and shall be delivered at the office of the society.
(7) At such special meeting no business other than that specified in the notice shall be transacted.
(8) Minute, in which shall be recorded the names of the directors present at, and the proceedings of, each meeting of the managing committee, shall be drawn up and fairly entered in a book to be kept for that purpose, and shall be laid before the next ensuing meeting of the managing committee thereof.
(9) If the Registrar so directs a copy of the minutes of the proceedings shall be forwarded to him within 10 days from the date on which the minutes of the proceedings of such meeting is signed by the chairman as aforesaid.
(10) Every director present at any meeting shall sign his name in a book to be kept for that purpose.
Chairman and Vice-Chairman
51. (1) The Managing Committee consisting of the elected directors and those, if any, appointed by the Registrar shall as soon after the General Meeting as possible elect a chairman and vice-chairman and other office bearers if any from amongst themselves.
(2) If a casual vacancy occurs in the office of the chairman or vice chairman the managing committees shall elect a director to fill such vacancy, and the chairman or vice-chairman so appointed shall continue in office so long only as the person in whose place he is appointed would have been entitled to continue in office.
Powers and Duties of Chairman and Vice-Chairman
52. (1) The chairman and the vice-chairman shall exercise such powers and perform such duties as are conferred or imposed on them by the Act, the Rules and these bye-laws, and may from time to time, be conferred or required by the general meeting or the managing committee.
(2) The chairman or the vice-chairman in absence of the chairman may in cases of urgency exercise all the powers and perform all the duties required to be exercised and performed under the Act, Rules and these byelaws by the managing committee. All orders passed and all acts done by the chairman or the vice-chairam in the absence of the chairman shall be placed before the managing committee in the next meeting immediately following such passing of orders or performance of duties: Provided that the chairman or the vice-chairman as the case may be shall not act in opposition to or in contravention of any order given or decision taken by the managing committee at a meeting or exercise any power or perform any duty which is expressly required to be exercised or performed by the managing committee in meetings.
53.The Managing Committee shall appoint a proper person to be the
secretary for the conduct of the affairs of the society.
Powers and Duties of Secretary
54. Subject to the general direction of the managing committee the secretary shall conduct the business of the society and for this purpose.
(1) he shall exercise the following powers namely.
(a) control the staff of the society ;
(b) institute, defend and conduct legal proceedings in Law Courts and
other places ;
(c) call the general meetings and the meetings of the managing committee and attend such meetings ; and
(2) He shall perform the following duties, namely.
(a) prepare and place before the managing committee an estimate.
(i) of the expenditure which should in his opinion be incurred by
the society in the next ensuing year, and
(ii) of the receipts from all sources during the said year, in such form and at such time as the managing committee may direct;
(b) receive all moneys on behalf of the society and to issue receipts (other than contractual receipts) in effectual discharge of the money stated to have been received therein ;
(c) pay all costs of management and working expenses out of the funds of the society such as salaries of staff, legal expenses, charges on account of postage, telegrams, stationery, printing, advertisement, travelling, lighting, rent and the like expenses ;
(d) deposit all moneys and other properties received on behalf of the society in such bank as the managing committee may direct ;
(e) maintain proper and accurate record of the working of the society
and its accounts ;
(f) place from time to time before such authorities as the managing
committee may direct statements of receipts and disbursements.
Removal of an Officer
55. (1) Any officer appointed by the general meeting may be removed
from his office by a resolution of a general meeting specially convened for the purpose.
(2) Any director who fails to attend six consecutive meetings without
previous permission of the chairman obtained in writing may be removed from his office by the managing committee.
Cessation of Membership of Managing Committee
56. A director shall cease to hold office if.
(a) He becomes subject to any disqualification as to membership of
the society ; or any disqualification mentioned in Rule 35 ; or
(b) He resigns his office, or
(c) He dies.
Disposal of Profit
57. (1) Subject to the provisions of the Act and the Rules the net profits of the society shall be distributed in the following order, namely : (a) .___________ per centum or such higher proportion as the general meeting may decide shall be carried to the reserve fund ;
(b) An amount not exceeding _____________per centum the balance as may be decided by the general meeting shall be contributed to the Cooperative Development Fund.
(2) The balance of the realised profits as certified by the audit officer may subject to the provisions of the Act and the Rules and in accordance with the decision of the general meeting be applied to all or any of the following purposes, namely :
(a) To the payment of a dividend on shares provided that the dividend
paid on any share shall not exceed _________ per centum ;
(b) To the making of a contribution to the .Provident Fund of Members and Employees. under section ___________ at a rate not exceeding the amount of contribution made by the members or the employees;
(c) With the sanction of the Registrar for any specific service rendered
to the society to the payment of a bonus to the members or employees at such rates, not exceeding ___________ per centum of the net profits as may be recommended by the managing committee and approved by the general meeting ;
(d) To any charitable purpose permitted by the Act and the Rules; and
(e) to carrying forward to next year’s account or to such special fund
or funds for any other purpose, as may be determined by the general meeting.
58. (1) The society shall maintain a reserve fund in respect of the profits, if any, derivable from its transaction.
(2) The reserve fund shall consist of.
(a) Not less than ________________ per centum or such higher proportion of the net profits annually carried to the fund ;
(b) Admission fee (after deducting preliminary expenses incurred in constituting the society);
(c) The value of all shares forfeited ;
(d) The lapsed dividends and fines.
(3) The reserve fund. shall belong to the society and shall be indivisible and no member shall have any claim to a specified share in it: Provided that in case of division of the society into two or more new societies, the reserve fund may, with the sanction of the Registrar, be distributed equitably amongst the new societies.
(4) The reserve fund, with the previous sanction of the Registrar, shall
be available for all or any of the following purposes :
(a) To cover any loss, such drawing upon it being reimbursed from the profit;
(b) To meet any call on the society which cannot be met otherwise, such payments being reimbursed when fresh collections are made; and
(c) To serve as security for loans which the society may contract.
(5) The society may in special cases if the Registrar so permits draw on the reserve fund without being required to reimburse the same from the next accruing profit.
Use of Reserve Fund in Business
59. The society may, subject to such conditions, if any, as the Registrar may impose, use in its business.
(a) up to ___________ of its reserve fund when the owned capital is less than the borrowed capital ;
(b) up to ____________of its reserve fund when the owned capital is equal to or exceeds the borrowed capital ; and
(c) The entire reserve fund when there is no borrowed capital.
60. The reserve fund not used in the business of the society shall be invested or deposited.
(a) In the Government Saving Bank ; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882, other than those specified in clause (_______________) of that section ; or
(c) In any other bank approved by the Registrar.
61. (1) The society in general meeting may declare dividend ; but no
dividend shall exceed the amount recommended by the managing committee.
(2) No dividend shall be paid otherwise than out of not profits actually realised and certified as such by the auditor.
(3) All dividends shall be declared and paid according to the amounts paid on shares.
(4) All dividends remaining unclaimed for ____ years after the declaration thereof by person entitled and competent to receive and give a valid receipt for the same, may at the end of the period and after due notice to the payee at the discretion of the managing committee, be forfeited to the society and cease to be payable.
(5) No dividend shall bear interest against the society.
Inspection of Books by Members
The managing committee shall, with the approval of the Registrar
from time to time, determine whether and to what extent and at what times and places and under what conditions the accounts and books of the society or any of them shall be open to the inspection of members and no member (not being a director) shall have any right of inspecting any other account or book or document of the society except as authorised in general meeting.
Amendment of By-laws
Any of these by-laws may be altered or rescinded or new by-laws
made at a general meeting in accordance with the Rules in this behalf and such amendment will come into force after it has been registered by the Registrar.
Internal Supervision and Audit
The managing committee may arrange for such internal supervision and audit as it may deem proper and shall introduce such .Internal Check. As the Registrar may from time to time direct.
(1) The managing Committee shall provide a common seal for the purpose of the society. The seal shall be in the custody of the secretary.
(2) The Seal shall not be affixed to any instrument of document except under the authority of the managing committee, and in the presence of a director and of the secretary or such other person as the managing committee may appoint for the purpose ; and that director and the secretary or other person as aforesaid shall sign every instrument or document to which the seal of the society is so affixed in their presence.
(1) Any notice required to be served by the society upon a member shall subject to the provisions of the Act, Rules and these by-laws be given in writing and delivered or sent by post to the registered address of the member.
(2) Where a notice is sent by post, service of the notice shall be deemed to be effected by properly addressing, prepaying and proof of posting a letter containing the notice.
(3) All notices to be given on the part of any member shall be left at or sent through the post to the registered office of the society.
(4) The non-receipt by a member of any notice shall not effect the validity of the proceedings of any meeting or of the liability attaching to such notice.
(5) Every person, who by operation of law of transfer or other means
whatsoever shall become entitled to any share, shall be bound by any and every notice or other documents, which previous to his name and address being entered upon the register in respect of the share, may, have been given to the person from whom he derived his title and who is registered.
(6) When any notice or document, in accordance with these by-laws, is delivered at or sent to the registered address of a member or to his agent as above provided, then notwithstanding he be then deceased and whether or not the society has notice of his decease, such service of notice or other document shall for all purposes of these by-laws, be deemed service thereof on his nominee, heirs, executors, administrators or other legal representatives.
The society may be wound up, with the approval of the Registrar, upon a resolution carried by _______________of the members present at a special general meeting called for the purpose.
All matters not specifically provided for by these bye-laws shall be decided according to the terms of the Act and the Rules and if there be no in the Act or the Rules applicable to such matters, then, subject to these by-laws and the approval of the Registrar, shall be decided in such manner as the managing committee may determine