INDEX

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Meaning Of Co-Operative Society Characteristics of Co-operative Society Advantages of Co-operative Society Limitations of Co–operative Society Types of Co-operative Societies Formation of a Co-opeative Society Registration of Society Who can form a society Restrictions on society with limited liability Bye-laws Model Bye- laws Membership Termination Of Membership Rights and liabilities of members Secretary of the Co-operative Society Duties of the Secretary the Co-operative Society Meetings Held in a Co-operative society Co-operative Society Act 1904 Maharashtra Co-operative Societies Act 1960 Management of society Registered Society is body corporate Audit Inspection of affairs of society

Meaning Of Co-Operative Society:
A co-operative society is an association of persons who have voluntarily joined together to achieve a common economic and social end through the formation of a jointly-owned and democratically controlled business organisation. Members make equitable contributions to the capital required and accept a fair share of the risks and benefits of the undertaking. Co-operative societieswork on the principles of self-help and mutual assistance to provide services for their members. These include credit, consumer, medical, insurance, dental, transport, security, food, housing, travel, childcare and welfare services.

Characteristics of Co-operative Society:
A co-operative society is a special type of business organisation different from other forms of organsation you have learnt earlier. Let us discuss its characteristics. i. Open membership: The membership of a Co-operative Society is open to all those who have a common interest. A minimum of ten members are required to form a cooperative society. The Co–operative societies Act does not specify the maximum number of members for any co-operative society. However, after the formation of the society, the member may specify the maximum number of members. Voluntary Association: Members join the co-operative society voluntarily, that is, by choice. A member can join the society as and when he likes, continue for as long as he likes, and leave the society at will. State control: To protect the interest of members, cooperative societies are placed under state control through registration. While getting registered, a society has to submit details about the members and the business it is to undertake. It has to maintain books of accounts, which are to be audited by government auditors. Sources of Finance: In a co-operative society capital is contributed by all the members. However, it can easily raise

ii.

iii.

iv.

2

loans and secure registration. v.

grants

from

government

after

its

Democratic Management: Co-operative societies are managed on democratic lines. The society is managed by a group known as “Board of Directors”. The members of the board of directors are the elected representatives of the society. Each member has a single vote, irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares. Service motive: Co-operatives are not formed to maximise profit like other forms of business organisation. The main purpose of a Co-operative Society is to provide service to its members. For example, in a Consumer Co-operative Store, goods are sold to its members at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its members and the general public. Separate Legal Entity: A Co-operative Society is registered under the Co-operative Societies Act. After registration a society becomes a separate legal entity, with limited liability of its members. Death, insolvency or lunacy of a member does not affect the existence of a society. It can enter into agreements with others and can purchase or sell properties in its own name. Distribution of Surplus: Every co-operative society in addition to providing services to its members, also generates some profit while conducting business. Profits are not earned at the cost of its members. Profit generated is distributed to its members not on the basis of the shares held by the members (like the company form of business), but on the basis of members’ participation in the business of the society. For example, in a consumer co-operative store only a small part of the profit is distributed to members as dividend on their shares; a major part of the profit is paid as purchase bonus to members on the basis of goods purchased by each member from the society. Self-help through mutual cooperation: Co-operative Societies thrive on the principle of mutual help. They are the 3

vi.

vii.

viii.

ix.

It is only by working jointly on the principle of “Each for all and all for each”. iii. Advantages of Co-operative Society: A Co-operative form of business organisation has the following advantages: i. The members cast their vote to elect their representatives to form a committee that looks after the day-to-day administration. Open Membership: Persons having common interest can form a co-operative society. etc. Limited Liability: The liability of members of a co-operative society is limited to the extent of capital contributed by them. This committee is accountable to all the members of the society. Such help may be provided in the form of capital contribution. the members can fight exploitation and secure a place in society. middlemen’s profit is eliminated. Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities. Any competent person can become a member at any time he/she likes and can leave the society at will. loans at low rates of interest. iv.organisations of financially weaker sections of society. subsidies in repayment of loans. Democratic Control: A co-operative society is controlled in a democratic manner. vi. v. exemption in tax. Easy Formation: Formation of a co-operative society is very easy compared to a joint stock company. Cooperative Societies convert the weakness of members into strength by adopting the principle of self-help through mutual co-operation. Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies. ii. 4 . State Assistance: Both Central and State governments provide all kinds of help to the societies. Elimination of Middlemen’s Profit: Through co-operatives the members or consumers control their own supplies and thus.

Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for support and patronage in terms of grants. because of limited capital they are not able to get the benefits of professional management. But it is often seen that there is a lot of friction between the members because of personality differences. This does not provide enough motivation to the members to put in their best effort and manage the society efficiently. the government sometimes directly interferes in the management of the society and also audit their annual accounts. Government’s assistance is often inadequate for most of the co-operative societies. Again. Lack of Co-operation: The co-operative societies are formed with the idea of mutual co-operation. etc. etc. loans subsidies. Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time. lunacy or resignation of any of its members. Limitations of Co–operative Society: Besides the above advantages. Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the membership is generally confined to a particular section of the society. Its existence is not affected by the death. iv. insolvency. Let us now sum up– 5 . ADVANTAGES DISADVANTAGES iii.vii. Problems in Management: Generally it is seen that cooperative societies do not function efficiently due to lack of managerial talent. i. ii. the co-operative form of business organisation also suffers from various limitations. v. Again due to low rate of return the members do not invest more capital. The members or their elected representatives are not experienced enough to manage the society. Due to this. Let us learn these limitations. The selfish attitude of members may sometimes bring an end to the society. ego clash. Lack of Motivation: Every co-operative society is formed to render service to its members rather than to earn profit.

or institutions which. management and marketing are performed by the members themselves. or co-operative societies and trade unions. A secondary society is a registered co-operative all of whose registered members are co-operative societies. e) To eliminates the middlemen and capitalists. have the qualifications for membership. its main purpose goods for the requirements of its members. All the necessary activities as production. • A primary society is a registered co-operative all of whose members are individual persons who. b) To produces the goods at the most economical level. trade unions. f) To remove the workers grievances in respect of working conditions. Surplus productions are also supplied to out sliders in the open market at profit.• • • • • • • • Easy formation Open membership Democratic Control Limited Liability Elimination of Middleman’s Profit State Assistance Stable Life • • • • • Limited Capital Problems in Management Lack of Motivation Lack of Cooperation Dependence on Government Types of Co-operative Societies: There are two types of co-operative societies. g) To arrange for the democratic control of the industrial unit. d) To disposes of the surplus production to non members at maximum price. These are formed to eliminate the middlemen and capitalist groups from the industrial production. a) To purchases the raw materials and other factors at most economical prices. Its members get dividend on the basis of the capital invested by them. c) To supervises the production most efficiently and effectively. • • 6 . wages etc. Producer cooperative societies.

Generally is two types are popular in the world. retailers and other middlemen from the channel of distribution and members are in a position to make their purchase at cheaper rate. It directly purchases the goods at large scale from the producer or wholesalers at whole sale price. A viability statement consisting of the business plan and the cash flow projections (at least 5 years) is to be prepared. Sometimes goods are also supplied to nonmembers but they do not share in the profit of the society. Considers the objects and the constitution of the society and drafts the By-laws. NRIC No. This society is the voluntary association of ordinary people formed with the object of obtaining daily requirements of the members. Citizenship. Address and the Office Tel No. their particulars (i. b) Wholesale cooperative store.) and the draft By-laws which include matters spelt out in The Schedule of the Co-operative Societies Act for the Registrar's comments.e. Date of Birth. • Stage 2: Seeking the Registrar's Comments After completing the feasibility study. It thus eliminates capitalists. Name. Formation of a Co-opeative Society: Stage 1: A Pro-tem Committee A Pro-tem Committee (at least 3 members): • Undertakes a feasibility study to determine the economic and financial viability of the proposed society. Stage 3: Preliminary Meeting 7 .• Consumer cooperative societies. a) Retail cooperative store. Profit earned by the store is distributed among the members according to the value of the purchases conducted by the manager who is elected by the members. Occupation. the Pro-tem Committee is to submit the viability statement. Any one can become member by purchasing one share of the society.

a) Type of Document Signatures Remarks Re qui red For credit society Form 1 At least 10 Provide: persons Name PIN No.After obtaining the Registrar's comments. Qualifications for membership: a) b) c) d) e) 16 years (12 years for school co-ops) registered society or trade union citizen or resident in India is not legally or mentally disabled is not an undischarged bankrupt f) meet residence. profession requirements as prescribed in by-laws g) credit co-op individual membership restricted to those who belong to pre-existing common bond of association or community of interest h) has not been convicted of an offence punishable with imprisonment i) is able to meet such other requirements prescribed by the By-laws. a Preliminary Meeting of at least 10 persons qualified for membership is convened to: • • adopt the By-laws (which have incorporated the Registry's comments). employment. and pass the resolution to accept all the rights. Stage 4: Application for registration The following documents are required to be submitted: SR. duties and liabilities prescribed by the By-laws. No. Nationality Occupation b) 8 . Nationality Occupation Address For non-credit society At least 10 Provide: Form 2 persons Name PIN No.

no need to resubmit. c) he is an undischarged bankrupt. The business of the first meeting shall include the election of officers who shall serve until the first annual general meeting. and g) he has been found to have previously misused or mismanaged the funds of a co-operative society. Registration of Society: 9 . subject to the Registrar's approval. f) he has been dismissed as an employee of a co-operative society. b) he is not a Singapore citizen or resident in Singapore. d) he has been convicted of an offence involving fraud or dishonesty • 5-year disqualification period applicable for non-credit co-ops • No time bar for credit co-ops. e) Minutes of the Preliminary All Meeting present those Upon registration. the Pro-tem Committee shall continue to manage the affairs of the co-operative society until the First Meeting of its members which is held not later than 3 months after receipt of the Notice of registration.c) d) By-laws Not applicable Viability statement Not applicable (business plan and cash flow forecast) Address Nil Cash flow forecast of at least 5 years. e) he has been convicted of an offence under the Co-operative Societies Act. If viability statement is unchanged from earlier submission. No person shall be eligible for membership of the Committee of Management of a co-operative society if: a) he is under 21 years of age (except in the case of school cooperatives).

[section 3]. Restrictions on society with limited liability: If a society has limited liability. class. unless State Government otherwise directs. and his decision will be final. and of which majority of members are agriculturists and of which no member is a registered society shall be unlimited [section 4].The last word in name of society should be ‘Limited’. is not applicable if a registered society is member of another society. unless State Government otherwise directs. However.. caste or occupation. An 10 . State Government can appoint persons to assist Registrar and confer on such persons all or any of powers of Registrar. Thus. If the Society is registered with limited liability. Similarly. a society established with the object of facilitating operation of such a society can also be registered under the Act.The provision of minimum 10 members or residing in same town/village etc. If object of society is creation of funds to be lent to its members. . (1) Liability of a society of which a member is a registered society shall be limited. (2) Liability of a society of which object is to creation of funds to be lent to members. but liability of such other society must be limited. Function of Registrar starts with registration of a society. He has powers of general supervision over society. all the members must be residing in same town.. He can order dissolution of society. can be registered as a Society. Who can form a society: A society can be formed with at least 10 members of age above 18 years. Registrar is empowered to decide whether a person is agriculturist or non-agriculturist or whether he is resident of same town/village or whether the members belong to same caste/tribe etc.State Government will appoint Registrar of Cooperative Societies. [section 7]. a registered society can be member of another society. Societies which may be registered A society. any individual member of such society cannot have share capital more than one-fifth of total capital. unless Registrar otherwise directs. Returns of Society are to be filed with Registrar. . The society can be registered with limited or unlimited liability. [section 6]. village or group of villages or all members should be of same tribe. He can order inquiry or inspection against society. which has as its object the promotion of economic interests of its members in accordance with cooperative principles.

the cash on hand limit under the old byelaws was Rs 300.. Model Bye. he will register the amendment.000 shares value is not applicable to a registered society which is member of another society. He will issue a certificate of registration along with copy of amendment certified by him. Byelaws are the rules that govern a co-operative society and its members and these undergo changes from time to time through amendments whenever the government feels the need for changes. Cash on hand is maintained by the society for day to expenses such as plumber's payments for instance. it can hold shares exceeding 20% or exceeding Rs 1. Over the years it was felt that the amount was not sufficient. 11 . And hence in the new byelaws the same has been increased to Rs 4. [section 11]. [section 5]. a housing society is free to adopt its own set of laws that governs its members. Since then. For instance.laws: If your co-operative society is old it may continue to follow old byelaws. . the government has made it mandatory for co-operative societies in Maharashtra to adopt the new byelaws.Thus. If Registrar is satisfied that the amendment is not contrary to Act or rules.000 in value. Such changes under various headings become imminent and that is how the new model byelaws came into effect from July 2. But when a new co-operative society approaches the registrar it would have to compulsorily adopt the new byelaws. if a registered society is member of another society.. . Under the Maharashtra Co-operative Societies Act 1960. 2001.individual member cannot have interest in shares exceeding Rs 1.This restriction of 20% shares or Rs 1. which is conclusive evidence that the amendment has been duly registered. Bye-laws: Any Amendment to bye-laws shall be registered with Registrar.500. These are called byelaws and are limited to the Maharashtra state.000.

audit fees for internal. For instance.000. the maintenance charge would be hiked to Rs 1.Byelaws are district specific. You were also needed to submit an affidavit saying that you do not hold any other flat in the same district. Service charges include salary of the office staff. watchman. Transfer of flat: Under the old byelaws in case you were to transfer your flat. 12 . Maintenance: Under the old byelaws the maintenance charged varied among members. But under the new model byelaw number 45 all that has been scrapped and a common charge is levied as per the general body resolution subject to the condition that it is not above Rs 25. if you were the owner of a flat in Mumbai you could not own another flat in the same city. It's the society's consent that matters. In other words while these are more or less the same there could be minor changes depending on which district you fall in whether it is Mumbai. But as per the new byelaws. Now if the flat was given on leave and licence. But another flat in Pune or Thane was allowed. water charges. in case the society has an independent office. For instance. the committee and the sub-committee retainer fees. maintenance is 10% of service charges. statutory and re-audit if any besides expenses incurred at meetings of the general body.5% of the difference in the purchase value minus sale value would be levied as transfer charges. a charge of 2. In the new byelaws the same has been done away with. Enumerated here are some of the differences between the old and the new byelaws.000. the property taxes. Purchase of second flat: Under the old byelaws there were restrictions on holding more than one flat. liftmen. electricity charges. statutory enquiry fees among others. let us say the monthly maintenance amount payable was Rs 500. etc. So you can very well purchase a flat in the same society. That apart it also includes entrance fees for affiliation to the housing federation and any other co-operative institution. Pune or Thane. Under Byelaw number 62 of the new model byelaws all you need to do is make an application to the society saying that you intend to purchase another flat. You needed to obtain the registrar's permission to purchase a second flat in the same society or within the limits of a certain district. legal charges.

daughter in law. sister in law. wife. rights and legal capacity as a member of the association who has reached 19 years of age. (2) Rules referred to in subsection (1) are subject to subsection (3). as a condition of the admission of a person or eligible organization as a member of the association. grandson. mother. must designate a class of shares as the membership shares and provide. son. sister.but only in respect of membership in an association and of any indebtedness or obligation to the association. son in law. the Age of Majority Act or the common law and subject to subsection (4) of this section. brother in law. and (b) may be sued. (3) Despite the Infants Act. in its rules. no transfer charge is to be levied in case of transfer of flat to any one of the family members.Transfer among family members: Under the old byelaws there were transfer charges applicable even if the transfer was between family members. 13 . Under byelaw number 3(25) family members means the following group of persons: husband. But then under Section 6 read with byelaw number 3 of the model byelaws. Members under 19 years of age (1) An association may provide in its rules for the admission to membership in the association of persons under 19 years of age who are at least 16 years of age. father. Membership share requirement An association. granddaughter Membership: The members of an association are the subscribers and the persons and eligible organizations admitted to membership in the association according to its rules. that the person or eligible organization subscribe for a minimum number of membership shares. an individual admitted to membership in an association who is under 19 years of age and who is at least 16 years of age (a) has the same obligations. brother. daughter.

(5) An association may exercise the powers under this section to terminate the membership of a member only by a resolution of the directors requiring a majority of at least 3/4 of all the directors and passed at a meeting of the directors called to consider the resolution. and (ii) has not rectified the breach within a reasonable time after receiving written notice to do so from the association. the member (i) has breached a material condition of an agreement with the association. 14 . and to subsections (5) and (6) of this section and sections 36 to 39. or (c) in the opinion of the directors. Termination Of Membership: (1) This section applies only to an association other than a housing cooperative. (b) the member has not paid money due by the member to the association within a reasonable time after receiving written notice to do so from the association. (4) Subject to any rules of an association for termination of membership. (2) An association may provide in its rules for the termination of the membership of a member. an association may terminate the membership of a member if (a) the member has engaged in conduct detrimental to the association.(4) An individual under 18 years of age is not eligible to be a director or officer of an association. based on reasonable grounds. (3) Rules referred to in subsection (2) are subject to this section and sections 36 to 39.

occupancy charges or other money due by the member to the housing cooperative in respect of the residential premises and has not rectified the nonpayment within a reasonable time after receiving written notice to do so from the housing cooperative. (2) Rules referred to in subsection (1) and the rules that a housing cooperative may adopt under subsection (3) of this section are subject to this section and sections 36 to 39. (3) A housing cooperative by its rules may adopt either of the following grounds as constituting grounds for termination of the membership of a member who has a right to possession or occupancy of residential premises that is dependent on the member's membership: (a) the member has not paid rent. has breached a material condition of an agreement between the member and the housing cooperative relating to the member's (A) possession premises. Termination of membership in a housing cooperative: (1) A housing cooperative may provide in its rules for the termination of the membership of a member. or (ii) in the opinion of the directors. occupancy charges or other money due by the member to the housing cooperative in respect of the residential premises.(6) Sections 156 and 208 do not apply to termination of a membership in an association on the grounds described in subsection (4) (b) or (c). based on reasonable grounds. or or occupancy of the residential (B) use of the property of which those premises form part. 15 . (b) the member (i) has not paid rent.

or (c) is passed by the required majority.and has not rectified the nonpayment or breach within a reasonable time after receiving written notice to do so from the housing cooperative. to make submissions at the meeting. (4) Subject to any rules of a housing cooperative for termination of membership. Notices respecting the termination of members: (1) A member of an association whose membership is proposed to be terminated by a resolution of the directors (a) is entitled to at least 7 days' notice of the meeting at which the resolution is to be considered. (5) A housing cooperative may exercise the powers under this section to terminate the membership of a member only by a resolution of the directors requiring a majority of at least 3/4 of all the directors and passed at a meeting of the directors called to consider the resolution. and (b) may appear. the directors must deliver written notice of the outcome to the member. and to subsections (5) and (6). (2) Within 7 days after the date on which a proposed resolution to terminate a membership referred to in subsection (1) (a) is withdrawn. a housing cooperative may terminate the membership of a member if the member has engaged in conduct detrimental to the housing cooperative. 16 . together with a statement of the grounds on which the member's membership is proposed to be terminated. (6) Sections 156 and 208 do not apply to termination under this section of a membership in a housing cooperative. either personally or by or with an agent or counsel. (b) is defeated because it does not receive the required majority.

if provided by the association's rules. by a special resolution. if provided by the housing cooperative's rules. or (ii) if the membership is terminated for the reason referred to in section 34 (4) (a). (i) if the membership is terminated for any of the reasons referred to in section 34 (4) (b) or (c). under and within the time limited by subsection (1). despite the resolution of the directors terminating the membership. by a special resolution. a greater majority. (i) if the membership is terminated for any of the reasons referred to in section 35 (3). to be a member of the association unless the members at the general meeting to which the appeal is brought confirm the termination of the membership (a) in the case of a membership in an association other than a housing cooperative. by delivering a notice of appeal to the association within 7 days after delivery of written notice under section 36 (2). or (ii) if the membership is terminated for the reason referred to in section 35 (4). by a resolution requiring a simple majority or. (2) A person whose membership in an association is terminated and who. or (b) in the case of a membership in a housing cooperative. (2. continues. appeals the termination of the membership.Appeal from termination of membership: (1) A person whose membership in an association is terminated under section 34 or 35 may appeal the decision of the directors at the next meeting of the association. a greater majority. by a resolution requiring a simple majority or. the housing cooperative must (a) promptly serve the person with 17 .1) If the members of a housing cooperative confirm the termination of a person's membership under subsection (2) (b).

1) (a) (i) may appeal the termination to the court before the expiry of the 30 day period beginning on the day after the person is served with the notice on any of the following grounds: (a) the housing cooperative failed to observe the principles of natural justice in terminating the membership. and (b) comply with other prescribed conditions. and (ii) a notice in the prescribed form of the person's right to appeal the termination under subsection (3). the housing cooperative may file an application under 18 .1) Despite section 171.1. and (b) served on the housing cooperative before expiry of the 14 day period beginning on the day after the notice of appeal is filed in the registry of the court. (b) the decision of the housing cooperative is not reasonably supported by the facts.(i) a notice that the resolution or special resolution confirming the termination was passed by the members. (c) the decision of the housing cooperative is not authorized by section 35. and may include with the appeal an application under section 172. (4. a person who has commenced an appeal in accordance with subsection (4) of this section continues to be a member of the association for the purposes of an application under section 172. (3.1) If a person commences an appeal under subsection (3) from a decision of a housing cooperative to terminate that person's membership. (4) An appeal to the court under subsection (3) must be commenced in accordance with Rule 49 of the Rules of Court by notice of appeal in Form 59 (a) filed in a registry of the court before expiry of the 30 day period referred to in subsection (3).1 for an order of possession. (3) A person who has been served with a notice under subsection (2.

restore the membership in the housing cooperative of the person whose membership was terminated by the resolution or special resolution. but not limited to.section 172 (1) with its appearance under Rule 49 (6) of the Rules of Court. and (b) may make appropriate.1.2) If an appeal is commenced under this section. the court must make an order of possession in favour of the member. the court must make an order of possession in favour of the housing cooperative. and (b) any application by the member under section 172. (4. any other order that the court considers (6) An appeal from a decision of the court under subsection (5) lies to the Court of Appeal with leave of a justice of the Court of Appeal. and the court (a) must either (i) despite section 39. (5) An appeal to the court under subsection (3) may be a new hearing and the court may hear all the evidence the court considers relevant including. and if an application has been made under section 172. (a) any application by the housing cooperative for an order under section 172 (1) must be filed with the appearance.1 must be filed with the notice of appeal so that the court may determine at the same time all the issues between the parties relating to the termination. with the restoration to be effective on and after a date specified by the court. 19 . and if an application has been made under section 172. or (ii) confirm the resolution or special resolution by which the members of the housing cooperative confirmed the termination of the person's membership. the evidence of the housing cooperative and the person.

to require the association to redeem (a) the person's membership shares. if the association's rules do not establish any period or conditions. (2) A person whose membership in an association is terminated under this Division is entitled. and (b) any of the person's investment shares in classes restricted for distribution to members only within a period and on conditions the association may establish under its rules. or (b) an association to which section 173 or 196 (2) applies. or immediately and unconditionally. Rights and liabilities of members: 20 . and (b) any of the person's investment shares in classes restricted for distribution to members only. (4) In the case of (a) a community service cooperative. subject to section 66 (2). subject to section 66 (2). of a person who withdraws from membership in a housing cooperative or whose membership in a housing cooperative is terminated. (3) The entitlement. is postponed until the person has given up the actual possession and occupancy of any residential premises in which the person had a right to possession or occupancy dependent on the person's membership.Requirement to redeem shares on membership withdrawal or termination: (1) A person who withdraws from membership in an association is entitled. described in subsections (1) and (2). to require the association to redeem (a) the person's membership shares. the refund on account of membership shares must not exceed the amount paid up on the member's membership shares.

unless the person so appointed is a member of the committee. unless approved by the Registrar. (2) The secretary. [section 13(2)]. each member will have as many votes as may be prescribed in bye-laws. if a member of the committee.A member of registered society shall not exercise his rights as member. (5) The secretary shall occupy his office until his services are determined by one month's notice in writing given by the committee: 21 . (4) In the event of failure on the part of the committee to appoint a secretary. if there is any default in payment to society. and every remuneration fixed by the Registrar shall be payable and recoverable. [section 13(1)]. shall be unpaid. the Registrar shall fix his remuneration. shall have power to fix the remuneration for his services. If liability of members of a registered society is limited by shares. the member cannot exercise his rights. unless the person so appointed is a member of the committee. it can vote by appointing a proxy.If liability of members is not limited by shares. [section 13(3)]. If a registered society has invested in shares of other registered society. Every such approval shall be communicated in writing by the Registrar to the committee. Every appointment made by the Registrar under this paragraph shall be valid and effective. each member shall have one vote irrespective of amount of his interest in the capital.. unless he has made payment to society in respect of membership or has acquired interest in society. as may be prescribed by rules or bye-laws. as if made or fixed by the committee. . and no remuneration fixed thereunder shall be payable or recoverable. [section 12]. Thus. Secretary of the Co-operative Society: (1) The committee shall appoint a secretary and. the Registrar shall appoint a secretary and. (3) No appointment made under paragraph (1) of this rule shall be valid and effective.

(c) to record the whole of the transactions of the registered society in the books provided for that purpose. books and vouchers for payments and receipts on behalf of the registered society. and with the authority of the committee to supply information about the registered society which may be applied for by members. (d) to receive all applications for loans and bring the same before the committee. to prepare receipts and other documents in the form prescribed for signature by borrowers prior to their taking the loans sanctioned. (e) to receive all moneys due or payable to the registered society and issue receipts to the payer for same from a counterfoil receipt book supplied to the registered society for the purpose by the Registrar. (b) to be present at the office during the hours of business as fixed from time to time by the committee. (f) to deposit with the treasurer from moneys collected by him on behalf of the registered society all sums in excess of an amount to be 22 . obtaining at the same time the signature of the person making the payment on the counterfoil. the provisions of this rule shall apply mutatis mutandis to the filling of such vacancy. and to have charge of the documents.Provided that no determination as aforesaid shall be valid and effective until the approval of the Registrar in writing has been obtained therefor. (6) The secretary may resign his office by giving one month's notice to the committee in writing. (7) On the occurrence of a vacancy in the office of the secretary. to prepare the annual statement of accounts and balance sheet. Duties of the Secretary the Co-operative Society: (a) to attend all meetings of the registered society and of the committee and to carry out all the instructions of the committee. to conduct correspondence on behalf of the registered society.

all moneys in his hands belonging to the registered society. on application by a primary society with less than 3. Meetings Held in a Co-operative society: General meeting The supreme authority of a society shall be vested in the general meeting of its members.000 members. if a primary society has more than 3. (h) to make payments as authorized by the committee. (i) to issue a receipt on a form to be taken from the prescribed counterfoil book when receiving money from the treasurer. and to produce at all times when called upon to the committee. or the Registrar or any person authorized by him. allow the society to replace the general meeting 23 . in every instance. each delegate representing a certain number of individual members.fixed from time to time by the committee and to obtain from him a receipt on a form to be taken from the prescribed counterfoil book. at which every member has a right to attend and to vote. and (j) to summon meetings as provided in the rules. obtaining the payee's signature on the payment book prescribed by the Registrar: Provided that if the payment is made outside the registered society's office the secretary shall. The delegates may not vote by proxy. (5) The Registrar may.000 members. (g) to keep separate all moneys belonging to the registered society and on no account to mix them with any other moneys. (3) The meeting of delegates shall consist of not less than 20 delegates. All provisions of this Act referring to general meetings of members shall include a reference to meetings of delegates. (2) Every individual person who is a member of a society may be eligible for election as a delegate. obtain from the payee a manuscript receipt and attach it to a separate page of the payment book. (4) The society shall make by-laws specifying the method by which the delegates are elected and the number of individual members represented by each delegate and the term of office of the delegates. elected from among the members. Meeting of delegates (1) Notwithstanding section 50. the general meeting of members may be replaced by a meeting of delegates.

(h) to consider and determine the maximum amount the society may borrow. a notice of every general meeting shall be sent to each member or delegate entitled to attend the meeting at least 15 clear days prior to the date of the meeting. the auditors of the society. but not later than 6 months after the end of the financial year. (2) Unless the by-laws otherwise provide. and may also provide for other general meetings. (c) to approve the financial statements. (b) to consider the auditor’s report. where necessary. Functions of annual general meeting The functions of the annual general meeting of a society are — (a) to consider and confirm the minutes of the last annual general meeting and of any other intervening general meeting. (g) to appoint. hold a first meeting of its members. unless the time is extended by the Registrar. and 24 . First meeting (1) Every society shall within 3 months after receipt of the notice of registration. (d) to consider and resolve the manner in which any available net surplus shall be distributed or invested subject to the provisions of this Act and the by-laws. if for any special reason he thinks fit to do so. (f) to elect or remove members of the committee of management. been obtained to extend that period. The notice shall state the matters for discussion and the resolutions to be proposed and no other subject shall be discussed without the consent of the majority of the members present and voting at the general meeting. (2) The business of the first meeting shall include the election of officers who shall serve until the first annual general meeting and shall be eligible for re-election.of members by a meeting of delegates. Annual general meeting (1) Every society shall provide in its by-laws for an annual general meeting to be convened by the committee of management and to be held as soon as practicable. unless the approval of the Registrar has. the reports of the committee of management and any report made by the Registrar or his representative. within that period of 6 months. (e) to consider and adopt any amendments to the by-laws.

the members making the requisition shall have power to convene the meeting themselves by notice to all members of the society stating the objects of the meeting and the fact that the committee of management has failed to convene the meeting. except that at least 7 clear days". stating the objects of the meeting. (3) If the committee of management fails to convene a meeting in accordance with subsection (2) within one month of receiving the requisition for the meeting. and in the case of a proposed amendment to bylaws at least 15 clear days". Extraordinary general meeting (1) An extraordinary general meeting of a society may be convened at any time by the committee of management of the society. The Cooperative Credit Societies Act.(i) to transact any other general business of the society of which due notice has been given to members. or given as provided in the by-laws.worker or artisans. cooperative societies are regarded as instruments to mobilize and aggregate community effort to eliminate layers of middlemen in any product or service supply chain hence resulting in greater benefit sharing for the grassroot farmer. Co-operative Society Act 1904: In India. (4) The Registrar or his representative may at any time convene a special general meeting of a society and may also direct what matters shall be discussed at the meeting. as the case may be. The Cooperative Credit Societies Act.worker or artisans. whichever is the less. (2) An extraordinary general meeting of a society shall be convened by the committee of management on receipt of a requisition for such a meeting signed by at least 20% or 60 of the members or delegates of the society. 1904 enabled formation of cooperatives for 25 . written notice of the meeting and of the subjects on the agenda for discussion have been sent to each member or delegate. Co-operative Society Act 1904: In India. The cooperative act 1912 expanded the sphere of cooperation and provided for supervision by central organization. 1904 enabled formation of cooperatives for supplying to farmers cheap credit and protect them from exploitation in the hands of the moneylenders. cooperative societies are regarded as instruments to mobilize and aggregate community effort to eliminate layers of middlemen in any product or service supply chain hence resulting in greater benefit sharing for the grassroot farmer.

the words. the same shall be decided by the Registrar after giving a reasonable opportunity of being heard to all the concerned parties. after the words “deemed to have been admitted as a member of the society”. after the words ‘become a member of such society”. for the purpose hereinafter appearing. 1960 (hereinafter referred to as “the principal Act”). “If any question arises whether a person has become a deemed member otherwise. 4. in such-section (2). This Act may be called the Maharashtra Co-operative Societies (Amendment) Short title Act. Our Comments : – Section 22(2) and 23 (1A) has been amended to clarify that as regards membership the power shall be exercised by the registrar. 1996. after the words “deemed to have been registered” the words” and thereafter the Registrar shall issue a certificate of registration under his seal and signature within a period of fifteen days “ shall be added. In section 23 of the principal Act. WHEREAS it is expedient further to amend the Maharashtra Cooperative Societies Act 1960. for sub-section (9). the same shall be decided by the Registrar after giving a reasonable opportunity of being heard to all the concerned parties”. the following sub-section shall be substituted.” shall be added. Maharashtra Co-operative Societies Act 1960: An Act further to amend the Maharashtra Co-operative Societies Act.supplying to farmers cheap credit and protect them from exploitation in the hands of the moneylenders. in sub-section (2). in sub-section (IA). In section 22 of the principal Act. It is hereby enacted in the Forty-seventh Year of the Republic of India as follows :1. namely : – 26 . the words “If any question arises whether a person has become a deemed member or otherwise. 1960. 3. had been amended to clarify the provision as regards Registration of Co-operative Society more explicit. 5. Our Comments :-Section 9. The cooperative act 1912 expanded the sphere of cooperation and provided for supervision by central organization. In section 9 of the Maharashtra Co-operative Societies Act. shall be added. 2. In section 27 of the principal Act.

as the case may be. – a) in such-section (I). of the committee” shall be substituted. in sub-section (I) – (a) for the words “union then the selection shall be made by the union with the largest membership. Instead of the previous period of six months. Treasurer or any other officers by whatsoever designation called. In section 73BB of the principal Act. the President. namely :“Explanation – For the purpose of this section the members of the committee shall mean and include the representatives of the employees”. (c) in sub-section (7) for the words “six months” the word as “one year” shall be substituted. Vice Chairman. Secretary. (b) in sub section (2) for the time being entitled to site and vote at any meeting of the committee” the words entitled to elect the President. Chairman. Chairman . Our comments :. The term of the administrator is now extended upto one year from the previous period of six months. then the seats so reserved shall be filled by an election by such employees from amongst themselves in the prescribed manner” shall be substituted. In section 73-1 D of the principal Act. then by an election by such employees from amongst themselves in the prescribed manner” the words “recognised union or unions and where there is no union at all or where there is a dispute in relation to such issues including whether a union is recognised or not. (b) the following Explanation shall be added at the end. Treasurer or any other officer. Vice Chairman. ii) for the words “for the time being entitled to sit and vote at any meeting of the committee ”the word as” entitled to vote at the election of such President.section 73 (1D) have been amended so that no confidence motion can be passed with simple majority instead of 2/3 majority. Subsection 7 of this section has been amended so that the requisition for a Fresh Motion of no confidence can be brought only after a period of one year. 7. Our Comments : – Section 27 has been amended so that the powers as regards Governmetn nominees as regards election of office bearers have been 0curtailed. who holds the office by virtue of his election to that office. – i) for the words “two-third majority” the words simple majority” shall be substituted. Secretary.“(9) No nominee of the Governmetn or any financing bank on the committee of any society shall be entitled to vote at any election of officers of such committee such as. Vice President. Treasurer or any other officer” shall be substituted. 6. Chairman. 27 . Vice President. Vice President. Secretary. Vice Chairman. and where there is no union at all.

Section 77 (A) has been amended so that the tenure of office of the Managing Committee or Administrator would be deemed to have been extended if for any reason whatsoever a new committee cannot be constituted before the expiry of the term office. In section 73H (2).if a member of the committee has been removed 28 . the term of office of the committee or Administrator. the committee before the expiration of its term. the following proviso shall be added. committee members who are elected. the total number of seats to be reserved for women shall be equal to the number of seats specified in sub-section (I)”. for the existing proviso. 11. the member who has been so removed. shall not be eligible to be re-elected. In section 78 of the principal Act. – (a) to sub-section (I). where the bye-law of a society already provide for reservation of seats for women on the committee thereof. Our Comments :. In section 77A of the principal Act. for any reason beyond the control of the committee or Administrator. namely :‘Explanation – For the purpose of determining the number of committee members under this sub-section. the following Explanation shall be added. the committee before the expiration of its term. the committee” the words “ The committee” shall be substituted. namely :“Provided hat. until the new committee is duly constituted.” Our Comments :. to conduct the elections before the expiry of the tenure of the committee. of the principal Act. or re-co-opted. 73BB and under this sub-section shall not be included”. the following proviso shall be substituted. in sub-section (3) the following proviso shall be added. as the case may be. in sub-section (3). co-opted nominate. as a member of any committee from the date on which he has been so removed or till such lesser period as may be laid down under the provisions of section 73FFF or 144E. at the end. re-nominated. for the words. shall be deemed to be extended. in sub-section (2). Our Committee. namely :‘Provided that. The above said amendment appears to have been made to bring consistency with the provisions of subsection (2B) of subsection 73-G. namely:“Provided that. as the case may be”. (b) in sub-section (2). “where there is a willful failure on the part of the committee to hold election to the committee before the expiration of its term. if a new committee is not. appointed or otherwise occupying the position on the committee under 73B. In section 73BB of the principal Act. 9. or cannot be constituted at the expiry or termination of the term of office of the committee or Administrator. 10.8. re-appointed.

member of Committee or other person 29 . Provided that. to the Registrar. (b) If made by any person other than the Registrar.Committee means the governing body of a registered society to whom the management of its affairs is entrusted. to the State Government . In section 112B of the principal Act.under this section than he cannot be re-elected. . or the Special or Additional or Joint Registrar on whom the powers of the Registrar are conferred. except with the previous sanction of the Registrar. Where there is no recognised union or unions or where there is no union at all. 14. for the words” such employees”. in sub-clause (iv). [section 2(b)]. treasurer. for sub-section (3). Management of society: Each society will be managed by Committee.C. or the special or Additional or Joint Registrar on whom the powers of the Registrar are conferred. The election shall be held by the Collector in the manner laid down in Chapter XI-A of this Act”.. the employees shall elect representatives from amongst themselves. the following sub-section shall be substituted. renominated or recopted as a member of the Managing Committee for one full term from the date he has been removed or for such period as laid down in provisions of sections 73FFF or 144E of the M. In section 104 of the principal Act. Officer of society includes a Chairman. the following sub-section shall be substituted. 13. Secretary. (ii) or (iii) of clause (c) of sub-section (I) of section 102”. Our comments : – Subsection of 104 has been substituted to specify in which cases the appeal should lie with the registrar and in which places the appeal should lie with the State Government. the following shall be substituted namely :“such employees.(a) if made by the Registrar. in sub section (I) in clause (b). issued under subclause (i). reappointed. 12. In section 148 of the principal Act. Act 1960. no appeal shall lie against order. namely :“(1) The committee or any member of the society ordered to be wound up may prefer an appeal against the final order of winding-up within two months form the date of the issue of the order made under section 102. for sub-section (I).S. namely :(3) No prosecution under this Act shall be lodged.

hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution. and shall on the request of the Collector. [section 35(1)]. enter into contracts. Audit: (1)The Registrar shall audit or cause to be audited by some person authorised by him by general or special order in writing in this behalf the accounts of every registered society once at least in every year. Inspection of affairs of society: Registrar can hold an enquiry or direct some person authorised by him to hold enquiry in following circumstances – (a) Of his own motion (b) Request of Collector (c) Application by majority of committee members of society or (d) At least one-third of members of society. if any. [section 2(e)]. (just like a company). or of not less than one. All officers and members of society shall furnish necessary information to registrar or person authorised by him. or on the application of a majority of the committee. and every officer of the society shall furnish such information in regard to the transactions and working of the society as the person making such inspection may require. and a valuation of the assets and liabilities of the society. papers and securities of a society. accounts. [section 18]. (3) The Registrar. working and financial condition of a registered society. Registered Society is body corporate: A registered cooperative society is a body corporate with perpetual succession and common sea. (2) The audit under sub-section (1) shall include an examination of overdue debts.third of the members. [section 35(2)].empowered under rules or bye-laws to give directions in regard to business of society. It can hold property. (2) All officers and members of the society shall furnish such information in regard to the affairs of the society as the Registrar or the person authorised by the Registrar may require. 30 . the Collector or any person authorised by general or special order in writing in this behalf by the Registrar shall at all times have access to all the books. institute and defend suit and other legal proceedings and to do all things necessary for the purposes of its constitution. 1) The Registrar may of his own motion.

the farmers of the area went on a milk strike refusing to be further oppressed. Often milk went sour as producers had to physically carry the milk in individual containers. 31 . as most producers were marginal farmers who were in a position to deliver 1-2 litres of milk per day. the producer was either left with surplus / unsold milk or had to sell it at very low prices. the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply it to Bombay city in turn. Milk Producers had to travel long distances to deliver milk to the only dairy. Thus the Kaira District Cooperative was established to collect and process milk in the District of Kaira in 1946. In winter. Milk is a commodity that has to be collected twice a day from each cow/buffalo. 1946 as a response to exploitation of marginal milk producers by traders or agents of existing dairies in the small town named Anand (in Kaira District of Gujarat). Sardar Patel advised the farmers to form a Cooperative and supply milk directly to the Bombay Milk Scheme instead of selling it to Polson (who did the same but gave low prices to the producers). India ranked nowhere amongst milk producing countries in the world in 1946. The Kaira District Cooperative Milk Producers’ Union Limited was registered on December 14. In 1946. He sent Morarji Desai (who later became Prime Minister of India) to organize the farmers. the farmers of Kaira District approached Sardar Vallabhbhai Patel (who later became the first Deputy Prime Minister and Home Minister of free India) under the leadership of the local farmer leader Tribhuvandas Patel. the Polson Dairy in Anand.The Birth of Amul and development of India’s Dairy Cooperative Movement: The birth of Amul at Anand provided the impetus to the cooperative dairy movement in the country. Moreover. Angered by the unfair and manipulative trade practices. Village level cooperatives were established to organize the marginal milk producers in each of these villages. Milk collection was also decentralized. These agents arbitrarily decided the prices depending on the production and the season. especially in the summer season.

Baroda. The facilities at all levels are entirely farmer-owned. the World Food Prize and the Magsaysay Award winner.The Cooperative was further developed & managed by Dr. the National Dairy Developed Board was formed and Operation Flood Programme was launched for replication of the Amul Model all over India. we managed to eliminate competition between Gujarat’s cooperatives while competing with the private sector as a combined stronger force. Operation Flood. The first modern dairy of the Kaira Union was established at Anand (which popularly came to be known as AMUL dairy after its brand name). This was possible due to the leadership of the founder Chairman of AMUL. Indigenous R&D and technology development at the Cooperative had led to the successful production of skimmed milk powder from buffalo milk – the first time on a commercial scale anywhere in the world. Impressed with the development of dairy cooperatives in Kaira District & its success. is based on the experience gained from the ‘Amul Model’ dairy cooperatives. is the architect of India’s White Revolution. Within a short span five other district unions – Mehsana. in 1973. Numerous people contributed to this movement which would otherwise not have been possible. Banaskantha. Verghese Kurien who worked as a professional manager at AMUL. Dr. Verghese Kurien. With the creation of GCMMF (AMUL). Shri Lal Bahadur Shastri. the Gujarat Co-operative Milk Marketing Federation was established. which had established the brand name AMUL in 1955 decided to hand over the brand name to GCMMF (AMUL). GCMMF (AMUL) has ensured remunerative returns to the farmers while providing consumers with products under the brand name AMUL. The Kaira District Cooperative Milk Producers’ Union Ltd. V Kurien along with Shri H M Dalaya. In order to combine forces and expand the market while saving on advertising and avoid a situation where milk cooperatives would compete against each other it was decided to set up an apex marketing body of dairy cooperative unions in Gujarat. asked Dr. Sabarkantha and Surat were organized. The success of the dairy co-operative movement spread rapidly in Gujarat. The 32 . V Kurien to replicate the Anand type dairy cooperatives all over India. Thus. Dr. Tribhuvandas Patel and the vision of the father of the White Revolution. the then Prime Minister of India during his visit to Anand in 1964. The foundations of a modern dairy industry in India were thus laid since India had one of the largest buffalo populations in the world. which helped India emerge as the largest milk producer in the world. the world’s largest dairy development programme. Thus.

nios. supply inputs and create valueadded processing.ca/Recon/document/freeside/--%20C %20--/Cooperative%20Association%20Act%20%20SBC %201999%20%20c.pdf+cooperative+society&hl=en&gl=in&pid=bl &srcid=ADGEESjV8RrwKlzIug6gA1_Lt1vpdIPIK65g3MCO LgPgcAQDviC3bquX5NY8LgwoABoVyIbEqsPUHwwFBoHbSlRRr1hYb5qMM9wXK VlfKcq92JMzLWr-zYlq27ogc2tlPOkKqzUlNA&sig=AHIEtbTGp2lpHWcxyz5xQib5YlJasXo Dmg 33 .bclaws.com/viewer? a=v&q=cache:uRy7sMwHKlMJ:www.com/legal/society/ma harashtra-co-operative-society-act/ • http://www.accommodationtimes.in/Secbusco ur/cc09. Amul Model cooperatives seem to be the most appropriate organizational force for promoting agricultural development using modern technologies and professional management and thereby generating employment for the rural masses and eradicating poverty in these undeveloped areas.%2028/00_99028_01. Thus.cooperatives are able to build markets.google. India has already demonstrated the superiority of this approach.xml • http://docs.ac. Webliography: • http://www.

org/wiki/Cooperative 34 .• http://en.wikipedia.

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