LexThe Punjab Self-Supporting Co-operative Societies Act, 2006
Punjab · state statute
Open in Lexace · Ask the AI about this act| | \ PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 77 (KRTK 17, 1932 SAKA) PART 1 DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB Notification The 8th November, 2010 No. 25-Leg./2010.—The following Act of the Legislature of the State of Punjab received the assent of the President of India on the Sth December, 2008, and is hereby published for general information :— THE PUNJAB SELF-SUPPORTING CO-OPERATIVE SOCIETIES ACT, 2006 (Punjab Act No. 17 of 2010) AN ACT fo facilitate voluntary formation of self-supporting co-operative societies as self-reliant, self-help, mutually aided, autonomous, accountable, voluntary, democratic business enterprises, jointly owned, managed and controlled by members for their economic and social betterment through the financially gainful core services and for the matters connected therewith or incidental thereto. BE it enacted by the Legislature of the State of Punjab in the Fifty- seventh Year of the Republic of India as follows :— CHAPTER-I Preliminary 1. (1) This Actmay be called the Punjab Self-Supporting Co-operative Societies Act, 2006. (2) It shall come into force on such date as the Government may by notification, appoint. 2. In this Act, unless the context otherwise requires,— (a) “Arbitration Council” means an arbitration council referred to in section 57 ; (b) “Board” means the governing body of a self-supporting co- operative society ; fc) “bye-laws” means bye-laws made by a self-supporting co- operative society and registered with the Registrar ; (d) “Chief Executive” means an executive head of a self- supporting co-operative society by whatever name called and appointed in accordance with the bye-laws ; Short title and commencement. Definitions PUNJAB GOVT GAZ. (EXTRA.). NOV. §, 2010 (KRTK 17, 1932 SAKA) fe) (f) (g) (h) (i) g) (k) a) (m) (n) (o) “co-operative society” means a society registered or deemed to be registered under the Punjab Co-operative Societies Act, 1961 (Punjab Act No. 25 of 1961) ; “Co-operative Tribunal” means a Tribunal constituted under section 59 ; “core services” means the central services including value added services provided to the members, through which a self-supporting co-operative society intends to meet the needs common to them for the fulfilment of which, the self-supporting co-operative society has been formed ; “Court” means the civil court or criminal court of competent jurisdiction ; “deficit” means the net excess of expenditure over income, determined at the end of a financial year ; “deficit charge” means the amount collected from or debited to the accounts of members in proportion to the use or non- use of the services of the self-supporting co-operative society in accordance with the bye-laws and resolution of the general body to meet deficit, if any, in whole or in part ; “delegate” means a person elected by the members to represent them in the general body of another self-supporting co-operative society in accordance with bye-laws : “delegate general body” in relation to a self-supporting co- operative society means all its delegates : “delegate general body meeting” means a meeting of the delegates, conducted in accordance with the provisions of this Act, rules and the bye-laws : “Director” means a member of the Board of Directors ; “Education Fund” means a fund established under section 14 of this Act for the purpose of imparting education to the ‘members, officers and officials of a self-supporting co- operative society ; AN PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 79 (KRTK 17, 1932 SAKA) (p) (q) (r) (s) (t) (u) wv) (x) (v) “family” includes husband, wife and their dependants ; “Federal Self-Supporting Co-operative Society” means a Self- Supporting Co-operative Society constituted by at Jeast five Self-supporting Co-operative Societies and registered as such under this Act ; “general body” in relation to a self-supporting co-operative society means all its members ; “general meeting” means a meeting of the general body of a self-supporting co-operative society ; “Government” means the Government of the State of Punjab in the Department of Co-operation ; “Government aid” includes Government share capital, loan, subsidy, guarantee, but does not include assistance provided under any scheme of the State or Central Government, where such assistance is also provided to organizations or institutions other than the self-supporting co-operative societies ; “member” means a person, who is admitted as a member of the self-supporting co-operative society in accordance with the provisions of this Act, rules and bye-laws ; “officer” means the President, Vice-President, Managing Director, Secretary, Manager, Member of the Board, Treasurer, Liquidator of a self-supporting co-operative society and includes any other person, empowered under the rules or bye-laws to give directions in regard to the business of such society ; “office bearer” means any person elected as President, Vice- President or in any such like capacity by the Board, in connection with the affairs of a self-supporting co-operative society in accordance with the bye-laws ; “owned fund” means the total paid-up share capital, reserve fund and any other funds created out of the profits and undistributed profits, minus accumulated losses ; 80 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) (z) “prescribed” means prescribed by rules ; (za) “Registrar” means a person referred to in sub-section (7) of section 3 : “representative” means a member of the Board nominated by a self-supporting co-operative society to represent its interest in any other organisation or institution of which such zh) society is a member ; (zc) “rules” means the rules made under this Act ; (zd) “Schedule” means a Schedule appended to this Act ; (ze) “Scheduled Bank” shall have the same meaning as assigned to it in the Reserve Bank of India Act, 1934 (Act 2 of 1934); (zf) “section” means a section of this Act ; (zg) “self-supporting co-operative society” means a self-supporting co-operative society registered under this Act ; (zh) “self-supporting co-operative society with limited liabilities” means the self-supporting co-operative society in which the liability of its members for its debts in the event of its being wound up, is limited by its bye-laws to such an extent as they may undertake to contribute to the assets of such society ; (zi) “self-supporting co-operative society with unlimited liabilities” means the self-supporting co-operative society, the members of which are in the event of its being wound up jointl severally liable for and ip respect of its obligations a / o contribute to any deficit in the assets of the society : oe (zj) Service” means such facilities as are provided by the self supporting Co-operative society to its members to meet its objectives ; (zk) “special resolution” means aresolution of the general body or delegate general bod Y Passed by two-third maior members present and voting in the meeting ory of the (zl) “State” means the State of Punjab PUNJAB GOVT GAZ (EXTRA), NOV. 8,2010 #! _ (KRTK 17, 1932 SAKA) (zm) “sub-committee” means a sub-conunittee constituted by the Board as per bve-laws ; fZees “rurplus”™ means the net excess of income over expenditure, arrived at, at the end of a linancial year after the payment of dividend, i€any, on share capital and before payment of surplus refund, allocation of reserves and other funds ; and ‘za) “surplus refund” means the refund from the surplus given io or credited to the accounts of the members, in proportion to their use of the services of the self-supporting co-operative society in accordance with the bye-laws and resolution of the generai body. CHAPTER-II Registrar and registration of a self-supporting co-eperative society 3. (1) The Registiar appointed under seciion 3 of the Punjab Co- operative Societies Act, 1961, shall be deemed to be the Registrar under this Act also. (2) The officers appointed by the State Government to assist the Registrar under the Punjab Co-operative Societies Act, 1961, shall be deemed to be the officers to assist the Registrar under this Act also. (3) The officers referred to in sub-section (2), shall exercise such powers and perform such duties. as may be conferred and imposed on them under this Act by the Government, by a special or general order within the areas, as may be specified in the said order. (4) The aforesaid officers shall be subordinate to the Registrar and shall work under his superintendence and control. (5) For the purpose of removing any doubt, it is made clear that where any order is passed or decision is taken by an officer, by virtue of an order made by the Government under sub-section (3), it shall for the purpose of appeal, be deemed to be order or decision of that officer and not of the Registrar. 4. (1) No self-supporting co-operative society shall be registered under this Act, unless its bye-laws are found to be in conformity with the co-operative principles and guidelines mentioned in the Schedule, and consists of not less than ten members competent to make contract under the Indian Contract Act, 1872 (Central Act 9 of 1872) belonging to ten difterent families. Registrar and other officers. Registration of a self-supporting co-operative seclety and federal seli-supporting co-uperative society 82 PUNJAB GOVT GAZ. (EXTRA.}, NOV. 8, 2010 (KRTK 17, 1932 SAKA) (2) For the purpose of registration, an application shall be submitted to the Registrar by hand or by registered post, signed by atleast ten persons, who wish to form a self-supporting co-operative society or by a duly authorised person on behalf of every self-supporting co-operative society which intends to form a federal self-supporting co-operative society and the Kegistrar shall give due acknowledgement thereof. (3) The person by whom or on whose behaif such application is made, shall furnish such information in regard to the proposed self-supporting co-operative society or federal self-supporting co-operative society, as the case may be. as the Registrar may require. (4) An application for registration shall be made to the Registrar which shall be accompanied by the following documents, namely :— (a) two copies of the proposed bye-laws of the self-supporting co-operative society or the federal self-supporting co-operative society, as the case may be ; (b) a list of names of members with their addresses and occupations ; (c) a list of members of the Board elected by the promoting members ; (d) atrue copy of the minutes of the meeting at which the bye- laws were adopted ; and (e) receipt of deposit of registration fee as specified by the Registrar. (3) The Registrar shall scrutinise the application and bye-laws submitted under sub-section (4) keeping in view the norms laid down in the Schedule and if he is satisfied that the application and the proposed bye- laws are in consonance with the provisions of this Act, he shall register the self-supporting co-operative society or the federal self-supporting co- operative society, as the case may be, and also its bye-laws and issue a certificate of registration and return in original the registered bve-laws after signing and putting a seal on them within a period of the date of receipt of application to the concerned society or its duly authorised person, as the case may be. sixty days from PUNJAB GOVT GAZ. (EXTRA). NOV. 8, 2010 83 (KRTK 17, 1932 SAKA) (6) 1f the application for registration is not in conformity with the provisions of sub-sections (4) and (5), the Registrar after giving an opportunity of being heard to the applicant, shall communicate the order for refusal together- with reasons thereof within a period of sixty days from the date of receipt of the application to the duly authorised person. In case, no refusal is communicated within the said period, the self-supporting co-operative society or the federal self-supporting co-operative society, as the case may be, shall be deemed to have been registered and in that event, the Registrar shall send a certificate of deemed registration and the original copy of the deemed registered bye-laws signed and sealed by him within a period of thirty days after the expiry of the stipulated period of sixty days to the aforesaid duly authorised person. (7) Where an order of refusal is received under sub-seciton (6), or where the certificate of deemed registration is not received by the duly authorised person within the period, specified in that sub-section, he may— (a) submit an application to the Registrar against the refusal and seek registration afresh ; or (hb) make an appeal against the order of refusal or delay in issuing the certificate of deemed registration to the Co-operative Tribunal within a period of sixty days from the communication of such an order or within sixty days of the period prescribed for issuing the certificate of deemed registration. (8) The certificate of registration signed by the Registrar with the seal of his office, shall be the conclusive evidence that the self-supporting co- operative society or the federal self-supporting co-operative society mentioned therein, is duly registered under this Act. 5. (1, Notwithstanding anything contained in the Punjab Co-operative Societies Act, 1961 (hereinafter in short referred to as the Act of 1961), a primary co-operative society which intends to convert itself into a self-supporting co-operative society, may apply to the Registrar for conversion into a self- supporting co-operative society under this Act : Provided that where the Central Government or State Government has given Government aid to such a co-operative society, it shall, before applying for such conversion, return such Government aid ; Explanation :—¥or the purpose of this sub-seciton, the expression “primary co-operative society” shall mean a co-operative society whose membership consists exclusively of individuals. Conversicn of a primary co- operative society mto self- supporting co- operative society PUNJAB GOVT GAZ. (EXTRA), NOV. 8, 2010 (KRTK 17, 1932 SAKA) ) An application for conversion shall be submitted to the Registrar by hand or by registered post, by the duly authorised person of such primary co-operative zociety, along with the special resolution passed in this regard by ——— aiving thirty days notice. (3) The duly authorised person shail furnish such information, with regard to the primary co-operative society applying under sub-section (1), as the Registrar may require. (4) Every such application shall be accorapanied by— (ez) a true copy of the special resolution passed by the general body certifying the fact that such primary co-operative society shall follow the co-operative principles and guidelines, mentioned in the Schedule ; (b) two copies of the bye-laws adopted by the general body of such primary co-operative society through a special resolution ; (¢) evidence to show that ihe primary co-operative society is not in possession of any Government aid from the Central Government or the State Government ; (dj a true copy of the latest annual report and audited statement of accounts of such primary co-operative society ; fe) alist of members, who attended the meeting of general body or delegate general body of such primary co-operative society ; and (f) receipt of deposit of registration fee as may be specified from time to time by the Registrar. (5) Ifthe Registrar is satisfied that the application and the proposed bye-laws are in consonance with the provisions of this Act, he shall convert the primary co-operative society into a self-supporting co-operative society and register the same as such and its bye-laws and issue a certificate of registration and return the copy of the registered bye-laws duly signed and sealed by him within a period of sixty days from the date of rece; ptotfapplication to such society through its duly authorised person. Le PUNJAB GOVT GAZ. (EXTRA.), NOV. 8,2010 85 (KRTK 17, 1932 SAKA) (6) If the application for registration is not in conformity with the provisions of sub-sections (4) and (5), the Registrar, after giving an opportunity of being heard to such a society, shall communicate by registered post, the order of refusal for registration along with the reasons therefor within a period of sixty days from the date of receipt of application for registraticn to the said society. (7) Where an order of refusal is received under sub-section (6) by the duly authorised person within the period, specified in that sub-section, he may— (a) submit an application to the Registrar against the refusal and seek registration afresh ; or “(b) make an appeal against the order of refusal or delay in issuing the certificate of deemed registration to the Co-operative Tribunal within a peirod of sixty days from the date of communication of such an order. (8) The certificate of registration signed by the Registrar with the seal of his office, shall be the conclusive evidence that the self-supporting co- operative society mentioned therein is duly registered under this Act. (9) If the application for registration is not disposed of within a period of sixty days or the Registrar fails to communicate the order of refusal within that period, the application shall be deemed to have been accepted for registration in accordance with the provisions of this Act after the expiration of a period of thirty days from the said period of sixty days. (10) Where a primary co-operative society is converted and registered under sub-section (5), it shall send to the Registrar, Co-operative Societies, a copy of registration certificate issued under the Punjab Co-operative Societies Act, 1961, and the Registrar shall, within a period of thirty days from the receipt of such copy, cancel registration of such primary co-operative society and delete the name of such society from the register maintained by him. (11) Consequent upon the conversion of a primary co-operative society into a self-supporting co-operative society, the assets, liabilities, rights, obligations and transactions of such primary co-operative society shall be deemed to be the assets, liabilities, rights, obligations and transactions of the Sclf-supporting co-operative society 10 be a body corporate. Display of name. 80 PUNJAB GOVT GAZ. (EXTRA.), NOV. &, 2010 (KRTK 17, 1932 SAKA) self-supporting co-operative society. Like-wise, the members of the primary co-operative society shall be deemed to be the members of the self-supporting co-operative society. (12) At the time of conversion of primary co-operative society mto a self-supporting co-operative society, if the term of elected Board of Directors of primary co-operative society has not expi-ed, the same Board of Directors shall continue to hold office for the remaining term or for onc year, whichever is less. 6. (1) The self-supporting co-operative society shall be a body corporate by the name under which it is registered having perpetual succession and a common seal and shall be entitled to acquire, hold and dispose of property, to enter into contracts on its behalf, to institute, conduct and defend suits and other legal proceedings and to take all such steps as are necessary to achieve its objectives. (2) All transactions entered into in good faith, in furtherance of the purposes of the self-supporting co-operative society prior to its registration, shall be deemed to be the transactions of the self-supporting co-operative society after registration ; provided a resolution to ...at effect is passed in the first meeting of the Board of such society after its registration. (3) A self-supporting co-operative society registered with limited liability shall have the word ‘Limited’ as suffix to its name. 7. (1) Every self-supporting co-operative society shall display its full name, registration number and the address of its registered office in legible local language, conspicuously (a) at every office or place at which it carries on business ; (b) on all notices and other publications : (¢) onallits contracts, business letters, orders tor goods, invoices, statements of accounts, receipts and letters of credit ; and (d) on all bills of exchange, promissory notes, endorsements, cheques and orders for money, it signs or that are signed on its behalf. (2) Wherea self-supporting co-operative society has a seal, it shall display its full name in legible local language on its seal. PUNJAB GOVT GAZ. (EXTRA), NOV. 8, 2010 87 (KRTK 17.1932 SAKA) (3) A self-supporting co-operative society shall not be registered with the same name, if another self-supporting co-operative society or a co operative society, as the case may be, already stands registered by that name 8. (7) Every self-supporting co-operative society shall make its bye laws and shall function and be managed in accordance with the bye-laws 2) Subject to the provisions of this Act, the bye-laws made under sub-section (7). shall provide for the following matters, namely : (r) (ii) (iii) (iv) (v) (vi) vit) (viit) (ix) (x) (xi) the name, address and area of operation of the self-supporting co-operative society ; the object of the self-supporting co-operative society explicitly stating the provisions of core service to fulfil such common needs of the members, as the said society aims to fulfil ; eligibility. ineligibility and procedure for obtaining and retaining membership ; procedure for withdrawal, cessation and termination of membership ; the services intended to be provided to the persons, who are not members ; fixation of minimum performance expected annually from cach member in respect of use of services, financial commitment and participation in meetings, in order to be eligible to exercise the right to vote and the consequences of performance, below the expected norms ; the consequences of default in payment of any sum duc from a member ; rights and duties of members ; the nature and extent of the liability of the members for the debts of the self-supporting co-operative society ; the powers and functions of the general body ; the powers and functions of the delegate general body : Hye laws 38 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) (xii) (xiii) (xiv) (xv) (xvi) (xvii) (xviii) (xix) (xx) (xxi) (xxii) (xxiii) (xxiv) (xxv) (xxvi) the subjects, which may be dealt with by the general body ang the delegate general body ; the manner of convening the meetings of the general body and quorum required for meeting ; the size and composition of the Board or the sub-committee, as the case may be ; the manner of conducting the electioi: of the Board and filling up casual vacancies of the Board ; the term of office and manner of removal of the Directors : the manner and frequency of convening the meetings of the Board and quorum required for a meeting ; the powers and duties of the Board : the powers and duties of the Chairperson of the Board ; the terms on which the self-suppoiting co-operative society may deal with a non-member ; eligibility and ineligibility for becoming or continuing as a Director ; the penalties for acting against the interest of the self- supporting co-operative society and for non-fulfilment of duties by members, office bearers, directors and staff ; the nature and extent of the liability of officers and members for debts contracted by the self-supporting co-operative society ; the authorization of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the self-supporting co-operative society ; the manner of choosing delegates to federal self-supporting co-operative societies ; the rights, if any, which the self-supporting co-operative society intends to confer on any other self-supporting co-operative society and the circumstances under which these rights may be exercised by such society ; - PUNJAB GOVT GAZ. (EXTRA). NOV. 8, 2010 89 (KRTK 17, 1932 SAKA) (xxvii) the nature and extent of capital, if any, of the self-supporting co-operative society ; xxviii) the maximum share capital which a single member can hold ; (xxix) the maximum return to members on paid-up share capital ; (xxx) the source, type and extent of funds to be raised by the self-supporting co-operative society ; (xxxi) the purposes for which the funds may be applied ; (xxxii) the constitution of various funds and their purposes ; (xxxiii) the functions and powers of the sub-committee ; the manner of appointment of auditors and their powers (XXXIV) and functions ; (xxxv) the manner of disposal of funds in the event of liquidation of self-supporting co-operative society ; (xxxvi) the manner of constitution and functioning of arbitration council ; (xxxvii) the manner of liquidation of the self-supporting co-operative society ; (xxxviii) distribution of profits ; and (xxxix) other matters which are identical or incidental and are required | to be provided in the bye-laws. Amendment 9. (1) A self-supporting co-operative society may amend any of the of bye-laws. provisions of its bye-laws : Provided that for making an amendment, a special resolution shall have to be passed by the general body of the self-supporting co-operative society, (2) For the purpose of passing a special resolution referred to in sub- section (/), a notice of thirty days shall have to be given in writing to each member of the general body alongwith a draft of the proposed amendment by registered post. 30 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) : v , CE —— 3) After the amendment is made, the same shall be forwardeg by thirty days from the date of making of amendment for registration. (4) Every application forwarding amendment to the Registra, for registration, shall be accompained by a copy of special resolution. (5) Ifthe amendment made in the bye-iaws is found to be in conformity with the provisions of this Act and the rules made thereunder, the Registra shall register it within a period of forty-five days from the date of receipt of the application. If the amendment made in the bye-laws is not found to be in conformity with the provisions of this Act and the rules made thereunder, the Registrar may refuse to register the amendment : Provided that before refusing to register any amendment in the bye- laws, an opportunity of being heard shali be given to the self-supporting co- operative society by the Registrar. (6) An order of refusal for registering an amendment in the bye- laws, shall be forwarded by the Registrar to the self-supporting co-operative society within a period of thrity days alongwith the reasons for refusal. (7) In case, no order is passed by the Registrar for registering an amendment or refusing to register the amendment within a period of ninety days from the date of receipt of the application for registration, it shall be deemed that an amendment to the bye-laws has been registered. (8) An appeal against the order of refusal to register an amendment in the bye-laws shall lie to the Co-operative Tribunal within a period of sixty days from the date of receipt of the communication of such refusal Transfer of assets 10. (1) A self-supporting co-operative society may, by a special iii resolution of its general body decide to— division, amalgam- ation or merger of . [3 I . , 2 a self-supporting (a) transfer its assets and liabilities, in whole or in part to any co-operative other self-supporting co-operative society, which agrees t0 ociety. 2 . ee ye society such transfer by a special resolution of its general body : Of (b) divide itself into two or more self-supporting co-operative societies. (2) Any two or more self-supporting co-operative societies may, bY passing a special resolution of their respective general bodies, decide 10 amalgamate themselves and form a new self-supportin g co-operative society: PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 91 (KRTK 17, 1932 SAKA) ISL Before passing a special resolution under this section, the self- supporting co-operative society shall give notice thereof together with a copy of such resolution to all its members and creditors for giving their consent. (4) Notwithstanding any bye-laws or contract to the contrary, any member of a self-supporting co-operative society or creditor, not consenting to the spacial resolution, shall, during a period of thirty days from the date of sorvive of the notice, have the option of withdrawing his shares, deposits, loans or services, as the case may be. (5) Any member or creditor who fails to give his consent within the period specified under sub-section (4), shall be deemed to have consented to the speciai resolution. (6) A special resolution, passed by a self-supporting co-operative society under this section shall not take effect until— (a) (i) the members and creditors have consented or are deemed to have consented to the special resolution under sub-sec- tion (4) or sub-section (3), as the case may be ; or (ii) all claims of the members aid creditors, who have not consented to the special resolution referred to in sub-sec- tion (4) or sub-section (5), as the case may be, within the stipulated period, have been met in full; and in the case of amalgamation or division of a self-support- perative society or societies, as the case may be, a (b) ing co-o revised certificate of registration is issued by the Registrar on an application made by such self-supporting co-opera- tive society or societies. (7) When a special resolution passed by a self: “supporting co-operative society under sub-section (7), takes effect, such a resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further conveyance. (8) Consequent upon— whole of the assets and liabilities of a self- ative society or societies, as the case may operative society ; or (a) the transfer of supporting c0-0pe \ be, to another self-supporting co- Q 2 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) (hi divisionofa self-supporting co-operative society into two or more self-supporting co-operative societies ; or (¢) merger of a self-supporting co-operative society into another self-supporting co-operative society ; tie earlier registration of such society shall stand cancelled and it shall pe deemed to have been dissolved. Conversion, 11. Notwithstanding any conversion, division, amalgamation or merger, i amatean as the case may be, of a self-supporting co-operative society, its rights, privilege, a self-supporting obligation or liability shall not be affected and any investigation, legal proceeding A or remedy in respect of such right, privilege, obligation or liability shall continue | against the resultant self-supporting co-operative society. Levy of fee. 12. For the services rendered under this Act, the Registrar may recover such fee, as may be specified by the Government, by notification in the Official Gazette, from time to time. Promotion of subsidiary unit or 13. A self-supporting co-operative society, for the furtherance of its organisation. objects, may, by passing a special resolution, establish a subsidiary unit or collaborate with any other unit, organization, body or firm registered or incorporated, as the case may be, under the relevant law. CHAPTER 11 Education Fund A 14. (1) A self-supporting Co-operative society shail establish a Fund r.aucation Fund. . ow to be known as the Education Fund to which such amount of its net profits. as may be specified by th e Registrar, shall be credited : Provided that such amount . + the net " shall not exceed two per cent of the 1° profits. - (2) The Education Fund established under sub-section (1). shall be E| utilized for t © Purposes mentioned i; section 32. Payment out of Education Fund - 15. Out of the Education F : . Nl Federation Limited, Chandigarh, 181° under t Zh py ' Amited, Chandigartt, I ent ey Co-cperative Societies Act, 1961, for the purpose of impart? € members off; ) LC eral! society. S;officers and officials of a self-supporting c0-0P PUNJAB GOVT GAZ. (EXTRA), NOV. 8, 2010 93 (KRTK 17, 1932 SAKA) CHAPTER 1V Finance 1s. A self-supporting co-operative society, may mobilize funds in the shape of share captial, deposits, debentures, loans, grants and other contributions from its members to such extent and under such conditions, as may be specified in its bye-laws. 17. A self-supporting co-operative society may raise funds and other financial support by way of raising loan including guarantee from non-members, individuals, banks and other institutions on mutually agreed terms to such extent and subject to such conditions, as may be specified in its bye-laws. 18. (1) The funds mobilized by a self-supporting co-operative society, shal! primarily be used for the furtherance of its objectives. (2) No part of the funds of a self-supporting co-operative society other than the net profits, shall be paid by way of bonus or dividend or otherwise distributed among its members. (3) A self-supporting co-operative society may of its net profits in any year, pay on the paid up share capital of members, a dividend at the rate fixed by its general body in the annual general meeting. 19. (1) The surplus, if any, out of the business of a self-supporting co-operative society transacted during a financial year, may be used for any of the following purposes, namely :— (a) to deposit in a deficit cover fund, a business risk fund or any other fund created by a self-supporting co-operative society under its bye-laws for the benefit and development of such society : Provided that not less than twenty-five per cent of the net surplus of a self-supporting co-operative society in a financial year, shall be deposited in such funds ; (b) to distribute as a surplus refund among its members ; (¢) todevelop the business of the self-supporting co-operative society ; (d) to provide services to the members of a co-operative societies ; and self-supporting (e) to write off bad debts and losses of the self-supporting co- operative society. Mobilization of funds from members Raising of funds from external sources Use of funds Use of surplus Management of deficit Investment of funds Restriction on contribution. PUNJAB GOV GAZ. (EX FRA), NOV. 8. 2010 (KRTK 17. 1932 SAKA) (2) A detailed report showing the purposes for which the surplus funds have been used under sub-section ¢/,. shall be placed before the annual general meeting of the general body of a self-supporting co-operative society. 94 20. (1) The deficit, if any. arising out of the operation of the business of a self-supporting co-operative society during a financial year, shall be full settled by debiting a part or whole of the deficit to the deficit cover fund or business risk fund. or as charge among its members. 2) Notwithstanding the settlement of the deficit referred to in sub- sectien (7 3 a self-supporting co-operative society shall be at liberty to recover the deficit from any of its officers, if it is found that such deficit occurred due to the gross negligence or mis-management of the officer or officers. as the case may be : Provided that no such settlement shall be allowed unless the deficit so arisen is audited and certified to be correct by the auditor appointed under section 50. (3) The amount recovered under sub-section (2). may be allowed to be credited by the general body to the deficit cover fund or to the accounts of each member, as the case may be, in proportion to the deficit charge. (4) No member shall be permitted to withdraw from the membership of the self-supporting co-operative society without paying his share towards clearning the deficit, if any. 21. A self-supporting co-operative society, may invest or deposit its funds in— (a) any federal society of which it is a member : (b) apostoffice, a District Central Co-operative Bank Limited, the Punjab State Co-operative Bank Limited or any Scheduled Bank ; (c) the equity of other self-supporting Co-operative society ; or (d) any of the securities specified in section 20 of the Indian Trust Act, 1882. 22. No self-supporting Co-operative s either in money or in kind, directly or indirect] organization or institution. ociety shall make a contribution ¥; toany political party or religious AY PUNJAB GOVT GAZ. (EXTRA). NOV. 8, 2010 95 (KRTK 17,1932 SAKA) CHAPTER V Membership 23. (1) Any person who fulfils the conditi eo y I who fulfils the conditions, specified in the bye- Fligibility for laws of a self-supporting co-operative society, may become its member membership (2) Any self-supporting co-operative society, ifit fulfils the conditions, specified In the bye-laws of the federal self-supporting co-operative society, may become its members. . (3) Forbecoming a member of a self-supporting co-operative society under sub-section (7) or a member of a federal self-supporting co-operative society under sub-section (2), as the case may be, an application shall have to be made under the bye-laws of such society. (4) Notwithstanding anything contained in sub-sections (7), (2) and (3), it shall be the discretion of a self-supporting co-operative society or the federal self-supporting co-operative society, to admit a person or a self-supporting co-operative society as its member keeping in view the capacity of the services rendered by such society. 24. (1) A person shall be disqualified for becoming a member or Disqualification continuing as a member of a self-supporting co-operative society, as the case for menrbarshis. may be, if he— (a) does not fulfil the eligibility criteria specified in section 23; (b) acts in a manner affecting adversely the objects and interests of a self-supporting co-operative society ; or (¢c) violates the provisions of bye-laws or acts in violation of the resolution passed by the general body or Board. n (1), shall apply in the (2) The provisions contained in sub-sectio supporting co-operative case of disqualification of a member of a federal self- Society also. e a member of a self- Admission of a 25. (I) Any person, who desires to becom in ation in the manner as : Supporting co-operative society, may submit an applic may be specified in the bye-laws. itted under sub-section (1), the (2) On int of an application subm 7 Onreceigtof an 2pp the Board for taking final elf-supporting co-operative society shall refer it to ECision. Appeal against refusal Withdrawal from membership Cessation of membership. 96 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) (3) The Board shall take a final decision on the application within a period of forty-five days. (4) The Board shall admit a person for membership, if he is found eligible or it may refuse his admission, if he is not found eligible : Provided that before refusing admission of a person, he shall be given an opportunity of being heard. (5) If aperson is not allowed to become a member, he shall be informed by the self-supporting co-operative society by registered post within a period of sixty days after the receipt of his application. In case, a person is not informed about the final decision on his application within the aforesaid stipulated period, he shall be deemed to have been admitted as a member of the self-supporting co-operative society and the self-supporting co-operative society shall be bound to issue him share certificate and include his name in the register of members within a period of sixty days from the date of such deemed admission. 26. (1) Where a person is refused admission for becoming a member of a self-supporting co-operative society by the Board, he may file an appeal against his refusal to the Arbitration Council within a period of sixty days from the date of communication of his refusal. (2) The Arbitration Council shall decide the appeal filed under sub- section (7) within a period of ninety days from the date of filing such appeal, after giving an opportunity of being heard to the applicant. 27. Subject to the provisions of this Act, rules and the bye-laws made thereunder, a member may at any time, withdraw from the membership of a self-supporting co-operative society. 28. (1) If a member dies or resigns or his membership is terminated due to any of the disqualifications, specified under this Act, rules or bye-laws framed thereunder, he shall cease to be member of the self-supporting COo- operative society. (2) Inthe event of death of a member, the self-supporti ng co-operative society shall inform his nominee for the settlement of accounts within a period of reasonable time. PUNJAB GOVT GAY (EXTRA), NOV. 8. 2010 97 (KRTK 17. 1932 SAKA) (3) In the event of cessation of y membership in any case, other than ~ > 1 > epee . ‘ ! ‘ death of a member. the self-supporting cooperative society shall inform the member for the settlement of accounts. 9. (/) The general body may ari 2 ge ody may. by passing a special resolution, terminate the membership of a member if he (a) conTts any act which is prejudicial to the interest of the self supporting co-operative society : or (0) persistently makes default in payment of his dues or fails to comply with the provisions of the bye-laws ; or (c) becomes a member of any other self-supporting co-operative society with the same objects, falling under the local jurisdiction of the self-supporting co-operative society : Provided that no such resolution shall be passed without giving the member concerned an opportunity of being heard. (2) A member shall be informed about the special resolution passed under sub-section (7) by the self-supporting co-operative society within a period of thirty days from the date of passing of such resolution. | (3) A member whose membership has been terminated under sub- section (7), shall not be eligible for becoming a member of the self-supporting co-operative society for such period, as may be specified in the resolution referred to in that sub-section : Provided that such period shall not exceed five years. 30. Any member aggrieved by the special resolution passed under sub-section (7) of section 29, may file an appeal to the Arbitration Council within a period of sixty days from the date of the communication of such resclution. 31. (I) Every self-supporting co-operative soci register of members. The name of every person admitted as a member ot a self- supporting co-operative society, shall be entered in the register alongw ith Such particulars, as may be deemed necessary by the Board. ety, shall maintain a (2) The name of a person— (i) who has withdrawn from the membership under section 27 ; ‘ ty Bl . o (ii) who ceased to be a member under section 28; or fermination of memberinm Appeal against terminaiion Register of members imparting of education to members. Exercise of righis. Constitution of general body and management. 98 PUNJAB GOV'T GAZ. (EXTRA.), NOV. §, 2010 (KRTK 17, 1932 SAKA) ii whose membership has been terminated under section 29; — hall be deleted from the register of members, (3) The register maintained under sub-section (/), shall be a prim facie evidence of the date on which any person was admitted to the self. supporting co-operative society as a member and of the date on which he ceased to be a member of such society. (4) A copy of register of members, shall be submitted by the self. supporting co-operative society te the Registrar at the time of registration of such society. (5) Any addition or deletion of members shall be communicated to the Registrar within a period of thirty days from the date of making such addition or deletion. 32. Every self-supporting co-operative society shall in order to ensure its development in accordance with the principles of cooperation and efficient co-operative management, undertake directly or through the Punjab State Co- operative Development Federation Limited, programmes for the education of its members, the Directors of the Board, its employees and any other persons to whom the self-supporting co-operative society deems necessary to impart such education. 33. No member of a self-supporting co-operative society shall be allowed to exercise his right as a member, unless he has made payment. due from him to such society or has acquir
Excerpt shown. Open the full act in Lexace.