LexThe rajasthan co-operative societies act, 2001
Rajasthan · state statute
Open in Lexace · Ask the AI about this act2THE RAJASTHAN CO-OPERATIVE SOCIETIES
ACT, 2001
(Act No. 16 of 2002)
[Received the assent of the President on the 3rd day of
October, 2002]
An act to consolidate and amend the law relating to co-operative societies in
the State of Rajasthan.
Be it enacted by the Rajasthan State Legislature in the Fifty Second Year of
the Republic of India, as follows :-
CHAPTER 1
PRELIMINARY
1. Short title, commencement and extent -
(1) This Act may be called the Rajasthan Co-operative Societies
Act, 2001.
(2) It extends to the whole of the State of Rajasthan.
2 Notification No.F.2 (21) Vidhi-2/2001 dated 11.11.2002. Published in Rajasthan Gazette E.O. Part 4
(Ka) dated 11.11.2002, Page 27(97) to 27(206) and Corrected by Corrigendum No. F.2(21) Vidhi/
2/2001dated 11.11.2002, Published in Raj. Gazette E.O. Part 4 (Ka) dated 18.11.2002.
(3) It shall come into force on such date as the State
Government may, by notification1 in the Official Gazette,
appoint.
2. Definitions -
In this Act, unless the context otherwise requires -
2[(a) "Apex Co-operative Bank" means an apex society which is
the federal body of the Central Co-operative Banks in the State and is
engaged in the business of banking:]
2[(aa)] "apex society" means a society whose core object is to
provide facilities for the operation of other societies affiliated to it and
whose area of operation extends to the whole of the State of Rajasthan;
(b) "area of operation of a co-operative society" means the
geographical area, as specified in the bye-laws, to which the membership
and activities of the society are confined in general;
(c) "bye-laws" means the bye-laws of a society, registered or
deemed to be registered under this Act and for the time being in force and
includes the registered amendments of such by-laws;
3[(d) "central society" means a society whose area of operation is
confined to a part of the State and which has in its main objects the
1 Notification No. F. 12 (15)/Coop./2000 dated 13.11.2002, pub. in Rajasthan Gazette E.O. Part 4 (Ga)
(II) dated 13.11.2002, w.e.f. 14.11.2002. 2 Added & re-numbered by Act No. 7 of 2010 (w.e.f. 16.10.2009
3 Substituted by Act No. 7 of 2016(w.e.f. 4.4.2016)
promotion of the core objects of, and the provision of facilities for
the operations of, other societies affiliated to it, and at least five members
of which are societies themselves;]
1[(da) "Central Co-operative Bank" means a central society which
has primary agricultural credit societies as its members and is engaged in
the business of banking;]
(e) "Chief Executive Officer" means a person, by whatever name
called, who subject to the superintendence, control and directions of the
committee, is entrusted with the management of the society;
(f) "core objects" in relation to a co-operative society means the
main objects of the society for which it is formed; and which form the
basis of its classification as per the rules;
(g) "Collector" means the Collector of a district, appointed under
section 20 of the Rajasthan Land Revenue Act, 1956 (Act No. 15 of
1956);
(h) "Committee" means the governing body of a co-operative
society, by whatever name called, to which the management of the affairs
of the society is entrusted;
(i) "co-operative society" or "society" means society registered or
deemed to be registered under this Act;
(j) "co-operative society with limited liability" means a co-
operative society, in which the liability of its members for the debts of the
society, in the event of its being wound up is limited by its bye-laws, -
(i) to the amount, if any, unpaid on the shares respectively held
by them; and
1 Added by Act No. 7 of 2010 (w.e.f. 16.10.2009).
(ii) to such amount not more than five times the amount of the
share capital subscribed by the members, which they may
respectively undertake to contribute to the assets of the
society;
(k) "co-operative society with unlimited liability" means a co-
operative society the members of which are, in the event of its being
wound up, jointly and severally liable for, and in respect of, its
obligations and to contribute to any deficit in the assets of the society;
(l) "Executive Officer" means an officer, by whatever name called,
who is appointed under sub section (2) of Section 29 to assist the Chief
Executive Officer in the management of the affairs of a society subject to
the superintendence, control and directions of the committee;
(m) "family" means a family consisting of a husband and wife and
their dependent children and the widowed mother of the husband
dependent on them;
(n) "financing bank" means a co-operative society, the main object
of which is to lend money to other societies and includes a Land
Development Bank;
(o) "Government" means the Government of the State of
Rajasthan;
(p) "member" means a person joining in the application for the
registration of a co-operative society and a person admitted to
membership after such registration in accordance with this Act and the
rules and the bye-laws and includes a nominal and an associate member;
1[(pa) "National Bank" means the National Bank for Agricultural
and Rural Development established under section 3 of the National Bank
for Agricultural and Rural Development Act, 1981 (Central Act No. 61 of
1981);]
2[(pb) "office bearer" means a Chairperson or Vice-Chairperson of
a co-operative society and includes any other person to be elected by the
committee of a co-operative society;]
(q) "officer" means the Chairperson, Vice-Chairperson
Administrator, Liquidator, or a member of a committee and the Chief
Executive Officer, by whatever name called, and includes and other
person empowered under the rules and the bye-laws to give directions in
regard to the business of a co-operative society;
11 [(qa) "primary agricultural credit society" means a co-operative
society as defined under clause (cciv) of section 5 of Banking Regulation
Act, 1949 (Central Act No. 10 of 1949) and is registered under the Act;]
3[(r) "primary society" means a society which is neither an apex
society nor a central society and which is constituted primarily by
individuals as members;]
(s) "prescribed" means prescribed by the rules made under this Act;
(t) "Registrar" means a person appointed to perform the functions
of the Registrar of co-operative societies under this Act, and includes any
person appointed to assist the Registrar when exercising all or any of the
powers of the Registrar;
1 Added by Act No. 7 of 2010 (w.e.f. 16.10.2009). 2 Inserted by Act No. 17 of 2013 (w.e.f. 24.4.2013).
3 Subsituted by Act No. 7 of 2016 (w.e.f. 4.4.2016).
1[(ta) "Reserve Bank of India" means the Reserve Bank of India
established under section 3 of the Reserve Bank of India Act, 1934
(Central Act No. 2 of 1934);]
(u) "Revenue Appellate Authority" means the officer appointed or
designated as such authority under section 20-A of the Rajasthan Land
Revenue Act, 1956 (Act No. 15 of 1956);
(v) "rules" means the rules made under this Act;
(w) "special resolution" means a resolution of the general body of a
society which has the approval of more than fifty percent of the members
having right to vote and not less than two-third of the members present
and voting at the meeting in which it is passed;
(x) "self help group" means a homogeneous group of persons
voluntarily formed to save small amounts of their earnings and also to
raise loans to be lent to its members on terms, as mutually agreed upon;
1[(xa) "short term co-operative credit structure society" means a
society engaged in short term co-operative credit business either at the
apex level, central level or primary level and includes the Apex Co-
operative Bank, a Central Co-operative Bank and a primary agricultural
credit society;]
(y) "tribunal" means the tribunal constituted under section 105;
(z) "weaker sections" means such landless agricultural labourers,
rural artisans, marginal farmers, small farmers and other economically
and socially backward persons as the State Government may, by order
published in the Official Gazette, specify, having regard to the size of
their holding, income and the various zone into which the State is divided
1 Added by Act No. 7 of 2010 (w.e.f. 16.10.2009).
for the purpose of determining the ceiling limits under the Rajasthan
Imposition of Ceiling on Agricultural Holdings Act, 1973 (Act No. 11 of
1973);
(za) "year" means such period of twelve months as may be
prescribed for keeping the accounts of a co-operative society.
CHAPTER II
INCORPORATION
3. Promotion of Co-operative movement -
It shall be the policy of the Government to encourage and promote
the co-operative moment in the State and to take such steps in this
direction, as may be necessary or desirable.
4. Registrar -
(1) The Government may appoint a person to be the Registrar of Co-
operative Societies for the State and may appoint other persons to
assist him.
(2) The Government may, by general or special order, and subject to
such conditions as it may think fit to impose, confer on any person
appointed to assist the Registrar, or may delegate to any officer of
any society, all or any of the powers of the Registrar under this
Act. The Government may also, by notification, direct that all or
any of the powers exercisable by it under this Act or the rules may
be exercised by the Registrar or such other officer, and subject to
such conditions, if any, as may be specified in the notification.
Every person, conferred on or delegated with the powers of the
Registrar shall exercise such powers, subject to the general
superintendence and control of the Registrar.
5. Application for registration of co-operative societies -
(1) Where,-
(a) atleast fifteen number of persons, each of them being a
member of a different family, intend to form a co-operative
society having objects to undertake certain co-operative
activities, for promotion of the economic interests of its
members in accordance with the co-operative principles as
specified in Schedule A; or
(b) atleast five members of co-operative societies, intend to form
another co-operative society, with the object of facilitating
the objects of such societies.
they shall, appending the bye-laws they wish to adopt, apply to the
Registrar in the manner as may be prescribed :
Provided that the minimum share capital shall not be less than the
prescribed minimum share capital, if any, for the respective class of
society as classified under the rules and that it shall be necessary for
every member of the society to hold atleast one share.
(2) The bye-laws, so appended with, shall be specific on the
matters specified in the Schedule 'B' and shall, in general, conform the
broad parameters of the class or sub-class of societies, as prescribed in
the rules, in which the society is intended to be registered according to its
objects, area of operation, membership or any other criterion, as may be
prescribed.
(3) A co-operative society may be registered with limited or
unlimited liability and where society is registered with limited liability,
the word 'limited' or its synonym in Hindi language shall form the last
word in its name :
Provided that the liability of a co-operative society, which has a co-
operative society as its member, shall be limited.
1[(4) No primary agricultural credit society or its federation or
association (except those which are permitted to act as a bank under the
Banking Regulation Act, 1949 (Central Act No.10 of 1949) shall be
registered with the word 'bank' or any other derivative of the word 'bank'
in its registered name or shall use the same as a part of its name:
Provided that where any primary agricultural credit society or its
federation or association (except those which are permitted to act as a
bank under Banking Regulation Act, 1949 (Central Act No.10 of 1949))
has been registered before the commencement of the Rajasthan Co-
operative Societies (Amendment) Ordinance, 2009 (Ordinance No. 7 of
2009) with the word 'bank' or any of its derivatives in its registered name,
it shall within three months from the date of such commencement, change
its name so as to remove the word 'bank' or its derivative, if any, from its
name in accordance with the provisions of section 9:
Provided further that where any society referred to in the preceding
proviso fails to comply with the provisions of the said proviso within the
period specified therein, the Registrar shall order the winding up of such
society.]
1 Added by Act No. 7 of 2010 (w.e.f. 16.10.2009)
6. Registration -
(1) If the Registrar is satisfied -
(a) that the proposed society complies with the requirements of
sound business in its proposed area of operation;
(b) that the application complies with the provisions of this Act
and the rules;
(c) that the proposed bye-laws are not contrary to the provision
of this Act and the rules; and
(d) that the aims of the proposed society are not inconsistent
with the principles of social justice, co-operation and public
morality and are not in derogation to the laws of the land,
he shall, within sixty days from the submission of the application, register
the co-operative society together with its bye-laws under the class or sub-
class, as prescribed, and issue a certificate thereof under his hand and
seal, which shall be the conclusive evidence of the fact that the society is
duly registered under this Act unless proved that such registration has
been cancelled by the Registrar under the provisions of this Act.
(2) If the Registrar finds that any one of the conditions laid
down in sub-section (1) is not satisfied, he shall, after giving such of the
applicants, as may be prescribed, an opportunity of being heard,
communicate the order of refusal together with the reasons thereof,
within sixty days from the submission of the application.
(3) If no refusal is communicated within the period specified
under sub-section (2), the applicants may, within thirty days from the
expiry of such period, move, the Registrar, Co-operative Societies,
Rajasthan, where the registering authority is subordinate to him, and the
Government, where the Registrar, Cooperative Societies, Rajasthan is
himself the registering authority, for decision on their application and the
Registrar, Co-operative Societies, Rajasthan or the Government, as the
case may be, shall within thirty days of receipt of the application, decide
it and issue necessary and decisive directions to the registering authority,
failing which the society shall be deemed to be registered.
7. Co-operative Societies to be bodies corporate -
The registration of a co-operative society shall render it a body
corporate by the name under which it is registered, having perpetual
succession and a common seal, and with power to hold property, enter
into contracts, institute and defend suits and other legal proceedings and
to do all things necessary for the purposes for which it was constituted.
8. Bye-laws -
(1) Subject to the provisions of this Act and the rules, functions
of every co-operative society shall be regulated by a set of bye-laws
registered under this Act, the subject matter of which is enclosed as
Schedule B; and no amendment therein shall be valid unless such
amendment has been registered by the Registrar under the provisions of
this Act.
(2) An amendment of the by-laws of a co-operative society
shall, unless it is expressed to come into operation on a particular day,
come into force on the day, on which it is registered.
9. Change of name of co-operative society -
(1) Where a co-operative society after having decided to change
its name, by a special resolution passed in its general body meeting,
applies to the Registrar, the Registrar shall cause published a public
notice to this effect and after considering the objections, if any received
within one month of such publication enter the new name on the register
of co-operative societies in place of the former name and shall amend the
certificate of registration accordingly.
(2) The change of name of a co-operative society shall not affect
any rights or obligations of the co-operative society, or render defective
any legal proceedings by or against it; and any legal proceedings which
may have been continued or commenced by or against the society by its
former name may be continued or commenced by its new name.
10. Amendment of bye-laws.-
(1) Every proposal for an amendment of the bye-laws of a
society, after it has been passed by the society in its general body meeting
by a special resolution, shall be forwarded to the Registrar in the manner
as may be prescribed and if the Registrar is satisfied that the proposed
amendment fulfils the requirements, as are essential for the registration of
bye-laws under section 6, he shall register the amendment and issue a
certificate thereof within sixty days from the date of submission. The
certificate so issued, signed and sealed by the Registrar shall be the
conclusive evidence of the fact that the amendment has been duly
registered:
2[Provided that no society shall pass any such amendment in its
bye-laws, which is not in consonance with the bye-laws of the class or
sub-class of societies under which the society was originally registered.]
(2) If the Registrar feels that the proposed amendment does not
fulfil the requirements, as are essential for the registration of bye-laws, he
shall, alongwith his comments thereon, send it back to the society, for
reconsidering it, within sixty days of its submission.
2 Added by Act No. 7 of 2016 (w.e.f. 4.4.2016)
(3) Where the society, after reconsideration as required under
sub-section (2), submits the proposal again, the Registrar shall, within
sixty days, register the proposed amendment, if he is satisfied with the
fulfilment of the requirements essential for the registration of bye-laws or
else communicate his order of refusal to the society.
(4) If no refusal is communicated within the period specified
under subsection (3), the society may, within thirty days from the expiry
of such period, move, the Registrar, Co-operative Societies, Rajasthan,
where the registering authority is subordinate to him, and the
Government, where the Registrar, Cooperative Societies, Rajasthan is
himself the registering authority, for decision on the proposed amendment
and the Registrar, Co-operative Societies, Rajasthan or the Government,
as the case may be, shall, within thirty days of receipt of such
amendment, take a decision thereon and issue necessary and decisive
directions to the registering authority, failing which the proposed
amendment shall be deemed to be registered.
11. Proposal by Registrar for amendment in the bye-laws -
(1) If at any time, it appears to the Registrar that an amendment
of the bye-laws of a cooperative society or, any class of societies is
necessary or desirable in the interest of such society, or class of societies
or its members at large or in the public interest, he may send the
proposals of such amendment to the Chairperson and the Chief Executive
Officer of the society, requiring that the proposal be considered in the
general body meeting of the society within a period of three months.
(2) Where the society communicates its consent to the proposed
amendment, the Registrar may register the amendment and issue a
certificate thereof, which shall form part of the bye-laws of the society.
(3) Where the society refuses to accept the proposal of the
Registrar and the Registrar is satisfied that it is necessary in the public
interest to make such an amendment, he may, within a period of thirty
days from the date of communication of such refusal, send the proposal,
with reason therefor, to the State Government for its consideration. The
State Government may, after giving the society, an opportunity of being
heard, direct the Registrar to register the amendment with such
modifications, if any, as it may deem fit and such amendment shall be
binding on the society and its members.
(4) Where the society, within the period specified under sub-
section (1), fails to take a decision on the proposals of the Registrar, on
the expiry of such period the proposed amendment shall be deemed to
have been duly passed by the society and the Registrar shall register the
amendments and issue a certificate to this effect.
12. Transfer of assets and liabilities, division and amalgamation of
co-operative societies -
(1) Where a co-operative society, after having informed the
Registrar atleast fifteen days beforehand, by a special resolution passed in
its general body meeting, proposes -
(a) to transfer its assets and liabilities in whole or in part to any
other cooperative society, if the other society also, by a
special resolution passed in its general body meeting
approves such decision; or
(b) to divide itself into two or more co-operative societies; or
(c) to amalgamate with another society to form a new co-
operative society, if the other society also, by a special
resolution passed in its general body meeting approves such
decision,
such proposal shall be forwarded to the Registrar in the manner as may be
prescribed and if the Registrar is satisfied that such proposal is in the
interest of the co-operative movement and the public, he shall approve the
proposal within sixty days of its submission or else send it back to the
society for reconsideration alongwith his observations.
(2) Where the society, after reconsideration as required under
sub-section (1), submits the proposal again, the Registrar shall, if in his
opinion such modified proposal meets the requirements as expressed in
his observations, approve it within sixty days of submission or else
communicate his order of rejection to the society.
(3) If no action is taken on the proposal of the society within the
period specified under sub-section (2), the society may, within thirty days
from the expiry of such period, move, the Registrar, Co-operative
Societies, Rajasthan, where the registering authority is subordinate to
him, and the Government, where the Registrar, Co-operative Societies,
Rajasthan is himself the registering authority, for decision on their
application and the Registrar, Co-operative Societies, Rajasthan or the
Government, as the case may be, shall, within thirty days of receipt of the
application, decide it and issue necessary and decisive directions to the
registering authority, failing which the proposal shall be deemed to have
been approved.
(4) Where the proposal of the society has been approved by the
Registrar or is deemed to have been approved, the society shall give
notice containing all the particulars thereof in writing to all its members
and creditors and, notwithstanding any bye-law or contract to the
contrary, any member or creditor shall, during a period of one month,
from the date of service of such notice upon him, have the option of
withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option
within the period specified in sub-section (4) shall be deemed to have
assented to the proposals contained in the resolution.
(6) A resolution passed by a Co-operative Society under this
section shall not take effect until, either -
(a) the assent thereto of all the members and creditors has been
obtained; or
(b) all claims of members and creditors, who exercise the option
referred to in sub-section (4) within the period specified
therein, have been met in full.
(7) Where a resolution passed by a co-operative society under
this section involves the transfer of any assets and liabilities, the
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 assurance.
(8) The amalgamation, division or transfer made under this
section shall not affect any rights or obligations of the societies so
amalgamated, or of the society so divided or of the transferee, or render
defective any legal proceedings which might have been continued or
commenced by or against the societies which have been amalgamated or
divided, or the transferee; and accordingly such legal proceedings may be
continued or commenced by or against the amalgamated society, the
divided societies or the transferee, as the case may be.
13. Proposal by Registrar for amalgamation, division and re-
organisation in public interest etc. -
(1) Where the Registrar is satisfied that it is essential in the
public interest or in the interest of the co-operative movement or for the
purpose of securing the proper management of any co-operative society
that two or more co-operative societies should be amalgamated or any co-
operative society should be reorganised or should be divided to form two
or more societies then, notwithstanding anything contained in section 12,
but subject to the provisions of this section, he shall propose the
amalgamation, division or reorganisation, of these societies into a single
society, or into societies with such constitution, property rights, interests
and authorities and such liabilities, debts and obligations, as may be
specified by him. The Registrar shall send the proposals to the
Chairperson and the Chief Executive Officer of the society, requiring the
proposals to be considered and decided in the general body meeting of the
society within a period of three months.
(2) If the society communicates its consent to the proposal made
under subsection (1), the Registrar shall pass the orders of the
amalgamation, division or reorganisation as the case may be.
(3) If, within the period specified under sub-section (1), the
society fails to take any decision on the proposal of the Registrar, the
proposed amalgamation, reorganisation or division shall, on the
completion of such period, be deemed to have been consented to by the
society and accordingly the Registrar shall pass the necessary orders.
(4) Notwithstanding anything contained in this section, the
powers of dividing or reconstituting a co-operative society, after
affording it an opportunity of being heard and with the prior approval of
the Government, for the purpose of constituting a news co-operative
society in the State shall vest in the Registrar.
(5) No order under this section shall be made unless -
(a) a copy of the draft of the proposed order has been sent to the
society or each of the societies concerned,
(b) the Registrar has considered and made such modifications in
the draft as may seem to him desirable in the light of any
suggestions and objections, which may be received by him
within such period as the Registrar may fix in that behalf
either from the society or from any member or class of
members thereof or from any creditor or class of creditors.
(6) The order referred to in sub-section (2) or (3) may contain
such incidental, consequential and supplemental provisions as may, in the
opinion of the Registrar, be necessary to give effect to the amalgamation,
division or reorganisation.
(7) Every member or creditor of each of the societies to be
amalgamated, divided or reorganised, who has objected to the scheme of
amalgamation, division or reorganisation, within the period specified,
shall be entitled to receive, on the issue of order of amalgamation,
division or reorganisation, his share or interest if he is a member and the
amount in satisfaction of his debts if he is a creditor.
(8) On the issue of an order under sub-section (2) or (3), the
provisions contained in sub-sections (7) and (8) of section 12 shall apply
to the society so amalgamated, divided or reorganised as if they were
amalgamated, divided or reorganised under that section, and to the
society amalgamated, divided or reorganised.
14. Cancellation of registration certificates of co-operative societies
in certain cases -
(1) Where the whole of the assets and liabilities of a co-
operative society are transferred to another co-operative society in
accordance with the provisions of section 12 or 13, the registration of the
first mentioned cooperative society shall be cancelled and that society
shall be deemed to have been dissolved and shall cease to exist as a
corporate body.
(2) Where two or more co-operative societies are amalgamated
into a new co-operative society in accordance with the provisions of
section 12 or 13, the registration of each of the amalgamated societies
shall stand cancelled on the registration of the new society and each
society shall be deemed to have been dissolved and shall cease to exist as
a corporate body.
(3) Where a co-operative society divides itself-into two or more
co-operative societies in accordance with the provisions of section 12 or
is to be divided by the Registrar in accordance with the provisions of
section 13, the registration of the society shall stand cancelled on the
registration of the new societies, and that society shall be deemed to have
been dissolved and shall cease to exist as a corporate body.
(4) Where the affairs .of a co-operative society, in respect of
which a Liquidator has, been appointed under section 63, have been
wound up, the Registrar shall make an order cancelling the registration of
the society and the society shall be deemed to have been dissolved and
shall cease to exist as a corporate body from the date of such order of
cancellation.
(5) Where it comes to the knowledge of the Government that a
Cooperative Society, which has been deemed to be registered under the
provisions of sub-section 3 of section 6 does not fulfil the requirements of
registration as described in sub-section (1) of section 6, it may, after
giving the society an opportunity of being heard, direct the Registrar to
cancel the registration of the society in the manner prescribed and after
such cancellation, the society shall cease to exist as a corporate body.
CHAPTER III
MEMBERS OF CO-OPERATIVE SOCIETIES AND
THEIR RIGHTS AND LIABILITIES
15. Membership -
(1) The following may be admitted as members of a co-
operative society, namely :-
(a) Any citizen of India, who -
(i) has attained age of 18 years;
(ii) is of sound mind;
(iii) is not disqualified from contracting by any law for the
time being in force and applicable to him;
(iv) is desirous to utilize the services of the society; and
(v) is ready to accept the responsibilities and liability
associated with such memberships;
(b) any other co-operative society;
(c) the State Government; or
(d) any other person, body or local authority, as may be
prescribed:
Provided that an individual shall not be eligible to the membership
of a financing bank other than a Land Development Bank or such class of
co-operative society as may be prescribed in this behalf :
Provided further that in a society exclusively formed for the benefit
of students of a school or a college, the condition regarding the age shall
not apply :
Provided also that the bye-laws of a society, which is exclusively
formed for the benefit of women, may restrict the membership of male
individuals.
(2) An application for admission as a member of a co-operative
society shall lie to the committee of that co-operative society. Such
committee shall decide the application and communicate its derision to
the applicant within a period of thirty days from the receipt of the
application, and where the application is refused, it shall also be
necessary for the committee to communicate to the applicant, the reasons
for such refusal, within the said period.
(3) If the committee -
(i) refuses the application for admission as a member, an appeal
shall lie against such refusal to the Registrar, who may after
giving the society a reasonable opportunity of being heard,
decide the application in accordance with the provisions of
this Act and the rules and bye-laws and his decision shall be
final and binding on the society;
(ii) fails to communicate its decision or the reasons of refusal
under sub-section (2), within the time specified therein, the
applicant may, within a period of sixty days from the
expiration of such time, move the Registrar for the decision
on his application, which shall be disposed of in the same
manner, as if it is an appeal under clause (i).
(4)1 [x x x]
16. Cessation of membership -
(1) A person shall cease to be a member of a society on his
resignation from the membership thereof being accepted or on his death,
removal or expulsion from membership or on his incurring any of the
disqualifications specified in this Act, the rules or the bye-laws of the
society. On such cessation of the membership the society may acquire the
share or interest of such member in the share capital of the society by
paying for it at the value determined in the manner as may be prescribed.
(2) A member whose business is in conflict or competition with
the business of the society, or who has not attended the general body
meeting without any reasonable excuse for three consecutive years or
who has been persistently defaulting payment of his dues or has been
failing to comply with the provisions of the bye-laws 1[x x x ]. regarding
minimum essential utilization of the services of the society or regarding
other dealings with the society or who, in the opinion of the committee,
has brought disrepute to the society or has done other acts detrimental to
the interests or proper working of the society, may after giving him an
opportunity or representing his case before the general body called for the
purpose, be removed or expelled from membership by a special
resolution passed in such general body meeting in the prescribed manner.
1 Deleted by Act No. 7 of 2016 (w.e.f. 4.4.2016).
1 Deleted by Act no. 17 of 2013 (w.e.f. 24.4.2013)
17. Nominal and associate member -
(1) Notwithstanding anything contained in section 15, a co-
operative society may admit -
(i) a prescribed class of persons or a prescribed local authority
or a self help group, as a nominal member; or
(ii) the spouse of a member in a prescribed class of society, as an
associate member.
(2) A nominal or an associate member shall neither be entitled
to any share in any form whatsoever in the assets or profits of the society
nor have any right to vote in the affairs of the society; but shall have such
other rights of a member and be subject to such liabilities of a member as
may be specified in this Act, rules or the bye-laws of the society and all
the provisions of this Act, rules and the bye-laws relating to membership,
shall apply to him.
18. Member not to exercise rights till due payment made -
No member of a co-operative society shall exercise the rights of a
member 1[unless he has made payments in respect of all dues to the
society including the payment in respect of membership or availed such
minimum level of services or] has acquired such interest in the society, as
may be specified in the bye-laws.
19. Votes of members -
Every member, other than a nominal and an associate member, of a
co-operative society, shall be entitled to cast one vote.
1 Substituted by Act No. 17 of 2013 (w.e.f. 24.4.2013)
20. Manner of exercising votes -
(1) Every member of a co-operative society shall exercise his
vote in person and no member shall be permitted to vote by proxy.
(2) Notwithstanding anything contained in sub-section (1),
where -
(a) a co-operative society is a member of another co-operative
society, its Chairperson or, in his absence Vice-Chairperson
1[or an Administrator appointed 3[under this Act]] shall,
subject to any rules made under this Act, represent to cast
vote on its behalf in the affairs of that another society;
(b) the Government or a local authority or a body is a member
of a co-operative society, it may nominate a representative to
cast vote on its behalf, in the affairs of such society.
3[21. Restriction on holding of shares -
An individual member in a co-operative society shall hold such
number of shares as may be prescribed in the bye-laws of the society, or
to a maximum of the one-fifth of the total share capital of the society,
whichever is less:
Provided that an individual member of an Urban Co-operative
Bank shall hold such number of shares as may be prescribed in the bye-
laws of the society, or to a maximum of the one twentieth of the total
share capital of the society, whichever is less.
1 Inserted by Act No. 17 of 2013 (w.e.f. 24.4.2013).
3 Substituted by Act No 7 of 2016 (w.e.f. 4.4.2016).
22. Transfer of interest on death of member -
(1) On the death of a member of a co-operative society, the
society shall transfer the share or interest of the deceased member to the
person or persons nominated in accordance with the rules, or if no person
has been so nominated, to such person as may appear to the committee to
be the heir or legal representative of the deceased member and where
there is any dispute of succession between two or more persons, the
committee may require the claimants to produce the succession
certificate:
Provided that such nominee, heir or legal representative, as the
case may be, is admitted as a member of the society:
Provided further that nothing in this sub-section shall prevent a
minor or a person of unsound mind from acquiring by inheritance or
otherwise the share or interest of a deceased member in a co-operative
society.
(2) Notwithstanding anything contained in sub-section (1), any
such nominee, heir or legal representative, as the case may be, may
require the society to pay him the value of the share or interest of the
deceased member ascertained in accordance with the rules.
(3) Where such nominee, heir or legal representative, as the case
may be is not admitted as a member of the society under sub-section (1),
the society shall pay him all other moneys due to the deceased member
from the society.
(4) All transfer and payments made by a co-operative society in
accordance with the provisions of this section shall be valid and effectual
against any demand made upon the society by any other person.
23. Liability of past member and estate of deceased member -
(1) Subject to the provisions of sub-section (2), the liability of a
past member or of the estate of a deceased member of a co-operative
society for the debts of the society as they existed -
(a) in the case of a past member, on the date on which he ceased
to be a member; and
(b) in the case of a deceased member, on the date of his death,
shall continue for a period of two years.
(2) Where a co-operative society is ordered to be wound up
under section 61, the liability of a past member or of the estate of a
deceased member who ceased to be a member or died within two years
immediately preceding the date of order or winding up, shall continue
until the entire liquidation proceedings are completed, but such liability
shall extend only to the debts of the society as they existed on the date of
his ceasing to be a member or the date of his death, as the case may be.
CHAPTER IV
MANAGEMENT OF CO-OPERATIVE SOCIETIES
24. Final authority in a co-operative society -
(1) The final authority in a co-operative society shall, subject to
the provisions of this Act and the rules, vest in the general body of the
members:
Provided that nothing in this section shall affect any powers
conferred on a committee or any officer of a co-operative society by the
rules or the bye-laws.
(2) Notwithstanding anything contained in sub-section (1),
where the size, spread or type of membership of a society requires a
representative body of delegates to take decisions effectively, a smaller
body called the Delegate General Body, elected from the members of the
society in the prescribed manner, may be constituted in accordance with
the bye-laws of the society. Such smaller body may exercise all the
powers of the general body.
25. Annual general meeting -
(1) Every co-operative society shall 1[within a period of six
months of close of the financial year,] call in the manner prescribed
thereon, an annual general meeting for the purpose of -
(a) approval of the programme of the activities of the society
prepared by the committee for the ensuing year;
(b) consideration of the accounts and annual report prepared in
the prescribed manner;
(c) consideration of the audit report prepared in the manner
prescribed, and the compliance thereof;
(d) disposal of the net profits; and
(e) consideration of any other matter which may be brought
forward in accordance with the bye-laws;
Provided that if no such meeting is called within the time aforesaid,
the Registrar or any other person authorised by him may call such
meeting in the manner prescribed and that meeting shall be deemed to be
a general meeting duly called by the society:
1 Inserted by Act No. 17 of 3013 (w.e.f. 24.4.2013).
Provided further that the Registrar may order that the expenditure
incurred in calling such a meeting under the foregoing proviso shall be
paid out of the funds of the society or by such person or persons who, in
the opinion of the registrar, were responsible for the refusal or failure to
convene the general meeting.
(2) If default is made in calling a general meeting within the
period prescribed therefor or in complying with the requirements of sub-
section (1), the Registrar may, after giving an opportunity of being heard,
declare the members of the committee disqualified for continuing as
members of such committee and for being elected as members of the
committee of any other society, for a period of five years; and if the
default is committed by an officer or an employee of the society, the
Registrar may, after giving him an opportunity of being heard, impose on
him a penalty of Rs. 1000/-.
26. Special general meetings -
(1) The committee of a co-operative may, at any time, call a
special general meeting of the society and shall call such meeting within
one month after the receipt of requisition in writing from the Registrar or
from such number of members, not being less than one-fifth of the total
number of members, as may be specified in the bye-laws.
(2) If a special general meeting of a co-operative society is not
called in accordance with the requisition referred in sub-section (1), -
(a) the Registrar or any other person authorised by him in this
behalf shall have the power to call such meeting within One
month and that meeting shall be deemed to be a meeting
called by the committee;
(b) the Registrar shall have power to order that the expenditure
incurred in calling a meeting under this sub-section, shall be
paid out of the funds of the society or by such person or
persons who, in the opinion of the Registrar, were
responsible for the refusal or failure to convene the meeting.
[27. Appointment of committee -
(1) The general body of a co-operative society shall entrust the
management of the affairs of the society to a committee constituted in
accordance with the bye-laws:
Provided that in the case of a society registered after the
commencement of this Act, the persons who have signed the application
to register the society may appoint a committee to conduct the affairs of
the society for the period of three months from the date of the
registration, but the committee appointed under this proviso shall cease to
function upon the constitution of a new committee which shall be
constituted in accordance with the bye-laws within the said period of
three months.
(2) The committee shall have such number of members as
prescribed in the bye-laws:
Provided that the maximum number of the members of the
committee shalExcerpt shown. Open the full act in Lexace.