LexThe Telangana Mutually Aided Co-operative Societies Act, 1995.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA MUTUALLY AIDED CO-OPERATIVE SOCIETIES
ACT, 1995.
(ACT NO. 30 OF 1995)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
2A. Competent Authority to make provisions.
3. Co-operative Principles and bye-laws.
4. Registration.
4A. Conversion of Society registered under this Act to the
Telangana Cooperative Societies Act.
5. Registration Certificate.
5A. Renewal of Registration.
6. Society to be a body corporate.
7. Registration with limited or unlimited liability.
8. Display of name.
9. Rules and Bye-laws.
10. Amendment of Bye-Laws.
11. Change of liability, transfer of assets and liabilities,
division, amalgamation.
12. Promotion of subsidiary organisation.
13. Creation of new organisation with others.
14. Mobilisation of funds.
15. Investment of funds outside the business.
16. Disposal of surplus.
17. Management of deficit.
2 [Act No. 30 of 1995]
18. Reserve Fund.
19. Eligibility for membership.
20. General Body.
21. Board of Directors.
22. Powers and functions of the Board of Directors.
22A. Application of the Telangana Co-operative Societies Act,
1964.
23. Elections.
23-A. Supersession of the Board.
23-B. Appointment of Administrator.
23-C. The conditions of service of the Administrator(s).
24. Meetings.
25. Staff.
26. Accounts and Records.
27. Audit and Accounts.
28. Special Audit.
29. Inquiry.
30. Power to summon and examine persons and
documents.
30-A. Service of summons.
31. Action on Special Audit or Inquiry Report.
32. Constitution of Tribunals.
33. Power of the Tribunal to order recovery.
34. Filing of returns.
35. Rights and privileges.
36. Execution of decisions, decrees and orders.
[Act No. 30 of 1995] 3
36-A. Application of Chapter XIII A of the Telangana Co-
operative Societies Act, 1964.
37. Settlement of disputes.
38. Offence and penalities.
39. Dissolution by members.
40. Dissolution by Registrar.
41. Appointment of Liquidator.
42. Duties of Liquidator.
43. Powers of Liquidators.
44. Final accounts.
45. Fee for services.
THE TELANGANA MUTUALLY AIDED CO-OPERATIVE
SOCIETIES ACT, 1995.1
ACT No.30 OF 1995.
1. This Act may be called the 2Telangana Mutually Aided
Co-operative Societies Act, 1995.
(2) It extends to the whole of the State of 2Telangana.
(3) It shall come into force on such date as the
Government may by notification in the 2Telangana Gazette,
appoint.
2. In this Act unless the context otherwise requires:—
2[(a) ―Authorised person‖ means a person referred to
as such in section 38 of this Act;
(aa) ―apex society‖ means a society whose area of
operation extends to the whole of the State;
(aaa) ―Board‖ means the Board of Directors or the
governing body of a Co -operative Society, by whatever
name called, to which the direction and control of the
management of the affairs of a Society is entrusted to;]
1. The Andhra Pradesh Mutually Aided Co -operative Societies Act, 1995
received the assent of the Governor on the 17 th May, 1995. The said Act
in force in the combined State, as on 02.06.2014, has been adapted to
the State of Telangana, under section 101 of the Andhra Pradesh
Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification
issued in G.O.Ms.No.28, A griculture and Co -operation (Coop.II)
Department, dated 19.04.2016.
2. Substituted by G.O.Ms.No.28, Agriculture and Co -operation (Coop.II)
Department, dated 19.04.2016.
Short title, extent
and
commencement.
Definitions.
2 [Act No.30 of 1995]
(b) ―bye-laws‖ means the bye -laws of a Co -operative
Society as originally framed or as altered from time to time
in pursuance of this Act;
(c) ―co-operative principles‖ means the co-operative
principles specified in section 3;
3[(d) ―Co-operative Society ‖ means a Mutually Aided
Co-operative Society registered under section 4 whose bye-
laws prohibit it from raising share capital from Government
and also prohibit it from receiving any land (agricultural or
non-agricultural) from the Government either free of cost or
at concession rates and also concessions, subsidies or any
other assistance in any form from either State / Central /
Local Government.
A Co-operative Society registered under the provisions
of the 4Telangana Co -operative Societies Act, 1964, if it
amends its bye -laws where necessary to reconstitute its
capital base and in respect of other relevant aspects to be in
accordance with this Act, and returns to the Government its
share capital and/or land and / or subsidies recei ved, if any,
and either enters into a Memorandum of Understanding with
the Government for any outstanding loans due to, or
guarantees given by the Government or returns to the
Government of such assistance and further gets itself
registered under section 4 as a Co -operative Society under
this Act, but does not include the Milk / Dairy Co -operative
societies.
The Co -operative Societies which are not covered
under this definition are deemed to be covered under the
Telangana Co -operative Societies Act, 1964. All the
3. Substituted by G.O.Ms.No.28, Agriculture and Co -operation (Coop.II)
Department, dated 19.04.2016.
4. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
Act No.7 of 1964.
[Act No.30 of 1995] 3
Societies already registered under this Act but not covered
under the above definiti on are deemed to be Societies
registered under the 5Telangana Co-operative Societies Act,
1964. The Registrar shall automatically forthwith regulate the
functioning of such societies by applying all the provisions
of the Telangana Co -operative Societies Ac t, 1964 with
respect to them.
All the Societies already registered under this Act and
are in receipt of land from Government either free of cost / at
subsidized price / at market rate shall be deemed to have
been registered under the Telangana Co-operative Societies
Act, 1964 and the Registrar on his own motion shall
immediately take necessary steps for regulating these
Societies as per the provisions of the Telangana Co -
operative Societies Act, 1964.]
(e) ―Co-operative Society with limited liability‖ means a
Co-operative Society in which the liability of its members for
the debts of the Co -operative Society in the event of its
being wound up is limited by its bye-laws to such amount as
they may undertake to contribute to the assets of the co -
operative;
(f) ―Co-operative Society with unlimited liability‖ means
a Co -operative Society the members of which ar e, in the
event of its being wound up, jointly and severally liable for
and in respect of all its obligations and to contribu te to any
deficit, in the assets of the Co-operative Society;
(g) ―Co-operative Tribunal ‖ means the Tribunal or
Tribunals constituted under section 32;
5. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
Act No.7 of 1964.
4 [Act No.30 of 1995]
(h) ―deficit‖ means the net excess of expenditure over
income;
(i) ―delegate‖ means a member nominated by a Co -
operative Society to represent its interests in a federation;
(j) ―director‖ means a director of the Board of directors;
(k) ―federation‖ means a Mutually Aided Co -operative
Society registered under section 4 whose members are
Mutually Aided Co-operative Societies;
6[(l) ―Co-operative year / Financial Year ‖ means, the
period commencing on the 1st day of April of every year and
ending with the 31st day of March of the succeeding year;]
(m) ―general body‖ in relation to a Co-operative Society
means all the members of the Co -operative Society an d
includes a representative gen eral body of the Co -operative
Society referred to in section 20;
(n) ―general meeting‖ means a meeting of the genera l
body of a Co-operative Society;
(o) ―Government‖ means the State Government of
6Telangana;
(p) ―member‖ means a member of a Co -operative
Society.
7[(pp) ―multi-State cooperative society‖ means a
society with objects not confined to one State and
6. Substituted by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II)
Department, dated 19.04.2016.
7. Inserted by G.O.Ms.No.28, Agriculture and Co -operation (Coop.II)
Department, dated 19.04.2016.
[Act No.30 of 1995] 5
registered or deemed to be registered under any law for the
time being in force relating to such co-operatives;]
8[(q) ―office-bearer‖ means an individual elected by the
General Body or the Boar d of the Co -operative Society to
any office of such c o-operative Society in accordance with
its bye -laws including a President / Chairperson, Vice -
President/ Vice-chairperson, Secretary or Treasurer of a Co -
operative Society;]
8[(r) ―Registrar‖ means the Central Registrar appointed
by the Central Government in relation to the multi -State co-
operative societies, the Registrar of Mutually Aided Co -
operative Societies appointed under section 4 of this Act
and includes any other person as the case may be on whom
all or any of the powers of the Registr ar under this Act are
conferred,-
(1) ―State Act‖ means any law mad e by the
Legislature of a State;
(2) ―State level Co -operative society‖ means a co -
operative society having its area of operation extending to
the whole of a State;]
(s) ―surplus‖ means the net excess of income over the
expenditure.
9[2A. The Government, may, from time to time, take
necessary steps for making provisions with respect to the
incorporation, regulation and winding up of co -operative
societies based on the principle of voluntary formation,
democratic member control, member econo mic
8. Substituted by G.O.Ms.No.28, Agriculture and Co -operation (Coop.II)
Department, dated 19.04.2016.
9. Inserted with marginal heading by G.O.Ms.No.28, Agriculture and Co -
operation (Coop.II) Department, dated 19.04.2016.
Competent
Authority to make
provisions.
6 [Act No.30 of 1995]
participation and autonomous functioning as deemed
necessary.]
3. Individuals or Co-operatives intending to form into a
Co-operative Society under thi s Act shall frame bye -laws
conforming to the following principles of co -operation,
namely,-
(a) membership of a Co-operative Society shall be
voluntary and availa ble without restriction of any s ocial,
political, racial or religious discrimination, to all persons who
can make use of its services and are willi ng to accept the
responsibilities of membership;
(b) Co -operative Societies are democratic
organisations; their affairs snail be administrated by persons
elected or appoin ted in a manner agreed by th e members
and accountable to them. Members of primary C o-operative
Societies shall enjoy equal rights of voting (one member
one vote) and participation in decisions affecting their Co -
operative Societies. In other than primary Co -operative
Societies, the administration shall be conducted on a
democratic basis in a suitable form;
(c) share capital shall only receive a st rictly limited rate
of interest, if any;
(d) the economic results, arising out of the operations
of a Co -operative Societies belong to the members of that
Co-operative Societies and shall be distributed in such a
manners as would avoid one member gaining at the
expense of others, which shall be achieved,-
(i) by provision for development of the business of
the Co-operative Society;
(ii) by provision of common services; or
Co-operative
Principles and
bye-laws.
[Act No.30 of 1995] 7
(iii) by distribution among the members in proportion
to their transactions with the Co-operative Society;
(e) all Co -operative Societies shall make provision for
education of their members, office -bearers and employees
and the general public, in the principles and techniques of
co-operation, both economic and democratic;
(f) all Co-operative Societies, in order to best serve the
interest of their members and their communities, shall
actively co-operate in every practical way with other co -
operatives at local, national and international levels having
as t heir aim the achievement of unit y of action by co -
operatives throughout the world.
4. 10[(1) Where not less than twenty one individuals of
class or category with common bondage and each b eing a
member of a different family or intend to form a Co-operative
Society, or two or more Co-operative Societies of a class or
category with common bondage and registered under this
section wish to form into a federation, or a society registered
(under the pro visions) of the 11Telangana Co-operative
Societies Act, 1964 intends to convert itself into a co -
operative society under this Act, they shall frame bye -laws
for this purpose in accordance with section 3 in the first
instance:
Provided that no Co -operative Society shall be
registered as a Dairy or milk Co -operative Society and no
Dairy or milk Co -operative Society registered under any
other law shall be converted into a dairy or milk Co -
operative Society under this Act:
10. Substituted by G.O.Ms.No.28, Agriculture and Co -operation
(Coop.II) Department, dated 19.04.2016.
11. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
Registration.
8 [Act No.30 of 1995]
Provided further that any Co -operative Society
registered under this Act if wishes to get itself converted and
incorporated as Company under 12Companies Act , 1956,
shall have to first return the assets of the Government it
received either directly or through any other agency and
also return the Government land and machinery received , if
any, and also any outstanding loans due to, or guarantees
or any of such assistance given by the Government. Before
applying for such conversion itself, a clearance certificate to
this effect from the State Go vernment based on the
recommendations of the Registrar on whom powers are
conferred as under section 4 of this Act shall be obtained.
No Co-operative Society which is a beneficiary of
Government in terms of funds or land or any other
assistance in any form as on date has not fully
repaid/returned to the Govern ment, can get registered
under Companies Act:
Provided also that a Co -operative Society registered
under this Act and migrated to C ompanies Act or any other
Act (other than the Telangana Co-operative Societies Act,
1964) without returning the Government properties
(movable or immovable) and without settling the legacy
issues with the Government, such as goodwill are deemed
to have returned back to this Act and shall be covered under
the definition of Society either under this Act or under the
13Telangana Co-operative Societies Act, 1964, as the case
may be, notwithstanding any resolution passed by the
General body of the Society, in contravention of it.]
14[(1A) Notwithstanding anything contained under this
Act or under the provisions of the 13Telangana Co-operative
Societies Act, 1964, all the Dairy/Milk Co -operative Societies
12. Please see the Companies Act, 2013 (Central Act 18 of 2013).
13. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
14. Inserted by Act No.20 of 2006.
Act 7 of 1964.
[Act No.30 of 1995] 9
registered or deemed to have been registered or converted
under the provisions of this Act, shall be deemed to have
been excluded from the provisions of this Act and deemed
to have been registered and continued under the provisions
of the 15Telangana Co-operative Societies Act, 1964.]
(2) Thereafter an application for registration shall be
submitted to the Registrar by hand or by registered post.
(3) Every such application shall be accompanied by,-
(a) the original and one copy of the bye-laws of the
proposed Co -operative Society as adopted by the
individuals or delegates of Co -operative Societies who wish
to form into a co -operative society under this Act or by the
general body of a Society registered under the 15Telangana
Co-operative Societies Act, 1964 which wishes to convert
itself into a Co-operative Society under this Act;
16[(b) a list of names of individuals or co -operatives
who wish to form into a Co -operative Society under this Act
or of the members of the committee of the society registered
under the 15Telangana Co-operative Societies Act, 1964
which intends to convert itself into a Co -operative Society
under this Act with their addresses, occupation s and their
financial commitments along with address / and Identity
proof of self and family members i.e. A adhaar / Food
Security card to the proposed Co-operative Society.]
(c) a true copy of the minutes of the meeting at which
the bye -laws were adopted, duly signed by at least a
majority of individuals or delegates present at the meeting
where the bye -laws were adopted, or by a majority of the
15. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coop.II)
Department, dated 20.05.2016.
16. Substituted by G.O.Ms.No.28, Agriculture and Co -operation
(Coop.II) Department, dated 19.04.2016.
Act 7 of 1964.
10 [Act No.30 of 1995]
members of the Committee of the Co-operatives concerned
where a Society registered under t he 17Telangana Co-
operative Societies Act, 1964 intends to concert itself into a
Co-operative Society under this Act;
(d) registration fee amounting to one percent of the
total authorized share capital by whatever name called
subject to a minimum of one hundred rupees and a
maximum of ten thousand rupees; and
18[(e) in the case of a Society registered under section
7 of the Telangana Co-operative Societies Act, 1964 and
wishing to convert itself into a Co -operative Society under
this Act, evidence to show that the Society has returned to
the Government, the share capital, loans, land / properties
(movable / immovable) , subsidies, concessions, interest it
received from the Government and No -objection Certificate
issued by the Government in this regard before its
application for conversion into this Act can be considered.]
(4) The Registrar shall if he is satisfied that,-
(a) the application is in conformity with the
requirements of this Act;
(b) the proposed bye -laws are not contrary to the
provisions of this Act; and
(c) the name of the proposed Co -operative Society is
not the same as that of a Co -operative Society already
registered under this section, or the same as that used by a
17. Adapted by G.O.Ms.No.53, Agriculture and Co -operation (Coo p.II)
Department, dated 20.05.2016.
18. Substituted by G.O.Ms.No.28, Agriculture amd Co-operation
(Coop.II) Department, dated 19.04.2016.
[Act No.30 of 1995] 11
class of Societies already registered under section 7 of the
19Telangana Co-operative Societies Act, 1964,-
Register the Co -operative Society and also its bye -
laws and communicate by registered post a certificate of
registration and the original of the reg istered bye -laws
signed and sea led by him, within period of sixty days from
the date of submission of application, to the Chief Promoter
mentioned in the application.
(5) If the conditions laid down in sub section (4) are not
fulfilled, the Registrar shall communicate by registered post
the order of refusal together with the reasons therefor, within
sixty days from the date of submission of application, to the
Chief Promoter.
(6) There shall be appointed a Registrar of Mutually
Aided Co -operative Societies for the S tate and as many
other Officers as the Government may think fit for the
purposes of this Act.
20[4A. (1) The Registrar on his own motion or at the request
of the society passed by a resolution of majority of its
members may permit the society registered under section 4
of this Act to be converted into a society registered under
the Telangana Cooperative Societies Act.
(2) The Registrar may issue orders on his own motion
for conversion of a society registered under this Act into a
society registered under the Telangana Co-operative
Societies Act, if it is found that,-
19. Adapted by G.O.Ms.No.53, Agriculture and Co-operation (Coop.II)
Department, dated 20.05.2016.
20. Inserted by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II)
Department, dated 19.04.2016.
Conversion of
society registered
under this Act to
the Telangana Co-
operative
Societies Act.
12 [Act No.30 of 1995]
(a) the society is in possession of land provided by
the Government (either free of cost or at con cession rate or
at Market rate);
(b) the society is in possession of share capital or
grants or concessions provided by the Government.
(3) The Registrar may is sue orders for conversion of a
society registered under this Act into a society registered
under the Telangana Co -operative Societies Act, if the
general body passes a resolut ion for conversion to the
Telangana Co-operative Societies Act, by majority of it s
members:
Provided that the request for conversion shall be
submitted to the Registrar within 30 days of passing of the
resolution by the General Body.
(4) The society continues to be functioning under this
Act till certificate of registration issued by the Registrar to the
society under the Telangana Co-operative Societies Act.]
5. Where a Co-operative Society registered, the certificate
of registration signed and sealed by the Registrar shall be
conclusive evidence that the Co-operative Society
mentioned therein, is a Mutually Aided Co-operative Society
duly registered under this Act:
Provided that where a Society was earlier registered
under the 21Telangana Co-operative Societies Act, 1964,
such registration shall stand cancelled once a certificate of
registration under this section is issued.
21. Adapted by G.O.Ms.No.53, Agriculture and Co-operation (Coop.II)
Department, dated 20.05.2016.
Registration
Certificate.
[Act No.30 of 1995] 13
22[5A. Every society issued a certificate of registration under
section 8 of this Act shall be renewed for every 5 years. The
renewal by Registrar is subject to the satisfaction of the
Registrar that,-
1. The Society updated its accounts and got them
audited as per the provisions of this Act.
2. The society conducted elections as per the
provisions of this Act.
3. The society not violated any provisions of Act, Rules,
Bye-laws.
4. All members underwent member education
programme and certified as such by the Te langana State
Co-operative Union:
Provided that if the Society fails to renew the
registration under this s ection, the Registrar may initiate
necessary action for compliance. In case of non -
compliance, Registrar may cancel the certificate of
registration issued under section 8 of this Act and initiate
winding proceedings under section 64(2) of this Act.]
6. (1) A Co -operative Society registered under this Act
shall be a body corporate by the name under which it is
registered having perpetual succession and a common seal.
The Co -operative Society shall be entitled to acquire, hold
and dispose of property, to enter into contracts, to sue and
be sued and to do all other things necessary to achieve its
objectives.
22. Inserted with marginal heading by G.O.Ms.No.28, Agriculture and
Co-operation (Coop.II) Department, dated 19.04.2016.
Society to be a
body corporate.
Renewal of
Registration.
14 [Act No.30 of 1995]
(2) All transactions entered into in good faith prior to
registration, in furtherance of the objectives of the Co-
operative Society, shall be deemed to be transactions of the
Co-operative Society after its registration.
7. A Co-operative Society may be registered with limited
or unlimited liability. Where the liability is limited, it shall
have as a suffix to its name the expression ―limited‖ or its
equivalent in any Indian language.
8. (1) Every Co -operative Society shall display its full
name registration number and the address of its registered
office in legible characters in a conspicuous position,-
(a) at every office or place at which it carries on
business;
(b) in all notices and other official publications;
(c) on all its contracts, business letters, orders for
goods, invoices, statements of account, receipts and letters
of credit; and
(d) on all bills of exchange, promisory notes,
endorsements, cheques and orders for money it signs or
that are signed on its behalf.
(2) Where a Co-operative Society has a corporate seal,
it shall display its full name in legible characters on its
corporate seal.
9. 23[(1) Except on such specific matters for which this Act
has provided, the functioning of every Co -operative Society
shall be regulated by rules framed by Government and its
bye-laws. Subject to the provisions of this Act and rules, the
23. Substituted with marginal heading by G.O.Ms.No.28, Agriculture and
Co-operation (Coop.II) Department, dated 19.04.2016.
Display of name.
Rules and Bye-
laws.
Registration with
limited or
unlimited liability.
[Act No.30 of 1995] 15
bye-laws of every Co -operative Society shall have regard to
the Co-operative principles in its functioning.]
(2) Subject to section 3, the bye -laws of a Co-operative
Society shall be specific on the following matters, namely:-
(i) the name and address of the Co-operative Society;
(ii) the object of the Co -operative Society explicitly
stated as a common central need of the members which the
Co-operative Society aims at fulfilling;
(iii) eligibility, ineligibility and procedure for obtaining
and retaining membership;
(iv) procedure for withdrawal, cessation and
termination of membership;
(v) the services that it intends to give its members;
(vi) fixation of minimum performance expected
annually of each member vi s-a-vis use of service financial
commitment and participation in meetings, in order to be
eligible to exercise the right of membersh ip including the
right to vote;
(vii) the consequences of performing below the
minimum level fixed;
(viii) the consequences of default in payment of any
sum due by a member;
(ix) rights of members;
(x) the nature and extent of the liability of the.
member or the debts contracted by the Co -operative
Society;
16 [Act No.30 of 1995]
(xi) the manner of making or amending bye-laws;
(xii) the powers and functions of the general body
and the powers and functions an d the manner of
constitution of representative general body, if any, and
subjects which must be dea lt with by the general body, and
by the representative, general body, if any;
(xiii) the manner and frequency of convening general
meetings and quorum required;
(xiv) the manner of conducting elections an d of filling
casual vacancies;
(xv) the size and composition of the Board of
Directors;
(xvi) the term of office of the Directors;
(xvii) the manner of removal of Directors;
(xviii) the manner and frequency of convening board
meetings and quorum;
(xix) the powers and duties of the Board;
(xx) the powers and duties of the Chairperson;
(xxi) the terms on which the Co -operative Society
may deal with non-members;
(xxii) eligibility, ineligibility for becoming and
continuing as Director;
(xxiii) penalties for acting against the interests of the
Co-operative Society and for non -fulfilment of duties by
members, office-bearers, Directors or staff;
[Act No.30 of 1995] 17
(xxiv) the nature and extent of the liability of office-
bearers, Directors for debts contracted by the Co -operative
Society;
(xxv) the authorization of an officer or officers to sign
documents and to institute and defend suits and other legal
proceedings on behalf of the Co-operative Society;
(xxvi) the manner of choosing delegates to higher tier
co-operative and federations;
(xxvii) the rights, if any, which the Co -operative
Society intends to confer on any co -operative society or
other federation and the circumstance under which these
rights may be exercised by the society or federation;
(xxviii) the nature and amount of capital, if any, of the
Co-operative Society;
(xxix) the maximum capital which a single member
can hold;
(xxx) the maximum interest payable to members on
paid up share capital;
(xxxi) the sources, types and extent of funds to be
raised by the Co-operative Society;
(xxxii) the purposes for which the funds may be
applied;
(xxxiii) the constitution of various funds and their
purposes;
(xxxiv) the manner of appointment of auditors and
their powers and functions;
18 [Act No.30 of 1995]
(xxxv) the manner of appointment of internal auditor s
and their powers and functions;
(xxxvi) the manner of disposal of funds when the Co-
operative Society is under liquidation; and
(xxxvii) the manner of dissolution of the Co-operative
Society.
10. (1) A Co -operative Society may amend any of the
provisions of its bye-laws by a resolution of its general body,
or by the representative general body, where this exists:
Provided, that no such resolution shall be passed
unless atleast twenty clear days of writ ten notice of the
meeting has bee n given along with a copy of th e proposed
amendment to each member of the general or
representative general body, as the case may be, and such
notice and proposed amendment is also displayed on the
notice board of the Co -operative Society for a period of
twenty days immediately preceding the date of the meeting:
Provided further that the rep resentative general body
shall alter any provision in the bye -laws relating to its own
constitution and powers.
(2) in the case of amendment of its bye -laws with
regards to matters relating to items (i), (ii), (ix), (x), (xi), (xii),
(xiii), (xiv), (xv), (xvi), (xvii), (xi x), (xxiv), (xxix), (xxxvi) and
(xxxvii) of sub-section (2) of section 9, an application for the
registration of the amendment shall be forwarded by the Co-
operative Society by registered post to the Registrar within a
period of thirty days from the date of the resolution.
(3) Every application forwarded to the Registrar shall
be signed by the Chairperson and shall be accompanied by
Amendment of
Bye-Laws.
[Act No.30 of 1995] 19
a copy of the resolution adopting the amendment and the
following particulars, namely:-
(a) the date of the meeting at which the amendment
was approved;
(b) the total number of members on the rolls of the
co-operative society who were eligible to vote on the date of
such meeting, the number present at the meeting and the
number of eligible members who voted for the resolution.
(4) If the proposed amendment is in consonance with
the provisions of this Act, the Registrar shall register the
proposed amendment within a period of sixty da ys from the
date of receipt of the application.
(5) The Registrar shall forward by registered post to the
Co-operative Society within a period of fifteen days after
registration, a copy of the registered, amendment together
with a certificate signed and sealed by him and such
certificate shall be conclusive evidence that the amendment
has been duly registered.
(6) If the proposed amendment is no t in consonance
with the provisions of this Act, the Registrar shall refuse,
within a period of sixty days fro m the date of receipt of the
application, to register the proposed amendment:
Provided that no order refusing to register the
amendment shall be passed except after giving the Co -
operative Society an opportunity of making its
representation.
(7) The Registrar shall forward by registered post to the
Co-operative Society, within a period of fifteen days after
refusal, the order of refusal together with the reasons
therefor.
20 [Act No.30 of 1995]
(8) Where no order of refusal is received by the Co-
operative Society under sub -section (7) within a period of
seventy five days from the date of submission of application,
it shall be deemed that the Registrar has registered the
amendment on the last date of the period specified in that
sub-section.
(9) In the case of all amendmen ts to the bye-laws other
than those specified in sub -section (2), information about
the amendment shall be forwarded by the Co -operative
Society by registered post, with the enclosures and
particulars specified in sub -section (3), to the Registrar
within a period of thirty days from the date of the general
meeting at which the resolution was passed, and the
Registrar shall immediately take on file such amendment:
Provided that such action shall not in any way preclude
the Registrar from proceeding against the Co -operative
Society or its management, whe re such amendment is
found to be contrary to the provisions of this Act.
(10) An amendment to the bye -laws under sub-section
(9) shall come into effect only after registration or on the
thirtieth day from t he date of the amendment has been sent
to the Registrar for taking on record, as the case may be.
11. (1) A Co -operative Society may , by a resolution of its
general body,-
(a) decide to amend its bye -laws to ch ange the form
or the extent of its liability;
(b) decide to transfer its assets and liabilities, in
whole or in part, to any other Co -operative Society which
agrees to such transfer by a resolution of its general body;
Change of liability,
transfer of assets
and liabilities,
division,
amalgamation.
[Act No.30 of 1995] 21
(c) divide itself into two or more Co -operative
Societies.
(2) Any two or more Co -operative Societies may, by a
resolution of their respective general bodies, decide to
amalgamate themselves and form a new Co -operative
Society.
(3) Eve ry resolution of a Co -operative Society under
this section shall be passed at its general meeting by a
majority of total members with right of/vote or two -thirds of
members present and voting whichever is less and such
resolution shall contain all particulars of the liability, transfer,
division, amalgamation as the case maybe.
(4) Before passing a resolution under this section, the
Co-operative society shall give notice thereof together with a
copy of the resolution to all its members, and federations to
which it affiliated, and creditors who may give their consent.
Notwithstanding any bye-law or contract to the contrary, any
member federation, or creditor not consenting to the
resolution shall, during a period of one month from the date
of service of the notice have the option of withdrawing their
shares, deposits, loans or services as the case may be.
(5) Any member, federation, or creditor who or which
does not exercise within the specified period the right under
sub-section (4) shall be deemed to hav e consented to the
resolution.
(6) A resolution passed by a Co -operative Society
under this section shall not take effect until,-
(a) (i) the members, federations, and creditors have
consented or are deemed to have consented to the
resolution u nder sub-section (4) or, as the case may be,
sub-section (5); or
22 [Act No.30 of 1995]
(ii) all claims of the members, federations and
creditors who have exercised t he option referred to under
sub-section (5) within the period specified therein have been
met in full or otherwise satisfied; and
(b) (i) in the case of change of liability, amendment of
the bye laws of the Co -operative Society concerned is
registered or is deemed to have been registered; or
(ii) in the case of division or amalgamation,
certificate of registration of the Co -operative Society or
Societies is issued.
(7) When a resolution passed by a Co -operative
Society under sub -section (2) takes effect the resolution
shall be a sufficient conveyance to vest the assets and
liabilities in the transferee without any further assurance.
(8) The registration of a Co -operative Society shall
stand cancelled and the Co -operative Society shall be
deemed to have been dissolved and shall cease to exi st as
a Corporate body,-
(a) when the whole of the assets and liabilities of
such Co -operative Society are transferred to another Co -
operative Society; or
(b) when such Co -operative Society divides itself into
two or more Co-operative Societies.
(9) Where two or more Co -operative Societies are
amalgamated to f orm a new Co -operative Society, the
registration of the Co -operative Societies so amalgamated
shall stand cancelled and they shall be deemed to have
been dissolved and shall cease to exist as corporate bodies.
[Act No.30 of 1995] 23
12. (1) Any Co -operative Society may, by a resolution
passed at general meeting by a majority of members
present and voting, promote one or more subsidiary
organizations for the furtherance of its stated objectives, and
such organizations may be registered under any law for the
time being in force, as agreed to by the general body.
(2) The annual reports and accounts of any such
subsidiary organization shall be placed before the general
meeting of the promoting Co-operative Society every year.
(3) Any subsidiary organization created under sub -
section (1) shall exist for only as long as the general body of
the Co-operative Society deems its existence necessary.
13. Where the collaboration between a Co -operative
Society and any other organisation or organisations requires
the creation of a n ew organisation, the new organis ation
may be registered as a company or a public society, as
appropriate for the fulfilment of the objective with which it
was created, and such collaboration shall be reviewed every
year by the general body of the Co-operative Society.
14. (1) A Co -operative Society may mobilise funds in the
shape or share capital, deposits, debentures, loans and
other contributions from its members to such extent and
under such conditions as may be permissible under the
bye-laws of the Co-operative Society:
Provided that, at the time of dis solution of a Co-
operative Society the amounts due to the members shall be
settled only after the settlement of dues to others.
Promotion of
subsidiary
organisation.
Creation of new
organisation with
others.
Mobilisation of
funds.
24 [Act No.30 of 1995]
24[(2) A Co-operative Society may mobilise funds in the
shape of deposits, debentures, loans and other
contributions from members and institutions other than
Government, to such extent and under such conditions as
may be permissible under the bye -laws. The Co -operative
Society shall not accept any deposits from any individuals
other than members.]
25[15. A Co -operative Society may invest or deposit its
funds in any non -speculative manner outside its business in
post offices, Nationalised Banks, Scheduled Commercial
Bank only.]
16. (1) In any year a Co -operative Society shall allocate
towards a deficit cover fund, reserve funds, deferred
payment to members as patronage rebate in proportion to
their use of the Co-operative Societies services and
payment on share capital of interest not exceeding the rate
of interest paid by scheduled banks such percentage of the
surplus arising from its business transactions in the previous
year, as may be approved by the general body.
(2) Reserves created under sub -section (1) shall be
costed by crediting on annual interest equal to the rate paid
by scheduled banks on fixed deposits.
17. (1) Where a Co-operative Society is left with a deficit in
any given year, the board of directors shall place before the
general body in the first following annual general meeting a
detailed report on the causes of deficit and the manner in
which the deficit is proposed to be met.
24. Substituted by G.O.Ms.No.28, Agriculture and Co-operation
(Coop.II) Department, dated 19.04.2016.
25. Substituted with marginal heading by G.O.Ms.No.28, Agriculture and
Co-operation (Coop.II) Department, dated 19.04.2016.
Investment of
funds outside the
business.
Management of
deficit.
Disposal of
surplus.
[Act No.30 of 1995] 25
(2) The general body of the Co-operative Society shall
decide to have the deficit covered by setting it off against
the amounts available in the deficit cover fund and/or by
debiting the deficit to the accounts of the members in
proportion to the services they had availed or were expected
to avail of the Co-operative Society during the year.
18. A Co-operative Society may create a Reserve Fund for
such purpose as may be specified in the bye-law.
19. (1) Subject to the bye-laws, any person who is desirous
of utilising the services of the Co -operative Society may
express his willingness to accept the respons ibilities of
membership and ful fil such other conditions as may be
specified in the b ye-laws of the Co-operative Society and
thereupon he may be admitted as a member, subject,
however, to the condition at the Co-operative Society is in a
position to extend its services to the applicant and that the
Applicant is not already a member of a Co-operative Society
registered under this Act, or the 26Telangana Co-operative
Societies Act, 1964, providing the same or similar services.
27[(2) Admission of members and removal from
membership shall be made, in accordance with the
procedure specified in the by e-laws only by the General
Body:
Provided that no member shall be expelled under this
section unless,
(a) member caused loss of finances to the society;
26. Adapted by G.O.Ms.No.53, Agriculture and Co-operation (Coop.II)
Department, dated 20.05.2016.
27. Substitu ted by G.O.Ms.No.28, Agriculture and Co-operation
(Coop.II) Department, dated 19.04.2016.
Reserve Fund.
Eligibility for
membership.
26 [Act No.30 of 1995]
(b) member is involved in impersonation, forgery or
any other criminal activity against the society;
(c) given an opportunity of m aking his/her
representation to the Managing Committee, before re moval
of membership:
Provided further that a copy of resolution expelling the
member shall be communicated to the member within 30
days under intimation to the Registrar.]
(3) A person admitted as a member may exercise the
rights of membership, including the right to vote, only on
fulfilment of such conditions as may be laid down fr om time
to time in the bye-laws:
Provided that a person shall ha ve been a member for
atleast one year before being eligible to exercise the right of
vote:
Provided further that the above proviso shall not apply
to the promoter, member in the first year of registration of a
Co-operative Society.
28[(4) A member shall be disqualified from voting if he /
she fails to attend two consecutive Annual General Body
meetings without leave of absence and if he/she fails to
utilize minimum level of services or/and participate in the
business of the society at a minimum level as ma y be
prescribed in the Bye-laws:
Provided that a reasonable opportunity shall be
provided to the member before disqualifying him from
membership.]
28. Added by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II)
Department, dated 19.04.2016.
[Act No.30 of 1995] 27
20. (1) Subject to the provisions of this Act and the bye -
laws, the ultimate authority of a Co -operative Society shall
vest on its general body:
Provided that where, because of spread of number of
members, a Co -operative Society feels the need for
constituting a Representative General body for more
effective decision making, it may conExcerpt shown. Open the full act in Lexace.