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BYE-LAWS OF INDIAN STATISTICAL INSTITUTE CO-OPERATIVE CREDIT SOCIETY LIMITED

(Regd. No. CR-7 of 2nd

August 1975)

1

PRELIMINARY 1. In this Bye-laws unless there is anything repugnant in the Subject of Context :-

a) Act means the Multi State Co-operative Societies Act 2002 (No. 39 of 2002)".

b) Rules mean the Multi State Co-operative Societies Rules 2002.

c) Society means Indian Statistical Institute Co-operative Credit Society Limited.

d) Words and expressions defined in the Act and rules shall have the meaning assigned to them in the

Act and the rules.

NAME

2. The name of the Society is "Indian Statistical Institute Co-operative Credit Society Limited".

ADDRESS

3.1 The Registered Office of the Society will be situated at 203, Barrackpore Trunk Road, Kolkata-108, Post

office Alambazar, Police station Baranagar, Subdivision Barrackpore, in the District- North 24 Parganas.

E-Mail: [email protected], [email protected]

3.2 Notice of any change in the registered address shall be sent in the prescribed manner, within 30 days, of

such change to the Registrar and to the Financing Bank and to the other concerned, if any, of which the

Society is for the time being a member.

OBJECTS

4.1 The objects of the Society are:-

(a) Primarily to create funds to be lent to members; and

(b) To provide facilities of thrift fund and other savings; and

(c) Generally to encourage self-help and mutual aid among members.

4.2 In furtherance of the above objects the society shall be at liberty:

(a) To receive money by way of loans, deposits or otherwise from members, or any other source and

to secure the repayment thereof either by mortgaging, assigning or pledging the properties of the

Society or otherwise;

(b) To establish a "Provident fund" for members, and to make suitable contribution to such fund out of

the profits;

(c) To purchase, take on lease or in exchange, or otherwise acquire lands; buildings, or and movable

or immovable property necessary for the business of the Society; and

(d) Generally to do all such other things as are incidental or conducive to the attainment of its objects.

AREA OF OPERATION

5.1 The area of operation of the Society is Limited to the employees of the Indian Statistical Institute, 203, B.

T. Road, Kolkata-108, attached to or posted at any of its offices/branches/centres situated in different States

and Union Territories of India, namely at Baranagar, Kolkata, Delhi, Giridih, Madras, Bangalore etc.

5.2 Employees of the Indian Statistical Institute Co-operative Credit Society Limited may be admitted as

nominal members of the Society. Nominal members shall have no voting right in the affairs of the Society.

5.3 Ex members of the society will be entitled to apply for nominal membership. No nominal or associated

member shall be entitled to subscribe to the shares of the society or shall participate in the management

thereof including right to vote, be elected as a member of the Managing Committee of the society or

participate in the general body meeting.

QUALIFICATION OF MEMBERSHIP

6.1 Membership of the Society is open to the permanent employees of the Indian Statistical Institute, with in

the area of operation of the Society, subject to the fulfillment of and complying with the conditions laid down in

the Act, the Rules and the Bye-laws for admission of membership.

mailto:[email protected]

mailto:[email protected]



August 1975)

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6.2 No person shall be eligible for admission as a member of the Society if he:-

(a) Has not attained the age of 18 years;

(b) Is not confirmed in a time scale of pay:

(c) Has been adjudged by a competent court to be an insolvent or an undercharged insolvent;

(d) Has been sentenced for offence or moral turpitude and dishonesty (vide clause 2(c) of rule 11).

6.3 The following shall be members of the Society namely:

(a) Persons duly qualified who have joined in the application for registration; (b) Persons who may have after been elected according to these Bye-laws.

6.4 The initial allotment of Shares to the new members would be granted according to the following table:

Members with monthly basic pay (Revised)

Maximum number of shares eligible during The period of membership

1" Yr. 211d

Yr 3" Yr 4th

Yr 5th Yr

1. Rs.4400/- to Rs.7440/- 60 100 140 180 200

2. Rs.7441/- to Rs.9299/- 70 110 150 190 230

3. Rs.9300/- to Rs.15599/- 80 120 160 200 240

4. Rs.15600/- and above 90 130 170 210 250

These stipulations about holding of shares will also apply in case of procurement of shares by transfer. The

Managing Committee shall have the right to alter these stipulations when necessary.

6.5 Every person admitted to membership shall:

(a) Pay an admission fee of Re.1/= which is not refundable.

(b) Hold at least one share.

(c) Name and address to be registered which shall for all purposes be deemed to be his residence,

and any subsequent change of it should be communicated to the Society in writing within a month.

6.6 No person who is already a member of any other Co-operative Credit Society, shall after registration of

these bye-law, be admitted to new membership without previously obtaining consent of the Society of which

he/she is a member and also the approval of the Registrar.

6.7 No persons shall be admitted as a member of the Society within 30(thirty) days prior to the date of the

meeting of the general body of the Society. [R 11(5)]

ELECTION OF MEMBERS

7.1 Every person eligible under bye-laws No.6 who is desirous of becoming a member shall submit an

application in the form to be prescribed by the managing committee, (to be purchased at prescribed price) to

the Secretary who shall lay the application before the Managing Committee for final disposal. The application

shall be supported by at least two members.

7.2 The Managing Committee may after consideration at its next meeting sanction or under due cause refuse

an application for membership. The decision of the Managing Committee shall be final.

7.3 Notice of election, or of refusal to membership shall be sent to the applicant within 30 days from the date

of such decision.

But in the event of the declaration as provided in the bye-laws 7.1 above, is proved to be incorrect, such

members, will automatically cease to enjoy the right and privileges of membership.

7.4 In case of rejection the applicant shall have a right of appeal to the general meeting.



August 1975)

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7.5 Additional share/shares and transfer share/shares may be allotted to a member by the approval of the

Managing Committee in its meeting in the prescribed form.

RIGHTS OF MEMBERSHIP:

8.1 Subject to the provisions vide section 25 to37 of the Act, the Rules and the Bye-laws,

A) Every member of the society shall have one vote in the affairs of the society,

B) Every member of the society shall exercise his vote in person and no member shall be permitted to

vote by proxy,

C) Subscribed at least one share and has made the payment due on account of the share/shares allotted

to him.

D) signed a declaration to the effect that he shall be bound by the bye-laws,

E) signed a consent form addressed to the disbursing officer /administration of different centers/ division

for the deductions of the society through the monthly salary/ Provident Fund/ Gratuity/ others bills as

the case may be.

NOMINEE OF A MEMBER

9.1 A member may nominate in writing any person to who or to whose credit the share or interest or the

value of such share or interest shall on his death be paid or transferred under the provision of the Act

and the Rules, provided that the member may from time to time revoke or very such nomination in

writing.

9.2 The society shall keep a register of all persons (if any) so nominated

9.3 In case the nominee dies before the member, shall report the death to the society and the nomination

will automatically become void.

9.4 A fee not exceeding Rupee one may be levied by the "Managing Committee" for the recording

cancelling and revising of every nomination.

WITHDRAWAL FROM MEMBERSHIP

10.1 A member, if he is not in debt to the society or is not a surety for any debt due to the society, may

withdraw his membership from the society after giving in writing two month's notice to the society.

REMOVAL FROM MEMBERSHIP

11. A member who loses the qualification under bye-laws No. 6(six) may be removed from the

membership of the society by the managing committee.

FINE, SUSPENSION AND EXPULSION OF A MEMBER

12.1 The Managing Committee after ascertaining the fact and after obtaining such evidence as may be

considered necessary by the Managing Committee; a member may be fined or suspended by the

Managing Committee for any of the following reasons:

a) Willful contravention of the Act, the rules and the bye-laws of the society.

b) Acts which are prejudicial to the interest, or detrimental to the proper working, of the service.

c) Willful default, dishonesty of any of the terms of the contract entrust into as a member of a society.

A suspended member shall not entitle to and shall not enjoy any of the right and the membership

during the period of suspension.

12.2 Subject to the provisions of the Act, and the Rules, a member may be expelled by resolution passed by a

majority of not less than two-third of the members present and voting at a general meeting for Acts

which are detrimental to the proper working of the society, and the member so expelled shall not be

eligible for readmission as a member of a society for a period of three years from the date of such

expulsion.

12.3 A member fined, suspended, removed or expelled may appeal to the Registrar of Cooperative Societies

or General meeting against the order of the Managing Committee within one month of the date of the

Communication of the order of punishment.



August 1975)

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12.4 The Managing Committee on receipt of the appeal shall convene a special General meeting within three

months of its receipt for disposal of the appeal provided, however, if an ordinary general meeting is

held within this period„ a special general meeting shall be held to consider the appeal immediately

before the ordinary general meeting is held.

CESSATION OF MEMBERSHIP

13 A member shall cease to be a member if he:-

a) transfer all the shares held by him;

b) Loses the qualification for membership as provided in bye-laws No. 6;

c) Resigns his membership;

d) Is expelled;

e) Dies;

f) Has been adjudged by a competent court to be insolvent or of unsound mind; and

g) Has been punished with imprisonment for an offence involving moral turpitude.

h) Transferred permanently to any other department/office/space outside the operational area of the

society.(as mentioned in 5.1,5.2 and 5.3)

i) After cessation of membership he is liable to clear all the liabilities of the society, if any

DISPOSAL OF SUMS DUE TO PAST MEMBERS

14.1 The society shall set all sums due to a past or deceased member towards the repayment of

outstanding loans due to the society from such member.

14.2 The Society shall retain as security such portion of the sums due by the society as will cover the

outstanding loans in respect of which the past or deceased member stood as surety until the loans are

completely repaid.

14.3 The society shall claim the outstanding loans of a past or deceased member from the provident fund,

and gratuity of the past or deceased member. The society shall claim this to the Employer of the past

of deceased member.

14.4 The sums payable the society shall be paid to the past member, nominee/nominees or legal heir/heirs

of the deceased member/members.

14.5 Subject to the Act, the shares of a past or deceased member shall be transferred without any transfer

fee to an eligible person in the prescribed form of the society on receipt of the value thereof and the

same paid to the past member or estate of the deceased member.

PAYMENT TO A MEMBER WITHDRAWING; REMOVED OR EXPELLED

15. Subject to the provision of the Act and the rules a member withdrawing, removed or expelled from the

society shall be entitled to repayment with or without interest and within such period not exceeding two

years as the Managing Committee may decide of any money paid by him/her or his/her predecessors

in interest towards the purchase of shares.

LIABILITY

16. The liability of the members for the debt of the society in the event of its being wound-up shall be

limited to the menial value of share held by them.

17. Subject to the provisions of the Act, the rules and there bye-laws the funds of the society may be

raised by:

a) Issuing shares;

b) Receiving deposits from members

c) Taking loans from financing Bank and other sources

d) Obtaining grants, donations, and subsidies from Government and other sources; and

e) Deriving income from properties, investments and other sources.

SHARE CAPITAL

18.1 The Nominal share Capital of the Society shall be Rs.3,00,00,000.00 divided into 30,00,000 shares of

Rs. 10/- each to be subscribed by members only.



August 1975)

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18.2 No members shall hold more than 5000 shares amounting to Rs.50,000.00 (Fifty thousand) only.

PAYMENT OF SHARE

19.1 For every share rupees five (Rs.5.00) shall be paid on allotment or in such installments as the managing

committee may call; and the balance shall represent the reserve liability of the members.

19.2 The reserve liability shall become payable:

a) in case of liquidation of the Society, or

b) on calls being made by the Society by a resolution of a general/special general meeting.

19.3 if a sum called in respect of a share is not paid before or on the day appointed for payment thereof the

member from whom the sum is due shall pay interest upon the sum at the rate of interest on loan per

centum per annum from the day appointed for the payment thereof the day of actual payment, by the

managing committee shall be at liberty to waive payment of that interest wholly or in part, cancelled the

share/shares allotted or re-allot the share/shares, if necessary.

19.4 The Society may have the power to repurchase share(s), if necessary, from the bona-fide member of the

Society.

ADDITIONAL SHARES

20.1 The Managing Committee shall sanction additional share/shares to the member/members as per bye-

laws no. 6 and 18.2 .Member will apply for the additional share/shares in the prescribed form (the price

of the form would decide by the Managing Committee from time to time and to be circulated among the

members) of the society.

20.2 Members will be entitled to get the benefits of additional share/shares after one month from the date of

depositing the share money. Managing Committee shall have the right to alter this time factor as and

when necessary.

SHARE CERTIFICATE

21.1 Every member shall free of charge be entitled to a share certificate under the seal of the Society

specifying the Share/shares held by him. Such certificates shall be signed by the Chairman or Vice-

Chairman and the Secretary or Assistant Secretary.

21.2 If a share certificate is defected, lost or destroyed, it may be renewed on payment of Rupees five

(Rs.5/-) and on such terms, if any, as the Managing Committee may determine.

21.3 If necessary the General body of the society shall have the right to take decision about :

a) The overall format of the share certificate (subject to the provisions of Acts and Rules).

b) Issue of new share certificate to every member of the society, which would supersede the all

previously issued share certificate

TRANSFER OF SHARE

22.1 Share may, with the approval of the Managing Committee, by an instrument in writing and as such from

as the Managing Committee may determine, be transferred to another member, who is eligible for

membership and whom the managing committee is willing to admit as a member.

22.2 The transfer is not complete, and the transfer shall be deemed to remain a holder of the share, until the

transferee is admitted to membership and his name is entered in the register of members.

FORFEITURE OF SHARE

23.1 If a member fails to pay any call or installment of a call on or before the day appointed for payment

thereof the managing committee may at any time thereafter during such time as the call or installment

remains unpaid, serve a notice on him to pay the same together with any interest that may have accrued

and any expenses that may have been accrued by the Society by reason of such nonpayment.

23.2 The notice shall name a further day (not earlier than the expiration of thirty days from the date of the

notice) on or before which the payment required by the notice is to be made, and shall state in the event

of nonpayment on or before the day appointed by shares in respect of which the call was made will be

liable to be forfeited.



August 1975)

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23.3 If the requirements of any such notice as aforesaid are not complied with, any share in respect of which

the notice has been given may at any time thereafter, before the payment required by the notice has

been made, be forfeited by a resolution of the managing committee to the effect. Such forfeiture shall

include all dividends declared in respect of the forfeited shares and not actually paid before the

forfeiture.

23.4 A forfeited share may be sold or otherwise disposed of such terms and in such manner is the managing

committee think fit, and at any time before sale of disposition, the forfeiture may be canceled on such

terms as the managing committee think fit.

23.5 A person where shares have been forfeited shall cease to be a member in respect of the forfeited share,

but shall, notwithstanding, remain liable to pay to the society all moneys which at the date of forfeiture

were presently payable by him to the society.

BORROWINGS

24.1 The Society may borrow in accordance with law from members and all borrowings subject to such

restrictions as the general meeting may impose, shall be regulated by the managing committee.

24.2 The Society shall not be accepting deposits or loans in any other way incur liabilities exceeding ten times

the sum of the paid up share capital and the reserve fund for the time being separately invested outside

the business.

24.3 The maximum amount the Society may borrow in any one year shall be determined annually at a general

meeting and the Society shall not borrow beyond the maximum amount so determined and in force for

the time being.

Provided that the registrar may at any time revise the limit fixed by a general meeting, and when be

does so, the limit fixed by him shall not be exceeded.

The Society shall not incur liabilities to members in excess of a maximum limit to be fixed from time to

time in the general meeting, and to be approved by the Legislator.

FLUID RESOURCES OR LIQUID COVER

25.1 The Society shall keep a minimum liquid cover to meet the calls of the creditors according to the

following scale.

a) 40 percent of deposits at call or on current account and cash credits and overdrafts sanctioned but

not drawn;

b) 25 percent of Savings deposits;

c) 25 percent of Saving deposit;

d) 12.5 percent of fixed deposits maturing within the next three months; and but within the next six

months;

25.2 Under special circumstances the Managing Committee may with the approval of the Registrar

decrease the proportions of the liquid cover.

EMPLOYMENT OF FUND

26.1 The funds of the society may be applied in

a) Giving loans and advances to members;

b) Making investments for the benefit of the members;

c) Purchasing lands buildings and in erection of buildings for office and other purpose

necessary for the proper conducts of business;

d) Paying the establishment, contingent, interest, bonus, audit fee and all other usual working

charges;

e) Creation of "reserve", 'bad-debt", and other funds and in payment of dividend, bonus,

remuneration; and



August 1975)

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f) Any other purpose incidental or conductive to the attainment of the objects.

26.2. The Society may act as an agent of life insurance business (agent of L.I.C. of India, Postal Life

Insurance, Peerless Life Insurance) in relation to its members a doing that business may grant interest

free loans to members for the payment of the first installment of their insurance premium. Such loans

should be recovered in not more than 12 monthly installments.

26.3 Service Charge @Re.0.30 paisa per monthly/quarterly/half-yearly/yearly will be charged on the

Insurance done by outside agencies (insurance Scheme No. I)

26.4 The net profit of the society can be divided by way of bonus or dividend among the members and in no

case the capital or the reserve fund shall be distributed as dividend (Section 62 of the multi state

co-operative act 2002).

The net profit of the society for a particular period shall be calculated by deducting from gross profit the

following items:

i) All interest accrued and accruing in relation to amounts which are overdue.

ii) Establishment Charges'

iii) Interest payable on loans and deposits,

iv) Audit fees

V) Working expenses including repairs, rent, taxes and depreciation,

vi) Bonus payable to employees under the payment of bonus act and equalization of fund for such

bonus.

vii) Provision for payment of income tax and making approved donations by the Board and A.G.M.

viii) Development rebate,

ix) Provision for Development Fund, bad debt fund, price fluctuation fund, dividend equalization

fund, share capital redemption fund, investment fund and any other fund which may be

created for the purpose of the development and welfare of the society and its member. X)

Provision for retirement benefit to employees.

A) Writing of bad debts and losses not adjusted against any fund created out of profit or

provision thereof.

xii) Any other fund for the development of education and health for the poor and the backward

section of the country.

MEMBERS'S THRIFT FUND

27.1 It shall be compulsory for every members of the society to subscribe to this fund at the rate of Rs.50.00 (Rupees fifty) per month until he ceases to be a member and that the monthly subscription shall be placed at the credit of the member in the fund. Members may deposit higher than the prescribed rate.

27.2 The Society shall allow an interest (simple/compound interest) at a rate not exceeding Rupees nine percent per annum to be fixed at the general meeting.

27.3 The money at credit of the member of the society in this Fund shall be paid to him or his nominees or heirs as the case may be, after setting off its dues against his liability in the Society, if any, at the time of cessation of membership.

27.4 Minimum rate of subscription to the members Thrift Fund shall be decided by the General Body of the society from time to time.

MEMBERS' GURATANTEE FUND

28.1 a) It shall be compulsory for every member of the Society to subscribe to this fund at the rate of Rupees

three for every Rupees hundred or part thereof on account of loan, at the time of taking loan. The deposits in the fund shall be placed at the credit of the members in the fund.

b) The rate of subscription to the Members' Guarantee Fund as mentioned in (a) above shall apply to the Long Term and Short Term Loans. For other types of loans, the rate of subscription to the Members' Guarantee Fund will be determined by the Managing Committee from time to time and that should not exceed the rate as specified under 28.1(a).

28.2 The society shall allow an interest (simple/compound interest) at a rate not exceeding Rupees nine percent per annum to be fixed at the general meeting.



August 1975)

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28.3 The money at credit of the member of the society in this Fund shall be aid to him or his nominees or heirs as the case may be, after setting off its dues against his liability in the Society, if any, at the time of cessation of membership.

28.4 Rate of subscription to the Members Guarantee Fund shall be decided by the General Body of the society from time to time.

LOAN TO MEMBERS

29.1 Loans shall be granted to members only

29.2 Loans shall be different types namely*:

a) Short term loan repayable within a period not exceeding 36 months. (ten times of the paid up share value)

b) Mid term loan repayable within a period not exceeding 48 months. (ten times of the paid up share value)

c) Long term loan repayable within a period not exceeding 120 months. (ten times of the paid up share value)

d) In the interest of the members, any other type of loan within the provisions of the Multi State Co-operative Act and Rules and also within the repayment period of Ten years (for all types of loan except house building loan) and 15 years for house building loan may be introduced by the Managing Committee.

* Types, times and quantum of any type of loan shall be decided by the Managing Committee from time to time and to be circulated among the members.

29.3 No loan shall be granted to a member exceeding Twenty times the amount of share value paid by him or twenty times of the basic pay whichever is less.

29.4 Managing Committee shall have the right to reduce or increase the number of installments/times of loans/amount may be reduced as and when necessary.

29.5 Application for loan must be in the prescribed form (the price of the form would decide by the Managing Committee from time to time and to be circulated among the members) of the Managing Committee and stating the purpose for which the loan is required shall be submitted to the secretary for consideration by the Managing Committee at the next meeting or so soon thereafter is practicable.

29.6 A member applying for loan shall furnish a full statement of his

a) property and debts;

b) annual income;

c) annual expenditure (including installment or principal and interest on prior debts, if any); and

d) Available surplus for repayment of the loan applied for. Without infringement of Payment of Wages Act.

29.7 The Managing Committee, after due consideration and on proper grounds, may reject an application for loan in such part or in full; or may require an applicant to furnish such further information in respect of the application as may be necessary.

29.8 The Managing Committee or Sub-committee authorized by the Managing Committee may fix the period of repayment for each individual loan on behalf of the Managing Committee subject to the period limited by the bye-laws or Managing Committee for each kind of loans.

29.9 Loan shall not be granted to any member before one year of his completion in the membership of the

Society or to a member transferred outside the operational areas or before one year of his retirement

from the service.

CREDIT PURCHASE TO MEMBERS

30.1 Credit purchases shall be granted to members only.

30.2 Credit purchases repayable within a period not exceeding twelve months.

30.3 No credit purchase shall be granted to a member exceeding ten times (loan and credit purchases) the

amount of share capital paid by him or ten times of the basic pay whichever is less.

30.4 Managing Committee shall have the right to reduce the number of installments / amounts or stop the



August 1975)

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credit purchases as and when necessary.

30.5 Application for credit purchases must be in the prescribed form of the Managing Committee stating the name of shop / establishment, amount required for purchases and other details.

30.6 The Secretary / Assistant Secretary on behalf of the Managing Committee, after due consideration on the basis of application for credit purchases by the members may issue permits for part or full in the authorized shops / establishments of the Society. The Secretary / Assistant Secretary after due consideration and on proper grounds, may reject an application for credit purchase; or may require an applicant to furnish such further information in respect of the application as may be necessary.

CREDIT TO MEMBERS

31. The Managing Committee shall in accordance with the Rules annually determine the maximum and

the normal credit of a member and shall make no

a) Short term loan in excess of the normal credit; and

b) Intermediate or long term in excess of the maximum credit, so determined for each member.

INTEREST ON LOANS

32. The rate of interest of loans will be fixed by the General Body of the Society from time to time subject

to a maximum of 18% (eighteen percent) per annum.

a) Interest on Long / Short Term loans shall be charged ten percent reducing balance per annum.

b) Interest will be calculated nearest to the multiple of Re.1.0 (Rupee one).

INTEREST ON CREDIT PURCHASES

33. Interest @ 5% percent shall be charged against credit purchases.

PURPOSE OF LOAN

Loan may be granted for all or any of the following purposes, namely:-

a) Medical expenses;

b) Education of children;

c) Liquidation of debts;

d) Ceremonial expenses;

e) Purchase of landed properties;

f) House building or repairing or maintenance of each properties (subject to the provisions of the loan

policy adopted in general meeting and approved by the Registrar of Co-operative Societies);

g) Any other purposes the Managing Committee consider as coming within the purposes of the

Society.

SECURITY OF LOANS 35.1 For every loan a member shall furnish one surety if the loan is up to Rs.2000; two sureties for loan of

Rs. 2001 to Rs.8000; three sureties for loan of Rs 8001 and up to Rs.12000.00 and four sureties if the loan is more than Rs.12000.

35.2 A member can stand surety for only four members and the amount for which he stands as surety for any member shall not exceed ten times of his basic pay. D.A. pay and D.A. and he will be liable to repay the loan in case of non-payment by the member/members for which he stands as surety.

35.3 In addition to the personal sureties, the Managing Committee in any case may take other approved security.

35.4 Those members who are not entitled to get loan facilities will not be able to stand as surety.

35.5 The Managing Committee may grant loans to a member without personal sureties up to the extent of the sum equal to three- fourth of the deposits in his thrift fund account (excluding interest) and three-fourth of the amount of his fixed deposit in the Society (provided the receipts of the fixed deposits are deposited with the society) and the deposits in the guarantee fund. But for the rest of the amount granted as loan sureties are to be furnished in due manner.

35.6 The shares of the society shall not be hypothecated to the society or any other agency, by the members as a security for a loan [Sec: 19(3)].



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INSTALMENTS OF REPAYMENTS

36.1 The installments for re-payment of a loan shall be fixed by the Managing Committee or the Committee

authorized by the Managing Committee at the time the loan is granted.

36.2 The installment for repayment of a loan shall not exceed the annual surplus income. The minimum

amount for repayment of a loan will be Rs.10.00 per month or multiple of Rs.10.00 except the last

installment.

36.3 The period of repayment of loan shall be as may be decided by the Managing Committee, but in no

case exceed five years. (Sec. 19(3))

36.4 Except on such condition as the registrar may lay down every loan shall be fully repayable with a

period not exceeding five years.

36.5 Every member shall at the time of taking loan sign a written contract to repay by monthly installments

loan taken and shall authorize the society in writing to recover such installments by deduction from

salary and other bills through his disbursing officer.

36.6 All loans must be clear with the Service period of the members.

36.7 If any liability due to the members after his/her retirement/resignation/removal from the service, the

society shall have the right to deduct the dues from the members provident fund/gratuity and other bills

if necessary.

36.8 If any liability due to the members after his/her death the society shall have the right to deduct the dues

from the members provident fund/gratuity and the other bills/nominee if necessary.

RECALLING A LOAN IN SPECIAL CASE

37.1 Any sum outstanding against a member who has been expelled or who has otherwise caused shall

be immediately payable irrespective of any condition on which the loan was granted.

37.2 Where the Managing Committee considers that the solvency of a member has in anyway diminished

the Managing Committee shall recall any sum due from the member at once.

37.3 Notwithstanding anything contained in any bye-laws the society, reserves to itself the right of calling in

any outstanding sums on 30 days notice ;but such power shall not be generally exercised save when

there is a general run upon the society by its creditors , or in other exceptional circumstances.

RENEWAL AND EXTENTION OF LOANS

38.1 The Managing Committee or Sub-Committee authorized by the Managing Committee may with the

consent of the sureties, if any, on the cause laid down in the bye-laws no. 34 .shown in the application

of the borrower grant an extension of time for the repayment of a loan or grant a renewal of the loan

two times in a year * for the cases of six times loan (short) and after one year from the date of previous

loan for the cases of ten times loan (long)

* Co-operative year (April to March) (13)

38.2 The Managing Committee or Sub-committee authorized by the managing committee may sanction long term loan to an applicant in special cases prior before the completion of one year from the date of previous loan.

CUSTODY OF FUNDS

39. The funds of the society not used in or invested outside the business shall be kept in the custody of a

Treasurer to be appointed by the Managing Committee on such conditions as to furnishing of security, if

any, as the Managing Committee may determine.

Provided that any person charged with the keeping of accounts shall not be placed in charge of the cash.

INVESTM ENT OF FUNDS

40. The funds of the society maybe invested or deposited in any one or more of the following:

a) West Bengal state Co-operative Bank or Central Co-operative Bank;

b) Any of the securities specified in section 20 of the Indian Trusts Act, 1882;

c) Any bank (vide explanation given under section 62 of the act);

d) Any post office savings bank;

e) Any other modes specified in the act or prescribed by rules (vide section 62 of the Act and rule 6)

f) In any other mode permitted by the registrar.



August 1975)

11

GENERAL MEETING

41. The supreme authority of the society shall vest in the general meeting or members. It shall maintain a

general supervision over the business of the society and in particular over the acts of the managing

committee and shall be competent to take all steps that may be considered necessary in the interest of

the society.

ANNUAL GENERAL MEETING

42.1 The annual general meeting of the society shall be held within 6(six) months from the close of a co-

operative year(April to March) or within such extended period as the Central Registrar may, by general

or special order, determine/permit for holding such meeting as per provisions of the Act and the Rules.

42.2 The first annual general meeting of the society shall be held within fifteen months from the date of

registration.

42.3 The business of the Annual General meeting shall be

a) Consideration of the audit report and annual report;

b) Disposal of net profits;

C) Approval of the programmed of activities for the ensuing year along with maximum amount

of borrowings for the year (vide bye-laws 24, rule and section 64) and annual budget.

d) Amendment, if any, or bye-laws.

e) elections of members of the Managing Committee, other than the appointed or nominated

members, subject to the provisions of the Act, the Rules and the bye-laws of the society;

f) Consideration of any other matter that may be placed before it by the Managing Committee.

Provided that a statement showing the details of the loans or goods on credit, if any, given to

any of the members of the managing committee during the preceding year or outstanding

against him, shall be included in the annual report of the managing committee.

g) To transact any other business that may be laid before the meeting by the Managing

Committee:

Provided that, save with the permission of the Registrar, no matter disclosed of by a general or

special general meeting can be taken up for consideration by any general or special general meeting

till after the laid of six months from the date on which the subject was disposed of;

42.4 i) Annual general meeting of the Society shall be called with the approval of the Managing Committee,

by the Secretary by giving not less than 14 (fourteen) days notice in writing,

ii) The notice shall be sent to the members by any of the following modes, namely;-

a) by local delivery, or

b) by registered post, at the address of their offices within the area of operation of the Society,

and shall also be affixed on the notice board of the Society.

iii) The notice shall contain information regarding:-

a) Place, date, time and agenda of the meeting;

b) Numbers of vacancies in the Managing Committee to be filled by election;

c) The qualifications, if any, specified in the Bye-laws for eligibility for membership of the Managing

Committee;

d) time, name of the Returning Officer, date, place and the hours between which nomination paper

shall be filled by the members;

e) The date on which and the time and place at which the nomination papers will be taken up for

scrutiny.

f) The date and time of withdrawal; and

g) The date on which, and the place and the hours at which elections will take place.

(iv) The notice shall be accompanied by a copy each of the audited balance sheet, profit and loss

account, together with the auditor's report thereof, relation to the preceding year and the report of

the Managing Committee.



August 1975)

12

SPECIAL GENERAL MEETING

43.1 Special general meeting may be held as often as may be necessary and shall be held -

a) On the requisition of 1/3rd

of the total number of members of there are less than 500 members in

the society and 1/5th of the members if there are more than 500 members in the society.

b) At the instance of the Registrar, as provided in the Act and the Rules.

43.2 A requisition for special general meeting by the members shall state the object of the meeting shall be

signed by the requisitionist and shall be presented at or sent to the registered office of the society.

43.3 At a special general meeting no subject other than the subjects notified shall be discussed.

NOTICE OF GENERAL MEETING

44.1 A notice of the general meeting stating the place, date and hour of the meeting together with a

statement of business to be transacted at it shall be sent to every member at least 15 clear days before

the date of the meeting.

44.2 In the case of a meeting called on the requisition of members a copy of the requisition together with

the names of the signatories shall be sent to all members along with notice of the meeting.

44.3 Any accidental omission to give notice to any member or the non-receipt of the notice by any member

shall not invalidate the proceedings of any meeting.

CHAIRMAN OF GENERAL MEETING

45.1 The chairman of the society or, in his absence, the vice-chairman or, in their absence members may

elect person as Chairman of the General meeting. The Chairman of the meeting shall maintain order in

the meeting and shall control and conduct the proceedings in such manner as may be conducive to

expeditious and satisfactory disposal of business. He shall decide all points of order and his decision

on such points shall be final.

45.2 The chairman of the meeting may direct any member to withdraw for disorderly conduct and the

member so ordered shall forthwith with-drew and unless otherwise directed by Chairman shall remain

absent during the remaining period of the meeting and shall not be entitled to vote without the

permission of the chairman.

45.3 In the event of disorder arising, the chairman of the meeting may suspend the meeting and adjourn

it subject to the provisions of the Act and the Rules to such date or time as he may think fit.

QUORUM OF GENERAL MEETING

46.1 The quorum for a general meeting shall be 1/5th of the total number of members as on the date of

giving notice of the meeting.

46.2 No business shall be transacted at any meeting unless a quorum of members is present at the time

when the meeting proceeds to business.

46.3 If within half an hour from the time appointed for the meeting a quorum is not present the meeting,

if convened upon the requisition members, shall be dissolved, otherwise the meeting shall stand

adjourned. The meeting thus adjourned shall be held either on the same day or on such date, time

and place as may be decided by the Chairman or the member presiding over the meeting; and no

quorum shall be necessary in respect of an adjourned general meeting.

46.4 If at any time during meeting sufficient members are not present to form a quorum the chairman of

the meeting on his attention being drawn to this fact, shall adjourn the meeting to such convenient

date, time and place as he thinks fit and the business to be transacted at this meeting shall be



August 1975)

13

disposed of in the usual manner at the adjourned meeting and the members present in such

adjourned meeting shall be a quorum.

46.5 The chairman may with the consent of any meeting at which a quorum is present (and shall if so

desired by the members) adjourn the meeting from time to time and from place to place but no

such adjournment shall be made for a period exceeding thirty days.

46.6 No business shall be transacted at any adjourned meeting other than the business left unfinished at

the meeting from which the adjournment took place.

46.7 When a meeting is adjourned for six weeks or more notice of the adjournment meeting shall be

given as in the case of an original meeting. As aforesaid it shall not be necessary to give notice of

an adjourned meeting.

VOTING IN GENERAL MEETING

47.1 Every resolution at a general meeting shall be decided by a majority of votes of members. In case of

an equality of votes, whether on a show of hands takes place or on a poll, the chairman of the said

meeting shall be entitled to a second or casting votes.

47.2 A resolution which is part to the vote of the meeting shall be decided on a show of hands, unless a

poll is (whether before or after the declaration of the result of the show of hands) demanded by at

least 10 members and if no poll is so demanded, a declaration by the chairman of such meeting

that a resolution has on the show of hands, been carried or lost, and entry to that effect in the book

of the proceeding, shall be conclusive evidence of the fact that such resolution has been duly

carried or lost but it shall not be proof of the number or proportion of the votes recorded in favour

of or against such resolution; Provided that any member may demand to have his name recorded

as voting for or against any resolution.

47.3 If a poll is dully demanded it shall be taken in such manner and in such time as the chairman of the

meeting directs, and the result of the poll shall be deemed to be the resolution of the meeting at

which the poll was demanded.

47.4 A poll demanded on the election of a chairman, or on a question of adjournment, shall be taken

forthwith.

47.5 When a poll is taken -

a) The voting may be ballot if the chairman of the meeting subject to the Rules so decides;

b) The number of members voting for or against a resolution shall be recorded in the minute of

the proceedings; and

C) Any member may demand to have his name recorded as voting for or against any resolution.

MINUTES OF GENERAL MEETING

48.1 The Society shall cause minutes of proceedings of general meetings to be entered in a book kept for

that purpose.

48.2 The minutes shall contain the number of members present and the resolutions and proceedings of

the meeting and shall be laid in the next ensuing general meeting.

48.3 Unless the minutes are drawn up and are duly signed by the Chairman of the meeting immediately on

the termination of the meeting the minutes, free forms all alterations or corrections, shall be drawn up

and shall be signed by the Chairman of the meeting within 72 hours from the time when meeting

terminated. The minutes so signed shall be evidence of the proceedings of that meeting.

48.4 Until the contrary is proved, every general meeting of the society in respect of the proceedings whereof



August 1975)

14

minutes have been so recorded shall be deemed to have been duly called and held.

MANAGING COMMITTEE

49.1 The business of the society shall be carried on and managed by the Managing Committee who may

pay all the expenses incurred in getting up and registering the society and may exercise all such powers of

the society as are not required to be exercised by society in a general meeting.

49.2 Subject to the provisions of the Act, the Rules and these bye-laws and also the Regulations, if any,

made in a general meeting and in force for the time being the committee shall enter into such agreements,,

take all such proceedings and do all such acts and things as may be necessary and proper for the due

management of the affairs of the society and for carrying out the objects for which it has been established and

for securing and furthering its interests in every way.

QUALIFICATIONS AND DISQUALIFICATION OF MEMBERS OF MANAGING COMMITTEE

50.1 Subject to the provisions of the Act, the Rules and these bye-laws every member of the society above

the age of 21 years shall be qualified to be elected or appointed as a director.

50.2 A member shall not be eligible for election or appointment as a director, if he:-

a) Has been adjudged by a competent court to be insolvent or of unsound mind; or

b) is concerned or participates in the profits of any contract with the society; or

c) Has been convicted for an offense involving moral turpitude; or

d) Has taken loan or goods on credit from the Society, or is otherwise indebted to the Society and after

the receipt of a notice of default issued to him by the Society, has defaulted as per clause (g) of

Sec. 34 of the Act, or Rule 19, or

e) Has any office or place of profit under Society; or

f) Has been a member of the Society for less than twelve months immediately preceding the date of

such election or appointment.

g) Has interest in any business of the kind carried on by the Society; or

h) Is a person against whom any amount due under a decree, decision or order is pending recovery

under the Act; or

i) Is retained or employed as a legal practitioner on behalf of or against the Society; or

j) Has been convicted for any offense under this Act;

CONSTITUTION OF THE MANAGING COMMITTEE

51.1 The managing committee shall consist of elected directors with reservation of one seat for Schedule Castes or Schedule Tribes and two seats for women from the existing members of the society.

Other additional director has may appointed or nominated under the provisions of the Act and the Rules.

The term of the Managing Committee & its office bearers should be fixed to 5 years from the date of

election; provided that they shall continue to hold office till their successors are elected or nominated

under the provisions of the Act or the Rules or the bye-laws and assume the charge of their office.

The appointed and nominated directors shall hold office during the pleasure of the appointing, or

the nominating, authority as the case may be.

51.2 At the first annual general meeting all the directors shall retire and shall be eligible for re-election.

51.3 The vacancies caused by the retirement of elected directors shall be filled up by election through

secret ballots at the general meeting at which they retire.

Nominations for election would be received, scrutiny of the same would be done and withdrawal of the

nominations would be allowed prior to the date of the meeting as provided under Clause 42.4 (iii). The

Chairman or the Vice-Chairman provided they are not candidate seeking election to the Managing

Committee or the Registrar for conducting the election shall act as a Returning Officer and shall conduct

the election as per provisions of the Act, the Rules and the Bye-laws.



August 1975)

15

51.4 The directors to retire by rotation during the first 3 years after the annual general meeting shall be

determined by law or by mutual arrangement in a meeting of the managing committee within three

months from the date of its constitution.

51.5 In subsequent years the one-third who has been longest in office shall retire. As between 2 or more

directors who have been in office for an equal length of time the directors to retire shall (in default of

agreement between terms) be determined by lot.

51.6 Director by the remaining directors within six weeks from the date of vacancy. The director co-opted shall

retire at the next annual general meeting and the vacancy shall be filled up by election of a director for

the remaining term, if any. The casual vacancy in the office of an elected director shall be filled up by

co-option in whose place the vacancy originally occurred.

51.7 Any casual vacancy in the office of an appointed or a nominated director shall forthwith be reported to

the Registrar and the appointing, or the nominating, authority for necessary action.

POWERS OF THE MANAGING COMMITTEE

52. Without restricting the general powers and authorities are specially given to and conferred upon the

managing committee namely-

a) To admit new members;

b) To fine, suspend, remove or expel a member;

c) To raise funds;

d) To invest funds;

e) To appoint salaried or non-salaried officers and to define their duties;

f) To fine, remove, and dismiss any salaried and non-salaried officers and employees appointed by the

Managing Committee;

g) To compound or abandon or delay to enforce any debtor demand of the Society or to Institute; defend

or compromise legal proceedings.

h) To dispose of applications for shares and of applications for transfer of shares;

i) To dispose of applications for loans and to determine the security to be taken;

j) To appoint committee or sub-committees as may be considered necessary and to specify their

functions and terms of office; provided that the number of such committees and Subcommittees shall

not exceed two without the approval of the Central Registrar; and

k) To frame regulations for the conduct of the business of the Society.

DUTY OF MANAGING COMMITTEE

53. The Managing Committee shall observe in all their transactions the Act, the Rules and these bye-laws and

shall subject to any direction of the general meeting cause -

a) To receive and disburse money;

b) To specify which of the officers shall keep build of accounts, keep other books and registers, shall

prepare returns and statements, and shall keep cash;

c) To enter the accounts of the society in proper books timely and regularly;

d) To maintain true accounts of the money received and expended; And the accounts of the assets

and the liabilities;

e) To prepare and submit to the annual general meeting and annual report the annual statements of

accounts the proposal.

54.4. The quorum at a meeting shall be one-half of the total number of directors.

54.5. Every resolution at a meeting shall be decided by a majority of votes and if the votes be equal the

chairman shall have a second or casting vote.

54.6. Any three directors may requisition a special meeting of the managing committee. The requisitions shall

specify the object of the meeting and shall be signed by the requisitionists and shall be delivered at the

office of the society.



August 1975)

16

54.7. At such special meeting no business other than that specified in the notice shall be transacted.

54.8. Minute, in which shall be recorded the names of the directors present at, and the proceedings of, each

meeting of the managing committee, shall be drawn up on the same day and fairly entered in a book be

kept for that purpose, and shall be laid before the next meeting of the managing committee and signed at

such meeting by the chairman thereof,

54.9. If the registrar so directs a copy of the minutes of the proceedings shall be forwarded to him within 10

days from the date of which the minutes of the proceedings of such meeting is signed by the chairman as

aforesaid.

54.10. Every director present at any meeting shall sign his name in a book to be kept for that purpose.

54.11. The service of the Directors shall be without any payment, except travelling expenses and other

expenses for attending Managing Committee/ Sub-committee/ Annual General/ Special General meeting

at society office or other places for the work of the Society.

54.12. The meeting of the managing committee may be adjourned by the Chairman of the meeting and the

adjourned meeting shall be held on such date, time and place as may be decided by him to dispose of

only the pending items of the agenda.

CHAIRMAN AND VICE-CHAIRMAN

55.1. As soon as the members of the Managing Committee have been elected, the Chairman of the Annual

General Meeting shall, notwithstanding anything in the Bye-laws of the Society specifying the period of

notice, convene a meeting of the nearly constituted managing committee for the purpose of election of

the chairman, the Vice-chairman or other elected office bearers of the Society from among the

members of the managing Committee as per provisions of the Act, the Rules and the Bye-laws of the

Society; Provided that such a meeting shall not be conducted unless a majority of the number of

members of the newly, constituted managing Committee, as per Bye-laws, are present, and in that

case the chairman referred to above shall adjourned the meeting to a convenient date, time and place.

55.2. If a casual vacancy occurs in the office of the chairman or vice-chairman the Managing Committee shall

elect director to fill such vacancy, and the chairman or vice-chairman so appointed shall continue in

office so long only as the person in whose place he is appointed would have been entitled to continue

in office.

55.3. No person shall be eligible to hold the office of the chairman or the Vice- chairman after he has held the

office as aforesaid during two consecutive terms, whether full or part, subject to the provisions of

section 37 of the Act.

POWER AND DUTIES OF CHAIRMAN AND VICE-CHAIRMAN

56.1. The chairman and the vice-chairman shall exercise such powers and perform such duties as are

conferred or imposed on them by the Act, the Rules and these bye-laws, and may from time to time, he

conferred or required by the general meeting or the managing committee.

56.2. The chairman or the vice- chairman in absence of the chairman may in cases of urgency exercise all the

powers and perform all the duties required to be exercised and performed under the Act, Rules and these

bye-laws by the Managing Committee. All orders passed and all Acts done by the Chairman or the Vice-

chairman in the absence of the chairman shall be placed before the Managing Committee in the next meeting

immediately following such passing of orders or performance of duties.

Provided that the Chairman or the vice- chairman as the case may be shall not act in opposition to or in

contravention of any order given or decision taken by the managing committee at a meeting or excise any



August 1975)

17

power or perform any duty which is expressly required to be exercised or performed by the Managing

Committee in meetings.

SECRETARY

57.1. The Managing Committee shall elect from amongst themselves or appoint a secretary and one or more

Assistant Secretaries for the conduct of the affairs of the Society.

POWER AND DUTIES OF SECRETARY

58. Subject to the general direction of the Managing Committee the secretary shall conduct the business of

the society and for this purpose

58.1. He shall exercise the following powers, namely-

a) Control the staff of the Society;

b) Institute, defend and conduct legal proceedings in Law Courts and other places;

C) Call the general meetings and the meetings of the managing committee and attend such

meetings; and

58.2. He shall perform the following duties, namely-

a) Prepare and place before the managing committee an estimate

i) Of the expenditure which should in his opinion be incurred by the society the next ensuing year,

and

ii) Of the receipts from all sources during the said year, in such form and at such time as the

managing committee may direct;

b) Receive all money on behalf of the society and to issue receipts (other than contractual receipts) in

effectual discharge of the money stated to have been received therein;

c) Pay all costs of management and working expenses out of the funds of the society such as salaries,

bonus of the staff, legal expenses, charges on account of postage telegrams, stationery, printing,

advertisement, traveling, lighting, rent and the like expenses;

d) Deposit all moneys and other properties received on behalf of the society in such bank as the

Managing Committee may direct;

e) Maintain proper and accurate record of the working of the society and its accounts;

f) Place from time to time before such authorities as the managing committee may direct statements of

receipts and disbursements.

POWERS AND DUTIES OF ASSISTANT SECRETRY 59.1. To assist the Secretary in the smooth functioning of the Society. 59.2. Act as secretary in the absence of

secretary.

REMOVAL OF AN OFFICER

60. Any officer elected in the general meeting may be removed from his office by a resolution of a general

meeting specially convened for the purpose. An appointed officer may be removed by the managing

committee under usual safeguards.

CESSATION OF MEMBERSHIP OF MANAGING COMMITTEE

61. A director shall cease to hold office if

a) He becomes disqualified for being a member of the managing committee, or the society

as per provisions of the act, the rules or the bye-laws of the society; or



August 1975)

18

b) He resigns his office, or

C) Absent six consecutive meetings of the managing committee; or

d) He dies, or

e) He is removed from the managing committee upon a resolution of the general body

DISPOSAL OF PROFIT

62.1 Subject to the provisions of the Act and the Rules the net profits of the Society shall be distributed in the

following order, namely-

a) fifteen per centum or such higher proportion of the net profits as the general meeting may

decide shall be carried to the reserve fund;

b) An amount of minimum half per centum but not exceeding five per centum of the gross

earnings as may be decided by the general meeting shall be contributed to the co-operative

development fund.

C) Ten per centum or such higher proportion of the net profit as the general meeting may decide

shall be carried to the Reserve for Bad and Doubtful Debt Fund.

62.2 The balance of the net profits as certified by the audit officer may subject to the provisions of the Act and

the Rules and in accordance with the decision of the general meeting be applied to all or any of the

following purposes, namely -

a) to the payment of a dividend on shares provided that the dividend paid on any share shall not

exceed 9 per centum;

b) to the making of a contribution to the "provident Fund of Members and Employees" under

section 59 at a rate not exceeding the amount of contribution made by the members or the

employees;

C) with the sanction of the Registrar for any specific service rendered to the society to the payment of a

bonus to the members or the employees at such rates from the net profit not below the

minimum rate fixed or to be fixed by the provisions of the bonus Act or Ordnance of the country

or such higher rates as may be recommended by the managing committee and approved by the

general meeting.

RESERVE FUND AND RESERVE FOR BAD AND DOUBTFUL DEBT FUND

63.1 The society shall maintain a reserve fund and a reserve for bad & doubtful debt fund in respect of the net

profits, if any derivable from its transaction.

63.2 I. Not less than ten per centum or such higher proportion of the net profits annually carried to the

Reserve for Bad and Doubtful Debt Fund.

II. The reserve fund shall consist of—

a) not less than fifteen per centum or such higher proportion of the net profits annually carried

to the fund;

b) admission fee (after deduction preliminary expenses incurred in constituting the society);

C) the value of all shares forfeited; and

d) the lapsed dividends and fines.

63.3 The reserve fund shall belong to the society and shall be indivisible and no member shall have any claim

to a specified share in it;

Provided that in case of division of the society into two or more new societies, the reserve fund may,

with the sanction of the Registrar, be distributed equitably or proportionate to the share/shares



August 1975)

19

amongst the new societies.

63.4 The reserve fund, with the previous sanction of the Registrar, shall be available for all or any of the

following purposes -

a) to cover any loss, such drawing upon it being reimbursed from the profit; payments being

reimbursed when fresh collection are made; and

b) to meet any call on the society which cannot be met otherwise, such payments being reimbursed

when fresh collection are made; and

C) to serve as security for loans which the society may contract.

63.5 The society may in special cases if the Registrar so permits draw on the reserve fund without being

required to reimburse the same from the next accruing profit.

USE OF RESERVE FUND IN BUSINESS

64. The society may, subject to such conditions, if any, as the Registrar may impose, use in its business -

a) up to one-fourth of reserve fund when the owned capital is less than the borrowed capital;

b) up to one-half of its reserve fund when the owned capital is equal to or excess the borrowed

capital; and

C) The entire reserve fund when there is no borrowed capital.

INVESTMENT OF RESERVE FUND

65. The reserve fund not used in the business of the society shall be invested or deposited:-

a) in the Government Saving Bank;

b) in any of the securities specified in section 20 of the India Trusts Act, 1882, other than those

specified in clause (e) of that section; or

C) in any other Bank approved by the Registrar.

DIVIDEND

66.1 The society in general meeting may declare dividend; but no dividend shall exceed the amount

recommended by the managing committee

66.2 No dividend shall be paid otherwise than out of net profits actually realized and certified as such by the

auditor.

66.3 All dividends shall be declared and paid according to the amount paid on shares.

66.4 All dividends remaining unclaimed for 4 years after the declaration thereof by person entitled and

competent to receive and give a valid receipt for the same may at the end of the period and after due

notice to the payee at the discretion of the managing committee., be forfeited to the society and cease

to the payable.

66.5 No dividend shall bear interest against to society.

SUPPLY OF BYE-LAWS AND BALANCE SHEET TO MEMBERS

67. The society shall supply to all members -

a) copy the bye-laws on payment of fifty paisa and

b) A copy of the annual balance sheet.

INSPECTION OF BOOKS BY MEMBERS

68. The managing committee shall, with the approval of the Registrar from time to time, determine whether

and to what extent and at what times and places and under what conditions the accounts and books of

the society or any of them shall be open to the inspection of members and no members (not being a

director) shall have any right of inspecting any other account or book or document of the society except

as authorized in general meeting.



August 1975)

20

INSPECTION OF BOOK BY PUBLIC AND SUPPLY OF COPIES

69.1 The society shall keep open to inspection free of charge at all reasonable time at its office -

a) a copy of the Act;

b) a copy of the Rules;

C) a copy of these bye-laws;

d) a copy of the (latest audited) balance sheet;

e) the register of members; and

f) the register of directors;

69.2 Certified copies of any document which a member of the public has a right to inspect shall on

application be supplied under such terms and conditions as the Managing committee may with the

approval of the Registrar determine.

69.3 The fee for supply of such copies shall be sum calculated at the rate of' 3.00 for each 160 words of the

copy or extent.

SETTLEMT OF DISPUTES

70. Any dispute as provided in Chapter IX of the Act which cannot be decided by the Managing

Committee shall be referred to the Registrar in the manner as prescribed in the Rules.

AMENDMENTOF BYE-LAWS

71. Any of these bye-laws may be altered or rescinded or new bye-laws made at a general meeting/special

general meeting in accordance with the Rules in this behalf and such amendment will come into force

after it has been registered by the Registrar.

ACCOUNTS

72.1 The managing committee shall cause proper books of accounts to be kept with respect to -

a) all sums of money received and expended by the society and the matter in respect of which the

receipt or expenditure tales place;

b) the assets and liabilities of the bank; and

c) All vouchers, documents, receipts and such other papers and books to support the entries in the

books of accounts.

72.2 The books of accounts shall be kept at the registered office of the society, and shall always be open

to the inspection of the members of Managing Committee, and the Departmental officers on duty.

INTERNAL SUPERVISION AND AUDIT

73. The Managing Committee may arrange for such internal supervision and auditors as it may deem

proper and shall introduce such "Internal Check" as the Registrar may from time to time direct.

REPRESENTATION

74.1 The chairman and the secretary, or three directors including either the chairman or the secretary shall

execute and sing all deeds, documents creating, disposing or otherwise negotiating the properties and

funds of the society and in particular shall draw, accept, make endorse and negotiate all bills of

exchange, promissory notes, debentures, securities and other documents standing in the name of or

held by the society:

Provided that in the case of cheques up to Rs. 200 and all receipts by way of acknowledgment and

chairman or the secretary and any officer or employee duly authorized by the Managing Committee

may sign on behalf of the society.

74.2 All vouchers must be signed by the Chairman/Vice-chairman and Secretary/Assistant Secretary.

74.3 Cheques for withdrawal up to Rs. 200.00 must be signed by (a) Secretary and Chairman jointly, or (b)

Secretary or Chairman and any one of others three Directors authorized by the Managing Committee

to sign cheque.

74.4 Cheques for withdrawal of sum above Rs. 200.00 must be signed by:

a) Chairman and Secretary jointly or

b) Chairman or Secretary and any two of others three Directors authorise by the Managing

Committee to sign cheques.



August 1975)

21

SEAL

75.1 The Managing Committee shall provide a common seal for the purpose of society. The seal shall be in

the custody of the Secretary.

75.2 The seal shall not be affixed to any instrument or document except under the authority of the Managing

Committee , and in the presence of a director and of the secretary or such other person as the

Managing Committee may appoint for the purpose; and that director and the secretary or other person

as aforesaid shall sigh every instrument or document to which the seal of the society is so affixed in

their presence.

EVIDENCE

76. On the trial or hearing of any dispute or action or suit to be brought by the society against any member or

his representatives to recover any debt or money claimed to be due to the society in respect of his

shares, it shall be sufficient to prove that the name of the defendant or of the person whom he

represents is or was, when the claim arose, on the register of members of the society as a holder of

the shares in respect of which such claim is made and that the amount claimed is not entered as paid

in the books of the society, and it shall not be necessary to prove the appointment of the Managing

Committee who made any call or that a quorum of the Managing Committee was present at the

meeting at which any call was made or that the meeting at which any call was made was duly

convened or constituted or any other matters whatsoever, but the proof of the matter aforesaid shall be

conclusive evidence of the debt.

NOTICE

77.1 Any notice required to be served by the society upon a member shall subject to the provisions of the act,

Rules and these by-laws be given in writing and delivered or sent by post to the registered address of

the member..

77.2 Where a notice is sent by post, service of the notice shall be deemed to be effected by properly

addressing, prepaying and proof of posting a letter containing the notice.

77.3 All notice to be given on the part of any member shall be left at or sent through the post of the

registered office of the society.

77.4 The non-receipt by a member of any notice shall not affect the validity of the proceedings of any

meeting or of the liability attaching to such notice.

77.5 Every person, who by operation of law of transfer or other means whatsoever shall become entitled to

any share, shall be bound by any and every notice or other documents, which previous to his name

and address being entered upon the register in respect of the share, may have been given to the

person from whom he derived his title and who is registered.

77.6 When any notice or document, in accordance with this bye-laws is delivered at or sent to the registered

address of a member or to his agent as above provided, then notwithstanding he be then deceased

and whether or not the society has notice of his deceased, such service of notice or other document

shall, for all purposes of these bye-laws be deemed service thereof on his nominee, heirs, executors,

administrators, or other legal representatives.

RESOLUTION

78. The society may be wound up, with the approval of the registrar, upon a resolution carried by three

fourths of the members present at a special general meeting called for the purpose.

GENERAL

79. All matters not specifically proved for by these by-laws shall be decided according to the terms of the

Act and the Rules and if there be no provision in the Act and the Rules applicable to such matters,

then, subject no these by-laws and the approval of the registrar, shall be decided in such manner as

the Managing Committee may determine.

-- End --

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