(1) Where a Co-operative Society proposes to amend its bye-laws no such amendment shall be made save by a resolution passed by a two-third majority of the members present and voting at a general meeting of society.
(2) No such resolution shall be valid unless notice of the proposed amendment has been given to the members of the society in accordance with the bye-laws :––
(a) a copy of the resolution referred to in sub-rule (1) ; and
(b) a certificate signed by the presiding authority of the meeting that the procedure specified in sub-rule (1) and sub-rule (2) and in the bye-laws has been followed.
(3) Every such application shall be made within fourteen days from the date of the General meeting at which amendment was passed :
Provided that the Registrar may condone the delay, if any for sufficient cause.
(4) When the Registrar registers an amendment of the bye-laws of a Cooperative Society, he shall send a copy thereof to the society, if any, to which the Co-operative Society is affiliated.
(5) Where the Registrar Co-operative Societies refuses to register an amend- Note.–– Sub-rule (4) has been split by making the proviso as part of sub-rule (3) and the rest part as sub-rule (4) for the facility of the readers as the proviso can never by a sub-rule itself .............(Author) 6 ment of the bye-laws of a Co-operative Society, he shall communicate order of refusal together with the reasons thereof to the society within sixty days.
6-A. Change of form and extent of liabilities. —(1) A change in the form and extent of liability of a Co-operative Society shall be effected by a resolution passed at a general meeting of the society.
(2) At least fifteen days clear notice of such meeting shall be given to all the members of the Co-operative Society, which shall be accompanied by a copy of the proposed resolution.
CHAPTER –– III Members of Co-operative Societies and their rights and liabilities
7. Disqualifications for membership. ––(1) No person shall be eligible for admission as a member of a Co-operative Society if he—
(a) is adjudicated as an insolvent ; or
(b) has been sentenced for any offence other than an offence of political character or any offence not involving moral turpitude and a period of five years has not elapsed from the date of expiry of the sentence ;
(c) has any other member of his family excepting his/her spouse as a member of that society.
Explanation.— For purposes of this rule, the expression “family” means wife, husband, father, mother, grand mother, grand step-mother, step father, son, daughter, step-daughter, brother, sister, living jointly in one house-hold and having a common kitchen.
(2) If the member become subject to any of the disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date when the disqualification was incurred.
8. Prohibition of membership in two Primary Co-operative Societies.–– No individual being a member of Co-operative Society shall become a member of another primary Co-operative Society of the same type and having the same objects.
9. Admission of member before the General Body meeting of a Society.–– No Co-operative Society shall admit members fourteen days prior to the date of its annual General meeting.
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10.Chairman having second or casting vote.–– In the event of equality of votes, the Chairman of meeting of Co-operative Society shall have a second or casting vote.
11.Votes by Government nominees.–– Government nominees shall be the Government officers or other professionals well versed in a particular sector of activities. Such nominees shall not contest for the elections to the Co-operative Society. In the case of Apex societies only the senior officers of the level of Registrar or Joint Registrar shall be nominated by the Government.
12. Disabilities of a defaulting member. ––(1) No member of a Co-operative Society, who is in arrears to the society in respect of any loan taken by him, for such period as is specified in its bye-laws or in any case for a period exceeding three months from the date it is due, shall be appointed to represent the society in any other Co-operative Society and to vote on its behalf in such other Co-operative Society.
(2) Where a member of Co-operative Society so appointed falls in arrears to the society for the period specified in sub-rule (1) subsequent to his appointment, he shall cease to be a representative of the society as from the end of the said period.
13.Expulsion of a member. ––(1) The committee of a society may, by a resolution passed by three-fourths majority of the members present and voting at a meeting held for the purpose, expel a member, if he––
(a) intentionally does an act likely to injure the credibility of the society or bring it into disrepute, or
(b) wilfully deceives the society by false statement, or
(c) carries on any business which comes or is likely to come into conflict with the business carried on by the society, or
(d) persistently makes default in payment of his dues or fails to comply with any provisions of the bye-laws :
Provided that no such resolution shall be valid unless the member concerned has been given seven days’ notice to expel him and has been given an opportunity to represent his case to the committee.
(2) Notwithstanding anything contained in these rules or the bye-laws of the society, where it appears to the Registrar to be necessary or desirable in the interest 8 of the society to expel a member from the society he may call upon such member and the society, to explain within a period to be specified by him why such member should not be expelled from the society. If the member or society fails to furnish his or its explanation within the time specified or after considering the explanation, if received, the Registrar may pass an order expelling the member from the society.
(3) No member of a society who has been expelled under sub-rule (1) or subrule (2) shall be eligible for re-admission as a member of the society for a period of one year from the date of such expulsion.
(4) Expulsion from membership may involve forfeiture of shares held by the member.
14. Nomination of an heir. ––(1) A member of a Co-operative Society may nominate a person or persons to whom in the event of his death, his share or interest in the capital of the society shall be transferred to or the value thereof on any other money due to him from the society shall be paid, such member may, form time to time, revoke or vary such nomination.
(2) The number of persons who may be nominated as members shall not exceed the number of shares held by the member.
(3) When a member nominates more than one person in respect of any share held by him, he shall as for as practicable, specify the amount to be paid or transferred to each nominee in terms of a whole share.
(4) A nomination made by a member under this rule shall not be valid and shall not, in the event of the death of the member have effect unless :––
(a) it is made in writing and is signed by the member in the presence of at least two witnesses ; and
(b) it is registered in the books of the society kept for the purpose.
15.Value of the share of a member. ––(1) If a member resigns his membership of Co-operative Society or is removed under rule 13 or dies or otherwise ceases to be member, the sum representing the value of his share or interest in the capital of the society to be paid to him or his nominee, heir or legal representatives as the case may be shall be ascertained in the following manner :—
(i) In the case of a society with unlimited liabilities it shall be the actual amount received by the society in respect of such share or interest ;
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(ii) In the case of a society with limited liability it shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet proceeding the resignation, removal or death, as the case may be provided that the amount so ascertained shall not exceed the actual amount received by the society in respect of such share or interest.
(2) In case of dispute between a member or his nominee, heir or legal representative and the society regarding the value of the share or interest in the share capital, the decision of the Registrar thereon shall be final.
CHAPTER –– IV Management of Societies