(1) No officer of a Co-operative Society shall have any interest, directly or indirectly otherwise than as such officer.-
(a) in any contract made with the society; or
(b) in any property sold or purchased by the society; or 56
(c) in any other transaction of the society except as investment made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee of the society.
(2) No 4[Office-bearer or member of the 5[Board] or employee] of a Co-operative Society shall purchase, directly or indirectly, any property of a member of the society, sold for the recovery of his dues to the society.
1. Rules 17-A, 17-B, 17-C and 17-D omitted by GSR 85, dated 28-3-1987.
2. Rules 17-A, inserted by Notification No. CO 226 CLM 2014, dated 6-6-2015, w.e.f.6-6-2015
3. Rules 18 substituted by Notification No. CO 14 CLM 2013, dated 10-7-2013
4. Substituted for the word “officer” by Notification No. CO 223 CLM 2006, dated 29-11-2007, w.e.f.29-11-2007.
5. Substituted for the word “committee” by Notification No. CO 14 CLM 2013, dated 10-7- 2013, w.e.f.10-7-2013 Chapter V Properties and funds of Co-operative Societies [20. Co-operative Education and Training.- (1) Every cooperative society shall remit its contribution towards cooperative education fund to the account of the Karnataka State Cooperative Federation Limited, Bangalore within thirty days from the date of its annual general meeting.
(2) The cooperative education fund shall be maintained and administered by the Karnataka State Cooperative Federation Limited and shall be utilized on the advice of an advisory committee consisting of the following members, namely.-
(a) President, Chairperson of the State Cooperative Federation Chairperson
(b) Four apex societies’ president/ chairpersons i.e. Karnataka State Cooperative Apex Bank Ltd., Karnataka Cooperative Milk Federation Ltd., Karnataka State Cooperative Urban Banks Federation Ltd., and Karnataka State Credit Cooperative Societies Federation Ltd., Member are the members.
(c) The Director, Regional Institute of Co-operative Management, Bangalore. Member
(d) The Registrar of Cooperative Societies or his Nominee Member
(e) The chief executive officer of the State co-operative Federation. Member Secretary 57
(3) The quorum for a meeting of the advisory committee shall be five.
The advisory committee shall be convened at least once in three months.
(4) The Karnataka State Cooperative Federation shall maintain this fund in a separate account and all income by way of interest or otherwise accruing from the contribution towards this fund shall be credited to this fund.
(5) No expenditure out of the co-operative education fund shall be incurred without the approval of this advisory committee. The auditor of the State Co-operative Federation shall verify the utilization of the fund and certify the same.
(6) Subject to such directions as the advisory committee may give from time to time, the fund may be utilized for any of the following purposes
1. Rules 20 substituted by Notification No. CO 14 CLM 2013, dated 10-7-2013, w.e.f.10-7-2013 connected with the cooperative education, training and human resource development of the co-operative societies, namely:-
(a) education of the members, directors including office-bearers and employees of the cooperative societies and the general public in the principles and practice of cooperation;
(b) human resource development in the cooperative societies;
(c) development of cooperative societies;
(d) capacity building and business management;
(e) professionalization;
(f) technical up gradation;
(g) education, training, research, man power and power and related infrastructure;
(h) research and development;
(i) development of the cooperative movement in general;
(j) co-operative propaganda and publicity;
(k) publication of the books and journals relating to the cooperative movement;
(l) conduct of research, case studies and education in the field of co-operative movement;
(m) award of prize, or honorarium for rendering meritorious service to the cause of the co-operative movement of the State.
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(7) The State Co-operative Federation shall prepare annual budgets and formulate training and education programmes for the development of co-operatives and co-operative movement particularly in matters such as financial and business management in the co-operative societies, member education, awareness buildings on cooperative principles and values etc., according to the overall guidelines issued by the advisory committee and be responsible for implementation of the same.
(8) The State Cooperative Federation and the District Cooperative Unions shall submit returns to the Registrar once in a year showing the details of the training programmes conducted.
(9) The board of every cooperative society shall also include in its annual budget provision for expenses on member and potential member education and training of its directors and employees. It shall ensure that the members, directors and employees are well informed and trained about the theory, principles and practice of co-operation. It shall also aim at ensuring that the transparency, the levels of awareness, member participation and member control expected of any good co-operative society are reached out to the members, the directors and the employees of the co-operative society.]
1[20-A. Funds of Karnataka State Co-operative Urban Banks Federation.- (1) Every Urban Cooperative Bank shall contribute 1% of its net profit to the Karnataka State Co-operative Urban Banks Federation within thirty days from the date of its Annual General Meeting.
(2) The amount so contributed under in sub-rule (1) shall be maintained and administered by the Karnataka State Co-operative Urban Banks Federation and shall be utilized as advised by the advisory committee consisting of. –
(a) President, Karnataka State Co-operative Urban Banks Federation President
(b) Presidents of four Urban Co-operative Banks nominated for such period by the Karnataka State Co-operative Urban Banks Federation Member
(c) Regional director, Regional Institute of Cooperative Management, Bangalore.
Member
(d) Registrar of Co-operative Societies or his nominee not below the rank of Assistant Registrar of Cooperative Societies Member
(e) Chief Executive, Karnataka State Co-operative Urban Bank's Federation Member Secretary 59
(3) The quorum for a meeting of the advisory Committee shall be five. The advisory committee shall convene a meeting at least once in three months.
(4) Sub rule (7) to (9) of rule 20 shall mutatis - mutandis apply to the Advisory Committee also.]