P R I N T E D A T P U N C O F E D , , C H A N D I G A R H P h o n e : 5 0 5 5 9 9 0 E m a i l : p u n c o f e d @ g m a i l .
c o m H O U S E F E D , P U N J A B R e g d .
No. 2 5 4 dt. 1 7 .
1 1 .
1 9 7 0 B Y E - L A W S T H E P U N J A B S T A T E F E D E R A T I O N O F C O - O P E R A T I V E H O U S E B U I L D I N G S O C I E T I E S L I M I T E D , R O P A R , T E H S I L - R O P A R , D I S T R I C T - R O P A R H E A D O F F I C E :
C H A N D I G A R H - 4 y N A M E , A D D R E S S A N D A R E A O F O P E R A T I O N T h e S o c i e t y shall b e called T H E P U N J A B S T A T E F E D E R A T I O N O F C O O P E R A T I V E H O U S E B U I L D I N G S O C I E T I E S LIMITED. It shall be referred to hereinafter as the F E D E R A T I O N .
T h e registered a d d r e s s of the Federation shall b e the P u n j a b State Federation of Cooperative H o u s e Building Societies Limited R o p a r at C h a n d i g a r h .
T h e postal a d d r e s s of the F e d e r a t i o n shall b e “ T h e P u n j a b S t a t e F e d e r a t i o n of C o o p e r a t i v e H o u s e Building Societies Limited R o p a r at C h a n d i g a r h .
” Any c h a n g e in this a d d r e s s shall b e m a d e through an a m e n d m e n t in these bye-laws a n d shall b e notified to the Registrar within 3 0 d a y s of s u c h change.
T h e area of operation of the Federation shall b e the w h o l e of State of Punjab.
D E F I N I T I O N
(i) “Acts” m e a n s the P u n j a b Cooperative Societies Act for the time being in force.
“‘Rules” m e a n s t h e P u n j a b C o o p e r a t i v e Societies Rules for the time being in force.
‘Registrar” m e a n s a person appointed to perform the functions of the Registrar, C o o p e r a t i v e Societies u n d e r the Act a n d includes a n y person appointed to assist the Registrar w h e n exercising all or a n y of the p o w e r s of the Registrar.
For the p u r p o s e of these bye-laws, the Registrar in this behalf by a general or special order:
(iv) ‘Bank” m e a n s the Cooperative B a n k with w h i c h the Federation is affiliated.
(ix)
(x)
(xi) “Board” m e a n s the B o a r d of Directors of the Federation.
‘ M a n a g i n g Director” m e a n s the M a n a g i n g Director of P u n j a b S t a t e F e d e r a t i o n of C o o p e r a t i v e H o u s e Building Societies.
Deleted T r u s t e e ” m e a n s a trustee for the holders of d e b e n t u r e s i s s u e d u n d e r b y e - l a w 1 5 of t h e s e bye-laws.
“Year” m e a n s a period of 1 2 m o n t h s e n d i n g o n 31st M a r c h e v e r y year.
“ G o v e r n m e n t ” m e a n s the G o v e r n m e n t of Punjab.
‘Federation” m e a n s the P u n j a b State Federation of Co-operative H o u s e Bui n g Societies Ltd.
“ C h a i r m a n ” m e a n s the c h a i r m a n of the B o a r d of Directors of the Federation.
‘Director” m e a n s a m e m b e r of Board of Directors of the Federation.
(a) ‘ M e m b e r ” m e a n s the m e m b e r of F e d e r a t i o n a s defined u n d e r bye-la N o .
6.
(b) “Nominal m e m b e r ” m e a n s a n individual admitted as nominal m e m b e r , in accordance with the Act, R u l e s a n d Bye-laws, w h o m a y b e interested in h o u s i n g activites.
S u c h m e m b e r shall not b e eligible to b e c o m e Director of the Federation a n d shall not h a v e a n y rifht of voting in the m e e t i n g s of the Federation.
(¢) “Instalment of l o a n ” m e a n s i s t a i m e n t of principal a n d interest.
W o r d s a n d e x p r e s s i o n s not defined in t h e s e b y e - l a w s but defined in the Rules shall have the m e a n i n g assigned to t h e m in the Act a n d Rules.
O B J E C T S
5.
T h e objects of the Federation shall b e to :-
(i)
(i) (a) B) R a i s e f u n d s f r o m v a r i o u s s o u r c e s a n d to a c c e p t deposits for not less than o n e y e a r f r o m the m e m b e r s a n d N o n - m e m b e r s on such terms a n d conditions as the B o a r d m a y determine.
W i t h the prior sanction of the G o v e r n m e n t to b o r r o w or raise or s e c u r e the p a y m e n t of m o n e y , b y issue of d e b e n t u r e , d e b e n t u r e s t o c k a n d b o n d s a n d to c h a r g e or s e c u r e the s a m e b y trust d e e d o n the undertaking of the Federation or u p o n a n y specific property a n d rights of the Federation.
T o pay remuneration to any person, c o m p a n y or society for services r e n d e r e d in placing or assisting in p l a c i n g a n y of t h e s h a r e s in t h e capital of t h e Federation or a n y d e b e n t u r e s or debenture-stock of the Federation or for p r o m o t i o n of the Federation.
T o g r a n t l o a n s a n d a d v a n c e s to m e m b e r s of te F e d e r a t i o n against the security of their i m m o v a b l e p r o p e r t i e s or s u c h o t h e r s e c u r i t i e s a s m a y b e c o n s i d e r e d n e c e s s a r y w h i c h s h o u l d include assets to be created out of the loans for :- A) Construction of houses/flats/apartments.
P u r c h a s e of land for construction of houses/flats/ a p a r t m e n t s or p a y m e n t s of d e v e l o p m e n t cost of land already held or to k e p u r c h a s e d .
(b)
(c)
(v)
(vi) C ) M a k i n g repairs, a d d i t i o n s , alterations or i m p r o v e m e n t s to existing h o u s e s / f l a t s / a p a r t m e n t s .
(D) P u r c h a s e of built u p houses/flats/apartments.
T o acquire, hold a n d generally deal with a n y property a n d a n y right, title or interest in a n y property m o v a b l e or i m m o v a b l e w h i c h m a y f o r m part of the security for a n y loan, a d v a n c e or w h i c h m a y b e c o n n e c t e d with a n y s u c h security.
T o sell, improve, m a n a g e , develop, e x c h a n g e , lease, m o r t g a g e , dispose off, turn to a c c o u n t or o t h e r w i s e deal with all or a n y part of the property a n d rights of the Federation.
T o assist in finding out suitable land building plots for h o u s i n g c o o p e r a t i v e s / m e m b e r s .
T o undertake construction of houses within the State u n d e r its direct supervision a n d control a n d transfer h o u s e s to its m e m b e r s o n t e r m s a n d conditions a g r e e d u p o n .
T o m a n a g e , sell a n d realise all property, m o v a b l e a n d i m m o v a b l e w h i c h m a y c o m e into the p o s s e s s i o n of the Federation in satisfaction or part satisfaction of a n y of its claim.
T o acquire, construct maintain a n d alter a n y building or w o r k n e c e s s a r y or c o n v e n i e n t for the p u r p o s e of the Federation.
T o e m p l o y experts to investigate a n d e x a m i n e into t h e title, conditions, p r o s p e c t s , value, c h a r a c t e r a n d c i r c u m s t a n c e s of a n y assets, property or rights.
Establish a n d riase funds for the benefit of e m p l o y e e s 4
(vii) x)
(xi)
(xii)
(xiv) a n d grant pension, allowances, gratuities etc. for the benefit of the e m p l o y e e s , according to the instructions issued by the Registrar in this behalf from time to time.
T o negotiate and/or enter into a n y s c h e m e / s c h e m e s pertaining to financing to s u c h m e m b e r h o u s i n g societies a s a r e referred to in b y e - l a w s 5 i) (a) hereof, with G o v e r n m e n t or a n y other authority or institution a n d to w o r k out a n d administer s u c h s c h e m e / s c h e m e s , with the condition that the undertaking of s u c h s c h e m e / s c h e m e s s h o u l d h a v e prior p e r m i s s i o n of t h e Registrar.
T o acquire a n d d e v e l o p land for the benefit of h o u s i n g p r o g r a m m e in the State with the prior sanction of the Registrar.
T o undertake, a s a n a g e n t of G o v e r n m e n t , the w o r k of financing the H o u s i n g Societies a n d allied act S u n d e r s c h e m e s w h i c h h a v e b e e n or w h i c h m a y b e s p o n s o r e d b y the G o v e r n m e n t .
T o take u p a n a g e n c y for general I n s u r a n c e business.
T o p r o m o t e a n d assist in the organisation of h o u s i n g p r o g r a m m e s in the State a n d to o p e n b r a n c h e s in the State of P u n j a b with the prior approval of the Registrar.
(a) T o constitute, g u i d e a n d supervise the worki g of the affiliated C o - o p e r a t i v e H o u s i n g Societies in the State.
(b) To a r r a n g e planning of the bui ings.
T o m a k e a r r a n g e m e n t for periodical inspections of the affiliated H o u s i n g Societies.
(a) T o a r r a n g e for the m a n u f a c t u r e a n d for the stocking of s t a n d a r d i s e d h o u s i n g construction materials in B 5
(xv)
(xvi)
(xvii) suitable locaility a n d to a r r a n g e for their s u p p l y to the affiliated m e m b e r s in the state with a v i e w to e c o n o m i s i n g the cost of construction.
(b) T o s e c u r e priority in allotment of sites f r o m M u n i c i p a l i t e s / I m p r o v e m e n t T r u s t s B o a r d s / Corporation etc. a n d in the supply of building materials such as iron, steel, c e m e n t a n d bricks etc. from concerned authorities to m e m b e r s .
T o o r g a n i s e s t u d i e s a n d r e s e a r c h a n d constitute expert c o m m i t t e e s for the following objects :-
(a) for improvement of the local bui
(b) to ascertain the kind of h o u s e s that a r e suited to b e built in the different parts of the state;
(c) to bring d o w n the cost of construction without affecting the qu:
(d) to i m p r o v e the site planning, building d e s i g n s a n d b u s i n e s s a n d M a n a g e m e n t of t h e Federation.
T o establish contacts with the Institutions in India a n d abroad, for carrying out the research w o r k in h o u s i n g sector a n d to k e e p the m e m b e r h o u s i n g societies f o r m e d in the h o u s i n g sector b y t h e s e Institutions.
( a ) T o d o all s u c h other things a s a r e incidental or c o n d u c i v e to the a t t a i n m e n t of the o b j e c t s of t h e Federation.
(b) T h e F e d e r a t i o n m a y b e c o m e m e m b e r of the S t a t e or t h e N a t i o n a l level C o o p e r a t i v e institution.
In case of the Institutions other than C o o p e r a t i v e s w h i c h m a y help the Federation in the d e v e l o p m e n t of h o u s i n g it m a y b e c o m e the m e m b e r of s u c h institution w i t h t h e prior approval of the Registrar.
ing material :
6 M E M B E R S H I P T h e m e m b e r s h i p of Federation shall consist of the following :- i) A n y coopertaive housing society in the State.
T h o s e cooperative societies w h i c h are interested in p r o m o t i n g a n d asisting the activities of cooperative h o u s i n g societies.
A n y o t h e r c o o p e r a t i v e society w h o s e object is to construct houses.
iv) G o v e r n m e n t .
v) S u c h financing institutions as m a y be notified by the Govt. with the prior permission of the Registrar.
vi) A n individual able to contract u n d e r section 11 of the Indian Contract Act 1872.
A n application o n p r e s c r i b e d f o r m shall b e a d d r e s s e d to M a n a g i n g Director for m e m b e r s h i p a n d shall b e d i s p o s e d off b y the B o a r d of Directors of the Federation.
In c a s e the B o a r d refuses to a d m i t a cooperative h o u s e building society/institution/ individual applicant it shall record its r e a s o n s for s u c h refusal a n d c o m m u n i c a t e the s a m e to the applicant c o n c e r n e d .
A n y applicant w h i c h h a s b e e n refused a d m i s s i o n shall h a v e the right to a p p e a l to t h e R e g i s t r a r within 6 0 d a y s f r o m t h e communication of such decision/order.
(a) E v e r y m e m b e r o n a d m i s s i o n shall p a y a n a d m i s s i o n fee of r u p e e s ten.
(b) No p e r s o n shall exercise a n y rights of pi of a m e m b e r until h e h a s m a d e p a y m e n t s to the Federation in respect of a d m i s s i o n fee a n d full value of the shares to be allotted to him a n d his application for m e m b e r s h i p is a p p r o v e d b y the Board.
S H A R E C A P I T A L
9. (a) T h e authorised s h a r e capital of the Federation shall b e Rs. 75,00,00,000/- divided into 1,50,000 shares of Rs. 5000/- each.
(b) ) E v e r y m e m b e r other than the financing institution a s defined u n d e r B y e - l a w 6
(v) shall p u r c h a s e ten s h a r e s of the value of Rs. 5000/- e a c h at the time of admission w h i c h shall b e fully paid up.
(i) H o w e v e r a m e m b e r taking loan shall also h a v e to p u r c h a s e additional s h a r e s of the Federation to the extent fixed by the Board.
N o m e m b e r shall ordinarily b e permitted to s e e k withdrawal or refund of its s h a r e provided that w h e n t h e F e d e r a t i o n h a s c r e a t e d a s h a r e transfer fund out of its e a r n e d profits its B o a r d m a y allow withdrawal of s h a r e s w h i c h shall not at all a n y time e x c e e d s 5 % of the a g g r e g a t e paid u p s h a r e capital of t h e F e d e r a t i o n e x c l u d i n g Govt.
contribution, if any, a s it s t o o d o n 31st M a r c h of t h e p r e c e d i n g year.
S h a r e s can, h o w e v e r , b e transferred to a n y existing m e m b e r or to a person duly qualified for m e m b e r s h i p as approved by the Board.
(iv) S h a r e certificates signed b y M a n a g i n g Director a n d o n e Officer of the Federation shall be issued to e v e r y m e m b e r .
If a s h a r e certificate is defaced, lost or destroyed a duplicate certificate m a y b e issued on execution of an indemnity b o n d subject to p a y m e n t of fee d e t e r m i n e d b y the M a n a g i n g Director.
(©)
(d)
(e) M
(v) No interest shall b e p a y a b l e o n the v a l u e of share purchased by a m e m b e r .
Only dividend shall b e paid a s a n d w h e n it is declared b y the Federation.
T h e F e d e r a t i o n m a y r e c e i v e f r o m G o v e r n m e n t contribution t o w a r d s its s h a r e capital subject to the provision of the A c t a n d R u l e s a n d retire the s a m e a s per t e r m s a n d conditions intimated b y the Registrar or the Government.
A n y a m o u n t contributed b y G o v e r n m e n t t o w a r d s s h a r e capital of the Federation shall b e subject to s u c h t e r m s a n d conditions i m p o s e d b y Govt.
f r o m time to time a n d a c c e p t e d b y the Federation a s to its retirement a n d rate of dividend.
T h e Federation shall maintain a separate register specifying the details with regard to the s h a r e s allotted to G o v e r n m e n t .
T h e Federation shall c r e a t e a s e p a r a t e f u n d c a l l e d “Capital R e d e m p t i o n F u n d ” for p u r p o s e of r e d e m p t i o n of shares allotted to the Government.
N o m i n a l m e m b e r shall only p a y a n a d m i s s i o n fee of Rs.
10/- ( R u p e e s T e n only).
N o m e m b e r other than the G o v e r n m e n t or a C o o p e r a t i v e Society shall hold s h a r e s of w h i c h the nominal value exceeds Rs. 50,000/~ or 1/10th of the total s h a r e capital actually s u b s c r i b e d w h i c h e v e r is less. E X P U L S I O N O F M E M B E R A m e m b e r of the Federation m a y b e expelled for a n y o n e or m o r e of the following r e a s o n s :- i) If the Sma.wm_, fails to p a y the s h a r e m o n e y or other a m o u n t d u e from the m e m b e r to the 9
(b) Federation wi 2 m o n t h s from date s u c h instalments or a m o u n t b e c o m e due, or a notice to the effect that the a m o u n t has b e c o m e d u e is issued b y the M a n a g i n g Director.
If the m e m b e r is a persistant defaulter a n d habitually fails to carry out its obligations to the Federation.
If the m e m b e r wilfully d e c e i v e s the Federation b y false s t a t e m e n t or abstains f r o m supplying i n f o r m a t i o n or s t a t e m e n t s o u g h t or fails to p r o d u c e record a n d b o o k s for inspection within 2 m o n t h s o n s u c h d e m a n d b y the M a n a g i n g Director.
(iv) If the m e m b e r d o e s a n y act likely to injure the credit of the Federation.
T E R M I N A T I O N O F M E M B E R S H I P A m e m b e r ' s m e m b e r s h i p of the Federation shall stand t e r m i n a t e d automatically in a n y o n e or m o r e of the following circumstances. A notice to that effect shall be served by the M a n a g i n g Director.
(i) A m e m b e r ' s m e m b e r s h i p of the Federation shall s t a n d t e r m i n a t e d automatically in a n y o n e or m o r e of the following c i r c u m s t a n c e s o n t h e service of a notice to that effect s e n t b y the M a n a g i n g Director.
W i t h d r a w a l / t r a n s f e r b y t h e m e m b e r after 2 m o n t h s notice to the M a n a g i n g Director of the F e d e r a t i o n p r o v i d e d that t h e m e m b e r w i t h d r a w i n g i s not indebted to the Feder:
a n d provided further the s h a r e / s h a r e s held b y the m e m b e r are transferred in accordance with the provisions of t h e s e B y e - l a w s a n d Rules.
1 0 1 .
12.
13.
Cancellation of the Registration of a n affiliated society.
(iv) If the m e m b e r fails to o b s e r v e the Provisions of B y e - l a w s without a n y r e a s o n a b l e cause.
(v) If the c o n d u c t of the m e m b e r is contrary to the stated objects of Federation or prejudicial to the interests or reputation of the Federation.
(vi) On death N o m e m b e r shall b e expelled e x c e p t b y a resolution p a s s e d in the Board's m e e t i n g attended b y atleast 2/3 m e m b e r s .
T h e B o a r d shall record the r e a s o n s for expelling the m e m b e r a n d c o m m u n i c a t e the s a m e u n d e r registered post to the m e m b e r s c o n c e r n e d within a w e e k of s u c h decision.
A m e m b e r expelled u n d e r B y e - l a w 10(a) shall h a v e the right of a p p e a l against its e x p u l s i o n o r r e m o v a l to t h e R e g i s t r a r within 6 0 d a y s , of t h e date of c o m m u n i c a t i o n of the decision regarding its expulsion.
T h e decision of the Registrar shall b e final.
LIABILITY T h e liability of a m e m b e r for deficit in the assets of the Federation in the e v e n t of its being w o u n d u p shall b e limited to the s h a e capital s u b s c r i b e d b y the m e m b e r s .
F U N D S T h e Federation m a y raise f u n d s b y :- i) A d m i s s i o n fee;
Issue of shares of the value of Rs. 5000/- each;
Raising loans subject to the provision of the Act a n d Rules;raising loan f r o m the G o v e r n m e n t , Coopertive B a n k s , Commercial B a n k s , Life Insurance Corporation a n d other financing Institutions;
a iv) Deposits f r o m m e m b e r s a n d n o n - m e m b e r s ;
11
14. ( i ) M a x i m u m cre
15.
16.
17.
18.
v) Issuing of d e b e n t u r e s / b o n d vi) Accepting grant from the G o v e r n m e n t a n d other Institutions.
M A X I M U M C R E D I T L I M I T mit of the Federation shall b e fixed b y the G e n e r a l b o d y of t h e F e d e r a t i o n with t h e a p p r o v a l of t h e Registrar.
(ii) T h e Federation shall not incur liabilities e x c e e d i n g 1 5 timesof the total a m o u n t of subscribed share capital plus a c c u m u l a t e d reserves m i n u s a c c u m u l a t e d losses.
Subject to the approval of G o v e r n m e n t , the Federation m a y raise m o n e y s b y the issue of d e b e n t u r e s a n d b o n d s or b y m o r t g a g i n g a n y land building or other property of the Federation a s the B o a r d m a y d e e m e x p e d i e n t a n d against G o v e r n m e n t g u a r a n t e e .
T h e d e b e n t u r e s i s s u e d b y the F e d e r a t i o n a n d the interest p a y a b l e t h e r e o n shall f o r m a first c h a r g e o n the undertaking a n d general assets of the Federation.
T h e Registrar shall b e trustee for the p u r p o s e of securing the fulfilment of the obligations of the Federation to the holders of d e b e n t u r e s i s s u e d b y t h e F e d e r a t i o n .
T h e p o w e r s a n d functions of the trustee shall b e g o v e r m e d b y the instrument of trust e x e c u t e d b e t w e e n the Federation a n d the Trustee.
A n y t e r m of the instrument m a y b e modified with m u t u a l c o n s e n t of t h e F e d e r a t i o n a n d t h e Trustee.
All the properties of t h e Federation o n the security of w h i c h d e b e n t u r e s are issued shall vest in the trustee a n d the holders of debentures shall have a folating c h a r g e o n all m o r t g a g e s a n d a m o u n t s r e m a i n i n g in the h a n d s of the B o a r d or of the T r u s t e e a n d o n the properties of the Federation.
T h e B o a r d m a y issue, o n s u c h t e r m s a n d conditions a s to 12
19.
20.
21.
22.
23.
24, 25, T — — — = redemption, interest or o t h e r w i s e d e b e n t u r e s of o n e or m o r e d e n o m i n a t i o n s p a y a b l e within s u c h period not e x c e e d i n g 1 5 y e a r s a s the B o a r d m a y determine.
T h e B o a r d m a y , at the time of issuing debentures, reserve to the Federation an option to r e d e e m before the expiration of the period fixed for r e d e m p t i o n (but not earlier than five y e a r s after the date of issue) o n giving, with the approval of the trustee, not less than six month's notice of its intention to do so.
N o d e b e n t u r e holder shall b e entitled to the p a y m e n t of the a m o u n t d u e o n his d e b e n t u r e befor the time fixed b y the B o a r d for its p a y m e n t .
T h e d e b e n t u r e s shall b e singed a n d e x e c u t e d b y at least o n e m e m b e r of the B o a r d a n d countersigned b y a n y officer of the Federation a p p o i n t e d for the p u r p o s e b y the Board.
T h e interest d u e o n the d e b e n t u r e s shall b e p a y a b l e o n s u c h d a t e s or date a s the B o a r d m a y fix in this behalf at the time of issuing the d e b e n t u r e s a n d n o interest will b e paid o n the a m o u n t p a y a b l e a s interest if s u c h a m o u n t is not d r a w n o n the d u e date.
W h e n a d e b e n t u r e b e c o m e s p a y a b l e either by r e a s o n of the expiration of the period fixed for r e d e m p t i o n or b y r e a s o n of the notice referred to in b y e - l a w s 1 9 " the holder shall b e paid the principal d u e thereon together with interest upon the date on which it b e c o m e s payable.
T h e federation shall establish a sinking f u n d a s s o o n a s practicable but not later than the s e c o n d y e a r f r o m the date of issue of debentures, in order to provide for the r e p a y m e n t a n d r e d e m p t i o n of d e b e n t u r e s a n d shall at the e n d of e a c h financial year, the Federation p a y to the credit of s u c h fund a s u m w h i c h will b e sufficient to r e p a y the d e b e n t u r e s loan o n maturity.
T h e Sinking F u n d s o constituted shall b e invested a n d m a y b e 1 3 S u c h portion of the Sinking F u n d a s m a y for the time being r e m v e s t e d shall b e kept in a separate a c c o u n t in a B a n k to b e a p p r o v e d realised a n d reinvested in a n y of the following w a y s after previous approval of e a c h s u c h i n v e s t m e n t or reinvestment b y the trustee :- o i) Securities of the Central G o v e r n m e n t or a n y State G o v e r n m e n t .
In d e b e n t u r e s issued b y the Federation.
In a n y of the securities specified in Section 2 0 of the Indian Trusts Act,
1882.
iv) In s u c h other securities a s G o v e r n m e n t m a y a p p r o v e in writing in this behalf.
P r o v i d e d that the recoveries m a d e in respect of m o r t g a g e loans m a y b e appropriated for setting apart the a n n u a l s u m to be credited to the sinking fund.
b y the trustees.
26.
G E N E R A L B O D Y All t h e m e m b e r s of t h e F e d e r a t i o n o n a g i v e n d a t e shall constitute the general b o d y of the Federation.
E a c h m e m b e r society shall b e represented in the general m e e t i n g b y a m e m b e r duly authorised b y the c o n c e r n e d society.
T h e Registrar m a y also attend the general b o d y m e e t i n g if h e s o desires.
T h e s u p r e m e authority of the Federation shall vest in the general body.
It shall m e e t f r o m time to time a n d atleast o n c e a year.
T h e m e e t i n g of the g e n e r a l b o d y shall also b e called b y t h e B o a r d of Directors o n receipt of requisition for s u c h m e e t i n g from 1/4th of the total m e m b e r s or 5 0 0 whichever is less of the Federation.
If o n the receipt of the requisition the B o a r d fails within 1 5 d a y s to call t h e m e e t i n g t h e signatories to t h e requisition m a y refer the matter to the Registrar w h o m a y , if h e thinks fit, s u m m o n the meeting, T h e Registrar m a y o n his o w n 1 4 2 7
28.
29.
30.
m o t i o n at a n y time, s u m m o n a g e n e r a l m e e t i n g of t h e Federation.
W h e n the Registrar calls a special general m e e t i n g the matter for consideration in such a meeting shall also be laid d o w n b y him.
T h e m e e t i n g called b y the Registrar shall b e held in-such m a n n e r a n d at s u c h time a n d place a s m a y b e directed b y him.
Q u o r u m for a G e n e r a l m e e t i n g shall b e 1/4th of the total m e m b e r s h i p of the Federation or 5 0 0 w h i c h e v e r is less.
H o w e v e r , if at a G e n r a l m e e t i n g or special m e e t i n g there is n o q u o r u m within o n e h o u r of the time fixed for the m e e t i n g it shall b e adjourned.
T h e G e n e r a l m e e t i n g m a y b e r e c o n v e n e d after d u e notice.
If at the r e c o n v e n e d m e e t i n g also there is n o q u o r u m within o n e h o u r or t h e time a p p o i n t e d for t h e r e c o n v e n e d m e e t i n g then at the e n d of o n e h o u r the m e m b e r s present constitute q u o r u m to transact b u s i n e s s on the a g e n d a of the original meeting.
(a) Atleast 1 5 d a y s notice specifying the date, time, place a n d a g e n d a of the general m e e t i n g shall b e given to all m e m b e r s b y post u n d e r certificate of posting.
E v e r y s u c h notice shall be signed by the M a n a g i n g Director or such Officer a s the B o a r d m a y in this behalf appoint.
(b) No business other than that which has been specially m e n t i o n e d in a n y notice conventing a m e e t i n g shall b e transacted at s u c h meeting.
E v e r y m e m b e r of the general b o d y e x c e p t the Govt. shall h a v e o n e vote.
E a c h n o m i n e e of the G o v e r n m e n t shall have o n e v o t e .
All questions shall b e d e c i d e d b y majority of votes.
W h e n the votes are equal, the C h a i r m a n of m e e t i n g shall h a v e a casting vote.
T h e C h a i r m a n or in his a b s e n c e the Vice-Chairman a n d in a b s e n c e of both, a p e r s o n elected b y t h o s e present, shall preside over the m e e t i n g s of the general body.
S 1 5
31.
P O W E R S O F G E N E R A L B O D Y T h e G e n e r a l B o d y shall h a v e the following p o w e r s a n d duties :- ] < V) vi) Election a n d removal of the m e m b e r s of the Board of Directors subject to the provisions of A c t a n d Rules.
C o n s i d e r a t i o n of the inspection n o t e s the a n n u a l report, the audited statements, the b a l a n c e s h e e t a n d profit a n d loss account.
Disposal of profits.
Fixation of m a x i m u m b o r r o w i n g limit of t h e F e d e r a t i o n , subject to the approval of the Registrar.
A m e n d m e n t of bye-laws.
D e t e r m i n i n g the plan of activities for the next year.
A p p r o v a l of the estimates for the next year.
32.
A l b u s i n e s s transacted or d e c i d e d in a m e e t i n g of the G e n e r a l B o d y shall b e r e c o r d e d in a P r o c e e d i n g B o o k w h i c h shall b e s i g n e d b y the C h a i r m a n of the m e e t i n g a s well a s M a n a g i n g
33.
e c t o r of the Federation.
B O A R D O F D I R E C T O R S T h e Board of Directors of Federation shall be constituted in the following m a n n e r :- 0 T h r e e r e p r e s e n t a t i v e s of t h e affiliated u r b a n cooperative h o u s e building societies.
Five representatives of the affiliated rural cooperative h o u s e building societies.
T h r e e m e m b e r s to b e n o m i n a t e d b y the G o v e r n m e n t a s per pro n s of the A c t provided it is a m e m b e r of the Federation.
Financing Institutions shall h a v e the right to n o m i n a t e their representaive subject to the proviions of the A c t a n d Rules.
S u c h n o m i n a t e d Director shall not be 1 6
34.
35.
v) vi) required to hold a n y s h a r e or qualifications but h e shall not exercise vote for the election of the office bearers.
T h e M a n a g i n g Director of the Federation:
S e c r e t a r y , H o u s i n g ' a n d U r b a n D e v e l o p m e n t D e p a r t m e n t , P u n j a b or his representative.
All b u s i n e s s d i s c u s s e d a n d d e c i d e d in the m e e t i n g of the B o a r d or a n y of smaller c o m m i t t e e shall b e r e c o r d e d in the p r o c e e d i n g b o o k w h i c h shall b e s i g n e d b y C h a i r m a n of the m e e t i n g a n d M a n a g i n g Director.
(i) T h e m e m b e r s of t h e B o a r d e x c l u d i n g n o m i n a t e d m e m b e r s shall be elected in the m a n n e r laid d o w n in the Act, the R u l e s a n d the instructions issued b y the R e regard f r o m time to time.
T h e t e r m of office of the elected B o a r d shall b e five y e a r s f r o m the date of its election.
A n interim v a c a n c y c a u s e d b y resignation or o t h e r w i s e shall b e filled b y re-election for the un-expired period of the t e r m of the Board.
T h e office-bearers shall b e elected b y the e l e c t e d m e m b e r s of t h e B o a r d f r o m a m o n g s t themselves.
T h e term of the office-bearers shall be Conterminus with the term of Board. T h e elected officebearers c a n b e r e m o v e d by a no-confidence t h r o u g h a resolution p a s s e d b y 2/3rd majority of total elected m e m b e r s of the Board.
N e w office-bearers shall be elected for the r e m a i n i n g t e r m of the B o a r d .
T h e n o m i n a t e d m e m b e r s h a v e n o right to v o t e in the election or removal of the office-bearers.
T h e t e r m s of a n elected Director shall b e a s per Act.
N o p e r s o n shall b e eligible for b e i n g elected to the B o a r d after he h a g , s e r v e d o n the B o a r d for t w o 1 7
36.
c o n t i n u o u s t e r m s unless a period of not less than o n e t e r m h a s expired since h e last s o served.
N o person shall b e eligible for election as a m e m b e r of the Board of the Federation if :- i) v) vi) ix) T h e society h e represents is in default in respect of a n y s u m d u e to the Federtion or to a n y other society.
H e h a s c o m m i t t e d a n y offence involving d i s h o n e s t y or m o r a l turpitude during the period of five y e a r s prior to the date of scrutinising of n o m i n a t i o n p a p e r s a n d h a s not b e e n given a clean chit.
= H e has, directly or indirectly, a n y interest in a n y contract to w h i c h the F e d e r a t i o n or a n y affiliated society is a party e x c e p t in transactions m a d e with the Federation as a m e m b e r ;
or H e h a s at a n y time during a period of o n e y e a r prior to the date of contesting the election e n g a g e d in a n y private b u s i n e s s w h i c h is c a r r i e d o n b y t h e F e d e r a t i o n ;
o r H e holds a n y office of profit u n d e r the Federation or r e c e i v e d a n y h o n o r a r i u m ;
o r H e is a paid e m p l o y e e of t h e F e d e r a t i o n or of a m e m b e r society or is related to a n y paid e m p l o y e e of t h e F e d e r a t i o n or a m e m b e r society;
or ) Incurs a n y other disqualifications laid d o w n in the Act, R u l e s a n d Bye-laws.
H e or his society h a s not b e c o m e eligible for s e e k i n g a loan or has not obtained a loan if eligible or has b e e n refused a loan b y the society or the Federation or h a s repaid the loan fully a n d h a s b e c o m e inactive.
H e h a s b e e n at a n y time adjudicated a s insolvent or h a d s u s p e n d e d p a y m e n t of his d e b t s to his society.
1 8 Xx) Xi) H e b y r e a s o n s of mental or physical infirmity is incapable of discharging his duties property.
H e is not the m e m b e r of the M a n a g i n g C o m m i t t e e of the m e m b e r cooperative h o u s e building society.
H e is a m e m b e r of m o r e than o n e cooperative h o u s e H e in his individual capacity or a s representative of the society h a s not already s e r v e d in t w o continuous terms.
37.
An elected m e m b e r of the Board shall cease to hold office if :- i) H e or the society to w h i c h h e b e l o n g s or of w h i c h h e is a m e m b e r or representative c o n t i n u e s to b e in default in respect of a n y s u m d u e to the Federation or a n y affiliated society or a n y other society for 6 0 d a y s after the issue of notice b y the M a n a g i n g Director of the Federation or a n y p e r s o n authorised in this behalf b y the M a n a g i n g Director to the society c o n c e r n e d stating that the o v e r d u e w o u l d b e treated a s default from a date mentioned therein.
If h e c e a s e s to b e the m e m b e r of the m e m b e r society or c e a s e s to b e m e m b e r of the M a n a g i n g C o m m i t t e e of the m e m b e r society.
H e is declared in solvent.
H e b e c o m e s of u n s o u n d mind.
H e is con m o r a l turpitude.
H e c o m e s to hold a n y office of profit in the Federation or a n y affiliated society or receives a n y honorarium.
H e resigns a n d his resignation is a c c e p t e d b y the B o a r d .
38.
39.
H e a b s e n t s himself f r o m 3 consecutive m e e t i n g s of the B o a r d without the p e r m i s s i o n of the Board.
ix) H e acquires a n interest directly or indirectly in a n y contract of the Federation or in a n y sale or p u r c h a s e m a d e b y the Federation privately or in auction.
X) H e incurs a n y other disqualification laid d o w n in the Act, R u l e s a n d B y e - l a w s w h i c h w o u l d h a v e p r e v e n t e d h i m f r o m s e e k i n g election, h a d b e i n c u r r e d that disqualification before election.
xi) His society is b r o u g h t u n d e r w i n d i n g u p orders or is included in the list of "D’ class societies m a i n t a i n e d b y the Registrar or a n administrator is a p p o i n t e d in his society o n a c c o u n t of b a d m a n a g e m e n t .
xii) H e b e c o m e s m e m b e r of m o r e than o n e cooperative T h e Federation shall have a C h a i r m a n a n d a Vice C h a i r m a n w h o will b e elected b y the m e m b e r s of the B o a r d f r o m a m o n g themselves.
Their term of office shall be countermined with the term of the Board.
T h e B o a r d ofDirectors shall m e e t for the disposal of the b u s i n e s s a s often a s m a y b e n e c e s s a r y but atleast o n c e in a quarter.
Atleast 1 5 d a y s clear notice specifying the date, place, time a n d a g e n d a of the m e e t i n g of the B o a r d shall b e given to all the m e m b e r s .
1/3rd of the total n u m b e r of m e m b e r s of the B o a r d shall f o r m q u o r u m of the meeting.
T h e C h a i r m a n or in his a b s e n c e V i c e - C h a i r m a n a n d in the a b s e n c e of both, a m e m b e r elected b y t h o s e present in the meeting, shall preside o v e r m e e t i n g of the Board.
the majority of votes, the C h a i r m a n shall h a v e a casting vote e x c e p t in the m e e t i n g w h e r e election of the office-bearers is to b e held.
N o Director shall vote or take part in the discussion of a n y matter in w h i c h h e or the society h e represents 2 0
40.
P O W E R S A N D D U T I E S O F B O A R D O F D I R E C T O R S T h e Board shall exercise all p o w e r s a n d perform all duties of the Federation e x c e p t t h o s e reserved for the general m e e t i n g subject to a n y regulations a n d restrictions paid b y the G e n e r a l B o d y .
In particular the B o a r d shall h a v e the following p o w e r s a n d duties :- i) T o o b s e r v e in all their transactions the provisions of the Act, the notified R u l e s a n d t h e s e bye-laws.
T o maintain true a n d accurate a c c o u n t s of all m o e n y received a n d s p e n t a n d all stocks b o u g h t a n d sold.
T o k e e p register of m e m b e r s correct a n d upto date.
T o keep true account of assets a n d liabilities of the Federation.
v) T o p r e p a r e a n d lay before the general m e e t i n g a profit a n d loss a c c o u n t a n d b a l a n c e sheet.
vi) T o r e g u l a t e , s u p e r v i s e , e x a m i n e a n d s a n c t i o n t h e expenditure incurred/to be incurred by the Federation a n d to supervise the a c c o u n t s a n d prescribed registers of the Federation.
vii) T o consider the inspection n o t e s of the officers of the C o o p e r a t i v e D e p a r t m e n t a n d the audit n o t e s of the Auditors a n d to take n e c e s s a r y action thereon.
T o admit n e w m e m b e r s .
iX) T o give directions to the M a n a g i n g Director or other officers of the Federation to s u m m o n general meeting.
X) T o arrange for the safe custody of stocks.
xi) T o assist in the inspection of books by a n y person authorised to see them.
o n s of Service R u l e s a n d to A s p e r t h e provi 2 1 xiv) xv) xvi) Xix) Xx) xxi) xxii) d e t e r m i n e their c o n d i t i o n s of s e r v i c e i n c l u d i n g qualifications, e m o l u m e n t s , incentives, p u n i s h m e n t , retiremnet etc. of e m p l o y e e s of the Federation, subject to the approval of the Registrar.
T h r o u g h a n y m e m b e r , officer or e m p l o y e e s of the Federation or a n y other p e r s o n specially authorised to institute, c o n d u c t , d e f e n d c o m p r o m i s e , refer to arbitration all cases/disputes c o n c e r n i n g the affairs of the Federation.
T o a c q u i r e s h a r e s in the registered C o o p e r a t i v e Societies.
T o a c c e p t or reject the resignation f r o m a m e m b e r of the Board.
T o o p e n a c c o u n t s of the Federation with the various c o o p e r a t i v e or a n y other B a n k s or Institutions a n d authorise its officers/officials to o p e r a t e u p o n the different accounts with various Banks/Institutions.
T o fix T.A.
a n d D .
A of the Directors a n d the staff of the Federation subject to the approval of the Registrar.
T o d e l e g a t e a n y of its p o w e r s to t h e M a n a g i n g Directgor.
T o appoint a Director to represent the Federation for the general b o d y of a n y other C o o p e r a t i v e Institution.
T o a r r a n g e finances f r o m various s o u r c e s a n d through various m e t h o d s including the issue of debentures.
Deleted.
T o frame terms a n d conditions related to sanction a n d disbursement of loans to m e m b e r s .
T o p r e p a r e rules of b u s i n e s s a n d m a k e additions a n d alterations therein. 2 2
41.
42.
ii) iX) xxiv) Generaly to carry o n the b u s i n e s s of the Federation.
XXV) Deleted.
T h e B o a r d m a y f r o m time to time constitute its smaller c o m m i t t e e not m o r e t h a n t w o c o m m i t t e e s at a t i m e for discharging or carrying out of a specific w o r k a n d job or function with respect to the a r e a c o n n e c t e d a n d specified in b y e - l a w s providing p o w e r s of the B o a r d of H o u s e f e d subject to the provision of A c t a n d Rules.
S u c h committee shall consist of five m e m b e r s provided further that the M a n a g i n g Director a n d the Registrar or his n o m i n e e on the Board shall be the m e m b e r of smaller c o m m i t t e e .
In c a s e of difference of o p i n i o n b e t w e e n t h e M a n a g i n g Director/Registrar or his n o m i n e e a n d the r e m a i ni n g m e m b e r s of the c o m m i t t e e the matter shall b e placed before the Board w h o s e decision shall be final.
P O W E R S A N D DUTIES O F T H E C H A I R M A N T h e C h a i r m a n of the Federation shall h a v e the following p o w e s a n d duties :- T o preside o v e r the m e e t i n g s of the B o a r d of Direcors/Genral B o d y .
H o w e v e r , in t h e a b s e n c e of t h e C h a i r m a n , this p o w e r / function shall b e e x e r c i s e d / p e r f o r m e d b y the V i c e - C h a i r m a n or a s provided in the Act, R u l e s a n d Bye-laws;
T o exercise the right to casting vote in the e v e n t of equality of votes o n a n y issue in a m e e t i n g of the B o a r d of Directors subject to the provision of B y e - l a w 39;
T o sign the p r o c e e d i n g s of the m e e t i n g of the B o a r d of Directors/ G e n e r a l B o d y ;
T o h a v e a right to s e e k information f r o m the M a n a g i n g Director relating to p e r f o r m a n c e of the Federation a n d its functioning including the information relating to financial matters.
For this p u r p o s e c h a n n e l of c o m m y n i c a t i o n w o u l d b e t h r o u g h t h e M a n a g i n g Director.
. 2 3
43.
(a)
(b)
44.
iv) v) M A N A G I N G D I R E C T O R T h e M a n a g i n g Director of the Federation will b e a p p o i n t e d b y the G o v e r n m e n t a n d h e shall b e its principal Executive Officer.
All the e m p l o y e e s of the Federation shall p e r f o r m their duties u n d e r his s u p e r i n t e n d e n c e a n d control.
T h e p o w e r s a n d duties of the M a n a g i n g Director, shall b e a s prescribed in the b y e - l a w s a n d a s d e l e g a t e d b y the Board of Directors from time to time.
T h e M a n a g i n g Director shall h a v e t h e following p o w e r s and duties :- T o maintain correctly a n d upto date the prescribed record, a c c o u n t s a n d registers.
T o exercise p o w e r s a s p r o v i d e d u n d e r E m p l o y e e s Service Rules of the Federation.
T o p r e p a r e all receipts, v o u c h e r s a n d d o c u m e n t s required b y the rules or b y the b y e - l a w s or called for b y the B o a r d of Directors.
T o sign on behalf of the Fededration a n d to conduct its c o r r e s p o n d e n c e .
T o s u m m o n , to attend m e e t i n g s of G e n e r a l B o d y , B o a r d of Directors, the Executive C o m m i t t e e a n d a n y s u b - C o m m i t t e e from time to time.
T o record the p r o c e e d i n g s of s u c h m e e t i n g a n d h a v e t h e m duly signed.
T o p r e a p a r e the a n n u a l s t a t e m e n t s a n d s u b to the Registrar within the period prescribed.
T o control the staff under hi T o incur expenditure for running d a y to d a y b u s i n e s s of t h e F e d e r a t i o n a s p e r b u d g e t a r y a l l o c a t i o n s a p p r o v e d b y the Board.
t h e m 2 4 X) xi) xii) xiii) (a) Xiv) XV) T o certify c o p i e s of entries in the B o o k s u n d e r the C o o p e r a t i v e Societies Act.
T o p r o c u r e f r o m the b o r r o w e r s the d u e execution of the b o n d s or the receipts for the loans a n d a d v a n c e s .
G e n e r a l l y to c o n d u c t the current b u s i n e s s of t h e Federation a n d p e r f o r m all duties entrusted to him b y the Board of Directors.
S u b j e c t to s u c h resolution a s t h e B o a r d or S u b - C o m m i t t e e m a y p a s s in this behalf the * M a n a g i n g Director' shall exercise g e n e r a control a n d supervision over the w o r k of its officers/officials.
(b) The M a n a g i n g Director shall further exercise the p o w e r s d e l e g a t e d to h i m b y t h e B o a r d of Directors.
T o receive deposits a n d surplus f u n d s f r o m m e m b e r s , n o n - m e m b e r s including the public a n d institutions a n d issue receipt a n d a c k n o w l e d g e m e n t s , for the s a m e .
T o receive m o n e y f r o m the G o v e r n m e n t , C o o p e r a t i v e Institutions a n d sign all p a p e r s a n d d o c u m e n t s in this connections on behalf of the Federation.
T o p a y m o n e y d u e f r o m the Federation.
T o institute, conduct, defend, c o m p r o m i s e or a b a n d o n a n y legal p r o c e e d i n g s b y or against the Federation or its officer/officers, e m p l o y e e / e m p l o y e e s .
T h e M a n a g i n g Director shall b e the officer to s u e or b e s u e d on behalf of the Federation.
All bonds, d o c u m e n t s of the title etc.
in favour of the Federation shall b e in the n a m e of the M a n a g i n g Director.
All b o n d s b y the F e d e r a t i o n e x c e p t t h o s e for m o n e y b o r r o w e d shall b e e x e c u t e d b y the M a n a g i n g Director.
S 25
45.
In the c a s e of m o n e y borrowed from a n y sources the b o n d s , all auxilliary d o c u m e n t s shall b e e x e c u t e d o n b e h a l f o f t h e F e d e r a t i o n , t h e c o m m o n s e a l o f t h e F e d e r a t i o n b e i n g affixed thereto in the p r e s e n c e of the C h a i r m a n or the V i c e - C h a i r m a n a n d the M a n a g i n g Director a n d the b o n d s a n d d o c u m e n t s b e i n g signed b y t h e C h a i r m a n or t h e V i c e - C h a i r m a n a n d t h e M a n a g i n g Director in w h o s e p r e s e n c e the seal is affixed.
xix) T h e M a n a g i n g Director shall h a v e c u s t o d y of all the p r o p e r t i e s of t h e F e d e r a t i o n .
H e will c h e c k t h e securities from time to time.
X X ) T h e M a n a g i n g Director shall sanction a n d disburse loans to the m e m b e r s a s p e r t e r m s a n d conditions a p p r o v e d b y the Board.
XXi) T h e M a n a g i n g D i r e c t o r shall allow transfer of shares.
xxii) T o p r e p a r e the B u d g e t a n d to get it a p p r o v e d f r o m the B o a r d before the start of financial y e a r for the e n s u i n g financial year.
L O A N S T O C O O P .
H O U S E B U I L D I N G S O C I E T I E S L o a n s shall b e granted only to s u c h cooperative h o u s e b u ing societies or individuals which enrol themselves as m e m b e r s of the Federation b y p u r c h a s i n g atleast 10 s h a r e s of the value of Rs. 5000/~ each.
T h e p e c u n i a r y r e s o u r c e s of the F e d e r a t i o n shall b e utilised primarily for the grant of loans or a d v a n c e s to its m e m b e r s o n the security of i m m o v a b l e property or s u c h other security a n d other t e r m s a n d conditions a s m a y b e liad d o w n b y the B o a r d in a c c o r d a n c e with the b y e - l a w s for the p u r p o s e of construction of n e w h o u s e ( s ) or p u r c h a s e of flat/apartment or for additions, alteration or repair or a c q u i r i n g a n d d e v e l o p i n g land, 2 6 construction of dwelling units a n d for the attainments of its objects a s laid d o w n in b y e - l a w No.5. T h e Federation m a y also grant loans a n d a d v a n c e s to s u c h other registered cooperative societies w h o s e objects, interalia, provide for the grant of loans to its e m p l o y e e s for the p u r p o s e of construction of H o u s i n g C o l o n i e s for their e m p l o y e e s .
(i E v e r y loan w h i c h shall b e a d v a n c e d b y the Federation to m e m b e r s shall b e repayable at the e n d of a period w h i c h shall not e x c e e d 2 5 y e a r s f r o m the d a t e of a d v a n c e m e n t of the loan provided that the Federation m a y further r e n e w a n y loan at the expiry of the orginal t e r m for a period w h i c h the Federation m a y consider fit, b u t s u c h e x t e n s i o n p e r i o d shall n o t e x c e e d 5 y e a r s in a n y case.
T h e b o a r d at its discretion m a y s u s p e n d the p a y m e n t of instalment of principal in c a s e of distress or force m a j e u r e s to the satisfaction of the Board.
In c a s e of s u s p e n s i o n of t h e instalment(s), t h e s u b s e q u e n t instalment (s) shall b e d e e m e d to h a v e b e e n deferred for the s a m e period.
iv) T h e Federation m a y i m p o s e s u c h conditions a s it m a y think n e c e s s a r y of expedient to protect the interest of the Federation a n d to s e c u r e proper utilisation of the loans.
47.
(a) B o a r d shalll fix the rate of interest to b e c h a r g e d o n loans to b e a d v a n c e d by the Federation to its m e m b e r s f r o m time to time. In c a s e of default, interest shall b e c h a r g e d only o n the principal a m o u n t but not o n the interest a m o u n t w h i c h shall stand p a y a b l e o n the d u e d a t e at the rate fixed by the B o a r d of Directors f r o m t i m e to time.
S u c h p e n a l interest shall b e recovered from the date of instalment/instalments falls d u e to the date of actual p a y m e n t o n the default principal a m o u n t only.
S 2 7
48.
49.
50.
51.
52.
53.
(b) A rebate o n interest m a y b e g r a n t e d to the b o r r o w i n g m e m b e r if the r e p a y m e n t of instalments of the principal a m o u n t a n d interest are punctual during the y e a r at s u c h rate a s m a y b e fixed b y the B o a r d f r o m time to time.
T h e valuation of the property to b e m o r t g a g e d shall b e m a d e b y a n authority a p p r o v e d b y the Federation w h e r e necessary.
T h e application of a m e m b e r for loan f r o m the Federation shall b e in the f o r m prescribed b y the B o a r d a n d the B o a r d shall b e c o m p e t e n t to m a k e s u c h further inquiries with regard to the security offered a n d the r e p a y i n g capacity of the applicant m e m b e r a n d s u c h other matter a s the B o a r d m a y d e t e r m i n e from time to time.
T h e M a n a g i n g Director or the p e r s o n authorised b y h i m shall h a v e the discretion to determine the a m o u n t of loan to be a d v a n c e d b y the Federation to a l o a n e e m e m e b r , provided n o s u c h l o a n or a d v a n c e shall b e a d v a n c e d to t h e applicant m e m b e r unless it holds s h a r e s a s per provisions of b y e - l a w s N o .
9 subject to policy a p p r o v e d b y the Board.
T h e b o r r o w i n g s o c i e t y / m e m b e r desirous of repaying the b a l a n c e of l o a n earlier t h a n t h e stipulated time, m a y d o so.
T h e M a n a g i n g Director or the p e r s o n authority b y h i m shall h a v e right to cancel a n y loan a g r e e d to b e a d v a n c e d at a n y time to a n y society or m e m b e r without assigning a n y reason.
If for a n y reason, itis felt b y the M a n a g i n g Director or the p e r s o n authorised b y him that the security orginally furnished for the loan b o r r o w e d f r o m the Federation h a s b e c o m e i n a d e q u a t e or is a b o u t to b e c o m e inadequate, the M a n a g i n g Director or the p e r s o n authorised b y h i m shall h a v e the right to call u p o n the d e b t o r s o c i e t y / m e m b e r to furnish additional security to th esatisfaction of the M a n a g i n g Director or the p e r s o n authorised 2 8
54.
55.
56.
b y h i m within a specified time.
Failing to comply with the notice, the M a n a g i n g Director or the p e r s o n authorised b y h i m shall h a v e the right to recall the loan at o n c e notwithstanding the orginal t e r m o n w h i c h the loan w a s a d v a n c e d .
Deleted.
T h e M a n a g i n g Director or the p e r s o n authorised b y h i m shal h a v e the right to inspect the records of the debtor societies a n d its properties or m a k e s u c h inquires regarding the financial position of the debtor societies a s a n d w h e n felt necessary.
If the loan g r a n t e d for specific p u r p o s e is m i s a p p l i e d the M a n a g i n g Director shall h a v e the p o w e r to recall the loan with interest upto the date of r e p a y m e n t .
57. (i)In p u r s u a n c e of the provision of S e c t i o n 3 0 of the Act, the Federation shall b e a b o d y corporate by the n a m e u n d e r w h i c h it h a s b e e n registered h a v i n g perpetual s u c c e s s i o n a n d a c o m m o n seal a n d with p o w e r to hold property a n d enter into a contract, institute a n d d e f e n d other legal p r o c e e d i n g s a n d to d o all things n e c e s s a r y for the p u r p o s e for w h i c h it is constituted.
(ii)
(a) T h e B o a r d shall h a v e p o w e r to p r o v i d e a c o m m o n seal for the p u r p o s e of the society a n d it shall not b e u s e d e x c e p t b y the authority of the B o a r d a n d in the p r e s e n c e of atleast o n c e of the m e m b e r s of the Board.
(b) E v e r y d e e d or d o c u m e n t other than a s h a r e certificate to which the seal is affixed shall be s i g n e d b y t w o m e m b e r s of t h e B o a r d a n d countersinged b y the M a n a g i n g Director or a n y p e r s o n or p e r s o n s a p p o i n t e d for the p u r p o s e b y the Board.
2 9 D I S T R I B U T I O N O F P R O F I T S
58. (1) T h e net profit of the Federation a s p e r audited b a l a n c e
59.
sheet shall be distributed as follows :- Atleast 1 0 % shall be carried to the Reserve Fund.
S u c h portion not e x c e e d i n g 5 % of the net profits, a s m a y b e d e t e r m i n e d b y the Registrar b y G e n e r a l or special orders shall b e carried to C o o p .
E d u c a t i o n F u n d to be administered in a c c o r d a n c e with the instructions of the Registrar.
T h e r e m a i n d e r m a y b e utilised for o n e or m o r e of the following p u r p o s e s :- a) Distribution of dividend a m o n g s t m e m b e r s at a rate not e x c e e d i n g 2 0 % per a n n u m o n the value of the s h a r e s actually paid up.
b) After o n e tenth of the net profit of the y e a r h a s b e e n c a r r i e d to t h e R e s e r v e F u n d , c o n t r i b u t e 5 % of the r e m a i n i n g net profit to C o o p e r a t i v e D e v e l o p m e n t F u n d .
c) Notless than 1 0 % or s u c h higher portion a s m a y b e d e c i d e d shall b e carried to the b a d a n d doubtful fund.
d) Creation of Building fund, s h a r e transfer fund or a n y othyer fund required b y the Federation.
e) Any surplus m a y b e credited to the profit of next year.
T h e allocation of net profits r e c o m m e n d e d b y the B o a r d in consultation with Registrar shall b e a p p r o v e d b y the G e n e r a l B o d y .
In a d d i t i o n to t h e s u m p r e s c r i b e d u n d e r s e c t i o n 4 1 of t h e Act, all a d m i s s i o n fees, fines a n d d o n a t i o n s shall b e carried to t h e r e s e r v e fund.
3 0
60.
61.
62.
63.
64.
65.
66.
M I S C E L L A N E O U S Accounts a n d record of the Federation shall be maintained in the f o r m prescribed b y the Registrar f r o m time to time.
A n y m e m b e r of the Federation m a y inspect a n y of the registers a n d records during office h o u r s s o far a s it relates to his o w n business transactions.
For this the Board shall decide the office hours of the Federation.
B o a r d shall p r e p a r e s t a t e m e n t s h o w i n g the receipts a n d expenditure, trading a n d profit a n d loss account, b a l a n c e s h e e t a n d the report of the previous y e a r a n d supply a c o p y of t h e s e s t a t e m e n t s to the Auditor a n d the Registrar.
Subject to the pro n s of Act, n o a m e n d m e n t to t h e s e byel a w s shall b e carried out safe in a c c o r d a n c e with a resolution p a s s e d at a general b o d y m e e t i n g of w h i c h d u e notice of the intention to discuss the a m e n d m e n t s h a s b e e n given :
Provided that n o s u c h resolution shall b e valid unless it is p a s s e d b y a majority of m e m b e r s present at the general m e e t i n g at which not less than two third of the m e m b e r for the time being of the Federation represent;
Provided further that m o d e l b y e - l a w s or a m e n d m e n t s previously a p p r o v e d b y the Registrar m a y b e a d o p t e d b y a simple majority of a general m e e t i n g with a n ordinary q u o r u m .
T h e Federation shall p a y s u c h audit fee a s m a y b e a s s e s s e d f r o m time to time b y the authority c o m p e t e n t to d o so.
T h e services of the m e m b e r s of the B o a r d shall b e honorary, but they m a y b e paid travelling a n d daily a l l o w a n c e o n a scale fixed b y the B o a r d a n d a p p r o v e d b y the Registrar.
If the Federation is indebted to the B a n k , it shall b e c o m p e t e n t for the representatives of the latter to inspect the b o o k s a n d record of the Federation a n d the Board of the Federation shall 31
67.
68.
69.
arrange the production of the books and record before such representatives.
If a n y dispute, other than a dispute regarding disciplinary action t a k e n b y the Federtaion or its B o a r d against a paid servant of the Federation, t o u c h i n g t h e constitution or b u s i n e s s of the Federation, arises b e t w e e n the m e m b e r s a n d past m e m b e r s of the Federation or other p e r s o n s referred to in the relevant provisions of the A c t a n d Rules, it shall b e d i s p o s e d off in the m a n n e r provided the A c t a n d Rules.
S h o u l d a n y d o u b t arise with regard to the interpretation of a n y o f t h e s e b y e - l a w s , t h e m a t t e r shall b e r e f e r r e d to t h e R e g i s t r a r w h o s e decision shall b e final.
T h e Federation m a y , in the c i r c u m s t a n c e s , specified b y the relevant provisions of the Act, b e w o u n d u p a n d cancelled b y the Registrar in a c c o r d a n c e with the p r o c e d u r e laid d o w n b y the Act and the Rules. 0 0 3 2