(7) Every self-supporting co-operative society shall make its bye laws and shall function and be managed in accordance with the bye-laws 2) Subject to the provisions of this Act, the bye-laws made under sub-section (7). shall provide for the following matters, namely :
(r)
(ii)
(iii)
(iv)
(v)
(vi) vit) (viit)
(ix)
(x)
(xi) the name, address and area of operation of the self-supporting co-operative society ;
the object of the self-supporting co-operative society explicitly stating the provisions of core service to fulfil such common needs of the members, as the said society aims to fulfil ;
eligibility. ineligibility and procedure for obtaining and retaining membership ;
procedure for withdrawal, cessation and termination of membership ;
the services intended to be provided to the persons, who are not members ;
fixation of minimum performance expected annually from cach member in respect of use of services, financial commitment and participation in meetings, in order to be eligible to exercise the right to vote and the consequences of performance, below the expected norms ;
the consequences of default in payment of any sum duc from a member ;
rights and duties of members ;
the nature and extent of the liability of the members for the debts of the self-supporting co-operative society ;
the powers and functions of the general body ;
the powers and functions of the delegate general body :
Hye laws 38 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
(xix)
(xx)
(xxi)
(xxii)
(xxiii)
(xxiv)
(xxv)
(xxvi) the subjects, which may be dealt with by the general body ang the delegate general body ;
the manner of convening the meetings of the general body and quorum required for meeting ;
the size and composition of the Board or the sub-committee, as the case may be ;
the manner of conducting the electioi: of the Board and filling up casual vacancies of the Board ;
the term of office and manner of removal of the Directors :
the manner and frequency of convening the meetings of the Board and quorum required for a meeting ;
the powers and duties of the Board :
the powers and duties of the Chairperson of the Board ;
the terms on which the self-suppoiting co-operative society may deal with a non-member ;
eligibility and ineligibility for becoming or continuing as a Director ;
the penalties for acting against the interest of the selfsupporting co-operative society and for non-fulfilment of duties by members, office bearers, directors and staff ;
the nature and extent of the liability of officers and members for debts contracted by the self-supporting co-operative society ;
the authorization of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the self-supporting co-operative society ;
the manner of choosing delegates to federal self-supporting co-operative societies ;
the rights, if any, which the self-supporting co-operative society intends to confer on any other self-supporting co-operative society and the circumstances under which these rights may be exercised by such society ;
- PUNJAB GOVT GAZ. (EXTRA). NOV. 8, 2010 89 (KRTK 17, 1932 SAKA)
(xxvii) the nature and extent of capital, if any, of the self-supporting co-operative society ;
xxviii) the maximum share capital which a single member can hold ;
(xxix) the maximum return to members on paid-up share capital ;
(xxx) the source, type and extent of funds to be raised by the self-supporting co-operative society ;
(xxxi) the purposes for which the funds may be applied ;
(xxxii) the constitution of various funds and their purposes ;
(xxxiii) the functions and powers of the sub-committee ;
the manner of appointment of auditors and their powers (XXXIV) and functions ;
(xxxv) the manner of disposal of funds in the event of liquidation of self-supporting co-operative society ;
(xxxvi) the manner of constitution and functioning of arbitration council ;
(xxxvii) the manner of liquidation of the self-supporting co-operative society ;
(xxxviii) distribution of profits ; and
(xxxix) other matters which are identical or incidental and are required | to be provided in the bye-laws.
Amendment 9. (1) A self-supporting co-operative society may amend any of the of bye-laws.
provisions of its bye-laws :
Provided that for making an amendment, a special resolution shall have to be passed by the general body of the self-supporting co-operative society,
(2) For the purpose of passing a special resolution referred to in subsection (/), a notice of thirty days shall have to be given in writing to each member of the general body alongwith a draft of the proposed amendment by registered post.
30 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) : v , CE —— 3) After the amendment is made, the same shall be forwardeg by thirty days from the date of making of amendment for registration.
(4) Every application forwarding amendment to the Registra, for registration, shall be accompained by a copy of special resolution.
(5) Ifthe amendment made in the bye-iaws is found to be in conformity with the provisions of this Act and the rules made thereunder, the Registra shall register it within a period of forty-five days from the date of receipt of the application. If the amendment made in the bye-laws is not found to be in conformity with the provisions of this Act and the rules made thereunder, the Registrar may refuse to register the amendment :
Provided that before refusing to register any amendment in the byelaws, an opportunity of being heard shali be given to the self-supporting cooperative society by the Registrar.
(6) An order of refusal for registering an amendment in the byelaws, shall be forwarded by the Registrar to the self-supporting co-operative society within a period of thrity days alongwith the reasons for refusal.
(7) In case, no order is passed by the Registrar for registering an amendment or refusing to register the amendment within a period of ninety days from the date of receipt of the application for registration, it shall be deemed that an amendment to the bye-laws has been registered.
(8) An appeal against the order of refusal to register an amendment in the bye-laws shall lie to the Co-operative Tribunal within a period of sixty days from the date of receipt of the communication of such refusal Transfer of assets 10. (1) A self-supporting co-operative society may, by a special iii resolution of its general body decide to— division, amalgamation or merger of . [3 I . , 2 a self-supporting (a) transfer its assets and liabilities, in whole or in part to any co-operative other self-supporting co-operative society, which agrees t0 ociety. 2 . ee ye society such transfer by a special resolution of its general body : Of
(b) divide itself into two or more self-supporting co-operative societies.
(2) Any two or more self-supporting co-operative societies may, bY passing a special resolution of their respective general bodies, decide 10 amalgamate themselves and form a new self-supportin g co-operative society:
PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 91 (KRTK 17, 1932 SAKA) ISL Before passing a special resolution under this section, the selfsupporting co-operative society shall give notice thereof together with a copy of such resolution to all its members and creditors for giving their consent.
(4) Notwithstanding any bye-laws or contract to the contrary, any member of a self-supporting co-operative society or creditor, not consenting to the spacial resolution, shall, during a period of thirty days from the date of sorvive of the notice, have the option of withdrawing his shares, deposits, loans or services, as the case may be.
(5) Any member or creditor who fails to give his consent within the period specified under sub-section (4), shall be deemed to have consented to the speciai resolution.
(6) A special resolution, passed by a self-supporting co-operative society under this section shall not take effect until—
(a) (i) the members and creditors have consented or are deemed to have consented to the special resolution under sub-section (4) or sub-section (3), as the case may be ; or
(ii) all claims of the members aid creditors, who have not consented to the special resolution referred to in sub-section (4) or sub-section (5), as the case may be, within th e stipulated period, have been met in full; and in the case of amalgamation or division of a self -supportperative society or societies, as the case m ay be, a
(b) ing co-o revised certificate of registration is issued by the Registrar on an application made by such self-sup porting co-operative society or societies.
(7) When a special resolution passe d by a self: “supporting co-operative society under sub-section (7), takes effect, such a resolution shal l, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further conveyance.
(8) Consequent upon— whole of the assets and liabi lities of a selfative society or societies, as t he case may operative society ; or
(a) the transfer of supporting c0-0pe \ be, to another self-sup porting co- Q 2 PUNJAB GOVT GAZ. (EXTRA.), NOV. 8, 2010 (KRTK 17, 1932 SAKA) (hi divisionofa self-supporting co-operative society into two or more self-supporting co-operative societies ; or (¢) merger of a self-supporting co-operative society into another self-supporting co-operative society ;
tie earlier registration of such society shall stand cancelled and it shall pe deemed to have been dissolved.
Conversion, 11. Notwithstanding any conversion, division, amalgamation or merger, i amatean as the case may be, of a self-supporting co-operative society, its rights, privilege, a self-supporting obligation or liability shall not be affected and any investigation, legal proceeding A or remedy in respect of such right, privilege, obligation or liability shall continue | against the resultant self-supporting co-operative society.
Levy of fee. 12. For the services rendered under this Act, the Registrar may recover such fee, as may be specified by the Government, by notification in the Official Gazette, from time to time.
Promotion of subsidiary unit or
13. A self-supporting co-operative society, for the furtherance of its organisation. objects, may, by passing a special resolution, establish a subsidiary unit or collaborate with any other unit, organization, body or firm registered or incorporated, as the case may be, under the relevant law.
CHAPTER 11 Education Fund A 14. (1) A self-supporting Co-operative society shail establish a Fund r.aucation Fund.
.
ow to be known as the Education Fund to which such amount of its net profits. as may be specified by th e Registrar, shall be credited :
Provided that such amount . + the net " shall not exceed two per cent of the 1° profits.
- (2) The Education Fund established under sub-section (1). shall be E| utilized for t © Purposes mentioned i; section 32.
Payment out of Education Fund - 15. Out of the Education F : . Nl Federation Limited, Chandigarh, 181° under t Zh py ' Amited, Chandigartt, I ent ey Co-cperative Societies Act, 1961, for the purpose of impart?
€ members off; ) LC eral! society. S;officers and officials of a self-supporting c0-0P PUNJAB GOVT GAZ. (EXTRA), NOV. 8, 2010 93 (KRTK 17, 1932 SAKA)
CHAPTER 1V Finance
1s. A self-supporting co-operative society, may mobilize funds in the shape of share captial, deposits, debentures, loans, grants and other contributions from its members to such extent and under such conditions, as may be specified in its bye-laws.
17. A self-supporting co-operative society may raise funds and other financial support by way of raising loan including guarantee from non-members, individuals, banks and other institutions on mutually agreed terms to such extent and subject to such conditions, as may be specified in its bye-laws.