(a) In the case of a co-operative credit society the bye-laws shall, subject to the provisions of the Act and the rules, cover the following matters also-
(i) the purpose, procedure, terms, conditions and security for grant of loans and extension, postponement, mode of recovery and circumstances for recalling of loans,
(ii) fixation of credit limits of members,
(iii) maximum loan admissible to a member,
(iv) maximum rate of interest to be charged onloan,
(v) surety, his duties and responsibilities,
(vi) consequences of default or misutilisation,
(vii) the constitution of a fund to be known as the Agricultural Credit Stablisation Fund in case the society facilitates the agricultural operation of its members and has received financial assistance from the State Government.
(b) In the case of a non-credit co-operative society, the bye-laws shall, subject to the provisions of the Act and the rules, also provide for the manner of carrying on the business of the society including production, purchase, sale, stock- keeping and conducting non-commercial activities, if any.
17. When the form or extent of its liability is proposed to be changed by a co-operative society, a resolution for amendment of the relevant bye-laws shall be passed in a general meeting in accordance with the procedure laid down in Rules 24 to 27.
The names of the members of the general body voting for or against the resolution shall be recorded separately in the proceedings of the meeting and each participant member shall sign against his name.
18. A copy of the resolution passed under Rule 17 shall be sent to all the members and creditors of the society along with the notice as provided in subsection (2) of Section 11 and a copy of the resolution and the notice shall also be exhibited on the notice-board of the society and another copy thereof shall be sent to the Registrar.
19. Any member or creditor desiring to exercise his option under sub-section
(2) of Section 11 shall inform the society accordingly in writing by registered post or by personal delivery under acknowledgment;
provided that the member who attended the meeting referred to in Rule 17 and voted in favour of the resolution, shall give reasons for demanding withdrawal of his shares or deposits.
20. After the options have been received by the society within the period referred to in sub-section (2) of Section 11, the society shall draw up in Form 'G' a scheme for orderly payment of the claims on the basis of the options of withdrawals.The scheme shall be submitted by the society to the Registrar along with the proposed change in the bye-laws relating to liability. In examining the scheme and the proposal for amendment of bye-laws the Registrar shall have regard to the followinga. that the options have been made bonafide;
b. that the scheme does not adversely affect existence or proper functioning of the society;
c. that the society has sufficient funds to pay the claims under the scheme;
d. any other relevant consideration in the interest of the society.
21. Where the Registrar has approved the scheme, the society shall make payments to the creditors and members in accordance with the scheme so approved and make a report to that effect to the Registrar.
22. Without prejudice to the provisions of the Act and rules, the proposal for amendment in the bye-laws shall not be accepted unless the Registrar is satisfied that the requirements of Sections 11 and 12 & Rules 17 to 21 have been complied with and the society has made the payments in accordance with the scheme.
23. On registration of the amendment in the bye-laws, the Registrar shall make or cause to be made an entry in the liability column of the Registration Register accordingly and shall also take action as provided under Rule 29.
CHAPTER IV Procedure Regarding Amendment of Bye-Laws
24. An amendment in the bye-laws of a co-operative society including substitution of the entire set of bye-laws by new bye-laws may be made by a resolution passed by the votes of at least two-thirds of the members of the general body of the society present and voting at the general meeting called for the purpose:
Provided that in case of model bye-laws or amendment previously approved by the Registrar or amendment required by the Registrar to be made under sub-section (1) of Section 14, the resolution may be passed by simple majority only.
25. Thirty days' notice for calling a general meeting of general body for consideration of amendment of bye-laws along with a copy of the proposed amendment shall be given to the members:
Provided that where amendment is sought to be made by substitution of the entire set of bye-laws by new bye-laws, or where amendment is sought to be made in pursuance of an order received from Registrar under sub-section (1) of Section 14, it shall not be necessary for the society to send a copy of the proposed amendment to the members along with the notice for the meeting, but the proposed amendment shall be made available for inspection from the date of issue of the notice during office hours at the office of the society and also at the branches, if any, of the society and this fact shall be intimated to the members through or along with the notice:
Provided further that fifteen days' notice shall suffice where a meeting has been called in pursuance of an order received from Registrar under sub-section (1) of Section 14:
Provided also that where meeting is summoned under proviso to Rule 26 with reduced quorum under Registrar's permission, seven days' notice shall suffice for such a meeting.
26. In the case of a limited liability society, a quorum of at least one-third, and in all other cases a quorum of two-thirds of the total number of members of the general body shall be required for a meeting at which the amendment of any bye-law is considered:
Provided that if the requisite quorum cannot be obtained at a meeting of a limited liability society, the Registrar may direct the society to call another meeting at which the required quorum will be reduced to one-fifth and also to inform the members in writing of the fact:
Provided further, that in case of model bye-laws or amendments previously approved by the Registrar or required by the Registrar under sub-section (1) of Section 14 to be made by the society, the required quorum may be permitted by the Registrar to be further reduced to one-seventh, in case the meeting not held for want of reduced quorum of one-fifth. The fact that the meeting shall be held with further reduced quorum of one-seventh shall be mentioned in the notice of agenda for such meeting.
27. In every case in which a society has resolved for amendment of bye-laws, an application in Form 'H' for registration of the amendment shall be made to the Registrar within fifteen days from the date of the meeting in which the amendment has been resolved (unless the Registrar, for special reasons, condones the delay) shall be accompanied by-
(a) three copies of the proposedamendment;
(b) three certified copies of the resolution of amendment signed on behalf of the co-operative society by the secretary and counter-signed by the chairman of the meeting;
(c) existing registered bye-laws of the society;and
(d) registration certificate of the society.
1{28. (1) On scrutiny of the proposal for registration of an amendment of bye-law, if the Registrar is satisfied that-
(i) the prescribed procedure for amendment of bye-laws of the society has been duly observed;and
(ii) the proposal-
(a) conforms to the requirements of sub-section (2) of Section12;
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(b) is not inconsistent with any other provision of the bye-laws of the society;
(c) where it relates to change of name of society, is not such as to be misleading in respect of objects, activities or area of operation of the society;
(d) is otherwise not against the interest of the society or public interest;
he shall register the amendment within one month from the date of receipt of such proposal.
(2) If the Registrar does not register the amendment within one month then it will be deemed that he has refused to register the amendment and in such case it will be obligatory for the Registrar to intimate the society within next following one month, the reasons for not registering the amendment.
(3) No amendment of a bye-law shall be acted upon before it has been registered.
29. Where the Registrar registers an amendment under Rule 28(1), he shall-
(a) make or cause to be made under his signature-
(i) an entry regarding amendment in the relevant column of the registration register,
(ii) an endorsement regarding amendment in the office copy of the original bye-laws in his office,
(b) retain for his office record one copy of the amendment so registered,
(c) send or cause to be sent a certified copy of the registered amendment-
(i) to the co-operative society concerned,
(ii) to the central society, if any, to which the society concerned is affiliated, if in his opinion the said amendment is of any significance to the central society,
(d) return or cause to be returned to the society,-
(i) the registration certificate noting therein the date of registration of amendment of bye-laws,and
(ii) the original bye-laws with endorsement regarding amendment.
1{29A. Where the bye-laws of a co-operative society are substituted by a new set of bye-laws. The Registrar may nominate the First Committee of Management including the Chairman and the Vice-Chairman. The nominated Committee of Management shall hold office till the Committee of Management is duly constituted:
Provided that the Registrar shall nominate the Committee of Management only in those Societies where elected Committee of Management is not existing. In case of the societies where the bye- laws have been substituted by a new set of bye-laws but the elected Committee of Management is still existing, the Registrar shall have powers to nominate the Committee of Management only after the expiry of term of the elected Committee of Management.}
30. The Registrar, as provided under Section 14, may, by order in writing require a cooperative society to make amendment in its bye-laws under the following circumstances:
(a) where the registered name of the society is misleading in respect of its activity, membership or area of operation or is inconsistent with the provisions of Rule 8(d);
(b) where the committee of management of the society has itself proposed an amendment, but the same could not be considered in the general meeting due to the inability of the general body to meet for want of requisite quorum;
(c) where the amendment is necessary to remove any inconsistency with any provisions of the bye-laws, Act, Rules or Regulations;
(d) where the amendment is necessary to avoid any defect in the constitution of the society in accordance with the provisions of the Act and the Rules;
(e) where the amendment is necessary to implement any policy of Government of India or the State Government with regard to the cooperative activity with which the society is concerned;
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(f) where the amendment is necessary to improve or rationalize the process of election in co-operative societies;
(g) where it is necessary to rationalize the membership or the area of operation of the society in relation to its activities;
(h) where the amendment has already been adopted by other co-operative societies of the same class or category to which the society belongs;
(i) where the amendment had already been proposed by the general body of the society, but the same has not been submitted to the Registrar for registration and the Registrar considers the amendment necessary in public interest or in the interest of the society;
(j) where the society is, in the opinion of the Registrar, dominated by any particular interest or suffers from group rivalries and the amendment is necessary to save the society in the interest of its proper functioning from such domination or rivalries.
31. Where the Registrar issues an order for amendment of a bye-law under subsection (1) of Section 14, the order shall contain-
(a) the text of proposed amendment;
(b) the period within which such amendment is required to be adopted by the society;
(c) reasons for proposing the amendment.
32. If the society objects to make the proposed amendment, the Registrar shall consider the objections of the society and if satisfied that the objections of the society are correct, he may drop further proceedings, and if not satisfied, he shall take further action as provided under sub-section (2) of Section14.
33. Where an amendment has been registered under sub-section (2) of Section 14, an entry thereof shall be made in the register maintained for the purpose in Form 'I' and a copy of the amendment so registered shall be sent to the co-operative society concerned. Action as provided in sub-rules (a), (b) and (c) of Rule 29 shall also be taken in regard to that amendment. If the society has sent registration certificate and original registered bye-laws to the Registrar, action as provided under sub-rule (d) of Rule 29, shall also betaken.
34. The Registrar shall keep a record of name and address of every co-operative society on the registration register referred to in Rule10.