(1) The liquidator may--
(a) retain lawyers, accountants, engineers, appraisers and other professional advisors;
(b) bring, defend or take part in any civil, criminal or administrative proceeding in the name and on behalf of the co-operative;
(c) carry on the business of the co-operative as required for an orderly liquidation;
(d) sell by public auction or private sale any property of the co-operative;
(e) do all acts execute any documents in the name and on behalf of the cooperative;
(f) borrow money on the security of the property of the co-operative;
(g) settle or compromise any claims by or against the co-operative; and
(h) do all other things that the liquidator considers necessary for the liquidation of the co-operative and distribution of its property.
(2) Where a liquidator has reason to believe that any person has in his/her possession or under his/her control, or has concealed, withheld or misappropriated any property of the co-operative, the liquidator may apply to the court for an order requiring that person to appear before the Court at the time and place designated in the order and to be examined.
(3) Where the examination mentioned in sub-section (2) discloses that a person has concealed, withheld or misappropriates property of the co-operative, the Court may order that person to restore the property or pay compensation to the liquidator on behalf on the co-operative.
(4) The liquidator shall not purchase, directly or indirectly, any part of the stockin- trade, debts or assets of the co-operative.
(5) The liquidator shall submit the progress of the liquidation proceedings and also render accounts from time to time, to the registrar or general body, as the case may be.
final accounts 56. (1) The liquidator shall pay the costs of liquidation out of the property of the cooperative and shall pay or make adequate provision for all claims against the co-operative.
(2) After paying or making adequate provision for all claims against the cooperative, the liquidator shall apply to the Registrar for approval of the final accounts and for permission to distribute in money or in kind the remaining property of the co-operative in accordance with the articles of association.
(3) Where the Registrar approves the final accounts rendered by a liquidator in pursuance of sub-section (2), he/she shall:
(a) issue directions with respect to the custody or disposal of the documents and records of the co-operative; and
(b) Discharge the liquidator.
(4) Where the Registrar discharges a liquidator in pursuance of sub-section (3), he/she shall dissolve the co-operative, issue a certificate of dissolution and strike off its name from the register of co-operatives.
(5) The co-operative ceases to exist on the date shown in the certificate of dissolution.
CHAPTER X MISCELLANEOUS Exemption from certain taxes, duties and fees
57. The Government may be notification in the Gazette, and subject to such restrictions and conditions as may be specified therein, reduce or exempt in respect of co-operatives;
(a) the taxes on professions, trades, callings and employments;
(b) the stamp duty with which, under any law for the time being in force, instruments executed by or on behalf of a co-operative or by an office bearer or Director or member and relating to business of such co-operative or any class of such instruments or decisions or orders of the Registrar or Arbitral Tribunal or liquidator under this Act, are respectively chargeable; or
(c) any fee payable under the law relating to registration for the time being in force or court fees.
Exemption 58. Nothing in clauses 17 (1) (b) and (c) of the Indian Registration Act, 1908 shall from compulsory registration of instruments apply to-
(a) any instruments relating to shares in a co-operative notwithstanding that the assets of the co-operative consist in whole or in part of immovable property;
(b) any debentures issued by any such co-operative and not creating, declaring, assigning, limiting or extinguishing and right, title or interest to or in immovable property except in so far as it entitles the holder to the security afforded by a registered instrument whereby the co-operative has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debenture; or
(c) any endorsement upon or transfer of any other debentures issued by any such co-operative.
Registrar and other officer to be public servants
59. The Registrar, or any person appointed, or authorized to hold an inquiry under section 46, or a member of the tribunal under section 49, or a liquidator under section 53, shall be deemed to be a public servant within the meaning of the Section 21 of the Indian Penal Code (Act XLV of 1860).
Prohibition against the use of the word “Sahkari” or “ co-operative”
60. No person other than a co-operative shall engage in trade, or carry on business, under a name or title which includes the expression, “Sahkari” or its English equivalent, “co-operative”.
Schedule A [ Section 2 (8) and 3(3)] Statement of co-operative Identity [As adopted by the international Co- operative Alliance at Manchester on September 23. 1995] Definition 1. A co-operative is an autonomous association of person united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Values 2. Co-operative are based on the values of self-help, self-responsibility, democracy, equality, equity, and Solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibilities, and caring for others.
Principles 3. The co-operative principles are guidelines by which co-operatives put their values into practices.
1 st Principle: Voluntary and open membership Co-operative are voluntary organization, open to all person able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination.
2 nd Principle: Democratic member control Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to membership. In primary co-operatives members have equal voting rights (one member, one vote), and co-operatives at other levels are also organized in a democratic manner.
3 rd Principle: Member Economic Participation Members contribute to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed to as a condition of membership. Members allocate surpluses for any of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.
4 th Principle: Autonomy and independence Co-operatives are autonomous, Self-help organizations controlled by their members. If they enter into agreements with other organization, including Governments, or raise capital from external source, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.
5 th Principle: Education, Training and Information Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders—about the nature and benefits of cooperation.
6 th Principle: Co-operation among co-operatives Co-operatives serve their members most effectively and strengthen the cooperative movement by working through local, national, regional, and international structures.
7 th Principle: Concern for Community Co-operatives work for the sustainable development of their communities through policies approved by their members.
Schedule B [Section 3 (4 and 5)] Memorandum of Association (For co-operatives to be registered) (Form in which to be submitted)
1. We, the following persons- Sl.
No Full Name in capital letters Full postal address in capital letters Occupation, if the promoters are individuals desire to register ourselves into a co-operative under Uttarakhand Self reliant Co-operatives Act, 2003.
(Please have as many rows above, as there are promoters.)
2. For the purposes of registration. Shri/Shrimati……………………………at serial number………………..above shall be our representative, and all communication may be addressed to him/her, at his/her address.
3. The name of our co-operative shall be…………………………….
4. The registered office of our co-operative will be situated in…………………………….
(Please provide name of village/ town/city in the blank space provided)
5. The object of our co-operative shall be………………………………..
(Please state here only that need common to all members which the co-operative hopes to fulfill, and for which it is being established- eg. increase in returns on dairying/ sericulture/ paddy farming, etc: or access to quality consumer goods/ housing/ production inputs at reasonable prices; or access to savings and credit/ insurance, etc. Please do not provide here the list of services or activities through which this object will be fulfilled.)
6. We hereby declare that we are committed to the principles of cooperation as provide for in Schedule ‘A’ of the Act and intend to manage our co-operative in conformity with these.
7. We have enclosed
(a) the articles of association of the proposed co-operative as adopted by us, the promoters:
(b) a true copy of the resolution passed by us, at a meeting, adopting the articles of association:
(c) a declaration from advocate/chartered accountant, Shri/ Shrimati……………………… ……………. that all the requirements of this Act have been complied with by us in respect of registration.
8. Singed by us, dated………………………………………………..at place ……………………..… SI.No. Full Name ( preceded by name and designation of representative, where the promoters are co-operatives) Signature
SCHEDULE ‘C’ (Section 3 (6)) Certificate of Registration (for a co-operative to be registered) Registrar of Self Reliant Co-operatives Government of Uttarakhand Certificate of Registration under section 3 of the Uttarakhand Self Reliant Co-operatives Act, 2003 I do herby certify that the ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………...........
is registered with No………………… together with its memorandum of association and authenticated articles of association.
Given under my hand and seal this ………….. day of …………..
Registrar of Self Reliant Co-operatives Government of Uttarakhand Schedule D [Section 4 (2) and 6 (3)] Memorandum of Association (for co-operatives to the converted from the Uttar Pradesh Co-operative Societies Act, 1965) (form in which to be submitted)
1. We, the Directors of the Board of the ………………………………………………………. state herby, that the general body of our co-operative society desires that our co-operative society now be registered as a co-operative under the uttarakhand self Reliant Co- operatives Act, 2003.
(Please fill the current complete name of the co-operatives Act, 2003.)
2. For the purposes of registration, all communication may be addressed to ……...…..at…………....
(Please fill the first blank with the name and designation of the contact person in the co-operative society, and the second blank with the full postal address of the co-operative society)
3. The name of our co-operative, on conversion to the Uttarakhand Self Reliant Co-operatives Act, 2003, shall remain the same/ become……………………………………………………..
(Based on whether or not the name will undergo change, pleases strike out whatever is inapplicable above.)
4. The registered office of our co-operative society is situated in ………………………. and shall remain the same/change to …………………………………….
(Please provide name of village/town/city in the blank space provided, and strike out that which is not applicable.)
5. The object of our co-operative society is …………………………………… and on conversion shall be the same/change to ………………………………………… (Please State in the first blank only that need common to all members, for which the co-operative society was established, and in the second blank, please fill change, if any, in this object, upon conversion. Please do not provide here the list of services through which this object will be fulfilled.
6. We have enclosed
(a) a true copy of the resolution passed by our general body expressing commitment to the principles of cooperation as provided for in Schedule A of the Act;
(b) the articles of association of the proposed co-operative as adopted by our general body;
(c) a true copy of the resolution passes by the general body, adopting the articles of association:
(d) a true copy of the declaration of the general body stating that our co-operative society is not in receipt of any share capital from the government or any other external source, and does not intend ever to raise share capital from the Government or any source other than members;
(e) a true copy of the latest annual report and audited statement of accounts;
(f) a true copy of the resolution of the general body along with particulars regarding the wiping off of accumulated losses from various reserves and/or by debiting to the accounts of members as decided at the meeting; (or) a true copy of the resolution of the general body stating that our co-operative society does not have losses. accumulated or current;
(g) the statement on adjustment of accumulated losses, if any, certified by an auditor as correct;
(h) a declaration from advocated/ Chartered accountant, Shri/Shrimati…………………….......
that all the requirements of this Act have been complied with by us in respect of registration.
7. Particulars about the general body meeting at which the decision to convert was taken.
Date of general body meeting No. of members as on date of general body meeting No. of members as present at general body meeting No. of members who voted for conversion
8. Signed by us, dated……………………….. at place………………….
SI. No. Full name of the Director Designation Signature (Please note that there should be as many rows as there are Directors. The signature of the Chief executive, too, should be obtained.)
SCHEDULE ‘E’ [Section 4 (2)] Certificate of Registration (for co-operative to be converted from Uttar Pradesh Co-Operative Societies Act, 1965) Registrar of Self Reliant Co- operatives Governments of Uttarakhand Certificate of Registration under section 4 of the Uttarakhand Self Reliant Co-operatives Act, 2003.
I do herby certify that the ………………………………………………………………………………………………………………… ………………………………………………………………………………………………….
is registered with No………………………………. together with its memorandum of association and articles of association.
This co-operative is successor to the ………………………………………………………………………… (Registration No……………………… Dt…………………………….) registered under the U.P.
Co-operative Societies Act, 1965 whose registration now stands cancelled, and is now deemed to have assumed all rights and obligation and assets and liabilities of its predecessor co-operative society. All acts and transaction of that predecessor co- operative society shall stand devolved on this co-operative.
Given under my hand and seal This ………….. day of ……………………………..
Registrar of Self Reliant Co-operatives Government of Uttarakhand.
SCHEDULE ‘F’ [Section 6(3)] Subject matter for specific consideration when framing articles of association of a co-operative
1. Identity of the co-operative
(a) the name of the co-operative, and any shorter name by which the co-operative is to be popularly known;
(b) the village/town/city where the registered office of the co-operative is to be located;
(c) the custody and use of the common seal.
2. Aim and services
(a) the aim of the co-operative explicitly stated as a common central need of the members which the co-operative aims at fulfilling;
(b) core services, and support services to members to fulfill the common central need stated in the aim;
(c) the conditions under which services may be provided to non-members.
3. Membership
(a) form for applying for membership;
(b) form for declaring assets by member upon which arrears due to the co-operative shall be a first charge;
(c) eligibility, intelligibility for obtaining membership;
(d) eligibility, ineligibility for continuing membership;
(e) procedure for obtaining membership;
(f) procedure for withdrawing membership;
(g) procedure for termination of membership;
(h) circumstances under which membership ceases;
(i) procedure for cessation of membership.
4. Member rights and obligations
(a) the rights of members;
(b) manner of fixation of minimum performance expected annually of each member vis-à-vis use of services, financial commitment, participation in meetings, and adherence to articles of association, in order to be eligible to exercise the rights of membership including the right to vote;
(c) the consequences of performing below the minimum level fixed;
(d) the consequences of default in payment of any sum due by a member.
5. General body
(a) the role of he general body, and of the representative general body, if any, and subjects which must be dealt with by the general body, and by the representative general body, if any;
(b) the manner and frequency of convening general meetings, and quorum required;
(c) the quorum necessary for adjourned meetings;
(d) conditions and manner in which Arbitral Tribunal may convene general meeting;
(e) the minutes of proceedings of general meeting;
(f) the person/s to take responsibility for, and the manner of convening an extraordinary general meeting, and the period within which such meeting ought to be convened, for the purpose of appointing an ad-hoc Board.
6. Board of Directors
(a) the size and composition of the Board of Directors;
(b) eligibility, ineligibility for becoming Directors;
(c) eligibility, ineligibility for retaining Directorship;
(d) the procedure for election and removal of Directors;
(e) the terms of office of the Directors;
(f) the frequency of Board meetings;
(g) the manner of convening Board meeting, and quorum;
(h) the functions, responsibilities and powers of the Board;
(i) the minutes of proceedings of Board meetings;
(j) the functions, responsibilities and powers of the Directors;
(k) eligibility, ineligibility for being appointed by Arbitral Tribunal as member of ad hoc Board.
7. President and other office- bearers
(a) the election and removal of president and other office-bears, if any;
(b) the functions, responsibilities and powers of the president and other office-bearers, if any.
8. Chief executive and staff
(a) the person to sue or be sued on behalf of the co-operative;
(b) the manner of appointment and removal of chief executive;
(c) the functions, responsibilities and powers of the chief executive.
9. Finances
(a) the financial year which the co-operative wishes to adopt;
(b) the manner of appointment of auditors and their role;
(c) the manner of appointment of internal auditors and their role;
(d) the nature and amount of equity capital, if any, of the co-operative;
(e) the maximum capital which a single member can hold;
(f) the types and extent of funds to be raised;
(g) the purposes for which the funds raised by the co-operative may be applied;
(h) the equity-debt ratio that the co-operative wishes to maintain at all times and the maximum external debt that a co-operative wishes to permit itself at any point of time;
(i) procedure for transfer of shares or interest by a member;
(j) procedure for redemption of shares by the co-operative;
(k) procedure for transfer of shares or interest by a member;
(l) the nature and extent of the liability of the members for the debts contracted by the cooperative;
(m) the nature and extent of the liability of the Directors for the debts contracted by the cooperative;
(n) the manner of disposal of funds if under liquidation;
(o) the manner of recovery of dues from members.
10. Secondary co-operatives
(a) the rights, if any, which the co-operative wishes to confer on any secondary co-operative of which it is a member, and the circumstances under which these rights may be exercised by such secondary co-operative;
(b) the procedure for appointing and changing delegates to secondary co-operative.
11. Arbitral Tribunal
(a) the manner of constitution and functioning of Arbitral Tribunal for settlement of disputes:
(b) eligibility, ineligibility for being chosen as arbitrator;
(c) eligibility, ineligibility for being continued as arbitrator;
(d) the manner in and conditions under which the Arbitral Tribunal may appoint ad hoc Board.
12. Other matters
(a) the language in which the internal affairs of the co-operative are to be conducted;
(b) any provisions of transitory nature;
(c) the manner of dissolution of the co-operative;
(d) the manner of amending articles of association;