BYE - LAWS UNDER THE MAHARASHTRA CO -OPERATIVE SOCIETIES ACT, 1960 IMPORTANT DEFINITIONS AND CONCEPTS ADVOCATE B. R. BORNAK. M. COM. , M. A., LL. B., G.D.C.&A., D.L.L., D.J.M.C., D.C.A.

ACT (LAW) ACT (LAW) IS A SET OF CODE OF CONDUCTS TO BE FOLLOWED IN A PARTICULAR FIELD. ACTS (LAWS) ARE PASSED BY THE LIGISLATORS IN STATE ASSEMBLY OR IN PARLIAMENT. JURISDICTION OF STATE GOVTS. OR CENTRAL GOVT. TO ENACT THE LAWS IS PROVIDED UNDER ARTICLE 246 & SEVENTH SCHEDULE OF THE CONSTITUTION. SEVENTH SCHEDULE CONTAINS THREE LISTS OF SUBJECT MATTERS PROVIDING JURISDICTION TO ENACT LAWS: LIST I – UNION LIST: ONLY CENTRAL GOVT. CAN ENACT LAWS. LIST II – STATE LIST: ONLY STATE GOVTS. CAN ENACT LAWS. LIST III – CONCURRENT LIST: BOTH CENTRAL /STATE GOVTS. CAN ENACT LAWS BUT LAW ENACTED BY CENTRAL GOVT. SUPERSEDES.

RULES RULES ARE THE PROCEDURES TO IMPLEMENT THE LAW. RULES CONTAIN THE PROVISIONS AS TO HOW THE PROVISIONS OF THE LAWS WILL BE IMPLEMENTED AND GIVEN EFFECT. RULES ARE PREPARED BY EXPERTS / BUREAUCRATS. RULES ARE APPROVED BY THE GOVT. IN CABINET MEETING. RULES ARE APPENDED WITH THE PRESCRIBED FORMS. PRESCRIBED FORMS ARE THE INSTRUMENTS TO GIVE PRACTICAL EFFECT TO THE LEGAL PROVISIONS THROUGH THE PROCEDURE PRESCRIBED IN THE RULES.

BYE-LAWS – MEANING AND SCOPE Bye-laws are Rules (Articles of Association) of a Co-op. Society for its internal management. Working/Internal Management of a society is to be carried out as per the Bye-laws. Bye-laws, duly signed by the Registrar, C. S. under his seal are given to the Chief Promoter along with Registration Certificate.

APPLICATION FOR REGISTRATION ALONG WITH FOUR COPIES OF BYE-LAWS SECTION 8 (1) APPLICATION FOR REGISTRATION OF CO- OPERATIVE SOCIETY SHALL BE ACCOMPANIED BY FOUR COPIES OF THE PROPOSED BYE-LAWS OF THE SOCIETY. APPLICATION TO BE SUBMITTED TO THE REGISTRAR IN THE PRESCRIBED FORM.

APPLICATION FOR REGISTRATION ALONG WITH FOUR COPIES OF BYE-LAWS RULE 4 (I) APPLICATION FOR REGISTRATION OF CO- OPERATIVE SOCIETY IN FORM “A”. FOUR COPIES OF THE PROPOSED BYE-LAWS OF THE SOCIETY.

REGISTRATION OF BYE-LAWS ALONG WITH REGISTRATION OF THE SOCIETY SECTION 9(1) IF THE REGISTRAR IS SATISFIED THAT THE PROPOSED BYE-LAWS ARE NOT CONTRARY TO THE MCS ACT OR RULES REGISTERS THE BYE- LAWS ALONG WITH REGISTRATION OF THE SOCIETY

FIRST BYE-LAWS OF THE SOCIETY (RULE – 9) WHEN A SOCIETY HAS BEEN REGISTERED THE BYE-LAWS OF THE SOCIETY AS APPROVED AND REGISTERED BY THE REGISTRAR SHALL BE THE BYE-LAWS OF THE SOCIETY.

AMENDMENT OF BYE-LAWS (SECTION – 13 & RULE 12) GENERAL BODY MEETING WITH 14 CLEAR DAYS’ NOTICE. APPROVAL OF GENERAL BODY MEETING BY TWO-THIRD MAJORITY. FINAL APPROVAL OF THE REGISTRAR.

POWER TO DIRECT AMENDMENT OF BY-LAWS (SECTION 14 & RULE 13) If it appears to the Registrar that an amendment of the by-laws of a society is necessary or desirable in the interest of such society, he may call upon the society, in the manner prescribed, to make the amendment within such time as he may specify. If the society fails, the Registrar may, after giving the society an opportunity of being heard and after consulting such State federal society as may be notified by the State Government register such amendment, and issue to the society a copy of such amendment certified by him. With effect from the date of the registration of the amendment, the by-laws shall be deemed to have been duly amended and shall be binding on the society and its members.

IMPORTANT TERMS / CONCEPTS ACT BYE-LAWS REGISTRAR CHIEF PROMOTER COMMITTEE / BOARD CHIEF EXECUTIVE OFFICER (CEO) PERSON FEDERAL CO-OPERATIVE SOCIETY STATE CO-OPERATIVE ELECTION AUTHORITY

IMPORTANT TERMS / CONCEPTS ORDINARY MEMBER ACTIVE MEMBER NON-ACTIVE MEMBER ASSOCIATE MEMBER NOMINAL MEMBER EXPERT DIRECTOR FUNCTIONAL DIRECTOR OFFICER DEFAULTER

IMPORTANT TERMS / CONCEPTS CO-OPERATIVE YEAR AREA OF OPERATION “….. DAYS’ CLEAR NOTICE PROVISIONAL COMMITTEE / BOARD COMMITTEE / BOARD MEETING GENERAL BODY MEETING FIRST GENERAL BODY MEETING ANNUAL GENERAL BODY MEETING SPECIAL GENERAL BODY MEETING LAST GENERAL BODY MEETING

E-mail ID: advbrbornak@gmail.com Dream is not what you see in sleep, It is the thing which does not let you sleep. Thank You!!! ADVOCATE B. R. BORNAK E-mail ID: advbrbornak@gmail.com Contact No. 9869450525

CONTENTS OF THE BYE-LAWS (RULE - 8) (a) the name and address of the society and its branches; (b) the area of operation; (c) the objects of the society; (d) funds, the maximum share capital which any one member may hold and the purpose to which the funds would be made applicable; (e) the terms and qualifications for admission to membership; (f) the privileges, rights, duties and liabilities of members; (g) the consequences of default in payment of any sum due by a member; (h) conditions regarding sale or disposal of produce of members, wherever applicable;

CONTENTS OF THE BYE-LAWS (RULE - 8) (I) IN THE CASE OF CREDIT SOCIETIES: (i) the maximum loan admissible to a member; (ii) the maximum rates of interest on loans to members; (iii) the conditions on which loans may be granted to members and penalties for misapplication of loans so advanced; (iv) the procedure for granting extension of time for the repayment of loans and advances; (u) the consequences of default in payment of any sum due; (VI) the circumstances under which a loan may be recalled;

CONTENTS OF THE BYE-LAWS (RULE - 8) (j) in the case Of non-credit societies, the mode of conducting business such as manufacture, purchase, sale, stock taking and other like matters; (k) in the case of a composite society, that is to say, society having both credit and non-credit functions, matters referred to in clauses (i) and (j); (l) the mode of holding meetings, of the general body and of the committee; (m) the procedure for expulsion of members; (n) the manner of making, altering and abrogating bye- laws; (o) the mode of appointment either by election or otherwise and removal of members of the committee and other officer, if any, their duties and powers; (p) the Chairman's powers, duties and functions and his removal on his losing support of the majority;

CONTENTS OF THE BYE-LAWS (RULE - 8) (q) the method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and allowances of salaried officers and servants of the society and the procedure to be followed in the disposal of disciplinary cases against them; (r) the mode of custody and investment of funds and mode of keeping the accounts and records; (s) the disposal of net profits; (t) the manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws; (u) appointment of a provisional committee, where necessary; (v) the mode of appointment and removal of committee and its powers and duties;

CONTENTS OF THE BYE-LAWS (RULE - 8) (w) the mode of convening annual and special general meetings, issue of notices, and the business which may be transacted thereat; (x) in the event of winding up of the society, the purpose for which surplus assets, if any, shall be utilised; (y) the conduct of elections to the committee and other bodies of the society as provided in the bye-laws, including the number of members to be elected by different constituencies and appointment of Returning Officer; (z) any other matters incidental to the management of its business.

CONTENTS OF THE BYE-LAWS (RULE - 8) (2) A society may make bye-laws for all or any of the following matters, that is to say— (a) the circumstances under which withdrawal from membership may be permitted; (b) the procedure to be followed in cases of withdrawal, ineligibility and death of members; (c) the conditions, if any, under which the transfer of share or interest of a member may be permitted; (d) the method of appropriating payments made by members from whom moneys are due; (e) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society; (f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and bye-laws; (g) constitution of representative body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body of members and to specify the powers which may be exercised by such smaller body.

E-mail ID: advbrbornak@gmail.com Dream is not what you see in sleep, It is the thing which does not let you sleep. Thank You!!! ADVOCATE B. R. BORNAK E-mail ID: advbrbornak@gmail.com Contact No. 9869450525

PROFESSIONAL OPPORTUNITIES FOR CAs IN CO-OPERATIVE SECTOR AND HOUSING SOCIETIES. ADV. B. R. BORNAK. M. COM. , M. A., LL. B., G.D.C.&A., D.L.L., D.J.M.C., D.C.A.