BYE-LAWS OF CO-OPERATIVE LABOUR AND CONSTRUCTION SOCIETY

VIII. BYE-LAWS OF CO-OPERATIVE LABOUR AND
CONSTRUCTION SOCIETY


I. PRELIMINARY


1. The Society shall be called the __________________________ Co-operative Labour & Construction Society Limited its registered address shall be ____________________________________________________
___________________________________________________________
Any change in the address shall be notified to the Registrar within 14 days.
(a) In these bye-laws unless there is anything repugnant to the subject or context, the expression “the Act” means the Delhi Co-operative Societies Act. 1972 (No. 35 of 1972) and the words and expression defined in the Act and used in these bye-laws shall have the same meaning as assigned to them in the said Act. and the “Rules”. The “Rules” means the Delhi Co-operative Societies Rules, 1973.



II. OBJECTS


2. Its objects are to promote the economic interest of its members and more particularly:

(i) To secure employments and other sources of income for the members;

(ii) To provide works, material and other resources or facilities to government or other institutions or persons;

(iii) To enter into agreement with the Government, Local Bodies or any other person for any sort of construction or repair work or supply of materials, stores, tools, plants or labour etc., on hire purchase or otherwise and to obtain from them all rights, concessions or privileges, etc. which may seem useful to the Society or its objects and to give any guarantee or indemnity as may seem expedient for the above purpose,

(iv) To secure fulfillment of contracts entered into by the Society on behalf of the members;

(v) To provide funds to be advanced to members when these are necessary for the proper conduct of their business;

(vi) To arrange for the purchase and sale of goods and other stores to members or outsiders as they may be found advisable;

(vii) To make arrangements for the training of members in the efficient discharge of their duties;

(viii) To purchase, hire or take on lease or otherwise, tools, plants, machines, implements, vehicles or other stores for the Society;

(ix) To arrange medical aid for the members and their dependents;

(x) To arrange educational facilities for the members and their dependents;

(xi) To acquire, construct, maintain or alter any building or structure, necessary or convenient for the purpose of the Society;

(xii) To manage, sell, improve, develop, mortgage, lease, exchange, dispose of adjust or otherwise deal with all or any part of the property movable or immovable over which the Society has control or power of disposal;

(xiii) To enter into contract with other persons with a view to carry out or expedite or facilitate the work entrusted to the Society;

(xiv) To work for the repair or manufacture of tools, plants or implements, etc.

(xv) To make any sort of residential arrangements;
(xvi) To improve the economic, moral, physical and social conditions of the members, employees and their dependents through insurance, clubs, or any other means including introduction of suitable industries;

(xvii) To create funds to be lent to its members for domestic requirements etc.;

(xviii) To adopt or encourage other measures designed to develop in the members, the spirit and practice of thrift, self help are neutral help, etc.,

(xix) To undertake all subsidiary measures required for the proper fulfillment of the above objects.

III. MEMBERSHIP


3. (a) The members shall consist of:
(i) persons who join in the application for registration;
(ii) persons admitted in accordance with these bye-laws; and
(iii) nominal or associated members subject to conditions as laid down in Rule 26.

(b) The Society may admit joint members provided they make a declaration in writing that the person whose name stand first in the share certificate shall have the right to vote and all the liabilities will be borne jointly and severally by them as provided in the Act. Rules and bye-laws.

(c) In accordance with the procedure laid down in the bye-laws and the Rules for admission of any member, the Society may admit minors and persons of unsound mind inheriting share or interest of deceased members as its members through their legal representatives or guardians respectively. The members so admitted will enjoy such rights and liabilities as are laid down in these bye-laws and which are consistent with the Act. and Rules.

4. Every member of the Society must be:
(i) ordinarily resident in __________________________

(ii) of good character;

(iii) of not less than 18 years of age except in the case of minor nominees or heir of a deceased member;

(iv) a skilled or unskilled worker.

5. Member shall be admitted after an approval by the Managing Committee. Every applicant shall submit a signed and dated application, specifying the member of shares which he wishes to subscribe and a successor or successors in the interest whom he wishes to nominate on account of his holding in the Society.

6. Every member on admission by the committee shall pay an admission fee of Rs.5/- and take atleast one share of the value of Rs.25 in the Society and shall sign his name in a register containing a list of names, descriptions and address of the members of the Society in token of his acceptance of these rules.

(a) Original members are exempted from the previous of bye-law 5.
(b) The Society shall not admit members within one month prior to the date of the meeting of the General Body.

(c) When a person’s application for membership has been accepted by the Committee and he has paid his admission fee and first instalment of his shares, he shall be deemed to have acquired all the rights and incurred all the obligations and liabilities of a member of the Society, as laid down in the Co-operative Societies Act. the rules made thereunder and these bye-laws.

(d) No member shall hold shares exceeding Rs.10,00/- and the value of shares shall be paid either in one lump sum or if that is not possible at least Rs.10 per share shall be paid on joining the Society and the rest may be paid in not more than three equal monthly instalments.

7. Membership shall be ceased on:
(1) death;

(2) ceasing to hold shares prescribed in these bye-laws;

(3) withdrawal after one month’s notice to the Secretary provided that the member withdrawing is not in debt to the Society and is not surety for an unpaid debit withdrawal will take effect from the date of the disposal of his shares as provided in bye-law 9(i).

(4) Bankruptcy;

(5) Expulsion under bye-law 10;

(6) Permanent insanity or disability barring him from week.

8. Every member shall nominate a person, or person, to whom on his death his shares shall be transferred but no member may nominate more than one person unless he holds more than one share and in any case, the amount to be paid to such nominee whether by way of whole shares or by fixed proportion of the amount available for transfer as the case may be, is duly specified, when the nominees are appointed and no nominee gets less than one share and he shall atleast the nomination of nominees if not qualified for admission to membership may transfer his or their shares under bye-law 9.

9. (i) A member or the nominee or successor of any ex-member may transfer his shares to another member or an applicant qualified under bye-law 4 and approved by the committee under bye-law 5or to a share transfer fund created by the Society out of its profits. Provided the Society’s paid-up share capital and reserve as against outside liabilities are sufficiently strong and shall then be paid the value of sum due from him to the Society. All transfer shall be subject to the confirmation of a General Meeting. No transfer of shares or interest shall however, be made unless a member has held such shares for less than one year;

(ii) If a member is expelled for any reason other than doing construction work in competition with the Society, he shall be reimbursed the full value of his shares less than amount of any security given against a loan taken by another member.

(iii) The value of the shares shall in no case be more than the sum received by the Society in payment, thereof.

10. A member of the Society may be expelled by a vote of the General Meeting:

(1) if he default in the payment of his shares; or
(2) if he has applied to be adjudicated an insolvent or is an undischarged insolvent; or

(3) if he has been sentences for any offence other than an offence of a political character or an offence involving moral turpitude and dishonesty; or

(4) if he undertakes any profession similar to the objects of the Society; or
(5) if he intentionally does no act likely to injure the credit of the Society or fails to observe proper discipline in regard to the work of the Society; or

(6) for any action which may be held by the Managing Committee or the General Meeting to be dishonest or contrary to the stated objects of the Society or to the interest of co-operation; or

(7) incurs any of the disqualifications as contained in Rule 25.

An opportunity shall be given to a member before expulsion from membership to represent his case to the General Body and expulsion shall be effective unless it is approved by the Registrar.

11. Any money due on any account from the Society to a member or past member or person claiming through him may be set off in payment or any sum which he owed or for which he stands surety.

IN. CAPITAL
12. The capital shall be composed of :
(i) an undetermined number of shares of the value of Rs.25/- each.
(ii) deposit from members;
(iii) deposits and loans from non-members;
(iv) loan from Government;
(v) grants, advances from Government and other persons;
(vi) realized profits;
(vii) fines, penalties and damages realized; and
(viii) commission earned on labour and contracts, etc.

The acceptance of deposits and loans from non-members shall be subject to any restrictions which the Registrar may impose.

The funds of the Society when not employed in its business shall be invested on deposits as required by Section 49 of the Act.

13. Every member shall purchase at least one share and no member shall hold shares value of which exceeds Rs.10,000/- on exceeds one-fifth of the total share capital actually subscribed. If any member by inheritance or otherwise becomes possessed of more than the maximum holding permitted by his Rule, the Managing Committee shall have power to sell the excess number or to buy proceeds at its disposal.

14. Shares shall be paid up either in a single payment or 3 monthly instalments made within 7 days from the admission of a member by the committee, or as provided in bye-law 6.

15. If the payment due on account of shares remains unpaid for one month, the Committee may declare such shares forfeited together with all payments made thereof and the rights of membership attaching to those shares shall thereupon be extinguished.

The Committee may allow such shares to be stored provided:

(a) that all the arrears together with such penal interest as the Committee may demand are paid-up; and

(b) that ordinarily such payment be made within three months of the date of forfeiture.

16. Shares shall not be withdrawn, repaid or transferred otherwise than as provided in bye-law 9.

V. LAIBILITY
17. The liability of the members for any deficit in the assets of the Society on liquidation shall be limited to eight times the value of the subscribed shares.

VI. GENERAL MEETINGS
18. The first general meeting of the members shall have the same powers as are herein given to the annual meeting.

The preliminary general meeting shall be called within a period of not les than one month and not more than three months from the date of its registration. In this meeting the following business shall be discussed and decided:

(i) Approval of allotment of shares, amount collected and amount spent in connection with the registration of the Society before registration.

(ii) Election of members of the Managing Committee.

(iii) Programme of activities and the budget estimates for the ensuing year.

19. (a) The annual general meeting shall be called within a period of 3 months of the close after the date fixed for making up its accounts for the year under the rule for the time being in force. Special general meeting may be called at any time by the Managing Committee, and shall be called by the Secretary on receipt of the requisition from 1/5 of the total number of members or from the Registrar of Co-operative Societies or any person authorised by him.

(b) In case of annual general meeting the date, time and place of the meeting shall be announced at least 14 days clearly in advance and in case of special general meeting at least 7 days notice in advance will be given and published on the notice board of the Society and circulated to the members.

(c) Provided that the Registrar may, by general or special orders, extend the period for holding such meetings for a further period not exceeding 3 months.

(d) Provided further that if such meeting is not held by the Society within the extended period, if any, granted by the Registrar, he or any person authorised by him may call such meeting in the manner prescribed and that meeting shall be deemed to be a general meeting duly called by the Society and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the Society or by such persons who, in the option of the Registrar, were responsible for the refusal or failure to convene the general meeting.

(e) If within an honour from the time appointed for the meeting, a quorum is not present, the meeting shall stand adjourned for one hour and adjourned meeting shall be held without quorum but if the meeting is called upon the requisition of the members (not the Registrar) it shall stand dissolved. Provided that at the adjourned meeting, no quorum shall be necessary.

(f) The presence of the 1/3rd of the total number of the members subsisting as such on the date of Notice of the meeting subject to a minimum of 10 members shall be necessary for the disposal of any business at General Meeting. Each member shall have one vote irrespective of the shares held by him. The chairman shall have a casting vote in addition. No proxy shall be allowed and no member shall vote who is in arrear with his share instalment.

(g) The President or the Vice-President, or in their absence one of the other members elected for the purpose shall preside over meetings.

20. In the general meeting the following business shall be transacted:

(i) The election, suspension and removal of members of the Managing Committee including a President and one or more Vice-Presidents;

(ii) The consideration of the annual statement of accounts and audited balance sheet and of the auditor’s report and the inspection notes of the Registrar and Inspectors and PWD officers;

(iii) The disposal of the profits in accordance with the Act, the notified Rules and these bye-laws;

(iv) The confirmation of the admission and expulsion of members and of the transfer of shares;

(v) The fixing of subject to the approval of the Registrar, the maximum liability to be incurred during the following year in loans and deposits from the non-members:

(vi) The amendment of the bye-laws, subject to the approval of the Registrar;

(vii) The consideration of any important extension or improvement of the Society’s activities within its objects;

(viii) The fixing of a limit or the amount which can be spent on new vehicles or equipment or on the construction of building during the forthcoming year;

(ix) Any other business which the Managing Committee is not authorised or is unable to transact:

(x) The accepting of contracts over Rs._________________

(xi) The control and revise any remuneration to be paid to the members of the Managing Committee subject to the approval of the Registrar.

(xii) To create benefit, unemployment, accident and pensions funds and frame rules regarding their utility.

(xiii) To hear appeals against the order of the committee;

(xiv) To settle the rates of bonus to employees.

21. (a) Amendments of the bye-laws shall be carried out by two-third majority of the members present, in the General Body meeting. The amendments shall come in force from the date of approval by the Registrar Co-operative Societies Delhi.

(b) If it appears to the Registrar than an amendment of a bye-law of a co-operative Society is necessary or desirable in the interest of such co-operative Society, he may call upon the co-operative Society to make the amendment.

(c) The Registrar may be serving a notice inform/call upon a Society to make an amendments within a period not exceeding sixty days.

(d) After the expiry of the period specified in the notice under sub-rule (2) and if the Society fails to make the amendment the Registrar after giving the co-operative Society an opportunity of being heard, may register the amendment and issue to the co-operative Society a copy of such amendment certified by him with a certificate signed by him. With effect from the date of Registration the amendment is binding on the co-operative Society and its members subject to appeal, if any.

(e) All amendments of the bye-laws relating to the same Co-operative Society when registered by the Registrar shall be assigned a consecutive number in chronological order and shall be noted in index to the bye-laws to be maintained by the Co-operative Society in the registration file.

22. Each member shall have one vote, irrespective of the number of shares held by him. No proxies shall be allowed. No member shall be allowed to vote who is in arrears with his shares instalments.

23. All business discussed or decided at a General Meeting shall be recorded in a proceeding book which shall be signed by the Chairman of the meeting.



VII. MANAGING COMMITTEE


24. (a) The Managing Committee shall consist of at-least 5 members of the Society and not more than 15, over the age of 21 including a President and one or more Vice-President. President or Vice- President or in their absence one of the other members elected for the purpose shall preside over meeting. Each member of the Committee shall have one vote but the Chairman shall have a casting vote, in addition in case of equality of votes on any item in the committee.

(b) Committee members shall be elected and hold office for one year and shall be eligible for re-election, but no member be eligible for holding the office of the President, Vice-President, Chairman, Vice-Chairman, Managing Director, Secretary, Joint Secretary and Treasurer more than two consecutive terms whether full or year. These office bearers shall also not be eligible to hold such office on a Committee of another co-operative Society of the same type or on the Committees of more than three different types of the societies.

(c) The election of the Managing Committee shall be by show of hands in the manner given in Schedule III of the Delhi Co-operative Societies Rules, 1973 unless a poll is demanded in which case it shall be held by secret ballot. In case the membership of the Society exceeds two hundred, the election shall be held by secret ballot in the manner given in Schedule II of the Delhi Co-operative Societies Rules, 1973.

(d) The meeting of the Committee shall be held when necessary and shall be called by the Secretary on receipt of a requisition from three or 1/3rd members of the Managing Committee, whichever is more or from the Registrar Co-operative Societies, or any person authorised by him. The Managing Committee shall cause minutes of all proceedings of its meetings to be entered in the book for the purpose in hand written at the spot in the presence of members present and voting. The minutes of each meeting shall contain the names of the members, if any, dissenting from or not concurring in any resolution. At the end of the minutes, each member present and voting shall sign them. If the minutes are not made and recorded in this manner, these shall not be considered valid and it shall be deemed that no such meeting was duly called and held.

25. A member of the committee shall cease to hold office if he:

(i) ceases to be a member of the Society;

(ii) applies for insolvency;

(iii) fails without showing satisfactory reasons to the committee to attend three consecutive committee meetings.

(iv) undertake construction repair or remodeling or any other works in competition with the Society;

(v) is convicted of any offence involving dishonesty, or moral turpitude;

(vi) becomes of unsound mind;

(vii) resigns and his resignation is accepted by the committee.

26. Meeting of the committee shall be held when summoned by the Registrar, or by some person authorised by him in writing by him in writing by a general or special order, or by the President or the Secretary or at the written request of three members of the Committee. The attendance of at least three members shall be required for the disposal of the business. The President or the Vice-President or in their absence one of the other members shall preside. Each member shall have one vote. The Chairman shall have a casting vote in addition.

27. The committee shall exercise all the powers of Society except those reserved for the general meetings, subject to any regulations or restrictions duly laid down by the Society in a general meeting or in these bye-laws, and in particulars shall have the following powers and duties:

(i) to observe in all their transactions the Act. the notified rules and these Bye-laws;

(ii) to maintain true and accurate accounts of all money received and expended;

(iii) to keep a true account of the assets and liabilities of the Society;

(iv) to keep a register of members correct and up-to-date;

(v) to prepare and lay before the annual general meeting a profit and loss account and an audited balance-sheet.

(vi) to enter into agreement with the Government, local bodies or other persons under bye-law 2(ii) and 3(iii);

(vii) to examine the accounts, sanction contingent expenditure, and supervise the maintenance of prescribed registers;

(viii) to consider the inspection notes of the Registrar and the Inspector and to take necessary action on them;

(ix) to admit new members, to issue new and transfer of old shares subject to the confirmation of a general meeting;

(x) to summon general meeting in accordance with bye-law 19;

(xi) to contract loans subject to any restrictions imposed by general meeting or by the Registrar;

(xii) to arrange for the safe custody of the securities owned or pledged with the Society;

(xiii) to invest the surplus funds of the Society in accordance with Section 49 of the Co-operative Societies Act;

(xiv) to assist the inspection of the books by any person authorised to see them;

(xv) subject to bye-law 28, to appoint, suspend, punish or dismiss employees;

(xvi) through any member or officer or employees of the Society or any other person specially authorised to institute, conduct, defend, compromise, refer to arbitration or abandon legal proceedings by or against the Society or committee or the officer or employee concerning the affairs of the Society;

(xvii) to acquire on behalf of the Society shares in the other registered co-operative societies;

(xviii) with previous sanction of the Registrar to invest the funds of the Society in the purchaser or lease of land or building, or in the construction of building required for the conduct of its business;

(xix) to arrange for the safe custody of books and appoint one of its members or one of the offices of the Society to take charge of all the registers and papers prescribed in the bye-laws;

(xx) to purchase, sell, hire, or otherwise acquire or dispose off on behalf of the Society implements, parts, accessories, or other movable property used in connection with business of Society;

(xxi) to establish and operate repair shops;

(xxii) to arrange for the insurance of machines and other property of the Society in accordance with any policy framed at the general meeting;

(xxiii) to decide the terms of purchase and sale of all supplies and to arrange for the safe custody of such assets while in stock;

(xxiv) to arrange for recovery of shares instalments and saving deposits and of interest on overdue instalments;

(xxv) to appoint a sub-committee from amongst its members or members of the Society and delegate to it or to any one of its officers such of its powers as are approved by general meetings;

(xxvi) to appoint a treasurer, a secretary or secretaries require them and other employees to give such security as it deems fit;

(xxvii) to carry on the business of the Society. In the absence of the treasurer the managing committee may appoint one of the members of the committee to take charge of all money received and generally to carry to on the duties of the treasurer. The person thus appointed shall handover the money thus received to the treasurer immediately on his return;

(xxviii) to maintain schools, clubs, hospitals, grounds and such other institutions for the welfare of the members and their dependents;

(xxix) to check and inspect the accounts of the labour and work entrusted to the members by and with the help of the Society through its representative from time to time;

(xxx) to accept or reject the resignations from the Committee members till next general meeting;

(xxxi) to decide the terms on the periods for, and the rates of interest at which fixed deposits are to be received and to arrange for the payment or return of such deposits;

(xxxii) to allot work to the members and determine the wages to be paid to each class of workers;

(xxxiii) subject to the rules framed by the general meeting to allow aid out of benefit and unemployment funds and accident and pension funds;

(xxxiv) to seek legal and technical advice if ever needed for carrying on the stated objects of the Society;

(xxxv) to impose fine, penalties, demands upon members and others and to make arrangements for their realization.
A member aggrieved under this bye-law could file an appeal in the general meeting within 30 days of receipt of order of the committee. But no order of the Committee shall be varied unless at least two-thirds of majority present in a general meeting vote for change

(xxxvi) to decide the terms of the period for, and the rate of interest at which petty loans are to be given to members; to approve or reject the security, to arrange for the recovery of loans and interest on overdue instalments as laid down by general meeting and to sanction/renew necessary loans due from a borrower which shall not exceed his one month’s pay or estimate monthly income;

(xxxvii) to allow advance to members and others under bye-law 38 and to arrange for the recovery of the advances and interest upon them;

(xxxviii) to watch that advance and petty loans are applied to approved purposes for which they were needed;

(xxxix) to see that the members complete their work within the specific time;

(xl) to arrange for the safe custody of the property of the Society, to maintain it in a goods state of affairs and where necessary to arrange for its insurance;

(xli) to co-opt. members against the vacancy caused by the resignation or disqualification of any member of the managing committee.

(xlii) Generally to carry on the business of the Society. In the conduct of the affairs of the Society the committee shall exercise the prudence and deligence of ordinary men of business and shall be responsible for any loss sustained through acts contrary to Act. the notified Rules and the bye-laws.

The proceedings of the Committee shall be recorded in the minute book to be kept for the purpose by the Secretary and signed by the Chairman and other members present. These members of the Committee shall from a quorum.

28. (i) No paid officer or servant shall be retained in any category of service in the Society if he does not posses in the basic technical and educational qualifications laid down by the Registrar, and does not furnish within such time as the Registrar may direct, security in the form and the standard prescribed by him. No payment on account of salary, commission, honorarium or otherwise shall be made to any paid officer or servant unless he had furnishes the required security.

(ii) Except with the previous sanction of the Registrar, no relative [as defined in Rule 59(1) of the Co-operative Societies Rules, 1973] of any member of the committee or honorary secretary of the Society shall be appointed to such office.


VII. SECRETARY


29. The committee of the Society shall specify which the officers of the Society shall:

(a) keep the books of accounts
(b) keep other books and registers, and
(c) prepare returns and statements.

If the committee of a co-operative Society has not specified the officers required to be specified in sub-rule (1) notwithstanding anything contained in the bye-laws of the Society, the following officers shall be responsible for keeping accounts, record, etc., indicated against each, namely :-


(a) Treasurer


He shall keep or cause to be kept all the books of account and vouchers and shall prepare or cause to be prepared annual profits and loss account, receipt and disbursement account and the balance-sheet. Whosoever, may be writing these disbursement account and the balance-sheet. Whosoever, may be writing these books of accounts, these shall always be deemed to be in his custody, possession, power and control. He shall be responsible for their safe delivery to his successor after making a list of documents handed and taken over.


(b) Secretary


He shall keep or cause to be keep all other records of the Society and shall be responsible for preparation and submission of various returns to the Registrar. Whosever may be keeping these records, these shall always be deemed to be in his custody, possession, power and control. He shall be responsible for making over the charge of his record to his successor under proper charge report to be signed by the relieving and the relived officers.


(c) Cash


Cash Balance in hand shall always remain in the hand of the Treasurer or any officer appointed by the committee.

Every co-operative Society shall from time to time determine at a meeting of the committee the minimum members of paid staff required for its business. The committee shall prescribe their qualifications and experience and the emoluments. The committee shall be competent to appoint, dismiss or remove any paid staff.

The minimum paid staff for co-operative bank and any co-operative Society with a working capital or annual transaction of rupees five lakhs or over shall be:

(a) One Secretary or Manager
(b) One Accountant.
(c) One Cashier.


IV. REGISTERS


30. The following registers and papers shall be maintained and shall be open to the inspection of any one interested in the funds except that no one shall be allowed to see the deposit account of any person without that person’s consent in writing:

(i) a register of members showing name, address and occupation of every member the number of shares held by him, the date of his admission to membership, date of termination of membership and the nominee appointed under bye-laws;

(ii) a cash book and day book showing the income, expenditures and balance on each day on which business is done;

(iii) a ledger account for each member, depositor and creditor, and for miscellaneous and contingent income and expenditure;

(iv) a register showing the monthly instalments for payment of shares;

(v) a minute book;

(vi) a book of bonds showing all loans issue;

(vii) a pass book for each member or depositor;

(viii) muster rolls or daily attendance register;

(ix) a register for furniture, stocks and securities;

(x) sales register;

(xi) a works register showing the works taken in hand by the Society under the bye-laws;

(xii) register of application for membership containing the name and address of the application, the date of receipt of application, the number of shares applied for and in case of refusal, the date of communication of the decision refusing admission to the applicant; and

(xiii) such registers and other records connected with the construction and as may be laid down by the Registrar or the Managing Committee.


X. DEPOSITS


31. Deposits for fixed terms may be taken from its member and non-members.

32. (1) A member may subscribe to at least one of the following kind of deposits:

(i) deposits for specific objects;
(ii) deposits for specific periods;
(iii) benefits and unemployment fund deposits;
(iv) home saving safe deposits;

(2) Such deposits shall be governed by the rules to be framed by the Society subject to the approval of the Registrar.

(3) With the sanction of the committee a member may be exempted for the obligation to deposit for any purpose during which his circumstances do not permit of such payment.


XI. ADVANCES


33. (a) Advance will be made to members and other persons only for purpose necessary to the proper completion of the work entrusted to him.

(b) Advances shall not exceed the estimated value of the work to be done by a person in a month and these shall be advanced by instalments.

(c) The borrower shall execute a bond or a receipt for every advance and in all cases shall furnish security.

(d) No new advance shall be made for a new work unless the previous one is fully repaid. Every advance be repaid from the next payment of wages or bills.

(e) If the committee finds that the security for the outstanding loan or advance has become insufficient, they shall call on the borrower to provide satisfactory, security, and in default shall call back the loan or advance at once. The loan or advance shall also be called if the committee finds that it has not been applied to the purpose for which it was taken.

34. All documents creating a charge or obligation on the Society shall be signed by the President, or Vice-President and two committee members appointed for the purpose that in the case of receipts and cheques upto Rs.____________ and that in the case of receipts and cheques upto Rs.____________ and receipts for deposits and payments of loans, the President or the Secretary or Treasurer may sign. All important documents of the Society shall be sealed with the Society’s seal. The seal shall be kept in the custody of the Secretary.


XII. BENEFIT AND UNEMPLOYMENT FUND


35. The benefit fund shall be formed from:
(a) Receipt from net profits.
(b) Penalties and fines.
(c) Donations and contributions.

If shall not be expended except as provided under these bye-laws or as may be provided by any amendment adopted under bye-law 20(xiii).

36. Whenever a member, owing to sickness or accident, is unable to earn wages for a period exceeding fifteen days, the committee may grant him a subsistence allowance from the benefit and unemployment fund at a rate not exceeding Rs._____________ a month commencing from the sixteenth day of his incapacity.

37. Members may contribute towards employment funds upto______________ rupees from their earning which shall be returnable to them in case of unemployment or maternity, in such monthly instalments as the committee may decide with the approval of the general meeting. Such members after they have exhausted their own unemployment contributions will have prior rights to the benefit fund.


XIII. AUDIT


38. The accounts of the Society shall be audited at least once a year by an Auditor appointed by the Registrar. The society shall pay such contribution to the Delhi Audit Fee and in such a manner as may from time to time be fixed by the Registrar, Cooperative Societies, Delhi.



XIV. DISTRIBUTION OF PROFITS


39. The following shall be the first charge on profits;

(i) Contribution to the Delhi Audit fee and in such manner as may be fixed from time to time by the Registrar.

(ii) Any losses undergone by the Society.

(iii) Necessary deduction for depreciation of machinery, building, etc.

(iv) All insurance charge.

(v) All payments of salaries, provident fund and working expenses.

(vi) Interest on debentures, loans deposits, etc. The balance shall be the net profits of Society.

40. (1) Net les than 225 per cent of the balance shall be carried to the Reserve Fund which shall be indivisible and no member shall be entitled to any share in it.

(2) The Society shall credit a sum calculated at two per cent of its net profits subject to a maximum of Rs.10,000/- every year for contribution to the Cooperative Education Fund to be administered by the Registrar. The Registrar may frame regulation for the utilization and the administration of the Fund. This fund shall be kept with the State Bank of India. Any such amount payable by the Society, shall be a charge on the funds of the Society.

(3) Dividend of shares may be paid not exceeding 18 per cent per annum.

(4) No less than 30 per cent of balance shall be distributed as bonus to al employees whether members of the Society or not.

(5) The remaining amount if any may be allotted to any or all of the purposes detailed below or may be carried over:

(a) Bad debt fund.
(b) Rebate on purchase or sale of goods by the member,
(c) Common good fund.
(d) Dividend equalization fund.
(e) Share transfer fund.
(f) Any other fund required for the business of the Society.

41. If no dividend is claimed by a member for a period of three years from the date of declaration, a notice shall be issued by the Society at his cost calling upon him to take the amount within one month of the receipt of the notice. If the dividend is not claimed during this period, it shall be credited to the Reserve Fund.

42. The bonus shall be paid according to the rules approved by general meeting and subject to any restrictions imposed.

43. No bonus, in addition to the dividend shall be distributed to members on shares.

44. No dividend shall be while any claim due from the Society to depositor or creditor remained unsatisfied.

45. Members shall have no right to the dividend unless declared and approved by the General Body. The dividend shall be paid to all members within three months of the approval by the General Body.

46. Allocation and distribution of profits shall be made only after the annual audit.


XV. RESERVE FUND


47. The Reserve Fund is indivisible and no member is entitled to claim a specified share in it. It shall be invested in Government Securities or otherwise as directed by the Registrar under Section 49 of the Act.

48. If any dispute touching the constitution or business of the Society arises between members or past members of the Society or persons so claiming through a member or past member or person so claiming and any officer, agent or servant of the Society (past or present) it shall be referred to the Registrar as provided in the Co-operative Societies Act. and the Rules framed thereunder.


XVI. GENERAL


49. All matters not specially provided for, are to be decided in accordance with the Co-operative Societies Act. and the Rules notified thereunder.

50. The Managing Committee with the approval of the general meeting may frame rules of business not inconsistent with the Co-operative Societies Act. the Rules and these bye-laws for carrying on the work of the Society and may make additions to or alterations in them from time to time.

51. In case of any dispute about the meaning or interpretation of any provisions of the Co-operative Societies Act. the Rules and these bye-laws, the decision of the Registrar shall be final.


XVI. LIQUIDATION

52. The Society shall be wound up and dissolved only by order of the Registrar under Section 63 of the Co-operative Societies Act.

After all the liabilities including paid-up share capital have been met, the surplus assets shall not be divided among the members, but shall be devoted to any object of public utility determined by the general meeting of the Society within three months of the date of final liquidation, and approved by the Registrar, or they may in consultation with them either be assigned by the Registrar in whole or in part to any or any of the following:

(a) An object of public utility of local interest.

(b) A charitable purpose as defined in Section (2) of the Charitable Endowment Act.

(c) Or may be placed on deposit with a state Co-operative Bank until such time as a new Society with similar conditions is registered when, with the consent of the Registrar, such surplus may be credited to the Reserve Fund of such new Society.

Copies of the bye-laws and the Balance-sheet shall be supplied free on demand to any member. The last balance-sheet shall be open to public inspection during office hours.

The committee shall appoint one of its member or one of the officers of the Society to take hold keep in safe custody all the registers prescribed in bye-law 31 and other papers in use of the Society.




























Contd…..18….



-: 18 :-

LIST OF PROMOTER MEMBERS TO BE APPENDED WITH THE
BYE-LAWS THE TIME OF REGISTRATION

We the following promoters members were present in the general body meeting of the ____________________ Cooperative ___________________ Society Limited ___________________________ held on __________________ and have gone through the Model bye-laws and the same were adopted unanimously.

S. No. Name of Promoter Member Father’s/Husband’s Name Signature