THE BYE-LAWS OF A CO-OPERATIVE STORE

IV. THE BYE-LAWS OF A CO-OPERATIVE STORE
1. NAME, ADDRESS & AREA OF OPERATION

1. The name of the store is _______________________________________ CO-OPERATIVE STORE LTD., _________________________________ and its registered address _________________________________________________ ___________________________________________________________

2. 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 its words and expressions defined in the Act and used in the Rules, 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.

3. The area of operation of the store shall be _________________________

II. OBJECTS
4. The objects of the store are to promote the economic interest of the members and more particularly:

(i) To carry on common trade, both wholesale and retail for the benefit of the members and consumers;

(ii) To sell to its members as well as the consumers, the consumer goods as may be bought by it during its business;

(iii) To own lands, buildings, vehicles and take them on lease or rent for the business of the store;

(iv) To make arrangement for Packing, Grading and Processing of consumers goods;

(v) To undertake welfare activities particularly for the members and employees for the promotion of their moral, educational and physical improvements;

(vi) To undertake other measures designed to encourage in the members the spirit and practice of thrift, self help and mutual help;

(vii) To do all such things are incidental, or conducive to the attainment of all of the above objects.

III. MEMBERSHIP
5. (a) The members shall consist of:
(i) The persons joining in the application for registration;
(ii) Persons admitted in accordance with these bye-laws; and
(iii) Nominal or associate members subject to the conditions as laid down in Rule 26.

(b) The store may admit joint members provided they make a declaration in writing that the person whose name stands 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 store may admit minor 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.

(d) No person shall be a member unless:
(i) He is ordinarily a resident in the area of operation;
(ii) His written application of membership has been approved by the Managing Committee.

(iii) His age is more than 18 years, except in the case of minor heir of a deceased member;

(iv) He has carried out the provision of bye-law 12.
(v) Every member on admission shall pay Rs.10 as admission fee which shall not be refunded in any case.

6. No person shall be admitted as member:
(i) If he is dealing in the sale and purchase of goods being dealt in by the store.

(ii) If he has been convicted of an offence involving adulteration, hoarding, profiteering, black marketing or moral turpitude or dishonesty.

(iii) If he is member of any other Consumer Co-operative Store in the Union Territory of Delhi unless permitted by the Registrar.

(iv) Original members are exempted from the provisions of bye-law 5(d)(ii).

(v) The store shall not admit members within 45 days prior to the date of the meeting of the General Body.

(vi) When a person’s application for membership has been accepted by the Committee and he has paid his admission fee and Share Money, within 14 days of the receipt of the decision of the Managing Committee, he shall be deemed to have acquired all the rights and incurred all the obligations and liabilities of a member of the store as laid down in the Co-operative Societies Act. the Rules made thereunder and these bye-laws.

7. Notwithstanding the provision of the preceding bye-laws, the Government or the Financing Bank, Delhi, may become a shareholder of the store.

8. A member of the Society may be expelled by the Society as provided under Rule 36 on the following grounds:

(a) If he makes default in the payment of instalment of his shares; or
(b) If he has applied to be adjudicated as insolvent or is an in discharged insolvent; or

(c) If he has been sentenced for any offence other than an offence of a political character or an offence involving moral turpitude and dishonesty; or


(d) If he undertakes any profession similar to the objects of the store; or
(e) If he intentionally does any act likely to injure the credit of the store or fails to observe proper discipline in regard to the work of the store; or

(f) 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 store or to the interest of cooperation; or

(g) Incurs any of the disqualifications contained in Rule 25; or
(h) Opportunity shall be given to a member before expulsion from membership to represent his case to the store and expulsion shall not be effective unless it is approved by the Registrar.

9. A person ceases to be a member:
(i) On death; or
(ii) For lack of confirmation of membership as per bye-law (5)(d)(ii);
(iii) When his resignation is accepted by the Managing Committee.
(iv) On expulsion under bye-law 8;
(v) Ceasing to hold the minimum number of shares prescribed in these bye-laws;

(vi) On withdrawal after 3 months notice in writing to the Secretary provided that the member withdrawing does not owe anything to the store and is not a surety for un unpaid debt. Withdrawing will take effect from the date of disposal of his shares as provided in these bye-laws. number of shares prescribed in these bye-laws; the member withdrawing does not owe anything

10. (a) A member or the nominee or successor of an ex-member may transfer his shares to another member or applicant qualified under bye-laws 5 and approved by the Committee or to a share transfer fund created by the store out of its profits and shall then be paid the value of his share, less any sum due from him to the store. No transfer of shares or interest shall, however, be made unless a m member has held such shares or interest for not less than one year.

(b) With the approval of Managing Committee, shares may be returned in Special cases of hardship subject to the provision that the payment of share capital made under the bye-law shall not in any year reduce by more than 5 per cent of the share capital of the store as it stood at the close of the proceeding year.

(c) The value of share shall in no case be more than the amount received by the store in payment thereof.

(a) A member on withdrawal, whether voluntarily or through the action of the store, shall subject, however, to the rule of the store, have no claim on the funds or property of the store of any kind.


11. The Capital shall be composed of:
(a) An under mentioned number of shares of value of Rs.10 each;
(b) loan from non-members and Financing Institutions;
(c) donations and grants;
(d) deposits from members;
(e) realized profits;

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

12. The funds of the store may be utilized in business but when not employed in its business shall be invested or deposited as required by section 49 of the Act.

V. SHARES
13. Every member shall purchase atleast 5 shares and no member shall holds shares of which the nominal value exceeds Rs.10,000 or exceeds 1/5th of the total share capital actually subscribed. If any member by inheritance or otherwise becomes possessed of more that the maximum holding permitted by this rule, the Managing Committee shall have power to sell the excess number or buy them on behalf of the Society and to hold proceeds at his disposal. A member will not be entitled to payment towards his second and subsequent share until the first or previous one has been paid in full.

14. Shares shall be paid in a lump-sum by the Member at the time of admission.

15. Shares shall not be withdrawn, repaid or transferred otherwise than as provided in bye-law 10.

16. (a) Members holding beneficiary share shall have the right to purchase the requirements from the store, but they will not be entitled to vote or participate in the management of store or its profits, except as provided in the bye-law 42(4)(b) nor will they be liable for any deficit in the event of liquidation. Such members shall have, however, the right to convert their shares into regular members of the store by paying the balance of the share money and admission fee, as laid down in bye-law 11(a).

(b) Save in these bye-laws, the word members wherever it occurs in other bye-laws, shall unless otherwise specified be deemed as referring to regular members, who have purchased shares as laid down in bye-law 12(a).

17. Every member may nominate a 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 unless the amount to be paid to such nominees 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 he shall atleast the nomination by putting his signature or thumb impression in the register of members. If not admitted to membership the nominee or nominees shall be paid the value of the shares or interest subject to the provisions of bye-law 10. If any deduction has to be made from the shares of the deceased, and there is more than one nominee, the amount to be deducted shall be set off against the amount due to each nominee in proportion to his interest.

18. The store shall have the right to set off any money due to any account from the store to a member or past member or person claiming through him in payment of any sum which he owes to the store or for which he stands surety.

VI. LIABILITIES
19. (a) The liability of the members for any deficit in the assets of the store on liquidation shall be limited to five times the value of their subscribed shares.

(b) Notwithstanding the provision of bye-law 18(a) the liability of the Government or the Financing Bank shall be limited to the value of shares held by them.

VII. GENERAL MEETING
20. The first General Meeting of the members shall have the same powers as are herein given in the Annual Meeting.

The preliminary general meeting shall be called within a period of not less 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 store before registration;

(ii) Election of members of the Managing Committee;

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

21. (a) The Annual General Meeting shall be called within a period of six months from the date of its accounts for the year under the rules for the time being in force. A special General Meeting may be called at anytime by the Managing Committee and shall be called by the Secretary on receipt of a requisition from 1/5th of the total members or from the Registrar, Co-operative Societies or any person Authorised by him.

(b) In case of the Annual General Meeting, the date, time and place of the meeting shall be announced atleast 14 days clearly in advance and in case of Special General Meeting at least 7 days in advance by written notice passed on the notice board of the store and circulated to the member by U.P.C.

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

(d) Provided further that if such meeting is not held by the Store 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 Store and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the Store or by such persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convenue the General Meeting.


(e) If within one hour of the time appointed for the meeting quorum is not present, the meeting shall stand adjourned for half hour and shall be held at the same place with same Agenda for which no quorum is required. This should be clearly mentioned in the Agenda Notice issued to the members. If the meeting is called on the requisition of members (not the Registrar), if shall stand dissolved if the quorum is not present within one hour of the appointed time.

(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 shall be necessary for the disposal of any business at General Meeting. Each member shall have one vote irrespective of the share held by him. The Chairman/President shall have a casting vote in addition. No proxy shall be allowed and no member shall be allowed to 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 of the committee elected for the purpose shall preside over the meeting.

22. The duties and power of the General Meeting are:
(1) To elect, suspend or remove members of the Managing Committee, including President and one or more Vice-Presidents;

(2) To receive from the Committee a report on the preceding year’s working of the store together with a statement showing the receipts and payment, assets and liabilities and profit and loss for the year, including trading account;

(3) To consider the audit note, inspection note of the Registrar or financing agency or inspector and any other communication from the Registrar.

(4) To dispose off profits in accordance with the Act. notified Rules and these bye-laws.

(5) To lay down for the guidance of the Managing Committee general policy for the various activities to be undertaken by the store;

(6) To determine the nature and extent of the welfare activities to be undertaken by the store;

(7) To fix, subject to the approval of the Registrar the maximum liability to be incurred during the following year, in loans or deposits from non-members;

(8) To attend the bye-laws, subject to the sanction of the Registrar;
(9) To expel members, subject to the approval of the Registrar;
(10) To consider any other business brought forward.

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

(1) If it appears to the Registrar that an amendment of Bye-law of a Cooperative Store is necessary or desirable in the interest of such Cooperative Store, he may call upon the Cooperative Store to make the amendment.


(2) The Registrar may by serving a notice inform/call upon the Store to make an amendment within a period not exceeding sixty days.

(3) After the expiry of the period specified in the notice under Rule 16(2) and if the Store fails to make the amendment, the Registrar after giving the Cooperative Store an opportunity of being heard, may register the amendment which is binding on the Cooperative Store and its members subject to appeal, if any.

(4) All amendments of the Bye-laws relating to the same Cooperative Store 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 Cooperative Store in the registration file.

24. Amendments of bye-laws shall only be carried out by a majority of 2/3rd of the members presenting a General Meeting in which due notice of the intention to discuss such amendments has been previously given. Such amendments shall be forwarded to the Registrar for registration within a period of not less than 3 months.

25. All other questions for the general meeting shall be decided by a majority of votes.

VIII. MANAGING COMMITTEE
26. The Managing Committee shall consist of atleast 5 members of the store and not more than 15, over the age of 21 years including a President and one of more Vice-President. In the Managing Committee, two seats shall be reserved for Lady Members of the Store. The President shall preside over the meeting and in case the President and Vice-President are absent, any other member elected by Committee for the purpose shall preside. Each member of the Committee shall have one vote but the Chairman shall have a casting vote, in addition.

(i) Committee members shall be elected and hold office for 3 years and shall be eligible for re-election, but no member shall 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 part. These office-bears shall also not be eligible to hold such offices on a Committee of another co-operative store of the same type or on the Committee of more than three different types of Societies. 1/3 members will retire every year by rotation and they shall be eligible to contest election subject to the provision of Sec. 31.

(ii) The election of the Managing Committee shall be held by Secret Ballot as provided in the Rules under Schedule–II, Rule 58.

(iii) Meeting of the Committee shall be held as and when necessary but atleast once in a month. The president or Secretary may call such meeting on the receipt of requisition from 3 or 1/3rd members of Managing Committee whichever is more or on requisition from Registrar, Coop. Societies, Delhi. Notice for the Managing Committee meeting shall be given 5 days in advance and in case of emergent meeting 24 hours notice

is sufficient provided Agenda is received by all the members of the Committee. The quorum of Managing Committee meeting shall be 1/3rd
members of the Committee or minimum 3. The minutes of the Managing Committee meeting shall be recorded in hand-written and at the spot which shall be signed by the members present at the end of the minutes. If the minutes not recorded at the spot and if not signed by the members present at the end, the Meeting shall not be treated as valid.

(iv) In the event of the contribution to the share capital of the store by the Government or the Financing Bank, the Government or the said Bank may appoint such nominees on the committee, not exceeding 1/3rd of the total strength of the managing committee or three, as it may think fit.

27. A member of the Committee shall cease to hold office if he:
(1) ceases to be a member of the store;
(2) applies for insolvency or is declared insolvent.
(3) becomes of unsound mind;
(4) is convicted of any offence involving dishonesty or moral turpitude;
(5) carries on business on his own account similar to that specified in bye-law 3:
(6) resigns and his resignation is accepted by the Committee:
(7) accepts any office or place of profit under the store or receives any honorarium;
(8) fails to attend three consecutive committee meetings without showing satisfactory reasons, to committee; or
(9) ceases to be nominee of the Govt. of Financing Bank.

28. The Committee shall exercise all the powers of the store except those reserved for the General Meeting subject to any regulations or restrictions laid down by the store in a General Meeting or in these bye-laws and in particulars shall have the following rights and duties:

(1) To observe in all their transactions, the Act. notified Rules and these bye-laws;

(2) To maintain true and accurate accounts of all money received, expended, and all property bought or sold;

(3) To keep register of members correct and up-to-date.
(4) To keep true account of assets and liabilities of the Society.
(5) To prepare and law before the General Meeting the annual profit and loss account and audited balance sheet.

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

(7) To consider the inspection notes of the Registrar and any other persons authorised by the Registrar to inspect or financing institution and to take necessary action;

(8) To admit new members and transfer old shares;
(9) To arrange for the recovery of share instalments and of interest on over due instalments;

(10) To summon General Meeting in accordance with bye-law 21;

Contd……9…
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(11) To contract loans subject to any restrictions imposed by the Registrar or General Meeting;

(12) To decide the terms and period for and the rate of interest at which deposits are to be received and to arrange for the payment of such deposits;

(13) To decide the terms on, the period for and rate of interest on Advance/Credit Sales;

(14) To assist in the inspection of books by any person authorised to see Records;

(15) To appoint, suspend and dismiss employees;
(16) Through any member or officer or employee of the store or any other person specially authorised to institute, conduct, defend, compromise, refer to arbitration or abandon legal proceedings by or against the store or Committee or the officer or employees concerning the affairs of the store;

(17) To acquire shares on behalf of the store in other registered co-operative societies;

(18) To arrange for the safe custody of books and to appoint one of its members or one of the officer for the Society, residing in the area of operation, to take charge of all the registers and papers prescribed in these bye-laws;

(19) To purchase and sell consumers goods, and to make necessary arrangements for the storage;

(20) To acquire and hold property and to enter into contracts on behalf of the store;

(21) To appoint a treasurer to keep the money of the store and require him to give such security as it may deed sufficient;

(22) To appoint a Manager and fix his remuneration;
(23) To distribute the duties between the Secretary and Manager, if necessary;

(24) To arrange for the safe custody of the property of the store and to maintain it in a good state of affairs and where necessary to arrange for its insurance;

(25) To co-opt. members against the vacancy caused by the resignation or disqualification of any members of the Managing Committee;

(26) To elect a Secretary from amongst the Managing Committee and entrust him with such duties as deemed necessary;

(27) Generally to carry on the business of the store;
(28) In the conduct of the affairs of the store, the Committee shall exercise the prudence and diligence of ordinary men of business and shall be responsible for any loss sustained through acts contrary to the law, the notified Rules and these bye-laws.

Contd…..10…

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29. No member of the Committee shall receive any remuneration of his work as a member of the Committee.

30. All business discussed or decided at a meeting of the Committee shall be recorded in minutes book which shall be signed by the Chairman of the meeting and all members of the Committee present.

31. The Committee may appoint from amongst its own members a sub-committee and may delegate to it or to any officer of the store such of its own powers as it may consider desirable for the better conduct of the Society’s affairs. The sub-committee or officer, shall in the discharge of the functions entrusted to them, conform in all respects to these bye-laws and the instructions given by the Managing Committee.

32. (i) Notwithstanding anything contained in these bye-laws –
(a) No person shall be appointed as paid officer or servant in any category of service in the store unless he possesses the basic technical and educational qualifications as laid down by the Registrar and furnishes such security in form and standard as may be prescribed by him.

(b) No paid officer or servant shall be retained in any category of service in the store if he does not possess the basic technical and educational qualifications laid down by the Registrar, and not furnish security within such time as the Registrar may direct in the form and 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 has furnished the required security.

(ii) Except with the previous sanction of the Registrar, no relative as defined in Rule 50 of Delhi Co-operative Societies Rules, 1973, of any member of the Committee or Honorary Secretary of the store shall be appointed to such office.

33. The Committee of the store shall specify which of the office-bearers shall-
(a) keep the books of accounts;
(b) keep other books and registers; and
(c) prepare returns and statements.
Provided that a person charged with the keeping of account shall not be in charge of Cash.

34. If the Committee of a Cooperative Store has not specified the officer required to be specified in these Bye-laws notwithstanding anything contained in Bye-laws of the Store, the following officers shall be responsible for keeping accounts, records etc. indicated against each namely.

(a) Treasurer: He shall keep or cause to be kept Cash Book and vouchers and Cash in Hand. 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 kept all the books of account and vouchers and shall prepare or cause to be prepared Annual Profit and Loss Account, Receipt and Disbursement Account and the Balance Sheet. Whosoever may be writing the books of accounts, they 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.

(c) Cash: Cash balance shall always remain in the hands of the Treasurer or with any other officer appointed by the Managing Committee.

35. Every Cooperative Store shall from time to time determine at a meeting of the Committee the minimum number of paid staff required for its business. The Committee shall prescribe their qualifications, experience and the emoluments. The Committee shall be competent to appoint, dismiss or remove any paid staff.

(a) The minimum paid staff for a Cooperative Bank and any Cooperative Store with Working Capital or annual transaction of rupees five lakhs or over shall be:

(i) one Secretary or Manager;
(ii) one Accountant, and
(iii) one Cashier

IX. REGISTERS
36. The following registers and papers shall be maintained and shall be open to the inspection of anyone 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:

(1) a register of members showing the name, address and occupation of every member, the number of shares held by him, the date of admission to membership, date of termination of membership and the nominee appointed under bye-law 17;

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

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

(4) an account showing monthly instalment of shares and deposits;
(5) a minute book;
(6) a book of bond;
(7) a stock and security register;
(8) a register of purchase and sale;
(9) a pass book of purchase and sale;
(10) a register of attendance and wages;

(11) register of application for membership containing the name and address of the applicant, the date of the 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;
Contd…..12…
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(12) any record required under the Act and Rules framed thereunder; and

(13) any other register prescribed by the Registrar.

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

38. The Committee shall appoint one of its members or one of the officers of the store to take hold and keep in safe custody all the registers prescribed in bye-law 35 and other papers in use of the store.

X. COMPULSORY DEPOSIT
39. (1) Every member shall subscribe atleast Rs.___________ per month towards compulsory deposits and may also contribute towards one or more of the following kinds of saving deposits;

(i) Deposits for specific object;
(ii) Deposits for specific periods;
(iii) Provident fund deposits;
(iv) Home savings safe deposits.

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

(3) With the sanction of the Committee, a member may be exempted from the obligation of deposits for any period during which his circumstances do not permit of such payment.

40. All documents creating a charge or obligation on the store shall be signed by the President, Secretary and Treasurer provided that in the case of receipts and cheques upto Rs.500/- and receipts for deposits and repayments of advances, the President and Treasurer may sign. All important documents of the store shall be sealed with the store’s seal. The seal shall be kept in the custody of the Secretary.

XI AUDITORS
41. The accounts of the store shall be audited atleast once a year by an Auditor appointed by the Registrar. The store shall pay such contribution to the Delhi Audit Fund as may be determined from time to time by the Registrar, Co-operative Societies, Delhi.

XII. DISTRIBUTION OF PROFITS
42. The following shall be the first charge on profits:
(i) Contribution to the Delhi Audit Fund as may be fixed from time to time by the Registrar.

(ii) Any losses undergone by the store.

(iii) Necessary deduction for depreciation of machinery, building, vehicles etc. subject to a minimum to be fixed by the Registrar by special or general order.

Contd……13…

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(iv) All insurance charge.

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

(vi) Interest on debenture, loans, and deposits etc.

43. (1) Not less than 25 per cent of the net profits shall be carried to the Reserve Fund which shall be indivisible and no member shall be entitled to any share in it.

(2) The store shall credit a sum calculated at two per cent of its net profit subject to a maximum of Rs.10,000 every year for contribution to the Co-operative 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 Store, shall be a charge on the funds of the Store.

(3) Dividend on shares may be paid not exceeding 18% per annum.

(4) Not more than 20% of the balance may be distributed as bonus to all employees whether members of the store or not.

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

(a) bad debt fund;
(b) rebate on goods purchased by the members including beneficiary members and to customers;
(c) common good fund according to section 47 of the Act. Expenditure out of this fund shall be incurred with previous approval of the Registrar;
(d) dividend equalization fund;
(e) share transfer fund;
(f) any other fund required for the business of the Store;
(g) bonus may be paid to the working members staff in proportion of salaries wages earned by them during the year.

44. 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 store at the last registered address of the member 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 Reserve Fund.

45. Sale shall be for cash only, but credit not exceeding a month may be allowed to member of the store by the Honorary Secretary within the limit of their paid up shares or advance deposits.

46. 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.

47. The rebate on credit and cash purchases shall be paid according to the rules approved by the General Meeting and subject to any restrictions imposed by the Registrar, provided such purchase shall represent not less than a total sum of Rs.500/- during the year.

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

49. No dividend shall be paid while any claim due from the store to a depositor or creditor remains unsatisfied;

50. Allocation and distribution of profits shall be made only after the Annual Audit.

XIII. RESERVE FUND
51. The Reserve Find is indivisible and no member is entitled to claim a specified share in it. It shall be in vested in Government Securities or otherwise as directed by the Registrar under Section 49 of the Act.

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

XV. GENERAL
53. All matters not specially provided in bye-laws shall be decided in accordance with the Co-operative Societies Act. and the Rules notified thereunder.

54. 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 store and may additions or alterations in them from time to time.

XVI. LIQUIDATION
55. The Store shall be wound up and dissolved only by the order of the Registrar according to the provision of Section 63 of the Delhi Co-operative Societies Act. 1972 (No. 35).

After all the liabilities including the paid up shares 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 store within three months of the date of final liquidation and approved by the Registrar or it may in consultation with them either be assigned by the Registrar, in whole or in part to any or all of the following:

(a) An object of public utility or local interest;
(b) Charitable purpose as defined in section 2 of the Charitable Endowments Act;

(c) Or may be placed on deposit with the Delhi State Cooperative Bank Limited until such time, a new Society with similar conditions is registered when with consent of the Registrar, such surplus may be credited to the Reserve Fund of such new store.

56. In case of any dispute about the meaning, interpretation of any provision of the Cooperative Societies Act. Rules and these Bye-laws, the decision of the Registrar shall be final
Contd……15

-: 15 :-

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

We the following promoters members were present in the General Body Meeting of the ____________________ Cooperative ___________________ Store Limited ___________________________held on ____________________ at ________________________________________________ in the presence of Shri _________________________ Inspector/Sub-Inspector of Co-operative Department, Delhi Administration and gone through the Model bye-laws and the same were adopted unanimously.

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