BYE – LAWS OF THE NATTIONAL FEDERATION OF COOPERATIVE SUGAR FACTORIES LTD., NEW DELHI

BYE – LAWS
OF THE
NATTIONAL FEDERATION OF COOPERATIVE
SUGAR FACTORIES LTD.,
NEW DELHI

NAME, ADDRESS AND AREA OF OPERATION:
1. (i) The name of the Society shall be the National Federation of Cooperative Sugar Factories Ltd., (hereinafter referred of as NFCSF).

(ii) It registered address and headquarter shall be at New Delhi.

(iii) The area of operation of NFCSF shall extend to the whole of India.

DEFINITIONS:
2. (i) ‘NFCSF’ means National Federation of Cooperative Sugar Factories Ltd.

(ii) ‘ACT’ means the Multi-State Cooperative Societies Act as applicable in the case of cooperative societies extending their area of operation to more than one State and the National level Federations registered there under and as is applicable to NFCSF.

(iii) ‘COOPERATIVE SUGAR FACTORY’ means registered individual cooperative sugar factory which received licence/letter of intent under the Industries (Development & Regulation) Act and/or any cooperative sugar factory registered under State/Central co-operative Societies Act to produce sugar by vacuum pan process.

(iv) ‘STATE FEDERATION’ mans registered State Federation of cooperative sugar factories.

(v) ‘ZONAL FEDERATION’ mans registered Zonal Federation of cooperative sugar factories which has its area of operation extending beyond one State.

(vi) ‘DIRECT MEMBER’ means a cooperative sugar factory affiliated directly to the NFCSF.

(vii) ‘ASSOCIATE MEMBER’ means an individual or society or company, or association or any other organization who has been admitted as an Associate Member to avail of the services of NFCSF on payment of Associate Membership fee as prescribed in these Bye-laws. Such Associate Member shall not have any right or obligation applicable to direct/regular members.

(viii) REPRESENTATIVE’ means a person who is duly appointed by a member in accordance with these Bye-laws or representatives of NCDC. Government of India or other organizations who are qualified to attend the meetings of the General Body in accordance with these Bye-laws.

(ix) ‘BOARD’ means the Board of Directors of NFSCF constituted in terms of these Bye-laws.

(x) ‘EXECUTIVE COMMITTEE’ means the Executive Committee constituted by the Board of Directors in terms of these Bye-laws.

(xi) ‘SUB COMMITTEE’ means a committee constituted by the Board of Directors or Executive Committee to undertake specific tasks to further the objects of the NFSCF.


(xii) ‘PRESENT’ means a member of the Board of Directors who has been elected by the Board as the President of the NFSCF.

(xiii) ‘VICE PRESIDENT’ means a member of the Board of Directors who has been elected by the Board as the Vice-President of the NFCSF.

(xiv) ‘MANAGING DIRECTOR’ means a person appointed by the Board of Directors as the Chief Executive Officer of the NFCSF in terms of these Bye-laws.

(xv) ‘GENERAL BODY’ means a body of representatives of members and representatives of other organizations constituted in accordance with these Bye-laws.

(xvi) ‘REGISTRAR’ means the Central Registrar appointed by the Government of India.

(xvii) ‘OFFICER’ means officer of NFSCSF as defined in the Act.
(xviii) ‘YEAR’ means accounting year as defined in the Act.

OBJECTS:
3. (i) The principal object of the NFCSF will be to promote and develop cooperatives of sugarcane growers and to provide support, services and guidance to its affiliated cooperative sugar factories and State and Zonal level Federations of cooperative sugar factories for their efficient and sustained working.

(ii) In pursuance of the above object in Bye-law 3(i), the NFCSF may undertake the following activities and functions.

(a) Advocacy to promote and safeguard and interests of its members in accordance with the cooperative principles.

(b) Arrange education and training for the benefit of its members.
(c) Arrange for technical support and services to its members both for improving their operational efficiency as well as for organization and promotion of new cooperative sugar factories.

(d) To promote R&D activities for its members, sponsor research projects, conferences, seminars etc., to find out solutions of the problems of its member cooperative sugar factories and allied subjects.

(e) Act as accredited representative and spokesman organization of the sector of cooperative sugar factories at the policy for a of Central and State Government, business for a and organizations relating to sugar industry’; establish liaison with national and international organizations and others allied to sugar industry.

(f) Advise and assist its members in the matters related to their management and operations.

(g) Undertake information services for the benefit of its members.
(h) Publish literature and documents on sugar industry for the benefit of its members.

(i) Undertake any other activities that are incidental and conducive to the attainment of its object and interest of its members.

MEMBERSHIP:
4. (i) The membership of the NFSCF shall be open to the following:
(a) Registered individual cooperative sugar factories of sugarcane growers which have received licences/letters of intent under the Industries (Development and Regulation) Act and/or any Cooperative Societies Act and to individual cooperative sugar factories which have received or filed Industrial Entrepreneurial Memorandum (IEM) for setting up cooperative sugar factory or have set up cooperative sugar factory under IEM.

(b) Associate members/such other persons/societies/institutions not covered by bye-law No.4(i) (a) above to whom NFCSF is likely to provide services, provided the application for admission to such membership is received alongwith the admission fee of Rs.10,000/- (Rupees Ten Thousand only) and is duly accepted by the Board of Directors may be admitted as associate members. Such admission fee shall not be refundable in any case. Such members will, however, not have any right to vote or participate in the management of NFCSF. The associate member can be expelled by the Board of Directors if the associate member does any act or is found to be working against the objects or interest of NFCSF.

(c) Registered State Federations of cooperative sugar factories; and

(d) Registered Zonal Federations of cooperative sugar factories.

NOTE:
When a State or Zonal Federation is registered and is admitted as a member of the NFCSF, individual cooperative sugar factories from the State or Zonal concerned shall cease to be direct members of the NFCSF.

(ii) Membership of the National Federation shall cease;
(a) on cancellation of registration of a member society.
(b) If the member society resolves to disaffiliate itself provided such resolution is communicated to the NFCSF and is accepted by the Board of Directors of NFCSF; and

(c) If a member fails to pay the subscription for a period of three years consecutively unless the Executive Committee of the NFCSF otherwise directs.

(iii) A member of the NFCSF may be expelled if he persistently defaults or fails to carry out its obligation to NFCSF. Before such expulsion the member to be expelled shall be given an opportunity to explain its position. After the explanation is received, the Board of Directors shall call a General Meeting. Termination of membership shall take effect only after the General Body resolves to expel the member by 2/3rd majority of votes of representatives present at the meeting.

FUNDS:
5. The funds required by the NFCSF may be raised by one or more of the following modes:

(i) Entrance fee;
(ii) Annual subscription;
(iii) Loans and deposits;
(iv) Contributions for specific purposes;
(v) Contributions from Government and others;
(vi) Donations;
(vii) Commission earned on supplies and sales;
(viii) Loans from Banks;
(ix) Advertisements; and
(x) Interest on deposits;

6. (i) Every cooperative sugar factory which is affiliated to the NFCSF shall pay annual subscription at a rate prorate to production of sugar in the immediately proceeding accounting year as may be determined by the Board of Directors of the NFCSF from time to time.

(ii) Every State and Zonal Federations affiliated to the NFCSF shall pay to the NFCSF an annual subscription at a rate pro-rate to the production of sugar in the immediately proceding accounting year by its affiliated members as may be determined by the Board of Directors of NFCSF from time to time.

7. (i) Every member cooperative sugar factory which has not gone into production shall on affiliation, pay an annual subscription at a rate as may be determined by the Board of Directors of NFCSF from time to time.

(ii) Every State and Zonal Federation affiliated to the NFCSF shall, in respect of individual cooperative sugar factories affiliated to it and which have not gone into production, pay an annual subscription to the NFCSF at a rate as may be determined by the Board of Directors of the NFSCF from time to time.

8. Every member shall pay an entrance fee of Rs.100/- which is non-refundable.

LIABILITY:
9. The liability of the members of the NFCSF shall be limited to the sum of the subscription remaining unpaid.

10. The NFCSF shall create a Reserve Fund out of its annual surplus.

GENERAL BODY :
11. (1) The General Body of the NFCSF shall consist of :
(a) One representative of each of the directly affiliated cooperative sugar factories;

(b) Representatives of each of the affiliated State and Zonal Federations at the rate of one for each cooperative sugar factories affiliated to them.

a. Four co-opted Directors of the Board:

b. Managing Director;

c. Outgoing President.

(2) The following shall be invited to attend the meetings of the General Body:
(i) one nominee of each State Government where Cooperative Society/Societies has/have been issued letters of intent/licences under the Industries (Development and Regulations) Act. For establishing a sugar factory or has/have been issued IEMs;

(ii) one nominee of the Department of Civil Supplies and Cooperation in the Ministry of Industries and Civil Suplies or by whatever name the department may be designated hereafter;

(iii) one nominee of Department of Banking;

(iv) one nominee of National Cooperative Development Corporation;

(v) one nominee of Industrial Finance Corporation of India;

(vi) one nominee of Life Insurance Corporation of India;

(vii) one nominee each of the Apex/State Cooperative Banks financing directly or indirectly the cooperative sugar factories;

(3) The nominees and representatives under these Bye-laws 11(1) and (2) shall attend the meetings of the General Body for a period of three years unless a nominee or representative resigns before the expiry of the term. The member whom the representative represents shall then nominate another person in the resultant vacancy for the remaining period of the term.

12. Unless otherwise exempted, the annual meeting of the General Body shall be held within three months from the receipt of Audit Report or six months from the close of accounting year, whichever is earlier.

13. A special meeting of the General Body may be convened under a resolution of the Board of Directors. A special meeting of the General Body shall be called within one month of written requisition from at least one-fifth of the members or from the Registrar of Cooperative Societies. The requisition shall state the object for which the special meeting is to be called.

14. 14 days written notice shall be given for the annual meeting and two weeks written notice shall be given for a Special Meeting to all the members who constitute the General Body and to the invitees specified in Bye-law No.11(2). The quorum for the Annual or Special Meeting shall be one third of the members or 20, whichever is less. If there is no quorum for a meeting, the meeting shall be adjourned and the meeting to be held either on the same day or on such date and time as the President of the NFCSF may decide. If there is no quorum at an adjourned meeting, the business/subject on the agendas, excepting the business relating to amendment of Bye-laws shall be proceeded with or without a quorum.

15. The following among other things, shall be dealt with at the meeting of the General Body.

(a) Amendment of repeal of any existing Bye-law or the enactment of any new Bye-law;

(b) Suspension or removal of the members of the Board of Directors except those who are nominated by State and/or Zonal Federations, the Government, NCDC, IFCI etc;

(c) Consideration of the annual report and statement of accounts prepared by the Board of Directors and review of the working of the NFCSF;

(d) Approval of the budget of the NFCSF prepared by the Board with modification, if any, and to authorize the Board to sanction expenditure in conformity with the budget estimates;

(e) Consideration of new undertakings and raising of capital for the same;

(f) Consideration of expulsion of members;

(g) Consideration of audit memo or any other business referred to by the Registrar;

(h) Approval of allocation to the Reserve Fund out of the annual surplus recommended by the Board of Directors;

(i) Any other matter laid before it by the Board of Directors.

16. Bye-laws may be made, altered or abrogated by resolution passed at a meeting of the General Body provided that:

(i) 14 days notice for any proposal to make, alter or abrogate the Bye-laws is given to all the members who constitute the General Body and to the invitees specified in Bye-law No.11(2);

(ii) the resolution is passed by not less than two-third of the members present at General Meeting on which a quorum shall be present and a copy of the resolution is forwarded to the Registrar within a period of two months from the date of the meeting; and

(iii) making, alteration or abrogation of the Bye-laws is approved and registered by the Registrar.

17. The President of the NFCSF and in his absence the Vice-President shall preside over the meetings of the General Body. In the absence of both President & Vice- President, the representatives present at the meeting shall elect a President for the meeting shall elect a President for the meeting from among themselves.

18. (a) All questions in the meetings of the General Body shall be decided by the majority of members present and voting. In case of equality of votes, the Chairman shall have a casting or second vote.

(b) The invitees specified in Bye-law No.11(2) shall have a right to participate in the proceedings of the meeting of the General Body, but shall not either vote or any issue or be eligible for election to any office.

(c) A nominee or representative of a member of the General Body shall not be eligible to participate in the meetings of the General Body during the period of default of the member in payment of annual subscription or contribution in terms of Bye-law Nos. 6 & 7.

MANAGEMENT:
19. (1) The Board of Directors shall consist of:
(i) Nominees of the State and Zonal Federations selected on the following basis:

No. of factories affiliated to State Representation on the Board
Or Zonal Federation

1-2 1 Director
3-5 2 Directors
6-9 3 “
10-20 4 “
21-30 5 “
31-40 6 “
41-50 7 “
51-60 8 “
61-70 9 “
71 and above 10 “

(ii) (a) The representatives of Cooperative Sugar Factories directly affiliated to the NFCSF shall be grouped region-wise as under:

Northern Region: Rajasthan, Delhi, Himachal Pradesh, Jammu & Kashmir, Chandigarh & Uttranchal.

Eastern Region: Assam, Orissa, West Bengal, Meghalaya, Mizoram, Tripura, Manipur, Nagaland, Arunachal Pradesh, Andaman & Nicobar, Chhattisgarh & Jharkhand.

Southern Region: Goa, Daman Diu and Dadra Nagar Haveli, Kerala, Pondicherry & Laccadives

(b) The Board of Directors shall coopt from among the representatives of cooperative sugar factories directly affiliated to NFCSF in the Region indicated in 19(1) (ii) (a) on the basis of the number of cooperative sugar factories in the region directly affiliated to the NFCSF. The number of representatives to be coopted from each region shall be the same as for the State or Zonal Federation as indicated in byelaw No. 19(1) (i);

(iii) One nominee each of the following:
(a) Department of Civil Supplies and Cooperation in Ministry of Industry and Civil Supplies or whatever name the department of Cooperation may be designated hereafter;

(b) Department of Banking;

(c) National Cooperative Development Corporation;

(d) Industrial Finance Corporation of India.

(iv) Four to be coopted by the Board of Directors.

(v) Managing Director provided that he shall not vote in election of office bearers.

(vi) Outgoing President.
(2) All the members of the Board of Director except those under byelaw No. 19(1) (iii) and 19(1) (v) shall hold office for a period of three years. Members of the Board of Directors shall continue in office after the expiry of their term until another Board is constituted.

(3) The Board of Directors may invite such other persons as it may so desire to attend its meetings.

20. The members of the Board of Directors shall elect from amongst Directors constituted under byelaw No. 19)1) (i) and (ii) a President and a Vice-President. The term of office of the President and the Vice President shall be co-terminus with the term for which the Board has been constituted. In case of any vacancy arising within this period, the Board may fill up the vacancy through re-election for the unexpired term of the Board provided the President and the Vice-President shall be elected only from amongst representatives specified in Bye-law No. 19(i) and (ii).

POQWER OF THE BOARD:
21. Subject to such resolutions as may be passed in the meetings of the General Body from time to time, the Board of Directors shall have power:

(a) To admit members;

(b) To raise funds with the specific sanction of the General Body;

(c) To prescribe subject to the budget allotment made by the General Body, the strength of the establishment of the NFCSF and the scale of pay and allowances admissible to each member thereof and also to frame regulations regarding service conditions etc. of the employees;

(d) To determine the rate of annual subscription to be paid by the individual cooperative sugar factories and also the basis of sharing of such annual subscription between the NFCSF and the State or Zonal Federations;

(e) To sanction investment of the funds of the NFCSF;

(f) To elect an Executive Committee and appoint committees and delegate powers to them for carrying out any specific function relating to the business of NFCSF;

(g) To fill any vacancy or vacancies in the Board by cooption from the area from which vacancy occurred;

(h) To prepare the annual report and statement of accounts of the NFCSF;

(i) To prepare the budget the NFCSF and to recommend the same to the General Body for its approval.

(j) To authorize convening of General Meetings of the NFCSF;

(k) To frame such subsidiary regulations not inconsistent with the Acts, Rules and these Bye-laws as are necessary for the conduct of the business of the NFCSF;

(l) To do such other acts and transact such other business as are consistent with the objects and incidental to the administration of the NFCSFl;

(m) To delegate all or any of its powers and duties to the President or to the Vice-President.

(n) To recommend the rate of allocation from annual surplus to Reserve Fund;

22. (1) The meetings of the Board of Directors shall be convened at the instance of the President. Ordinarily two weeks notice of the meeting shall be given to the members.

(2) Ten members of the Board shall form a quorum. If there is no quorum for a meeting, the meting shall be adjourned to be held either on the same day or on such date and time as the President of NFCSF may decide. If there is no quorum at an adjourned meeting, no other business/subject excepting the business/subject on the agendas, shall be transacted.

(3) The President of the NFCSF and in his absence the Vice-President shall preside over all meetings of the Board of Directors. In the absence of both President and Vice-President, the members present shall elect a President for the meeting.

(4) All questions before the Board shall be decided by a majority of votes and when votes are equal, the President shall have a casting vote.

23. (1) A member of the Board of Directors shall cease to hold office if H:
(a) reigns and his resignation is accepted by the Board; or
(b) holds any office of profit under NFCSF or receives any honorarium from the NFCSF except in case of the Managing Director; or

(c) fails, without showing satisfactory reasons to the Board to attend four consecutive meetings of the Board; or

(d) ceases to represent the affiliated member in the General Body of the NFCSF; or

(e) ceases to be nominee of the Government or institution nominating him.

(2) A member of the Board of Directors shall remain suspended to function as Director if the member Federation/factory under byelaw No.19(1) (i) and (ii) whom he represents, defaults in payment of its subscription by the 30th day of September following the cooperative years for which the subscription is due. This disqualification shall cease as soon as the arrears are paid in full.

24. The proceedings of the Board of Directors shall not be invalidated on account of any vacancy or any defect in the qualification or nomination of any member of the Board of Directors.

EXECUTIVE COMMITTEE:
25. (1) To facilitate the transaction of business, there shall be an Executive committee which shall consist of:

(a) The President of NFSCF:

(b) The Vice-President of NFCSF;

(c) Five Directors to be elected by the Board from amongst themselves to represent State or Zonal Federations and directly affiliated individual cooperative sugar factories;

(d) One nominee each of the following:
(i) National Cooperative Development Corporation.
(ii) Industrial Finance Corporation of India;

(e) Managing Director of NFCSF Ltd.

(2) Executive Committee may invite such other persons as it may so desire to attend its meetings.

(3) Subject to such resolutions as may be passed in the meetings of the Board of Directors from time to time the Executive Committee shall have power;

(a) to admit members;

(b) to sanction investments of the funds of NFCSF;

(c) to prepare the budget of the NFCSF and recommend the same to the Board of Directors for placing before the General Body for its approval;

(d) to delegate all or any of its power and duties to the President or to the Vice-President or to any officer of the NFCSF or to any paid employee of the NFCSF;

(e) to appoint class I, II and III personnel in the NFCSF;

(f) to appoint Sub-Committee for any specific purpose and to delegate all or any of its power and duties to such Committees;

(g) to do such other acts and transact such other business as are constant with the object and incidental to the administration of the NFCSF.

26. (1) The meetings of the Executive Committee shall be convened at the instance of the President. Ordinarily two weeks notice of the meeting shall be given to the members. In case of emergency the President shall have authority to call the meeting at short notice.

(2) The President of NFCSF and in his absence the Vice President shall preside over the meetings of the Executive Committee. In the absence of both President and Vice-President, the member present shall elect a President for the meeting.

(3) (i) The quorum for the Executive Committee meetings shall be give. If there is no quorum for a meeting, the meeting shall be adjourned to be held either on the same day or on such date and time as the President of NFCSF may decide. If there is no quorum at an adjourned meeting, no other business/subject excepting the business/subject on the agendas shall be transacted.

(ii) All questions before the Executive Committee shall be decided by majority votes. In case of equality of votes, the President shall have a casting vote.

PRESIDENT:
27. (i) The President and Vice-President elected by the Board of Directors shall act as the President and Vice-President of the General Body of the NFCSF also. The President and Vice-President shall continue in office till their successors are elected to the office.

a. The President shall preside over the meetings of the Board of Directors. General Body and Executive Committee. In his absence, Vice-President shall preside and in the absence of both President and Vice-President the members present shall elect one from amongst themselves as the President of the meeting.

b. The President shall have general control and overall supervision over the affairs of the NFCSF and its officers with the object of ensuring implementation of all policies laid down by the Board of Directors and/or Executive Committee.

c. The President shall be competent to take decision as are of an urgent affecting the policy of the NFCSF on behalf of Board of Directors, Executive Committee and any other Committee, which may be deemed urgent on the advice of the Managing Director. The matter will be placed before the next meeting concerned for ratification.

MANAGING DIRECTOR:
28. Subject to the control and authority of the President, the following are the functions and responsibilities of the Managing Director:

(i) He shall have control over the administration of the National Federation of Cooperative Sugar Factories.

(ii) Convene the meetings of various committees including meeting of the General Body and to maintain proper record of the National Federation of Cooperative Sugar Factories.

(iii) Shall attend to all correspondence of the NFCSF.

(iv) Shall manage the funds of the NFCSF and cause proper accounts to be maintained and audited.

(v) Shall be responsible for collection and safety of funds.

(vi) Shall execute the policies and programmes of the NFCSF and take such action as is necessary to give effect to the resolution of General Body, Board of Directors, Executive Committee or any other Committee constituted under these Bye-laws.

(vii) Sign all deposit receipts and operate on the accounts of the NFCSF with banks.

(viii) Endorse and transfer promissory notes and other securities and to endorse, sign, encash cheques and negotiable instruments on behalf on the NFCSF.

(ix) To be the officer of the NFCSF to sue or to be sued on behalf of the NFCSF and sign all bonds and agreements in favour of the NFCSF.

(x) To appoint Class IV personnel in NFCSF. All such appointments shall be made in consultation with the President.

(xi) To determine powers, duties and responsibilities of the employees of the NFCSF.

(xii) To delegate all or any power vested in him to an employee of the NFCSF and such delegation shall be placed before the Board of Directors.

29. All matters not specifically provided for are to be decided in accordance with Cooperative Societies Act. Rules notified there under.

30. In the event of conflict between the Bye-laws of NFCSF and the affiliated societies, the Bye-laws of NFCSF shall prevail.

31. In the event of any dispute on the interpretation of the Bye-laws of NFCSF, Rules and Act. The matter shall be referred by the Board of Directors to the Registrar of Cooperative Societies, whose decision in the dispute shall be binding.

32. In the event of dissolution of the NFCSF, after payment of all loans and liabilities. If there is any surplus, it shall be distributed among the members in proportion to average of subscription paid/payable by the members during the three years preceding the year of dissolution. However, ion the case of members, being members for less than three years, the average would be for the years of their actual membership. This provision will be applicable with retrospective effect from the date of registration of the N.F.C.S.F.

Bye-Laws of The National Federation of Labour Cooperative Limited

Bye-Laws
of
The National Federation of Labour
Cooperative Limited

Name, Address and Area of Operation
1. (a) The Federation shall be called “National Federation of Labour Cooperatives Limited” and in Hindi “Rashtriya Sahakari Shramik Sangh Limited” Hereinafter it shall be referred to as “National Federation”.

(b) The registered Office of the National Federation shall be at Delhi. Any change in the address shall be notified to the Registrar within 14 days of such change.

(c) The area of operation of the National Federation shall extend to the whole of Indian Union.

Definitions
2. In these bye-laws, unless the context otherwise requires:

(i) “NATIONAL FEDERATION” means the National Federation of Labour Cooperatives Limited.

(ii) “ACT” means the Corporative Societies Act as is applicable in the Union Territory of Delhi.

(iii) “RULES” means the Corporative Societies Rules framed under the relevant Cooperative Societies Act.

(iv) “REGISTRAR” means the Central Registrar, Cooperative Societies, appointed by the Government of India.

(v) “LABOUR COOPERATIVES” means labour contract/ construction, mining forest and other labour operated cooperative societies including categories of workers like Village artisian, Craftman, Rickshaw pullers, Landless village labour etc.

(vi) “LABOUR CONTRAT COOPERATIVE SOCIETY” means a society which has an its principal objects, the securing and provision of employment to its members by executing works including mining excavation, construction etc. with the help of its members or through them.

(vii) “FOREST LABOUR COOPERATIVE SOCIETY” means a society which undertakes collection of minor forest produce and other forest produce, exploitation of forest coupes and other incidental operations, through its members and makes arrangement for marketing of such produce.

(viii) “WORK AWARDING AGENCIES” means Central and State Government Departments, Board Corporations, Local Bodies, Industries, Enterprises, Cooperative Societies and other related to the award of contracts in India.

(ix) “GOVERNMENT” means Government of India.


Objects
3. The object of the National Federation of Labour Cooperative Limited shall be the economic and social well-being and advancement of the labourers of India and for this purpose to organise, promote, coordinate, help and develop and working of labour cooperatives.

In furtherance of this object, the National Federation may undertake one or more of the following activates:

(i) To organise, promote and develop of labour cooperatives, their Distt. and/or State level unions/federations.

(ii) To promote the economic interests of its members including their affiliated societies.

(iii) To set up industries, plants, kiln etc. in collaboration with other cooperatives for the manufacture of construction material, equipments and allied products to facilitate the working of member cooperatives.

(iv) To assist in marketing, import or export and carry on agency business of every kind to procure, store and distribute material required or manufactured by the member societies and/or their affiliated units.

(v) To lease or operate mineral mines for the production and supply of construction material and allied industries including decoration works.

(vi) To supply tools, implements, accessories and sophisticated machinery to its member or their affiliated societies on hire purchase on hire system.

(vii) To establish technical wing and to make available knowhow and technology relevant to the work of affiliated societies.

(viii) To represent the cause of labour cooperative movement at various levels.

(ix) To promote and develop the labour cooperative programme in India, to educate, guide and assist the labourers in their efforts to build-up and expand the labour cooperative sector and to serve as an exponent of labour cooperative opinion.

(x) To improve the economic, moral, physical and social condition of the members of the labour cooperatives.

(xi) To arrange publication of literature, books and periodicals to maintain information bureau, library, labour cooperative education training programme and to convene seminars, conferences, exhibitions and to organise, assist, guide and help such activities at state and other levels.

(xii) To organise and carry on research in the economic, social and development aspects of the labour cooperatives.

(xiii) To suggest activities for reducing unemployment and under-employment of the forest dwellers and other labourers.

(xiv) To raise funds to own purchase, sale or mortgage movable and immovable property and to construct building for office use, imparting training to unskilled workers of construction industry and allied subject with hostel facilities, if need be.

(xv) The National Federation may undertake the agency of export of labour from ministry of labour.

Membership
4. The membership shall be open to the following :

(a) State, District and Primary Level labour contract/construction and forest labour Coop. Societies has atleast executed work of Rs.2,00,000/- (Rs. Two lakhs) during each of the proceeding two years.

(b) Tribal Cooperative Development Corporation.

(c) National Cooperative Development Corporation.

(d) Government of India.

(e) Nominal Members.

Such other persons/societies/institutions not covered under 4(a) to (c) above, with whom the National Federation of Labour Cooperatives Ltd., is likely to do business may be admitted as Nominal Members. Such members shall pay only the admission fee and they shall not carry right to vote, participation in the management of National Federation or in the sharing of its profits or liabilities.

5. Application for admission as members and for allotment of shares shall be made to the Managing Director in the form, if any, prescribed by the National Federation for the purpose. Every such application shall be disposed off by the Board of Directors, who shall have power to grant admission or to refuse it after recording reasons for such refusal provided, however, that persons/society whose application has been refused by the Board of Directors, may appeal to the General Body and if the general body so directs it shall be admitted as a member of the National Federation. The decision of the General Body shall be final.

6. Every member shall pay Rs.25/- as an admission fee which shall not be refunded in any case.

7. When an applicant has been admitted to membership by the Board of Directors and it has paid the admission fee and share money, it shall be deemed to have acquired all the rights and incurred all the obligations and liabilities of a member of the National Federation.

8. The membership shall cease:

(i) on cancellation of the registration of the member society.

(ii) on redemption/withdrawal of the entire share capital of/by N.C.D.C., Government of India, other Government organisations or undertakings.

(iii) on expulsion from membership under Bye-law No.9.

9. (a) A member including a Nominal Member may be expelled by 2/3rd of the Members present at the special General Body Meeting called for the purpose.

(i) If it intentionally does any act likely to injure the credit of National Federation on fails to observe proper discipline in regard to work of the National Federation.

(ii) If it does any act which may be held by the Board of Directors or a General Body to be dishonest or contrary to the stated objects of National Federation or to the interest National of Federation.

(iii) If it persistently defaults or fails to carry out its obligations to the National Federation.

However, these provisions will not apply to the nominee members of the Government, N.C.D.C. and other Government organisations or undertakings.

(b) Before expulsion, the member to be expelled will be given an opportunity to explain its position. After the explanation has been considered, the member may be suspended by the Board of Directors which shall then call a general meeting within one month from the date of suspension. Nomination of membership shall take effect from the date of expulsion or such date as may be specified in the resolution of expulsion.

10. The National Federation shall have a charge upon the share or contribution or interest in the capital and on the deposits of a member or past member or deceased member and upon any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect any debt due from member or past member or the estate of such deceased member to the National Federation and may set off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.

11. Subject to the provisions of the Act. notified Rules and these Bye-laws, a member or any ex-member may transfer its shares to another member or applicant qualified under these Bye-laws and approved by the Board or to a Share Transfer Fund.

Share Capital
12. The authorised share capital of the National Federation of Labour Cooperative Limited shall be Rs.1,00,00,000/- (Rs. one crore) comprising one lac share of Rs.10/- each.

13. Every member other than nominal member shall have to purchase atleast 10 shares of the National Federation. The share money shall be paid in lumpsum provided that the Government, National Level Cooperative Societies, various corporation, NCDC shall subscribe atleast Rs.10,000/- each to be eligible for membership.

14. The National Federation may raise funds from one or more of the following sources:

(i) Admission Fees
(ii) Share Capital
(iii) Loans & Deposits
(iv) Grants-in-aid and donations
(v) Annual subscription from member societies Profits.
(vi) Profits.

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

Annual Subscription
15. All the member-societies of the National Federation shall annual subscription as fixed by the General Body subject to the minimum as under:

(i) All India and State Level Societies Rs.5000/-
(ii) District Level Societies Rs.3000/-
(iii) Primary Level Societies Rs. 300/-

16. The annual subscription shall fall due at the commencement of each cooperative year and it will be fixed on the basis of the accounts of the year preceding year or minimum as the case may be, payable within four months of the commencement of the cooperative year.

17. The defaulting members shall not be entitled to exercise the right of vote.

Liability
18. In the event of liquidation, the liability of share holders for any deficit in the assets of the National Federation shall be limited to the share capital subscribed by them.

General Body
19. The General Body of the National Federation shall consist of:

(a) One representative of each member society/Union/Federation admitted under bye-law No.4(a) and (b).

(b) Representatives not exceeding three nominated by the Government under bye-law No.4(d).

(c) One representative of the National Cooperative Development Corporation.

20. Every member society, Govt. and other organisation eligible to send representatives as per bye-laws shall nominate their representative in the General Body of the National Federation and certified copies of the resolutions of the competent authorities of copies of instrument of nomination shall be sent to the Managing Director within the prescribed time limit. Further, in any meeting of the General Body or the Board of the National Federation the member cooperative societies shall be represented in such meeting only through the Chairman or the Chief Executive of such Cooperative Societies and where, there is no Board of such cooperative society, for whatever reason through the administrator by whatever name called, of such cooperative society.

21. (a) The annual general meeting of the members shall be called within a period of six months after the date fixed for making up its accounts for making up its accounts for the accounting year of the National Federation. A special general body meeting may be called at any time by the Board of Directors and shall be called by the Managing Director on the insuction of the Chairman or on receipt of the requisition from 1/5th of the total number of members of the general body or from the Registrar or any person authorised by him within one month from the date of receipt of such requisition.

(b) In case of the general body meeting, the date, time and place of meeting shall announced at least 21 days clearly in advance and in the case of special general body meeting at least 15 days in advance by a written notice. The notice for the meeting of the general body shall be deemed to have been given after expiry of 24 hours after the meeting notices are sent to the representatives provided the proof of such posting is retained in the office.

(c) i) The presence of atleast 1/5 of the members of the total number of member of the General Body shall be necessary for disposal of any business at the General Body meeting.

ii) No Business shall be transacted in any General Body meeting unless there is quorum at the time when the General business is to commence.

iii) If within half an hour from the time appointed for the General Body meting a quorum is not present, the meeting shall stand adjourned and such adjourned meeting will be held either on the same day or on such dates, time and place as may decided by Chairman or the member presiding our the General Body meeting.

Providing that a meeting which has been called on requisition of the members shall not be adjourned but dissolved.

(d) Each representative shall have one vote irrespective of number of shares held by them. The Chairman shall have a casting vote in the event of equality of vote in all matters. No proxies shall be allowed. No member shall be allowed to vote if it is in arrears of its shares or annual subscription money.

(e) The Chairman or in his absence the Vice-Chairman or in the absence of the Chairman and both the Vice-Chairman one of the other members elected for the purpose shall preside over the general body meeting.

(f) Unless otherwise provided in these bye-laws, the ultimate authority in all matters relating to the administration of the National Federation shall vest in the general body.

22. Without prejudice to the general provisions of preceding bye-laws, the duties and powers of the general body shall be:

(i) To elect, suspend or remove the members of the Board of Director except those nominated by the Government or N.C.D.C. or other Government organisations or undertakings.

(ii) To consider and adopt the annual report of the National Federation, its Audit Report and Audited Balance Sheet and Profit and Loss Account and its programme of activities prepared by the Board of Directors.

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

(iv) To fix the maximum credit limit.

(v) To amend the bye-laws.

(vi) To expel members.

(vii) To consider any other business with the permission of the Chairman of the General Body.

23. The record of the decisions of the general body duly signed by the Chairman of the meeting and the Managing Director shall be maintained.

24. The amendment of the Bye-laws shall only be passed by a resolution of the meeting of the general body in which there is proper quorum by a vote of not less than two-thirds of the members present there at and voting and due notice of the intension to discuss such amendments has been previously given.

Board of Directors
25. The Board of Directors shall consist of:
(a) 11 Directors duly elected by the members out of the 2 constituencies of Labour Contract Cooperative Societies and Forest Labour Cooperative Societies. The Labour Contract Societies will elect 7 directors while the forest labour cooperative societies shall elect 4 directors from amongst themselves out of which one must be a representative of a primary level society in each of the two constituencies. Provided that in each of these constituencies not more than one representative from any state may be elected.

(b) Government nominee not exceeding three.

(c) One representative of NCDC.

(d) Managing Director.

(e) Co-option of board of Director the Board may coopt not more than 3 person on the board of Director in the following manner.

1) Technical expert with civil engineering back ground.

2) A women representative if no women member on the board member has been elected.

3) A nominee of the oriental Insurance Co. Ltd.

26. The members of the Board of Director shall elect from amongst themselves a Chairman and 2 Vice-Chairmen out of the Directors elected under Bye-law No.25(a). The Chairman shall be elected from one constituency and one of the Vice-Chairman from the other constituency.

27. The term of office of the office-bearers elected under bye-law 26 referred to above, shall be co-terminus with the term of office of the Board of Directors. In case of any vacancy within this period, the Board may fill up the vacancy within this period, the Board may fill up the vacancy through co-option for the unexpired term of the Board.

28. The elected office-bearers shall hold office for the term of Board.

29. The meeting of the Board of Directors shall ordinarily be held atleast once in a quarter.

30. Five or one-third of the total number of members of the Board of Directors, whichever is less, shall form a quorum. If there be no quorum for the meeting, the meeting shall stand adjourned to such other time and date not earlier than 7 days from the date on which originally convened. If in such adjourned meeting, there be no quorum, the Directors present shall have the power to transact all the business specified in the agenda of the meeting which had to be adjourned for want of quorum.

31. The Chairman or in his absence, one of the Vice-Chairman or in the absence of Chairman and both the Vice-Chairman, one of the other members elected for the purpose shall preside over the meeting of the Board of Directors. Each member shall have one vote but the Chairman shall have a casting vote in the event of equality of votes, except for election wherein case of equality of votes, decision will be taken by drawing of lots. Atleast 15 days clear notice shall ordinarily be given to the members for the meeting of the Board of Directors.

32. The members of the Board of Directors shall hold office for a period of three years and shall be eligible for re-election and continuance subject to the provision of the Act. and the Rules.

33. In the case of Government nominee and representatives of other institutions, their membership on the Board shall be for so long as they are not withdrawn by the Government/Institutions nominating them.

34. In case of any vacancy occurring on the Board of Directors during the term, such vacancy shall be filled up by the Board of Directors by co-option from the same constituency for the expired period.

35. A member of the Board of Directors shall cease to hold office, if he:

(i) resigns and his resignation is accepted by the Board; or

(ii) hold any office of profit under National Federation or receives any honorarium from National Federation except in the case of the Managing Director; or

(iii) fails without showing satisfactory reasons to the Board to attend 3 consecutive meetings of the Board; or

(iv) ceases to represent the affiliated cooperative institutions in the general body of the National Federation; or

(v) ceases to be nominee of the Government or the Institution nominating him.

36. The Board of Directors may constitute different Committees for different types of labour cooperatives business, functional, advisory and other committee or sub-committee for carrying out the works assigned to them.

37. The Board of Directors shall exercise all the powers of National Federation except those reserved for the general body subject to any resolutions laid down by the National Federation in a General Body Meeting or in the Bye-laws. In particular the Board will have the following powers:

(i) to place before the General Body, the Annual Report and the Audit Report.

(ii) to consider and approve the Annual Budget and supplementary budget of the National Federation.

(iii) to consider the inspection notes of the Registrar or of any other person authorised by him and take necessary action.

(iv) to admit and suspend members.

(v) to decide matters relating to issue of new shares, transfer of old shares, withdrawals, refund and forfeiture of shares.

(vi) to summon General Body Meeting.

(vii) to appoint, suspend, punish or remove the Managing Director, provided that suspension, punishment, removal and service conditions of the Managing Director, appointed on deputation from Government or other institutions would be governed by the terms and conditions of deputation. The Managing Director shall be appointed from out of the panel of names suggested by the Panel Authority constituted by the Government of India.

(viii) to decide on investment of capital in other cooperatives.

(ix) to purchase, sell or otherwise acquire and dispose off immovable property of National Federation.

(x) to accept or reject the resignations from the members of the Board and in the case of acceptance of resignation or vacancy falling for other reasons to co-opt Directors in accordance with Bye-law No.34.

(xi) to frame rules regarding recruitment, appointment, conditions of service, suspension and punishment in respect of the Managing Director and other employees of National Federation.

(xii) to approve and sanction the staff required from time to time, for carrying on the business of the National Federation and to prescribe the scales of pay for the employees.

(xiii) to appoint an Executive Committee and other Committee for the business of the National Federation.

(xiv) to recommend to the General Body distribution of profits.

38. All business discussed or decided at a meeting of the Board of Directors shall be recorded in proceeding book which shall be signed by the Chairman and the Managing Director.

39. The Board of Directors may delegate any of its powers to the Executive Committee or any other Committee constituted out of its members or to the Chairman, Vice-Chairman, Managing Director or to any other officer of National Federation.

Executive Committee
40. The Board of Directors shall constitute an Executive Committee comprising the following members:

(i) Chairman
(ii) Two Vice-Chairman.
(iii) 3 Directors including one representative of the Government.
(iv) Managing Director.

41. The Executive Committee shall have the following powers and functions:

(i) To arrange for internal checking of the accounts.

(ii) To hire or take on lease land, yards, godowns, building, plants, machinery and equipments etc.

(iii) To purchase, sell or otherwise acquire or dispose of movable property of the National Federation.

(iv) To establish and manage different business of the National Federation.

(v) To fix the limits of cash balance to be kept by various officers and branches and authorise officers to sign or execute receipts and other documents on behalf of National Federation.

(vi) To arrange for raising funds for carrying on the business of National Federation and to determine the terms and conditions thereof.

(vii) To decide the terms, period for and the rate of interest at which deposits are to be received and to arrange for repayment of such deposits.

(viii) To appoint trustee or trustees, attorney or attorneys, agent or agents, for the business of National Federation.

(ix) To refer any claims or demands for arbitration and to observe and perform the awards.

(x) To exercise any other powers delegated by the Board of Directors from time to time.

(xi) To delegate its powers to such officers of the National Federation as it may deem fit.

(xii) In case of any vacancy occurring during the term, the same shall be filled up the Board of Directors from among themselves.

42. The Executive Committee may meet as often as necessary but normally once in every quarter. Four members of the Executive Committee shall form a quorum in the meeting of the Executive Committee. In case there is no quorum for the meeting within an hour, the said meeting shall stand adjourned for an hour. If in such adjourned meeting there be no quorum the members present shall have the power to transact all the business specified in the agenda of the meeting which had to be adjourned for want of a quorum.

Chairman
43. The Chairman and the Vice-Chairman elected by the Board of Directors shall act as the Chairman and Vice-Chairman of the General Body of the National Federation.

44. The Chairman shall preside over the meetings of the general body, Board of Directors and Executive Committee. In the absence of the Chairman, one of the Vice-Chairman and in the absence of Chairman and both the Vice-Chairman, the members present shall elect one from amongst themselves as the Chairman of the meeting.

45. The Chairman shall have general control and overall supervision over the affairs of the National Federation with the object of ensuring implementation of the policies of the National Federation.

Managing Director
46. The Following shall be the duties of the Managing Director:

(i) To summon the meeting of the general body, Board of Directors, Executive Committee and other committees and participate in them.

(ii) To attend the meetings of the different committees and take necessary steps to implement decisions taken in various meetings including matters relating to purchase, sales and matters incidental thereto.

(iii) To be responsible for the general conduct, supervision and management of the day-to-day business and affairs of the National Federation.

(iv) To ensure proper maintenance of accounts.

(v) To receive all monies and securities on behalf of the National Federation and to arrange for the safe custody of cash, records, properties and other securities of the National Federation.

(vi) To assist in the inspection of books and records by various authorities empowered to do so under the Act. Rules and Bye-laws.

(vii) To institute, conduct, defend, compound or abandon any legal proceeding by or against National Federation and also to compound and allow time for payment or satisfaction of any claim or demand by or against National Federation.

(viii) To certify copies of entries in the books of National Federation.

(ix) To incur expenditure within the approved budget estimates and beyond that subject to the approval of the Board of Directors or Executive Committee.

(x) To keep in safe custody all the registers and other papers in use of the National Federation and other property of the National Federation.

(xi) To sign all deposit receipts and operate on the accounts of the National Federation with the Banks.

(xii) To delegate all or any power in respect of receipt of money and accounts to the Treasurer or other employee of the National Federation subject to the ultimate control and authority being retained by him.

(xiii) To be the officer of the National Federation to the or to be on behalf of the National Federation and sign and execute bonds, agreement and other documents for and on behalf of the National Federation.

(xiv) To determine the powers, duties and responsibilities of the employees of National Federation for proper conduct of the day-to-day business of the National Federation.

47. The Managing Director shall exercise control and supervision on the administration of National Federation and to conduct the affairs of the National Federation in conformity with Act. Rules and these Bye-laws and the decisions of the General Body, Board of Directors, Executive Committee and other Committees. The Managing Director shall have in addition the following powers:

(i) To appoint, suspend and punish the employees of the National Federation including grant of leave, normal increments and other perquisites.

(ii) To create temporary post of casual nature against specific work.

(iii) To enter into negotiations and contracts and recind and vary such contracts and executive and do all such acts, deeds and things in the name of and on behalf of the National Federation in relation to any of the matters aforesaid or otherwise for the purpose of the National Federation.

(iv) To incur contingent expenditure not exceeding Rs.1,000/- in each case.

(v) To delegate all or any other powers, authorities and discretion vested in him to any other employee or employees of the National Federation subject to the ultimate control and authority being retained by him.

The powers as referred to under 47 (i) to (v) are however, subject to these bye-laws and such other rules framed from time to time and decisions of the Board of Directors, Executive Committee and other Committee of the National Federation.

48. (A) 1. NFLC will establish a contributory provident fund for the benefit of its employees to which shall be credited all contribution made by the employees and NFLC. As per CPF rules framed by NFCL.

2. CPF will not be used in the business of NFLC. It will not form part of the assets of the society and it will not be liable to attachment of subject to any other process or any court or other authority.

Registers
49. The following registers and papers shall be maintained by the National Federation.

(i) List of members.

(ii) Cash Book, Ledger and other account books

(iii) Share allotment and instalment register.

(iv) Stock purchase and sale register.

(v) Separate minute book, for general body, Board of Directors, Executive Committee and other Committee.

(vi) Any other register and record prescribed by the Registrar or required for the business of the Nation Federation.

Audit of Accounts
50. Subject to the provision of the Act and Rules framed there under, the net profits of the National Federation shall be distributed in the following manner:

(i) Not les than 25% of the net profits shall be carried to the Reserve Fund.

(ii) Not less than 10% of the net profits shall be carried to the price fluctuation fund.

(iii) Contribution upto 15% of the net profits for the labour cooperatives education and labour welfare.

(iv) The balance account of the net profit may be utilised for one or more of the following purposes:

(a) Distribution of dividend amongst members.

(b) Distribution of rebate to members as decided by the Board of Directors.

(c) Contribution of Building Fund, Loss Adjustment Fund, and any other fund created by the National Federation.

(v) The undistributed profits shall be carried to the accounts of next year.

51. If any dispute touching the constitution or business of National Federation arising between members of past members of the National Federation or persons claiming through a member or past member or between members or past members or persons so claiming and any officer, agent or servant of the society (past or present) or between National Federation or its Committee or any officer, agent, member, agent, member of servant of the National Federation (past or present) shall be referred to the Registrar as provided in the Act and Rules framed thereunder.

General
52. All the matters not specially provide for are to be decided in accordance with cooperative societies act and rules notified thereunder.

53. The Board of Directors may frame rules of business, election etc. not inconsistent with the Cooperative Societies Act. Rules and these Bye-laws for carrying on the work of the National Federation and make additions or alterations in them from time to time.

54. In case of any dispute about the meeting or interpretation of any provision of the Cooperative Societies Act. Rules and these Bye-laws, the decision of the Registrar shall be final.

55. In the event of conflict between the Bye-laws of National Federation and the affiliated societies, the Bye-laws of National Federation shall prevail.

56. No act of the general body or the Executive Committee or other committee shall be deemed invalid by reasons of any defect in the election of the members thereof or by reason of any vacancy therein not having been filled in accordance with these Bye-laws.

Liquidation
57. The National Federation shall be wound up and dissolved only by the order of the Registrar in accordance with the provisions of the Act./ Rules.

The ______________________________________Mutually Aided Cooperative Thrift Society Ltd.,____________________________

BYELAWS

1. NAME AND ADDRESS:
a. The Name of the cooperative society shall be The _____________ Mutually Aided Corporative Thrift Society Ltd., In Telugu it shall be known as _____________________________ Paraspara Sahayaka Sahakara Podupu Sangham Limited. It shall be a corporative society registered under the Andhra Pradesh Mutually Aided Cooperative Societies Act. 1995.]

b. The Head Office of the society shall be situated in _____________. The address of the society for the time being shall be H. No.______ street __________ Village _______________ Mandal __________ District __________________.

2. AREA OF OPERATION AND CORPORATE STATUS:
a. The shall be a corporate body with perpetual succession and common seal with powers to hold property, to enter into contracts, to sue and to be sued. The geographical area of operation of the society extends to the _____________ Village of _____________ Mandal of ______________ District.

3. DEFINITIONS:
1. Words and expressions appearing in these byelaws shall have the following meaning unless the context otherwise requires:

a. ACT means the Andhra Pradesh Mutually Aided Cooperative Societies Act. 1995;

b. BOARD means the Board of Directors of the society;
c. GENERAL BODY means the body of all members of the Society;
d. MEMBER means full-fledged member of the society;
e. REGISTRAR means the Registrar within the meaning of the Andhra Pradesh Mutually Aided Cooperative Societies Act. 1995;

f. SECRETARY means the person elected by Board for looking after the day to day administration of the society;

g. SOCIETY means ____________________________
Mutually Aided Cooperative Thrift Society Ltd.,

4. OBJECTIVE:
a) The objective of the society is to promote economic and social betterment of its members through thrift, self – help and mutual aid in accordance with the principles of cooperation as enunciated in Section 3 of the Act.

5. ACTIVITIES & SERVICES:
1. In furtherance of its objective, either by itself or in collaboration with other cooperative, financial and development organizations, the society will.

a) Offer credit and non-credit services in pursuit of person development;

b) Assist, encourage and afford all facilities and programmes meant for asset formation in the name of persons.

c) promote, assist and undertake cottage and small scale industries, group production activities, for gainful employment of persons.

d) arrange for technical and vocational training of persons;

e) procure, pool, purchase, store, utilize and distribute inputs required for persons’ income generating activities and consumer articles and durables needed for household requirements;

f) arrange for storage, gradeing, processing, value addition, packing transportation, and sale of the products of the members and the society;

g) Encourage and afford all facilities for cultivating the habit of thrift and savings among members;

h) Receive all types of short, medium and long term deposits and in particular thrift, recurring, fixed and other deposits from its members;

i) Lend, advance, grant, short-term, medium-term, long-term and other types of loans to the members with security for consumption, productive and asset formation purposes;

j) Formulate and implement such relief, for the economic and social betterment of the past and present members and their legal heirs;

k) Other financial and development counseling and implement necessary programmes for the overall welfare and development of the members and their community;

l) liaise with related agencies such as governments, regulatory authorities, financial institutions, banks, national development agencies, federal cooperatives, local bodies etc., for obtaining and benefit of the members of the society in achieving its objectives;

m) lobby for more supportive legislation, government policy and public support for augmenting the interests of thrift and credit societies and their members;

n) publish and distribute educational, training and management material of interest to members;

o) prepare projects on behalf of its members for financial and technical assistance from other organizations and implement them;

p) enter into agreements with any Government, State Municipal, Local or any authority or with any local, national development agencies and to obtain any advantage for the society or for its past and present members and their legal heirs;

q) subscribe or contribute or otherwise to assist or to guarantee money to charitable, educational, health, scientific, cultural, and public utility institutions or such objects and purposes having relation to the development and welfare of members of the society;

r) invest its resources including surplus funds in government and securities, movable and immovable properties in non speculative manner for the advantage of the society and furtherance of its aim;

s) collaborate with cooperatives, financial and development organizations in financial and technical terms.

t) undertake any activity and provide necessary services for the welfare of its employees;

u) undertake any other activity which is incidental and essential for attainment of its aim;

6. MEMBERSHIP:
a) Any person who has completed 18 years of age and of sound mind and is a permanent resident of the area of operation of the society, and who is committed to subscribe regularly to thrift deposits and repay the loans taken on time as per the repayment schedule and abide by the code of conduct, if any as may be evolved by the society from time to time and willing to accept responsibilities of membership is eligible to become a member of the society.

b) A person who (a) has completed 60 years of age, or (b) is adjudged by a court as insolvent, or is an undischarged insolvent, or (c) has been sentenced for any offence involving moral turpitude, or (d) is carrying on money lending or chit fund business or activity of such kind which is in conflict with the objects and interest of the society, or (e) is a member of any other similar society, (f) is a member who resigned and a period of three years has not elapsed from such date, or (g) is an employee of the society shall not be eligible for becoming a member of the society.

c) The applicants have to apply for membership in such form as required and specified by the Board and submit it to the Secretary who will in turn place it before the Board for approval. The decision of the Board on this matter is final, subject to the provisions of the Act. The applications for membership is final, subject to the provisions of the Act. The applications for membership shall be disposed within 60 days from the date of application and the decision together with reasons shall be communicated to the applicants. In case it is decided to admit the applicant has to remit at least the value of one share amount of Rs.100 and an entrance fee of Rs.25 only.

d) Any person/organization who wishes to subscribe deposits other than regular thrift deposits and avail such other services may be enrolled as nominal members of the society on submission of an application in the specified format and on payment of Rs.25 as entrance fee, confirming to the guidelines and procedures as set out in the rules of business and administration by the Board in this regard. The enrollment of nominal members shall be approved in the Board Meeting.

7. WITHDRAWAL AND CESSATION OF MEMBERSHIP
1. A membership may voluntarily withdraw from membership by submitting an application in the specified format, after satisfying all objections and dues outstanding on own account and as guarantor.

2. The membership of an individual in the society shall cease

a) on resignation from membership after satisfying all obligations and dues outstanding on own account and as guarantor; or

b) on acquiring any of the disqualifications mentioned above in Byelaws No.6(d); or

c) on becoming defaulter of thrift deposit contributions either consecutives for 6 months or for 6 months during the accounting year of the society; or

d) on becoming defaulter of loan repayments beyond 180 days; or

e) on death; or

f) on not attending the annual general meetings consecutively for three years, without the prior permission of the President/Secretary; or

g) on expulsion from membership by the general body/of society as the case may be for activates detrimental to the interests of the society.

3. In the case of withdrawal/termination/cessation of membership, the balance standing to the credit of such member after deducting all dues and liabilities shall be paid to him or to his/her nominees/legal heirs in case of his/her death, in accordance with the rules of business and administration of the society. The board shall take all actions to recover the dues outstanding from any member, irrespective of original due dates and other conditions, in case of cessation of membership. Incase of expulsion of a member for the activities detrimental to the interests of the society/members the society may forfeit the amounts standing to their credit in the society.

8. MINIMUM PERFORMANCE OF MEMBER:
1. Each member of the society shall contribute to regular deposits at least once in a month and shall not default any other sum to the society beyond 60 days during an year.

2. Members who have not satisfied the criteria mentioned in byelaw no.8.1 and who have not been a member of the society for the last one year as on the date of notification of election or the date of meeting as the case may be; shall not be eligible to exercise any of the rights of membership including the right to vote on any matter and contest in elections as Directors.

3. Without prejudice to the rights and privileges conferred on members by the Act. each member shall be entitled to :-

a) receive receipts and certificates for the deposit and loan amounts he/she paid;

b) participate in the general body meetings of the society in person;

c) participate in the general body meetings of the society in person;

d) verify the byelaws, Act. minutes book pertaining to the general body meetings, reports and compliance reports and compliance reports of audit – special audit and inquiry, voters lists and such accounts as relate to him/her, during business hours on payment of fee as decided by the Board from time to time;

e) receive all services on satisfying the required criteria; and

f) receive interest on capital and patronage rebate when the society earns surplus.

4. The nominal members shall be eligible only to avail such services and benefits offered by the Board to that category, but not entitled either

9. NATURE AND EXTENT OF LIABILITY OF MEMBER & PAST MEMEBRS ETC:

(A) The liability of the members, past members and office bearers to the debts contracted by the society shall be limited to the share capital and thrift paid by them in the society. The liability of a past member for the debts of the society as they existed, on the date of cessation of their membership shall continue for a period of two years from such date.

10. GENERAL BODY:
The ultimate authority of the society shall vest in its general body. The general body shall not however interfere with the powers of the board in respect of matters delegated to it as per the bye-laws or by the resolution of the general body. The general body shall deal with the following matters among others.

(A) Election and removal of Directors

(B) Consideration of

1. The long term perspective plan and budget whenever required.
2. The annual operational plan and budget.
3. The annual report of activities for being filed with the registrar.
4. Auditors report and annual audited statements of accounts for being filed with the Registrar.

5. Special audit report and enquiry report, if any.
6. Compliance report relating to audit, special audit and or enquiry report, if any.

(C) Appointment and removal of auditors.
(D) Disposal of surplus funds.
(E) Management of deficit
(F) Creation of special reserves and other funds.
(G) Review of actual utilization of reserves and other funds.

(H) Review of Chief Executive’s report on the attendance and meeting by Directors and review of the business done with the society by the Directors.

(I) Remuneration payable to Directors or Internal auditors in connection with their duties in that capacity on their attendance in related meetings.

(J) Membership of the society in federation or other institutions.

(K) Amendments to bye-laws

(L) Expulsions of members
(M) Dissolution of the society.
(N) Review of the dissent notes recorded in the minutes of the board meetings.

(O) Any other matters proposed by the Board and requiring decision of the general body.

11. FREQUENCY AND QUORUM FOR GENERAL BODY:
A. The meetings of the General Body will be of two types:
a. Annual General Meeting, and
b. Special General Meeting.

B. The Annual General Meting of the General Body shall be convened by the Board at least once in every year, before end of March.

C. The Board may at any time call a special general body meeting of the society as the case may be. It shall call such meeting within thirty day after receipt of requisition in writing from at least 1/10 of the total number of members or at the request of the Registrar or at the request of the Federation to which the society is affiliated. A requisition for a Special General Meeting shall state the purpose of the meeting and such meeting shall transact only the subjects specified in the notice.

D. A meeting of the General Body may be convened by the Board as and when necessary by giving a clear 30 days notice through the President. The notice may be sent either by post or by hand delivery or by publication in local news papers. The quorum for any General Body meeting shall be simple majority of the total number of members and quorum for the board meeting shall be more than half i.e. 4.

E. Each Member/Director shall have only one vote. All the decisions and resolutions in the respective meetings shall be made by a simple majority unless the matter requires otherwise by the provisions of the Act. and Byelaws. The Member/Director is not entitled to send proxys to participate in meetings on their behalf.

12. Amendment to bye – laws:
The society may amend its bye-laws complying with the provisions of Section 10 of the Act. The bye-law shall not be amended making provisions to enable persons who are not employees of ___________________________ and members of the society. No amendment of any byelaw of the society shall be valid unless the resolution for such amendments is passed at its general body meeting by a majority of not les than 2/3rd of the members present and voting.

13. Election of Director
At the first election all the directors are elected at once and their terms staggered by drawl of lots specifying different terms one year, and three years. All the members of the General Body having right shall elect directors by secret ballot. It shall be the responsibility of the incumbent board to conduct elections before expiry of their term. The board shall appoint an election officer to conduct the elections of directors and office bearers. The election officer should not be a member or employee of the society. The election officer shall conduct the elections as per Government Rules.

Any casual vacancy shall be filled by elections for the remaining term of the director because of whom the vacancy arose. If any director resigns, the board shall fill up the vacancy by Election. The board shall elect office bearers i.e., the President, Vice President and Secretary.

14. BOARD OF DIRECTORS:
a) The General Body, shall at its annual general meeting shall elect two Directors from among its constituents every year, for a period of three years, such that there are six Directors on the Board at any given point of time, provided that at the first election all the Directors are elected at once and their terms staggered by drawal of lots specifying different terms. The retiring Directors are eligible for re-election. In case of any vacancies arising on the Board, the Board may fill those vacancies by election from eligible members as the case may be till the next elections are conducted. The vacancy should be notified in the next election and the member elected against the vacancy shall have the remaining period of the term on account of whom the casual vacancy arises.

b) The criteria for being chosen as Director and for continuing as Director shall be as per the provisions of Section 21 of the Act, A Director shall cease to be Director if he/she ceases to be a Member/if he/she absents himself/herself at three Board Meetings Consecutively without the permission of the President/Secretary.

c) The Board shall elect from among its Directors immediately after its election, a President, Vice-President and Secretary for a period of one year. The retiring office bearers are eligible for re-election. The Board has the right to remove a President/Vice – President/ Secretary at any time during their tenure and elect new ones from among themselves.

d) The Board shall meet at least once in a month.

e) A Board Meeting shall be convened by the Secretary by giving a clear 7 days notice sent by post or by hand delivery to all Directors. An emergency meeting may be convened with a shorter notice, whenever the Registrar or on the request of Four Directors or not less than 1/3rd members. A requisition for emergency meeting shall state the purpose of the meeting and such meeting shall transact only the subject specified in the notice.

f) The quorum for a Board Meeting shall be least Four Directors. Every decision will be taken by simple majority. The President shall have a casting vote in case of equality of votes except in case of elections. Any Director absent at three consecutive Board Meetings without leave of absence or who ceases to be a Member as the case may be shall cease to be a Director of the society.

15. POWERS OF BOARD:
1. In addition to the functions specified under the provisions of the Act, and the Byelaws, the Board shall

a. admit members and terminate membership;
b. interpret the organizational objectives and set up specific goals to be achieved towards these objectives’;

c. make periodic appraisal of operations and plan and budget;
d. formulate rules of business and administration and policies governing the deposits, loans and advances, investment of funds, borrowings, admission of members, settlement of accounts and disputes, maintenance of accounts, acquisition, maintenance and sale of assets, staff, etc. and arrange for carrying on the business and administration of the society as per the byelaws and the rules made there under;

e. raise funds for society and control all financial affairs and review the accounts of the society;

f. appoint attornies ,agents, etc. for society to defend and institute legal proceedings on its behalf;

g. acquire, purchase, own, lease, mortgage, hypothecate and dispose off any movable and immovable assets for attaining the aim of the society.

h. Formulate policies on all staff matters including recruitment, selection appointment, promotion, disciplinary action, suspension, removal, remuneration etc.,

i. Elect a Secretary for looking after the day to day administration of the society.

j. Fix fees, subscriptions, contributions, etc., to be paid by members to society, for specific purposes as per the criteria laid down;

k. Open branches and/or regional offices for the efficient conduct of business and administrative convenience and greater member participations within the area of operation;

l. Appoint sub committees and such other committees with specific functions, powers, tenure remuneration etc., and reconstitute the same or remove any or all the committee members at any time.

m. Make policies on utilization and investment of funds of the society;

n. Fill up the vacancies on the Board, if any, by election for the period remaining in the term of the vacating Director as per the provisions of Byelaw No.14(a);

o. Arrange for audit and submit the report and accounts to the general body;

p. Appointment of internal auditors with specific functions, power tenure, and remuneration etc., and reconstitute the same or remove any or all of them at any time;

q. Appointment of internal auditors with specific functions, powers tenure, and remuneration etc., and reconstitute the same or remove any or all of them at any time;

r. Authorize/nominate its Directors/Staff to represent it at Federations and other forums;

s. Elect and remove President, Vice President and Secretary.

16. POWERS OF PRESIDENT & VICE – PRESIDENT:
a) The President shall have overall supervision and control over the affairs of the society. The President shall preside over all the Board the General Body meetings. The President shall be one of the signatories on all legal documents executed by the society.

b) The Vice – President shall discharge the duties, perform the functions and exercise the powers of the President during the vacancy in the office of President, or in the absence of the President for more than one month.

17. POWERS OF SECRETARY:
1. The Secretary shall have the following powers, functions and responsibilities:

a) Convene the meetings of General Body, Board and other committee, maintain minutes and take actions for implementation of their resolutions;

b) Maintain the records and properties;
c) Manage the funds and maintain the accounts, and day to day management of the business;

d) Appoint staff duly following the established procedure, determine powers, functions responsibilities and remuneration of the employees;

e) Exercise administrative control on all employees;
f) Operate the accounts of society with banks and other institutions; endorse, sign, encash cheques; and sign, endorse transfer, negotiate promissory notes, securities and other instruments on behalf of society, along with such officers as the Board may resolve;

g) Sign on behalf of society and carry out its correspondence;
h) Furnish the Board with periodical information necessary for appraisal of operations and assist the Board in formulation of policies and in planning;

I) be a member on all committees constituted by the Board; except on committees in which his/her personal matters are involved or through.

j) perform all functions assigned by the General Body/Board and the President.

k) The Secretary shall be the Officer to sue or be sued on behalf of the society.

l) The Secretary may delegate any of his/her functions to any of his subordinate officer of the society with the approval of the Board.

18. SHARE CAPITAL:
A. The authorized share capital of the society shall be Rs.10,000 made up 100 shares of Rs.100 each (100 x Rs.100)

B. Each member shall hold atleast one share. No member of the society should be given shares exceeding one-fifth of the total authorized share capital of the society. Share certificate shall be issued to the members for the value of the shares paid.

C. Any portion of the share capital and regular thrift deposits subscribed by a member, shall be refundable on their cessation of membership of the society. However, the member may be allowed to receive interest earned on these items to his/her credit as per the rules of business and administration. However, the rate of interest payable on the paid up share capital of a members shall not exceed the maximum rate of interest offered by any scheduled bank on one year fixed deposits.

19. SOURCES, TYPES AND EXTENT OF FUNDS:
1. The resources to support the activities of society shall consist of:

a) Fees, subscriptions, donations, contributions, share capital, regular thrift and other types of deposits, loans etc., from its members;

b) Grants, donations, deposits, loans, guarantees and other contributions from governments, banks and other financial institutions, cooperatives, corporate bodies, national development agencies and individuals for general, as well as specific purposes and

c) Returns and receipts arising from the regular course or business and investment of trust, capital and endowed funds.

2. The maximum borrowings of the society by all means shall not exceed a sum of twenty times of the sum of the paid up share capital and thrift deposits paid by members and accumulated reserves minus any losses.

3. Each individual member of the society shall contribute to thrift deposits at such regular intervals and at such rate as specified by the Board from time to time. The thrift deposits shall be contributed by the member as long as he/she continues to be the member of the society.

20. TRANSACTIONS WITH NON MEMBERS:
The Society does not deal with non members.

21. APPLICATION OF FUNDS:
A. The Funds of the society including its reserves shall be spend for the purposes for which they are specifically meant for and for carrying on the activities and services mentioned in byelaws no. 4 and 5 and for attainment of its aim.

B. The maximum borrowing limit of an individual member from the society on account of all types of loans and advances shall not exceed a sum as may be specified by the Board from time to time.

C. The rates of interest payable on thrift deposits, savings deposits, recurring deposits fixed and other deposits, loans, method of calculation of interest incentives and other terms and conditions governing these deposits shall be as per rules of business and administration as decided by the Board of Directors from time to time.

D. An individual member who wants to take a loan from the society shall make an application in the specified format and provide any other information as required by the society. The member shall also furnish the guarantee and sign a promissory note and other documents as specified by the society. The borrower may be asked to provide such other collateral security in case of necessity.

E. The rate of interest on various types of loans, documentation, surety and other terms and conditions shall be as per the rules of business and administration as decided by the Board of Directors from time to time.

22. DISPOSAL OF NET SURPLUS AND CONSTITUTION OF FUNDS:
1. The net surplus shall be disposed as follows after allocation of interest on share capital in accordance with the provisions of section 16 of AP MACS Act. 1995.

a) an amount equivalent to 10% to Deficit Cover Fund;

b) 20% to General Reserve Fund;

c) 20% to bad Debts Reserve;

d) 20% to the Building Fund;

e) 10% to the Education Fund to be operated by the society.

f) 10% to Patronage Rebate Fund;

g) 10% to Members Welfare Fund;

The Funds thus created shall be credited, at the end of every year, with an interest at a rate not less than the rate of interest paid by any scheduled bank on one year fixed deposits.

23. AUDIT:
1. The General Body shall at its annual general meeting appoint a Chartered Accountant within the meaning of the Chartered Accountants Act. 1949 for conducting its financial audit and fix their powers, tenure and remuneration. It may entrust with the Auditor such other functions as it thinks necessary.

24. APPROPRIATION OF RECEIPTS:
1. The receipts from a member shall be appropriated in the following order:

a. Firstly, to fees, penalties, other charges;

b. Secondly to penal interest; and then to interest;

c. Thirdly to loan principal.

25. ACCOUNTING YEAR:
1. The accounting year of the society will be from 1st April to 31st March of the succeeding year.

26. PROCEDURES:
1. The provisions of the Andhra Pradesh Mutually Aided Cooperative Societies Act. 1995, the Byelaws and Rules of business and administration of the society shall be applied and adhered to in respect of procedures of the following matters.

a) Amendment of byelaws;

b) Mobilization and investment of funds;

c) Settlement of disputes, appeals, and revisions;

d) Maintenance of books of account and records;

e) Audit of accounts;

f) Attachment and recovery of debts, execution of decrees;

g) Right and privileges of society; and

h) Liquidation amalgamation and division.

27. SETTLEEMNT OF DISPTUES:
If any disputes touching the constitutions, management or business of the society arises.

a) Among members, past members or a person claiming through members and deceased members or among members, past members or a person claiming through members and deceased members and the society, its board, director, office bearer of liquidator, past or present or

b) Between the society or its board and any past board, any director, office bearer or any past director, past office bearer of the nominee, heir or legal representative of any deceased director or deceased office bearer of the society.

Such disputes should be referred to a (3) men committee constituted by the general body whose findings shall be final on the all parties to the dispute it shall be settle the dispute with in the period of three months. The committee shall frame its own policy to settle the dispute and shall be constituted when ever a dispute is raised. The society or the member if aggrieved by the decision of the committee may approach the co-operative tribunal for decision.

28. DISSOLUTION:
A. The Society with a special resolution authorize its own dissolution as following the provisions of Section 39 of the Act.

B. The cooperative tribunal may also order dissolution of the society as a application made by the registrar or an interested member following of the provisions of section 40 of the Act.

29. LIQUIDATION:
A. In the event of liquidation of the society, any funds remaining after the fulfillment of all external liabilities and the other liabilities shall be disbursed among members in proportion to the share capital of such members who are not defaulters on the date the settlement of members is taken up.

B. Any amount that can not be shared with members for whatsoever reason shall be given as a donation to another organization with similar objectives, with the approval of the general body.

30. OTHERS:
A. The office bearers, staff, board and general body shall discharge their functions in accordance with Act. byelaws and rules of business and administration and without prejudice to the specific functions assigned to others.

B. The Board of Directors shall be competent to interpret the byelaws and to remove difficulties in a suitable manner that may arise in day to day affairs of the society.

C. The first set of Board of Directors as selected by the promoters shall be competent to mange the affairs of the society till elections are held and the new Board assumes charges i.e. with 60 days of registration of the society.

Certified that the proposal byelaws are adopted by us at our meeting held on.

NATIONAL COOPERATIVE UNION OF INDIA BYE-LAWS

NATIONAL COOPERATIVE UNION OF INDIA
BYE-LAWS

1. Name and area of operation
The Union shall be called the “National Cooperative Union of India Limited” (NCUI)

The headquarters of the Union shall be at 3, Siri Institutional Area, August Kranti Marg, New Delhi–110016.

2. Definition
The words/expressions appearing in these bye-laws shall have the following meaning unless otherwise provided:

(a) “Act” means the Multi-State Cooperative Societies Act, 2002.

(b) “Delegate” means a person who is duly nominated by a member society in accordance with the provision of section 38(3) of the Act as its representative to the general body of the Union.

(c) “Member” means a society and an institution defined in bye-law no.4 (vii) who for the time being is a member or is admitted as a member of the Union.

(d) “Multi-State Cooperative Society” means a society registered or deemed to be registered under the Act and includes a national cooperative society.

(e) “National Cooperative Society” means a multi-state cooperative society specified in the second schedule to the Multi-State Cooperative Societies Act, 2002.

(f) “Rules” means the Multi-State Cooperative Societies Rules framed under the Act.

(g) “Society” means a cooperative society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any state or union territory in which it is established.

(h) “Union” means the National Cooperative Union of India Ltd.

(i) “Defaulter” means a member society, which has not paid the membership subscription under Bye-law No.9 for the consecutive period of two years.

3. Objective
The objects of the Union shall be to promote and to develop the cooperative movement in India, to educate, guide and assist the people in their efforts to build up and expand the cooperative sector and to serve as an exponent of cooperative opinion in accordance with cooperative principles as enunciated in the first schedule to the Act.

In furtherance of these objects, the Union may either by itself or in collaboration with other cooperative institutions:

(i) The organise cooperative education and training programmes and popularise the principles and practices of cooperation;

(ii) develop inter-cooperative relations and help the coordinated functioning of the cooperative movement in various sectors;

(iii) organise, conduct, collaborate and assist in carrying out research, investigation of cooperative problems and formulation of projects for cooperative development;

(iv) arrange for the production and publication of literature and audio-visual and other aids including films, filmstrips on cooperation and allied subjects;

(v) give publicity to the achievements of cooperatives through periodicals, journals, newspapers, pamphlets, brochures, books, films, broadcasts, T.V. and the like for creating favourable atmosphere for the development of the cooperative movement;

(vi) maintain an information bureau and a library;

(vii) express opinion of matters of cooperative policy and act as the accredited representative of the India Cooperative Movement in the national and international spheres;

(viii) convene and hold the National Cooperative Congress and cooperative seminars, meetings, conferences, exhibitions etc;

(ix) select delegates, representatives, and observers on behalf of the Union for participation in the international, national and state conferences;

(x) facilitate the promotion of cooperative institutions and assist the member societies in resolving their problems and difficulties and formulation of programmes and their implementation and preserve and safeguard the democratic character of the cooperative movement in the country;

(xi) to confer honour on the eminent cooperators;

(xii) acquire, hire purchase, own or dispose off immovable property by way of sale, lease or otherwise for the furtherance of the objects of the Union;

(xiii) promote international cooperative relations through active collaboration with ICA, UNO, FAO, ILO, UNDP, UNIDO and other international agencies involved in cooperative development;

(xiv) establish effective liaison and relations with ICA member-organisations and national cooperative organizations of other countries;

(xv) help, promote international marketing on cooperative to cooperative basis by documenting necessary information and to act as nodal agency for the benefit of India Cooperative Movement;

(xvi) to provide consultancy services to the cooperatives;

(xvii) to undertake such economic activities, directly or through strategically collaborative joint ventures or partnerships with cooperative and other organisations including insurance business as may be considered necessary for consolidation of financial position of NCUI or for furtherance of any or all of the above stated objects.

(xviii) to maintain the following funds:

(a) Cooperative Education Fund,

(b) National Cooperative Training Fund,

(c) Corpus Fund,

(d) Reserve Fund,

(e) Building Fund,

(f) Any other fund as decided by the governing council from time to time.

(xix) to generally undertake such activities or functions as are considered incidental or conducive to the attainment of the objects of the Union.

4. (a) Membership
The membership of the Union shall be open to :

(i) State Cooperative Unions or by whatever names they are called;

(ii) National Cooperative Societies/Federations;

(iii) Cooperative Unions of union territories;

(iv) Cooperative business and non-business federations/apex societies of state and union territories;

(v) State Tribal Development Cooperative Federations/Corporations registered under the cooperative law;

(vi) Multi-State Cooperative Societies not included in (ii) above;

(vii) National Cooperative Development Corporation, National Bank of Agriculture and rural Development, National Dairy Development Board, and Rural Electrification Corporation.

No individual shall be eligible for the membership of NCUI.’

(b) Procedure for obtaining the membership of NCUI.
The application for membership of NCUI shall be submitted by the person authorised by the Competent Body of the Society seeking membership of NCUI. The application shall be submitted in the prescribed form and accompanied by following documents.

a) an attested copy of the Bye-laws of the Society;

b) an attested copy of the Resolution passed by the Competent Body of the Society deciding to obtain the membership of NCUI and authorising the person for submitting the application;

c) a copy each of the latest Annual Report, Audit Report of the Society;

d) an attested copy of the registration certificate of the Society;

e) bank draft towards membership subscription as per the NCUI Bye-law No.9;

The application found complete in all respects will be placed before the
Governing Council for its approval.

Every application for membership shall be disposed off within a period of 4 months from the date of receipt of the application and the same shall be communicated to the applicant society within15 days of the decision by Registered Post.

(c) Rights of members;
Every member of NCUI, otherwise eligible, shall have the following rights as per Bye-laws of NCUI:

5. Liability
The liability of the members to meet the deficit in the event of winding up the Union shall be limited to the amount of subscription payable by them on the date of winding up.

6. Cessation of Membership
The membership of a cooperative society shall cease:

(i) on the cancellation of the registration or winding up of the member society;

(ii) on a member society deciding to withdraw from the membership of the Union provided that a such a decision is taken by a competent body of the society and is duly communicated to the Union. The withdrawal in such cases shall take effect after three months from the date of receipt of such a resolution by the Union subject to the payment of arrears, if any.

(iii) on expulsion of the members and on incurring disqualifications as provided in the Act and Rules.

7. Termination of Membership
For reasons to be recorded in writing, the membership in the Union may be terminated by a resolution of the general body passed by two-third majority present and voting, if:

(i) activities of the member society are in conflict or competitive with the activities of NCUI, or

(ii) member society fails to represent in three consecutive meetings of the General Body Meetings and such absence has not been condoned by the majority of the members present and voting.

(iii) member society is in default of any payments to NCUI and such payments have been due and payable for a period of more than two years.

Provided that concerned member society shall be given an opportunity of making a representation in the matter before removal from membership.

8. Funds
The funds of the Union may be raised from the following:

(i) annual membership subscription;

(ii) contribution or donations;

(iii) grants from governments;

(iv) moneys/income from the cooperative education fund create as per Act and Rules and maintained by the Union;

(v) sale proceeds of publications, journals, text books, films etc.

(vi) loans and advances; and

(vii) income from exhibitions, projects, consultancy services or any other activities undertaken by the Union as per its bye-laws.

9. Annual Membership Subscription
(i) each member society shall pay subscription to the Union at the rates specified in Schedule I which may be revised by the Governing Council from time to time.

(ii) annual subscription from members shall fall due at the commencement of each cooperative year, i.e. on the 1st day of April every year and shall be payable by 1st July of the year,

(iii) in case of default in payment of membership subscription, the member society shall be liable to pay panel interest at the rate as may be decided by the Government Council from time to time.

10. General Body
(i) the general body of the Union shall consist of delegates of members societies.

(ii) the tenure of the delegates of member society shall be co-terminus with the term of the Managing Committee/Board of the member society.

(iii) in case of change of delegate of any member cooperative, 30 days notice shall be given to NCUI and new delegate shall function for the unexpired term of the original delegate.

11. Representation on the General Body
(a) Each member society shall send one delegate to the general body of the Union.

(b) Every delegate shall have one vote, provided that in the case of equality of votes the Chairman/Presiding Officer shall have an additional casting vote.

(c) (i) the delegates of a member society which has not been a member of the Union for at least 30 days before the date of the general body meeting but shall not be eligible either to exercise the right of vote, participate in the election or to hold office.

(ii) the delegates from defaulting member societies shall not be entitled to exercise the right to vote or to seek election to any office. The delegates of defaulting societies, if holding any office of the Union shall forfeit their right to hold such office with effect from the date on which the society becomes defaulter under these bye-laws, provided notice is given to the defaulting society and it fails to pay its dues within 30 days after the receipt of notice.

12. Meetings of the general body
(i) The meetings of the General Body shall be of the following types:

(a) annual general meeting;

(b) special general meeting;

(ii) The annual general meeting of the Union shall be held within six months of the close of the cooperative year.

(iii) Special general meeting may be convened by the Chief Executive on the direction of the governing council.

(a) for transacting any urgent business and; or

(b) on requisition in writing from 1/5th of the total delegates of the general body or 50 members whichever is less.

(iv) Notice for general meting.

(a) Annual general meeting of the Union may be called by giving not less than 14 days notice in writing.

(b) Special general meeting of the Union may be called by giving not less than seven days notice in writing.

The notice of annual general meeting shall be accompanied by a copy each of the audited balance sheet, profit and loss account together with the auditor’s report thereon, relating to the preceding year, the report of the Governing Council, proposals of amendment in the Bye-laws, if any, and elections of members of Governing Council if any.

13. (a) Functions of the General Body
The authority of the Union shall vest in the general body, which shall perform the following functions:

a) consideration of the audited statement of accounts;

b) consideration of the audit report and annual report;

c) consideration of audit compliance report;

d) disposal of net profits;

e) review of operational deficit, if any;

f) creation of specific reserves and other funds;

g) approval of the annual budget;

h) review of actual utilisation of reserve and other funds;

i) approval of the long-term perspective plan and the annual operational plan;

j) review of annual report and accounts of subsidiary institution, if any;

k) expulsion of members;

l) list of employees who are relatives of members of the Governing Council or of the Chief Executive;

m) amendment of bye-laws, if any;

n) formulation of code of conduct for the members of the Governing Council and officers;

o) election of members of the Governing Council, if any;

p) To appoint an auditor or auditors out of the panel approved by the Governing Council who will function up to the conclusion of the next annual general meeting.

(b) Quoram at a general meeting
(i) the quoram for the general meeting shall be one fifth of the total number of delegates of the general body;

(ii) no business shall be transacted at any general meeting unless there is a quoram at the time when the business of the meeting is due to commence;

(iii) if within half an hour from the time appointed for the meeting quoram is not present, the meeting shall stand adjourned provided that a meeting which has been called on requisition of the members shall not be adjourned but dissolved;

(iv) if at any time during the meeting sufficient number of members are not present to form the quoram, the chairman or the member presiding over the meeting on his own, or on his attention being drawn to this fact, shall adjourn the meeting and the business that remains to be transacted at this meeting, if any, shall be disposed of in the usual manner at the adjourned meeting;

(v) where a meeting is adjourned under sub-rule (iii) or (iv) the adjourned meeting shall be held either on the same day or on such date, time and place as may be decided by the Chairman or the member presiding over the meeting;

(vi) no business shall be transacted at any adjourned meeting other than the business on the agenda of the adjourned meeting.

14. Governing Council
a) The Union shall have Governing Council consisting of the following:

(i) Nine members from State Cooperative Unions and Cooperative Unions of Union Territories.

(ii) Four members from the National level Cooperative Societies/ Federations who are contributors to Cooperative Education Fund maintained by NCUI under the Act.

(iii) Four members from National level Cooperative Federations having at least 10 State level Cooperative Federations/Associations as members of NCUI.

(iv) One member from among the following:
a. National Cooperative Federations having more than five and less than ten state cooperative federations/associations as members of NCUI, and

b. State Coop. Federations/Associations covered under sub-clause (a) above.

(v) One member from among the following:
a. National Cooperative Federations having less than six state cooperative federations/associations as members of NCUI, and

b. State Coop. Federations/Associations covered under sub-clause (a) above.

c. One member from other State Cooperative Federations not included in (ii), (iii), (iv) and (v) above and Multi-State Cooperative Societies not included above.

d. One nominee of the Central Govt, if grant in aid provided to NCUI.

e. Chief Executive, NCUI.

f. Two eminent Cooperators who may be co-opted by the Governing Council.

(The constituencies and the election procedure for the constitution of Governing Council shall be as per Schedule II which may be revised/ amended from time to time by the Governing Council.).

b) The governing council shall meet at least once in every quarter.

c) The meeting of the governing council shall ordinarily be held at Union’s registered office at New Delhi.

d) Except under the Special circumstances 14 days notice for the meeting shall be necessary.

e) The quorum for a meeting of the Governing Council shall be seven members.

f) The term of the Governing Council shall be give years.

15. Functions of the Governing Council
(i) The Governing Council shall elect President of the Union and two Vice-Presidents of the Union from among the duly elected members of the Governing Council of NCUI.

(ii) To admit members;

(iii) To interpret the organizational objectives and set-up specific goals to be achieved towards these objectives;

(iv) To make periodic appraisal of operations;

(v) To appoint a Chief Executive and such other employees of the Union as may be prescribed;

(vi) To make provisions for regulating the appointment of employees of the Union and the scales of pay, allowances and other conditions of service of, including disciplinary action against such employees;

(vii) To approve annual and supplementary budget;

(viii) To acquire or dispose of immovable property;

(ix) To raise funds;

(x) To take such other measures or to do such other acts as may be prescribed or required under this Act;

(xi) To delegate powers to Executive Committee, President, Vice-President and Chief Executive subject to the provisions of Act and Rules;

(xii) To consider and accept the resignation of the president, vice-president or any other member of the governing council, executive committee or other committees;

(xiii) To call the meeting of the general body and fix agendas for the same;

(xiv) To convene the national cooperative congress;

(xv) To institute provident fund, gratuity and such other funds for the employees of the Union as might be considered desirable and frame rules for their administration;

(xvi) To consider quarterly statement of receipts and payments and quarterly progress report;

(xvii) Generally do all acts as are necessary to give effect to the objects of the Union;

(xviii) To prepare budget and consider audited statements of accounts and administrative report;

(xix) To make rules regarding T.A. & D.A. for the members of the governing council.

(xx) To recommend for the disposal of net profit, if any for approval of General Body.

(xxi) To decide the investment of NCUI’s funds in accordance with the provisions of the Act and Rules.

(xxii) To fill up mid-term vacancies in the Governing Council caused by whatsoever reason through election/co-option from the respective constituency.

(xxiii) To decide the terms on which the National Cooperative Union of India may deal/associate with members, non-members, cooperative societies and other organizations.

(xxiv) To decide the payment of ex-gratia to be paid to the employees of NCUI from time to time.

(xxv) To prepare the panel of Auditors of NCUI for consideration of the AGM.

(xxvi) To decide the formation and other details regarding election procedure for constitution of Governing Council.

(xxvii) To determine the rates of Membership Subscription.

(xxviii) To co-opt two members to the Governing Council as per the provision of section 47(3) of the Act.”

16. Committees
The Governing Council shall constitute following committees:

(i) the Executive Committee which shall comprise of the President, Vice-Presidents and 10 other members.

Provided that there will not be more than one member on the Executive Committee from one state.

Provided further that member representing a National Cooperative Federation will not deemed to represent a State;

(ii) Committee on Cooperative Education;

(iii) Any other committee deemed necessary by the Governing Council, subject to section 53(1) of the Act.

16A National Council for Cooperative Training
1) NCCT shall be constituted by the NCUI with the approval of Government of India so long as government provides grant to NCCT.

2) While selecting the representatives/nominees, there shall not be more than one representative from any state. This shall not apply to representatives of Central Government and National Institutions.

3) The Chief executive NCUI shall be the director general of NCCT.

4) NCCT shall have the following functions and responsibilities.
(i) to formulate overall policies and plans relating to cooperative training;

(ii) to organise and direct arrangements in regard to the training of personnel employed in the cooperative departments and cooperative institutions in the country.

(iii) to assess periodically the needs of training for cooperative personnel to facilitate planning and designing of training arrangements (such assessment may preferably be for the Five Year Plan periods);

(iv) to keep effective liaison with and coordinate the activities of Government of India, financing, instructions, universities including agricultural universities; University Grants Commission, international agencies like the national Cooperative Alliance etc., in matters relating to cooperative training;

(v) to establish and manage cooperative training institutions;

(vi) to identify problem areas of cooperatives requiring research and organise research studies, to establish and manage cooperative research institutions.

(vii) to arrange for training of teaching staff of cooperative training institutions;

(viii) to ensure maintenance of high academic standards in cooperative education and training in various institutes in the country and suggest syllabi and standards of examinations for different courses;

(ix) to promote education in cooperation in schools and colleges and for this purpose to suggest syllabi and standards of examination and arrange publication of standard text-books on cooperation;

(x) to explore the possibility of obtaining recognition for Vaikunth Mehta National Institute of Cooperative Management as an institution of national importance or explore the possibility of its recognition as deemed to be university;

(xi) to evaluate the various courses in cooperative training and suggest measures for improvement;

(xii) to arrange for provision on consultancy services to cooperatives, particularly on problems of management; and

(xiii) to raise funds by way of grants, fees subscriptions and contributions from central government, cooperatives and other institutions.

5) The term of National Council for Cooperative Training shall be co-terminus with that of the Governing Council of NCUI.

6) There shall be a separate fund to be known as the National Cooperative Training Fund. All grants, contributions etc., received for the aforesaid purposes, shall be credited to this fund and all expenses met from the fund. This fund will be subject to audit.

7) The National Council for Cooperative Training shall be a successor to the erstwhile Committee for Cooperative Training for the purpose of the letters assets and liabilities.

17. Powers and functions of the Executive Committee
The functions of the Executive Committee shall be as follows:

(i) to prepare annual report, balance sheet and budget of the National Cooperative Union of India;

(ii) to arrange for carrying on the administration of the Union and initiate such actions as may be necessary for the execution of the decisions and resolutions passed by the General Body, Governing Council and Executive Committee;

(iii) to raise funds for the Union and control its finances;

(iv) to authorise person/persons to sign the bills, notes, receipts, acceptances, enter to contract and documents on behalf of the Union and operate bank account etc.

(v) to appoint trustees, attorneys and agents for the Union to defend and institute legal proceedings on behalf of the Union;

(vi) to organise conference and National Cooperative Congress as decided by the Governing Council;

(vii) to arrange publication of cooperative journals and other literature;

(viii) to acquire, purchase, own or dispose of immovable property by way of sale, lease or otherwise for the furtherance of the objects of the Union subject to the approval of the Governing Council.

(ix) to take action on all administrative matters and also to arrange for the custody of cash;

(x) to deal with all staff matters, except class III & IV including promotion/disciplinary action, suspension or removal etc., as per rules framed by the Governing Council;

(xi) to delegate powers to the President, Vice-President and Chief Executive or any other officer of the Union;

(xii) any other duty or function entrusted by the Governing Council;

(xiii) the Executive Committee may meet as often as possible and at least once in a quarter. An interim vacancy of the Executive Committee may be filled up by the Governing Council.

18. Powers and functions of the President
The President shall have the following powers and functions:

(i) the President shall be the spokesman of the policy of the NCUI. The President of NCUI will have general supervision over the affairs of the NCUI. He shall preside over the meetings of the General Body, Governing Council, Executive Committee and National Cooperative Congress;

(ii) he shall be the Chairman of the National Council for Cooperative Training and Committee on Cooperative Education;

(iii) he will approve and sanction expenditure on any one item as approved in the budget and such other expenditure as approved and sanctioned by the Governing Council and Executive Committee as the case may be;

(iv) notwithstanding anything contained in the bye-laws it shall be competent for the President to empower the Chief Executive, to ascertain the opinion of the Governing Council or Executive Committee on any matter he might consider urgent or expedient by circulation of paper to the members. On receipt of such formation, the President may decide the question as per the opinion of the majority of the members. The decision taken shall be placed before the next meeting of the Governing Council for information;

(v) the President shall sign the proceedings of all the meetings presided by him;

(vi) in the event of equality of votes on a resolution the President shall have an additional casting vote in the meeting;

(vii) to convene the meetings of the Governing Council, Executive Committee and other sub-committees of which he is the President/ Chairman;

(viii) the President may delegate any of his powers and functions to the Vice-Presidents;

(ix) the President shall be competent to take decision as are of urgent and emergent nature affecting the policy of the Union on behalf of the Governing Council, Executive Committee and any other committees. The matter will be placed before the next meeting convened for ratification.

19. Powers and functions of the Vice-Presidents
The Vice-Presidents shall have the following powers and functions:
(i) In the absence of the President, either of them will preside over the meetings of the General Body, Governing Council, Executive Committee and exercise such other powers of the President in the execution of the duties of the President;

(ii) one of the Vice-Presidents shall be member of the National Council for Cooperative Training subject to approval of Government of India.

(iii) the other Vice-President shall be member of the National Council for Cooperative Education.

20. Powers and functions of the Chief Executive
As provided in section 22 of the Act and subject to overall control and general supervision of the Governing Council, the Chief Executive shall have the following powers, functions and responsibilities:

(i) assisting the Governing Council in the formulation of policies, objectives and planning;

(ii) furnishing to the Governing Council periodical information necessary for appraising the operations

21. Amendment
The amendment of these bye-laws shall only be passed by a resolution of the meeting of the General Body in which a quoram is present by a vote of not less than two thirds of the members present there and due notice of the considering of such amendment has been previously given.

22. Service Rule
The National Cooperative Union of India shall have service rules for regulating the service conditions of its employees as formulated and amended by the competent authority from time to time.

23. Provident Fund/Pension Fund
The National Cooperative Union of India shall maintain Contributory Provident Fund/General Provident Fund and Pension Fund for its employees in accordance with the rules framed from time to time in this respect.

24. In the event of conflict between the bye-laws of the Union and the affiliated societies, the bye-laws of the Union shall prevail.

25. No act of the General Body, Governing Council or other committee shall be deemed invalid by reason of defect in the election of the member thereof or by reasons of any vacancy therein not having been filled in accordance with these bye-laws.

26. All questions at the meetings shall be decided by a majority of votes. Presiding officer shall have a casting vote.