BYE-LAWS OF A CO-OPERATIVE TRANSPORT SOCIETY

1. PRELIMINARY


1. The name of the Society is ________________________________________ CO-OPERATIVE TRANSPORT SOCIETY LTD., _________________________ and its registered address is _________________________________________ ________________________________________________________________
Any change in the address will be notified to the Registrar within 14 days.

2. In these bye-laws, unless there is anything repugnant to the subject or context, the expression “the Act” means the Delhi Co-operative Societies Act. 1972 (No. 35 of 1972) and its words and expressions defined in the Act and used in these bye-laws shall have the same meaning as assigned to them in the said Act. and Rules. “The Rules” means the Delhi Co-operative Societies Rules, 1973.

II. OBJECTS
3. The objects of the Society are to promote the economic interest of its members and more particularly to arrange:

(i) to organize transport facilities along those routes or in those areas on which or in which the Society may be permitted to operate;

(ii) to purchase, hire or sell and to maintain in an efficient condition vehicles and motor cycles, rickshaws for the purpose mentioned above;

(iii) to establish service and repair shops, to run petrol pumps and to stock motor vehicles and motor cycles, rickshaws, accessories, spare parts, oils, equipment etc;

(iv) to operate stands or stops which may be entrusted to the Society;

(v) to arrange for the insurance of Society’s vehicles against damage, passenger or third party risk;

(vi) to own, purchase, erect, repair or take on rent buildings, workshops, stands, godowns, office premises etc. as may be necessary to carry out the objects of the Society, and to acquire land for the purpose;

(vii) to manage, sell, improve, develop, mortgage, lease, dispose off, turn to account or otherwise deal with all or any part of the property, movable or immovable over which the Society has any power of disposal;

(viii) to enter into any agreement with any Government or authorities (supreme, municipal, local cooperative or otherwise) including an agreement to supply motor transport vehicles on hire to such authorities and to obtain from them all rights, concessions and privileges, that may seem useful to the Society’s objects or any or of them and to give any guarantee or indemnity as may seen expedient for the above purpose;

(ix) to undertake welfare activities particularly for the members and employees and their children for the promotion of their moral, educational and physical improvement; and

(x) to undertake other measures designed to encourage in the members the spirit and practice of thrift, self help and mutual help, and to do all such things as are incidental or conducive to the attainment of any or all of the above objects.

III. MEMBERSHIP
4. (a) The members shall consist of:
(1) the persons joining in the application for registration;

(2) persons admitted in accordance with these bye-laws;

(3) nominal or associate members subject to conditions as laid down in Rule 26.

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

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

5. (i) No person shall be a member unless:
(a) he is a resident in or has his place of business in ___________________.

(b) he is a worker in any transport concern;

(c) his written application for membership has been approved by a majority of the Managing Committee;

(d) his age is more than 18 years;

(e) he has carried out the provisions of bye-law 13;

(f) he is an actual artisan/worker in the transport work, or is a person who sympathizes with the objects of the Society.

The number of the sympathizer members shall, however, not exceed 5 or 1/10th of the total membership of the Society, whichever is less.

(ii) Every member on admission shall pay Rs.20 as admission fee which shall not be refunded in any case.

(iii) The Society shall not admit members within one month prior to the meeting of the General Body.

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

6. (a) All members joining in the application for registration or admitted subsequently shall be technicians in transport business or owners of vehicles or holders either individually or jointly with order of permits for one or more vehicles in respect of which a valid certificate for fitness exists, provided that those persons shall also be eligible for membership who are holders of valid permits but without vehicles. Person thus admitted shall, however, pay an amount over and above the value of shares to be subscribed by them under bye-law 13 below as the Managing Committee may fix, within the period prescribed by it, but the amount so fixed shall in no case exceed 25 per cent of the value of the said shares. Any member not satisfied with the decision of the Managing Committee in this respect may refer the matter to the Registrar for arbitration within a period of three months.

(b) On the registration of the Society the members shall immediately elect a committee of valuation consisting of three persons, none of whom shall be the member of the Society but one of them shall be a nominee of the Registrar, Co-operative Societies, Committee will value to the nearest multiple of Rs.100/- all vehicles of the members for which valid certificate of fitness exists and which are covered by a permit and shall fix as and when necessary an average value of a vehicle for purposes of bye-law 6(c).

(c) That multiple of Rs.100/- which is next above the average value of a vehicle as estimated under the foregoing clause shall be the minimum number of shares which must be subscribed in respect of each vehicle provided that where the amount thus calculated falls below the value of 25 shares to be compulsorily purchased by a member under bye-law 13, then a member shall subscribe atleast 25 shares.

(d) The society shall thereupon take over all these vehicles in exchange for shares in the Society at the estimated value, the payment being made by adjustment in the following manner:

(i) where the total estimated value of the vehicle belonging to a member exceeds the total value of the shares which he is required to subscribe under clause (c) above, he will be allotted shares to the latter total and the excess shall be shown as deposit in the funds of the Society. He shall be entitled to repayment of this deposit as and when the funds of the Society permit and interest shall be paid to him by the Society at ___________ per cent on his deposit or the outstanding balance of it until it is repaid in full:

(ii) where the estimated value of the vehicle of a member is less than the minimum value of the shares which the member is required to subscribe under clause (c) above he will be required to make good the deficiency by paying up the necessary sum in cash immediately.

7. Original members are exempted from the provisions of bye-law No.5(i)(c).

8. If the Society employs any worker who is not a member of the Society such employee shall be entitled to apply for membership after serving the Society, for 6 months.

9. A member of the Society may be expelled by 3/4 majority of Managing Committee:

10. A person ceases to be a member –
(i) on death; or

(ii) for lack of confirmation of membership as per bye-law 5;

(iii) when his resignation has been accepted by the Managing Committee;

(iv) on expulsion under bye-law 9;

(v) ceasing to hold the minimum number of shares prescribed in these bye-laws;

(vi) on withdrawal after three months notice in writing to the Secretary provided that the member withdrawing does not owe anything to the Society and is not a surety for an unpaid debt. Withdrawal will take effect from the date of disposal of his shares as provided in the bye-laws.

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

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

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

IN CAPITAL
12. The Capital shall be composed of:
(a) an under mentioned number of shares of the value of Rs.100/- each;
(b) deposits from members;
(c) loans and deposits from non-members;
(d) donations and grants; and
(e) realized profits;

Provided that the acceptance of deposits and loans from non-members shall be subject to any restrictions which the Registrar may impose. The funds of the Society when not employed in its business shall be invested or deposited as required by section 49 of the Act.

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

14. Shares may be paid up in a single payment or in monthly instalments of not less than Rs.50. The first instalment shall be paid within 7 days from the admission of a member by the committee and subsequent instalments on or before the 10th of each calendar month.

15. If the payment due on account of share remain unpaid for more than 3 months, the Committee may declare such shares forfeited together with all payments made thereon and the right of membership attaching to these shares shall thereupon be extinguished. The Committee may allow such shares to be restored provided:

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

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

16. Shares shall not be withdrawn, repaid or transferred otherwise than as provided in bye-law 11.

17. Every member may nominate a person or persons to whom on his death his shares shall be transferred but no member may nominate more than one person, unless he holds more than one share and in any case unless the amount to be paid to such nominee whether by way of whole share or by fixed proportion of the amount available for transfer as the case may be is duly specified when the nominees are appointed and he shall attest the nomination by putting up his signature or thumb impression in the register of members. If not admitted to membership the nominee or nominees shall be paid the value of shares or interest subject to the provisions of bye-law 10. If any deduction has to be made from the shares of the deceased, and there is more than one nominee, the amount to be deducted shall be set off against the amount due to each nominee in proportion to his interest.

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

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

VII. GENERAL MEETING
20. The First General Meeting of the members shall have the same powers as are herein given to the Annual Meeting :-

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

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

(ii) Election of members of the Managing Committee;

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

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

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

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

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

(e) If within an hour from the time appointed for the meeting, quorum is not present the meeting shall stand adjourned for half hour and will be held at the same place with same Agenda but if the meeting is called upon the requisition of the members (not the Registrar) it shall stand dissolved, provided that at the adjourned meeting, no quorum shall be necessary.

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

22. The duties and powers of the general meeting are:
(1) to elect, suspend or remove members of the Managing Committee including a President and one or more Vice-Presidents;

(2) to receive from the committee a report on the preceding year’s working of the Society together with a statement showing the receipts and expenditure, assets and liabilities and profit and loss for the year;

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

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

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

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

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

(8) to amend the bye-laws, subject to the sanction of the Registrar;

(9) to expel members subject to the approval of Registrar;

(10) to consider any other business brought forward.

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

24. Amendments of bye-laws shall only be carried out by a majority of 2/3rd of the members present in a general meeting in which due notice of the intention to discuss such amendments has been previously given. Such amendments shall be forwarded to the Registrar for registration within a period of net less than 3 months.

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

24. (a) If it appears to the Registrar that an amendments of a bye-law of a Co-operative Society is necessary or desirable in the interest of such Cooperative Society he may call upon the Cooperative Society to make the amendment;

(b) The Registrar may be serving a notice inform/call upon a Society to make an amendment within a period not exceeding sixty days;

(c) After the expiry of the period specified in the notice under sub-rule (b) if the Society fails to make the amendment, the Registrar after giving the Cooperative Society an opportunity of being heard, may register the amendments certified by him with a certificate signed by him. With effect from the date of registration, the amendment is binding on the Cooperative Society and its members subject to appeal, if any.

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

VIII. MANAING COMMITTEE
25. The Managing Committee shall consist of atleast 5 members of the Society and not more than 15, over the age of 21 years including a President and one or more Vice-President are absent, any other member selected by the Committee for the purpose shall preside. Each member of the Committee shall have one vote but the Chairman shall have a casting vote, in addition:

(i) Committee members shall be elected and hold office for 3 years and shall be eligible for re-election, but no member shall be eligible for holding the office of President, Vice-President, Chairman, Vice-Chairman, Managing Director, Secretary, Joint Secretary and Treasurer for more than two consecutive terms whether full or part. These office-bearers shall also not be eligible to hold such offices on a Committee of another co-operative Society of the same type or on the Committees will retire every year by rotation and they shall be eligible to contest election.

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

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

(iv) The meeting shall be held as often as required but a meting shall be held atleast once in every month.

26. A member of the Committee shall cease to hold office if he –
(1) ceases to be a member of the Society;
(2) apply for insolvency or is declared insolvent;
(3) becomes of unsound mind;
(4) is convicted of any offence involving dishonesty or moral turpitude;
(5) carries on business on his own account similar to that specified in bye-law 3;
(6) resigns and his resignation is accepted by the Committee.

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

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

(2) to maintain true and accurate account of all money received, expended, and all property bought and sold;

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

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

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

(8) to elect new members and transfer old shares;
(9) to arrange for the recovery of share instalments and of interest on overdue instalments;

(10) to summon general meeting in accordance with bye-law 21;
(11) to contract loans subject to any restrictions imposed by the Registrar or General Meeting;

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

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

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

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

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

(18) to invest the surplus funds of the Society in accordance with section 49 of the Co-operative Societies Act. and Rules;

(19) to acquire and hold property and to enter into contracts on behalf of the Society;

(20) to purchase, sell, hire or otherwise acquire to dispose off on behalf of the Society vehicles, parts, accessories or other movable property used in the business of the Society within the limits laid down by the General Meeting;

(21) to fix, revise, or modify the fare or freight rates or timetable subject to any provision of the Motor Vehicles Act and the Motor Vehicles Rules framed thereunder;

(22) to make on behalf of the Society applications for permits;
(23) to arrange for the insurance of vehicles and other property of the Society in accordance with any policy framed at the General Meetings;

(24) to arrange efficient working of the service and any stand or bus stop entrusted upon of the Society;

(25) to ensure that the vehicles and other property of the Society are maintained in a good state of affairs and to arrange, keep the same in safe custody;

(26) to enter into any agreement with any government or other authorities (Municipal local or otherwise) and obtain from them all rights, concessions and privileges that may be useful for the Society’s objects;

(27) to fix the scale of advances and wages to be paid to the members and employees;

(28) to decide the manner of execution of work and its allotment to members and employees;

(29) to appoint a treasurer to keep the money of the Society and to require him to give security as it may deem sufficient;

(30) to appoint a Secretary and to fix his remuneration, if necessary;
(31) to distribute the duties between the Secretary and the Manager if necessary;

(32) to arrange for the safe custody of the securities owned and pledged with the Society;

(33) to co-opt members against the vacancy caused by the resignation, death or disqualification of any member of the Managing Committee; and

(34) generally to carryon the business of the Society.

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

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

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

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

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

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

32. The Committee of the Society shall specify which of the office-bearers of Society shall:

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

Provided that a person charged with the keeping of accounts shall not be the incharge of cash.

33. If the Committee of the Cooperative Society has not specified the officers required to be specified in these bye-laws notwithstanding anything contained in the bye-laws of the Society, the following officers shall be responsible for keeping accounts, record etc. indicated against each, namely:

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

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

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

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

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

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

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

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

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

(3) a ledger account for each member, depositors and creditors and for miscellaneous and contingent income and expenditure;

(4) an account showing monthly instalments of shares and deposits;
(5) a minute book;
(6) a book of bonds;
(7) a stock and security register;
(8) a register of purchase and sale;
(9) a pass book of purchase and sale;
(10) register of applications for membership containing the name and address of the applicant, the date of receipt of application, the number of shares applied for and in case of refusal, the date of communication of the decision refusing admission to the applicant;

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

(12) any record required under the Act and Rules framed thereunder; and

(13) any other register prescribed by the Registrar.

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

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

X. COMPULSORY DEPOSITS
38. (1) Every member shall subscribe atleast Rs._______________ per month towards Compulsory Deposits and may also contribute to one or more of the following kinds of saving deposits:

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

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

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

39. All documents creating a charge or obligation on the Society shall be signed by the President. Secretary and Treasurer provided that in the case of receipts and cheques upto Rs.500/- and receipt for deposits and repayment of advances, the President and Treasurer may sign. All important documents of the Society shall be sealed with the Society’s seal. The shall be kept in the custody of the Secretary.
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XI. AUDITORS
40. The accounts of the Society shall be audited atleast once a year by an Auditor appointed by the Registrar. The Society shall pay such contribution to the Delhi Audit Fund as may from time to time be fixed by the Registrar, Co-operative Societies, Delhi.

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

(ii) Any losses undergone by the Society.


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

(iv) All insurance charges.

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

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

The Balance shall be the net profits of the Society

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

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

(3) Bonus to all employees whether members of the Society or not, may be paid a scale to be approved by the General Meeting.

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

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

(a) bad debt fund;
(b) common good fund;
(c) dividend equalization fund;
(d) share transfer fund;
(e) building fund; and
(f) any other fund required for business of the Society.

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

44. The rebate and bonus shall be paid according to the rules approved by the General Meeting and subject to any restriction imposed by the Registrar.

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

46. No dividend shall be paid while any claim due from the Society to a depositor or creditor remains unsatisfied.

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

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

XIII. RESERVE FUND
49. The Reserve Fund is indivisible and no member is entitled to claim a specified share in it. It shall be invested in Government Securities or otherwise as directed by the Registrar under section 49 of the Act and as per Rule No. 82.

XIV. DISPUTES
50. If any dispute touching the constitution on business of the Society arises between members or past members of the Society 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 the Society or its Committee and any officer, agent, member or servant of the Society (past or present) it shall be referred to the Registrar as provided in the Co-operative Societies Act and Rules framed thereunder.

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


LIST OF PROMOTER TO BE APPENDED WITH THE
BYE-LAWS AT THE TIME OF REGISTRATION
(See Rule 13)

We the following members were present in the general body meeting of the ____________________ Cooperative ___________________ Society Limited ___________________________ held on __________________ at ____________ in the presence of Shri ________________________ Inspector/Sub-Inspector of Cooperative Department, Govt. of Delhi, and have gone through the Model Bye-laws and the same were adopted unanimously.

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