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.