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Section 39

TNCOS Rules

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Chapter IPreliminary

1Short title and commencement
2Definitions

Chapter IIRegistration of Co-Operative Societies and Bye-Laws

3Form of application for registration of a society
4Duties and responsibilities of chief promoter
5Procedure for deciding questions under section 7
6Subject matter of bye-laws
7Procedure on receipt of application for registration of a society
8Period within which a society shall commence working
9Procedure regarding amendment of bye-laws
10Procedure regarding the change of liability
11Purposes for which the Registrar may direct amendment of bye-laws and the manner of consulting the financing bank under section 12
12Maintenance of records of names, addresses, bye-laws and other particulars relating to societies
13Norms for notification of a society as a central society
14Classification and categorisation of societies
15Annual subscription to co-operative unions
16Procedure for convening a joint meeting in the case of amalgamation of two or more societies
17Direction by Registrar for amalgamation of societies
18Manner of certifying the copy of resolution
19Conditions and procedure for conversion of a society into a different class or category

Chapter IIIMaintenance of Accounts and Books

20Accounts, books and records to be maintained by a Society
21Period of retention of accounts, books and records maintained by a society
22Power of Registrar to direct accounts, books and records to be written up
23Power of Registrar to freeze credit or any other assistance
24Manner of certifying copies of entries in books, documents, etc
25Statement and returns to be furnished by a society to the Registrar
25A[ Manner of placing the audit report of apex society before the Legislative Assembly of the State. [Inserted by SRO A-1(a)/ 2013 - G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (CJ1), dated 31.1.2013, w.e.f. 31.1.2013.]

Chapter IVMembers of Co-Operative Societies their Rights and Liabilities

26Classes of societies in which persons who are minors or of unsound mind may be admitted as members and the privileges, rights and liabilities of such members
27Form of application for, and manner of, admission as a member
28Procedure for removal of an individual deemed to have been admitted as a member
29Procedure for refund of value of share or interest in the capital by financing bank or apex society to individual members on the cessation of membership
30Membership in more than one society of certain classes of societies
31Restriction on admission of certain individuals
32Admission of associate members
33Class of persons for purpose of clause (a) of sub-section (3) of section 23
34Procedure for deciding question under sub-section (4) of section 23
35Removal of a member of a society
36Time limit to communicate the decision of the board and to apply for redress
37Manner of giving opportunity to a member before expulsion under section 25
38Restrictions on defaulting member to vote at election or to represent a society in any other society
39Restrictions on the right of a member to attend and participate in meeting
40Fees for inspection of accounts by members
41Classes of cases in respect of which refund of share or interest in the capital may be made before the expiry of two years
42Nomination under section 30
43Transfer or refund of share or interest in the capital on death of a member
44Valuation of share or interest in the capital for the purpose of repayment
45Shares not to be hypothecated to society

Chapter VGeneral Meeting and Management of Societies

46General meeting of societies
47Representative general body and its constitution
48Near relations of members of a board for purpose of clause (d) of sub-section (2) of section 32
49Societies which may requisition special general meeting and special board meeting of other societies
50[ [Rule 50 omitted by SRO A-1 (a)/ 2013-G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (CJ1), dated 31.1.2013, w.e.f. 31.1.2013.]
51[ Election of members of the board of a primary society other than a scheduled co-operative society. [Rule 51 was substituted by G.O. Ms. No. 716, Co operation, Food and Consumers Protection, dated the 19th August 1989.]
51A[ Eligibility to vote at, or stand for, election. [Rule 51A was inserted by G.O. Ms. No. 637, Co-operation, Food and Consumers Protection, dated the 29th June 1990.]
52Election of members of the board
52A[ Powers and functions of the Election Commission. [Substituted by SRO A-1(a)/ 2013 - C O. Ms. No. 10, Co-operation, Food and Consumer Protection (Cjl), dated 31.1.2013,w.e.f. 31.1.2013.]
53Election of office-bearers
53A[ Manner of election of delegate. [Rule 53-A was inserted by G.O. Ms. No. 716, Co-operation, Food and Consumers Protection, dated the 19th August 1989.]
55[ Representative of a society to the board of another society. [Substituted by SRO A-1(a)/2013 - G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (Cj1), Dated 31.1.2013. w.e.f. 31 1.2013]
56[ Term of office of delegate. [Substituted by SRO A-1(a)/ 2013 - G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (Cj1), dated 31.1.2013, w.e.f. 31.1.2013.]
57Exercising powers and performing functions of the President in certain circumstances
58Meeting of the board and failure to attend meeting, etc
59Constitution of the board of scheduled co-operative societies
60Resignation from membership of the board
61Removal of an elected member of the board
61A[ [Rule 61A was inserted by G.O. Ms. No. 270, Co-operation, Food and Consumers Protection, dated 5.6.1992.]
62Removal of an elected office-bearer

Chapter VIProperties and Funds of the Societies

68Declaration under section 41
69Deduction from the salary or wages
70Transaction with non-members
71Purchase of products or commodities for sale
72Procedure for making purchase by sample, description or specification and verification of the goods so purchased
73Prohibition against and restrictions on making purchases or transacting business by societies
74Prohibition against a society entrusting whole of its business and restriction on entrusting part of its business to others
75Restrictions on grant of loans
76Conditions for making loan and providing over drafts, etc., to depositors by financing bank
77Restrictions on borrowings by societies
78Investment of funds in immovable properties
79Investment of funds in a banking company
80Maintenance of fluid resources
81Payment to a member for work done by him as a clerk
82Payment of honorarium from general funds by a society with accumulated loss but working on current profit
83Rebate on patronage out of funds of society
84Society not to incur expenditure towards election dispute
85Incurring expenditure from the funds of a society on special occasions
86Expenditure on advertisements
87Use of premises and immovable properties

Chapter VIIAudit, Inquiry, Inspection or Investigation, Surcharge and Supersession

101Preparation of financial statement and other details required for audit
101A[ Qualifications of auditors and auditing firms. [Inserted by SRO A-1(a)/ 2013 - G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (Cj1), dated 31.1.2013, w.e.f. 31.1.2013.]
102Procedure for conducting.audit
103Levy of audit fees
104Procedure regarding inquiry, inspection or investigation
105Manner of consulting the financing bank under section 88
106Duties of the Special Officer appointed under section 88 or section 89

Chapter VIIISettlement of Disputes and Issue of Certificate and Decision

107References of disputes
108Issue of certificate under sub-section (1) of section 150
109Procedure for taking decision on petitions and applications for which no separate procedure is provided for
110Fees for application or petition under the Act, etc

Chapter IXIssue of Summons and Service of Notice or Communication

111Mode of service of summons
112Procedure for service of notice, etc

Chapter XWinding up and Cancellation of Registration of Societies

113Procedure to be followed before ordering the winding up of a society under section 137
114Procedure to be adopted by Liquidator

Chapter XIExecution

115Procedure for delivery of immovable property resumed for breach of the conditions of assignment or allotment
116Application for execution of decree
117Fees chargeable for the processes of execution
118Procedure to be followed where the judgement-debtor dies before full satisfaction of decree
119Procedure on receipt of application for execution of decree
120Mode of proceeding against the properties of judgement-debtor
121Rule for seizure and sale of movable property
122Attachment of salary or allowances of public officer or servant of a railway administration or local authority or co-operative society or firm
123Attachment of share or interest in movables, negotiable instruments and property in custody of Court or public officer
124Attachment of decree
125Attachment of debt, share or other property not in possession of judgement-debtor
126Procedure in attachment and sale of immovable property
127Application to set aside sale on deposit
128Application to set aside sale on ground of irregularity or fraud
129Confirmation of sale and issue of sale certificate
130Delivery of possession
131Reconveyance of immovable property by a society
132Private alienation of property after attachment to be void
133Cost and charges recoverable from sale proceeds
134Receipts for payment of amount due

Chapter XIIOfficers and Employees of Societies

145Qualifications of the [Managing Directors or the Chief Executive Officers] [Substituted for 'Managing Directors' by SRO A-1(a)/ 2013 - G.O. Ms. No. 10, Co-operation, Food and Consumer Protection (Cj1), dated 31.1.2013, w.e.f. 31.1.2013.]
146Powers and functions of the Managing Director
147Appointment of paid Secretary
148Security to be furnished by paid employees of societies
149[ Conditions of service of paid officers and servants of societies. [Substituted by G. O. Ms. No. 212, Co-operation, Food and Consumers Protection, dated the 4th July 1995.]
150[ Constitution of Recruitment Bureau. [Substituted by SRO A-7/ 2011 - G.O. Ms. No. 25, Co-operation, Food and Consumer Protection (Cj1), dated 27.2.2013.]
151[ Procedure to be followed by Recruitment Bureau. [Substituted by SRO A-7/2011 - G.O. Ms. No. 25, Co-operation, Food and Consumer Protection (Cj1), dated 17.2.2011.]
152Common cadre of service

Chapter XIIIJoint Farming Societies

153Declaration to be made by members of joint farming society
154Matters to be specified in the agreement with joint farming society
155Purpose for which lands may be acquired for a joint farming society
156Proceedings of Arbitrator in land acquisition cases and deposit of charges before acquisition

Chapter XIVLift Irrigation Societies

157Extent of land for purposes of sub-section (2) of section 104
158Declaration by members of lift irrigation society
159Term of agreement in favour of lift irrigation society
160Condition for withdrawal of membership of a lift irrigation society

Chapter XVAgriculture and Rural Development Banks

161Procedure tor distraint and sale under section 118 of produce of the mortgaged agriculture and rural including the standing crops thereon
162Procedure for sale of mortgaged property under section 119
163Application for recovery of moneys under section 120
164Authorisation of the officers of State Agriculture and Rural Development Bank or Primary Agriculture and Rural Development Bank to exercise the powers under the Tamil Nadu Revenue Recovery Act, 1864
165Procedure regarding action under section 123 by the board of the State Agriculture and Rural Development Bank or the Trustee
166Manner of certifying copies under sub-section (3) of section 129

Chapter XVIAppeae, Revision and Review

167Qualification of members of Co-operative Tribunal
168Procedure regarding the disposal of appeal by the Co-operative Tribunal
169Procedure regarding appeals other than those to Co-operative Tribunal and application for revision
170Application for review
171Fees chargeable for the processes of appeal, revision and review
172Authority to execute orders passed in appeal) revision or review

Chapter XVIIMiscellaneous

173Fees for granting certified copies of document in the Registrar's Office
174Payment of expenses by societies
175Application of this Chapter
176Definitions
177Statement and returns to be furnished by sugar mill to the Registrar
178Additional qualifications for membership of a sugar mill
179Membership in more than one sugar mill
180Expulsion from membership of sugar mill
181Restriction on the continuance of certain members
182Admission of associate member
183Power to grant loans
184Entrustment of the business of a sugar mill
185Constitution of committees
186Purchase and use of vehicles and telephones
187Conditions of service
188Co-operative Research and Development Fund
189Powers and functions of the Managing Director
190Restriction on defaulting member to vote at election or to represent sugar mill in any other society

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TNCOS Rules 39Chapter IV · Members of Co-Operative Societies their Rights and Liabilities

Section 39 · Restrictions on the right of a member to attend and participate in meeting

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- No member shall be entitled to attend and participate in the meeting of the board or of the general body when a subject in which he is interested directly or indirectly is under consideration:Provided that nothing contained in this rule shall apply to an office bearer or a member of the board from attending and participating in the special meeting of the board called for the purpose of removing him from his office or membership of the board; or to a member of the society from attending and participating in the special meeting of the general body convened under sub-section (1) of section 25 for expulsion of such member.

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