TNCOS Rules 6Chapter II · Registration of Co-Operative Societies and Bye-Laws

Section 6 · Subject matter of bye-laws

(1)

The bye-laws may deal with all or any of the following matters, namely:-

(a)

the name and address of the society;

(b)

the area of its operations;

(c)

the objects of the society;

(d)

the purposes for which its funds may be applied;

(e)

the qualifications for, admission to, membership and the payment, if any, to be made or interest to be acquired as a condition precedent for exercising the right of membership;

(f)

the liability of the members of the society whether limited or unlimited, and if limited liability, the nature and extent of the liability of the members for the debts contracted by the society;

(g)

whether persons who are minors or of unsound mind may be admitted as members, and if so, the privileges, rights and liabilities of such members as specified in the rules;

(h)

whether persons may be admitted as associate members, and if so, the qualifications therefor as specified in the rules;

(i)

the nature and amount of share capital, if any, of the society;

(j)

the entrance and other fees, if any, to be collected from members;

(k)

the circumstances under which withdrawal from membership shall be permitted and the procedure to be followed in cases of withdrawal, ineligibility and death of members;

(l)

the maximum share capital that can be refunded, if any, in any co-operative year by the society;

(m)

the procedure for expulsion of members and as to how the assets and liabilities of an expelled member in the society shall be dealt with;

(n)

the constitution of representative general body and the powers of the general body that are exercisable by the representative general body and the restrictions and conditions subject to which the representative general body may exercise its powers;

(o)

the number of members to be elected by different constituencies to the board;

(p)

the constitution of the board and the duties and powers of the board and officers;

(q)

the constitution and functions of advisory body or purchase committee, if any;

(r)

the manner in which the society may borrow funds, the maximum borrowing power, the maximum rate of interest payable on borrowings and the procedure to be followed in such borrowings;

(s)

conditions regarding marketing of produce of members;

(t)

the manner in which tire society shall transact business with its members and others and the terms and conditions governing such business;

(ta)[ the conditions regarding the minimum level of services of the society that shall be utilised by a member;] [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.]

(u)custody, maintenance and keeping of cash and other properties, the mode of custody and investment of funds and the mode of keeping the accounts, books and records;

(v)the consequences of default or payment of any sum due by a member;

(w)

convening of the meetings of the general body and the board, notice, business and quorum for such meetings, conditions for, and manner of, adjournment of such meetings;

(wa)[ the conditions regarding the minimum requirement of attending the meetings of the general body by a member of the society;] [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.]

(x)the nature of penalty and manner in which such penalty may be imposed on a member for non-compliance with the terms and conditions subject lo which services are rendered by the society;

(y)

the authorisation of an officer or officers to sign documents including contracts to institute and defend suits and other legal proceedings on behalf of the society;

(z)

the method of appropriating payments made by members from whom moneys are due;

(aa)

the preparation and submission of annual or other statements as are specified in the Act or these rules and the publication of the same;

(bb)

the other funds to which and the rates at which contribution from the net profits may be made under clause seventhly of sub-section (2) of section 72;

(cc)

the constitution and maintenance of various funds as required to be maintained under the Act these rules and the bye-laws;

(dd)

the utilization of the reserve and other funds constituted by the society out of profits;

(ee)

the settlement of disputes referred to in section 90;

(ff)

the affiliation of the society to a financing bank or any other institution;

(gg)

the inspection of the accounts of the society by members and the fee payable;

(hh)

the manner of making, amending or repealing bye-laws;

(ii)

in the event of winding up of the society, the purpose for which surplus assets, if any, shall be utilised;

(jj)

in the case of credit societies-

(A)

the maximum amount of loan or advance that may be made to a member;

(B)

the maximum rates of interest chargeable on loans or advances made to members;

(C)

the conditions subject to which loans or advances may be made to members and penalties for misapplication of loans or advances so made;

(D)

the procedure for granting extension of time for the repayment of loans or advances;

(E)

the circumstances under which a loan or advance may be recalled;

(kk)

in the case of non-credit societies, the mode of conducting business such as purchase, storing, processing, sale, stock taking and other like matters;

(ll)

in the case of society having both credit and non-credit functions, matters referred to in clauses (jj) and (kk);

(mm)

subject to the provisions contained in sections 73 to 77 and the rules made and orders issued hereunder, special bye-laws specifying the authority competent to fix, revise or regulate the strength of the establishment, the scales of pay and allowances of the employees of the society; and the conditions of service of employees of the society providing for-

(A)the age at entry in service and for retirement on superannuation;

(B)the minimum educational and other qualifications for tire several categories of employees;

(C)the method of recruitment of candidates;

(D)the service conditions including leave to which employees are eligible, the authority competent to sanction leave, the penalties that may be imposed by way of disciplinary action and the authority competent to impose such penalties and the appellate authority in respect of disciplinary action taken by such authority;

(E)the establishment of employees provident fund; and

(F)

payment of gratuity on retirement or death.

(2)

The bye-laws may also deal with such other matters incidental to the organisation and working of the society and the management of its business as may be deemed necessary.

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