The Multi-State Cooperative Societies Rules, 1985

CHAPTER IV: DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES

20. Annual general meeting-

Every multi-State cooperative society shall hold the annual general meeting of its members(referred to in section 30) within six months of the close of the cooperative year.

21. Constitution of smaller general body-

(1) Without prejudice to the provision of sub-section (3) of section 29, a multi-State cooperative society with a membership exceeding one thousand may provide in its bye-laws for the constitution of a smaller body. The smaller general body so constituted shall exercise such powers as may be specified in the bye-laws of the multi-State cooperative society.

(2) The bye-laws of such society may specify the principle or the basis for constitution of a representative general body and procedures thereto.

22. Interim board and general meeting for first election-

(1) The board of directors selected by the applicants for the registration of the multi-State cooperative society shall hold office till the directors are elected in the first general meeting of the multi-State cooperative society.

(2) The first general meeting for this purpose shall be held with six months of the registration of the multi-State cooperative society.

23. Notice for general meeting-

Annual general meeting of a multi-State cooperative society may be called by giving not less than fourteen days notice in writing.

(2) Special general meeting of a multi-State cooperative society may be called by giving not less than seven days notice in writing.

(3) When a general meeting is called by the Central Registrar under the second proviso to sub section (1) of section 30, he may determine:-

(i) the period of notice of such meeting which shall not be less than seven days;

(ii) the time and place of such meeting and

(iii) the subjects to be considered in such meeting.

The Central Registrar or any person authorised by him may preside over such meeting.

(4) The notice of general meeting shall be accompanied by a copy each of the audited balance sheet, profit and loss account, together with the auditors report thereon relating to the proceeding year and the report of the board.

24. Quorum at a general meeting-

(1) Unless otherwise provided in the bye-laws, the quorum for a general meeting shall be one-fifth of the total number of members of the multi-State cooperative society.

(2) No business shall be transacted at any general meeting unless there is a quorum at the time when the business of the meeting is due to commence.

(3) If within half-an hour from the time appointed for the meeting a quorum 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.

(4) If at any time during the meeting sufficient number of members are not present to form the quorum 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.

(5) Where a meeting is adjourned under sub-rule (3) or sub-rule (4) 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.

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

(7) No quorum shall be necessary in respect of an adjourned general meeting.

25. Voting in general meeting-

(1) All resolutions which are put to vote at the general meeting shall be decided by a majority of the members present and voting unless otherwise required under the Act, these rules or the bye-laws of the multi-State cooperative society. Voting shall be by show of hands unless a poll is demanded by atleast ten members present at the meeting. If no poll is demanded, a declaration by the Chairman/President of such meeting that a resolution has been carried or lost and an entry to that effect in the minutes of the proceedings shall be conclusive proof of the fact that such resolution has been duly carried or lost.

(2) If a poll is demanded, the votes shall be taken by ballot as may be decided by the Chairman of the meeting unless otherwise specified in the bye-laws in this behalf, and the result of the poll shall be deemed to be the decision of the general meeting regarding the resolution over which the poll is demanded.

(3) When a poll is taken, the number of members voting for or against a resolution over which the poll is demanded.

(3) When a poll is taken, the number of members voting for or against a resolution shall be recorded in the minutes of the proceedings.

(4) In the case of equality of votes whether on a show of hands or on a poll, the Chairman of the meeting at which show of hands takes place or the poll is taken, shall have a second or casting vote.

26. Minutes of the general meeting-

Minutes of the proceedings of the general meeting shall be entered in a minutes book kept for the purpose and shall be signed by the Chairman of

the meeting. The minutes so signed, shall be an evidence of the correct proceedings of that meeting.

27. Procedure for conduct of elections-

(1) Notwithstanding anything contained in these rules and without prejudice to the generality of the powers of the Central Government under sub-section (1)of section 35, the election of the members of the board of directors of the national cooperative society specified in the Second Schedule to the Act and such other multi-State cooperative society or class of multi-State cooperative societies as the Central Government may, by general or special order, notify, shall be conducted by such returning officer or officers as may be appointed by the Central Registrar in this behalf. The election in such societies shall be conducted in the manner specified in the Schedule.

(2) Notwithstanding anything contained in sub-rule(1) where a requisition to appoint a returning officer to conduct an election is received from not less than 1/5 of the total number of members eligible to vote in a multi-State cooperative society sixty days in advance of the date for election, the Central Registrar shall appoint a returning officer to conduct election in the manner specified in the Schedule.

28. Election of office bearers-

As soon as the members of the board have been elected the returning officer referred to in sub-rule(1) of rule 27 or the person presiding over the general meeting, as the case may be, shall, notwithstanding anything contained in the bye-laws of the multi-State cooperative society specifying the period of notice, convene a meeting of the newly elected members of the board for the purpose of election of the President/Chairman, Vice-President/Vice-Chairman or other elected office-bearers of the society, by whatever name they are called. Such a meeting of the board shall not be conducted unless a majority of the number of members of the newly constituted board, as per bye-laws, are present.

29. Custody of record of election conducted-

After declaration of the result of election, the returning officer, (referred to under sub-rule(1) of rule 27 or the Chairman of the meeting, as the case may be shall handover the ballot papers and records, if any, relating to the election of the members of the board of directors and the office bearers to the Chief Executive of the multi-State cooperative society in sealed cover. They

shall be preserved by the Chief Executive of the society for a period of six months from the date of election or till such time a dispute or an appeal thereof regarding elections, if any, is disposed of, whichever is later, and shall thereafter be destroyed.

30. Restrictions and Conditions for payment of honorarium to the Chairman and the President.

A multi-State cooperative society may provide in its bye-laws for the payment of honorarium to the elected Chairman or President of the board of directors, out of profits, in respect of specific services rendered by him, on such scale as may be laid-down in the bye-laws of such a society, but in no case exceeding the limit and terms and conditions hereunder referred to:

(a) that the societys financial position is sound;

(b) that for its recurring expenses it does not depend on grants or subsidies from the Central Government or the State Government; and

(c) that the honorarium to be paid, whether as a consolidated amount or in the shape of daily allowance in respect of the days of halt at the headquarters, in addition to the sitting fees in respect of board meeting as and when such meetings are held, is limited to rupees twenty-five thousands per year.

31. Central Government or State Government nominees on the board-

(1) Where the Central Government or the State Government has subscribed to the share capital of a multi-State cooperative society, or has guaranteed the repayment of principal and payment of interest on debentures issued by such society, or has guaranteed the repayment of principal and payment of interest on loans and advances to such society, or has provided grant or subsidy to such society, the Central Government or the State government as the case may be, or any other person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons not exceeding 3 or 1/3rd of the total number of members thereof, whichever is less.

(2) Notwithstanding anything contained in these rules, the bye-laws of a multi-State cooperative society may provide for the nomination by the Central

or State Government of persons in excess of the limits referred to in sub-rule (1).

32. Additional measures and acts to be undertaken by the board-

The board may take any of the measures or do any of the acts mentioned below as may be necessary or expedient for the purposes of carrying out its functions under the Act and the rules made thereunder:

(i) placing be fore the general body the annual report and the audit report;

(ii) Recommending the distribution of profits to the general body;

(iii) taking decisions on matters relating to withdrawals, transfer, retirement, refund or forfeiture of shares;

(iv) purchasing, selling, or otherwise acquiring or disposing of moveable property of such value as may be specified in the bye-laws;

(v) Laying down criteria for determining defaults by members;

(vi) determining the terms and conditions of collaboration with other cooperative societies and others;

(vii) sanctioning of contracts of any values, unless otherwise specified in the bye-laws of a multi-State cooperative society;

(viii) appointment of trustee or trustees, attorney or attorneys, agent or agents for the business of the multi-State cooperative society;

(ix) acceptance or rejection of resignation from the members of the board.

33. Meetings of the board-

(1) The board shall meet at least once in every quarter, provided that the total number of the meetings of the board shall not ordinarily exceed six in a year.

Provided further that this provision will not apply to multi-State thrift and credit societies.

(2) The meeting of the board of the multi-State cooperative society shall ordinarily be held at the registered office of such society.

34. Committees of the board-

(1) The board of a multi-State cooperative society may constitute an Executive Committees and other committees or sub-committee as may be considered necessary.

(2) Besides the Executive Committee, the number of other committees or sub-committees referred to in subsection (1) of section 46 shall not exceed two:

Provided that the board may with the approval of the Central Registrar constitute more than two committees.

35. Constitution of National Cooperative Societies Selection Committee-

(1) The Central Government shall constitute a body to be called the National Cooperative Societies Selection Committee (hereinafter referred to as the Selection Committee) consisting of the following persons:

(i) The Secretary to the Government of India

Department of Agriculture and Cooperation Chairman

(ii) The Additional Secretary to the Government of India

Department of Agriculture and Cooperation dealing

with cooperation Member

(iii) Chairman of two national cooperative societies

to be nominated by the Central Government Member

(iv) One expert in the management to be nominated

by the Central Government Member

(v) The Managing Director

National Cooperative Development Corporation Member

(vi) Central Registrar of Cooperative Societies Member Secretary

(2) The Selection Committee shall prepare list of persons eligible for appointment to the post of the Chief Executive and other managerial posts in the national cooperative societies, the maximum pay scale of which exceeds rupees four thousand per month in the manner hereinafter provided.

(3) The Central Registrar shall, on the requisition received from the national cooperative society, convene the meeting of the Selection Committee for the purpose of preparation of list for the appointments to the post or posts for which the requisition has been received.

(4) The Selection Committee shall,-

(a) take appropriate steps to advertise, circulate or otherwise call for the names for the posts referred to in sub-rule(2);

(b) screen the names received and prepare list of persons, after interview if necessary, suitable for appointment for the said posts in order of merit and forward it to the Central Government for its onward transmission to the concerned national cooperative society:

Provided that in the case of the existing Chief Executive or persons employed in other managerial posts in the national cooperative society on the date of the coming into force of these rules, who are in regular employment of the society, no such reference to the Selection Committee will be necessary:

Provided further that in the case of the Chief Executives or persons employed in other managerial post who are on deputation with the national cooperative society on the date of the enforcement of these rules, a reference to the Selection Committee shall be necessary on the expiry of the terms of deputation of such Chief Executives or persons.

(5) The national cooperative society shall appoint the persons to the post of the Chief Executive and other managerial posts mentioned in sub-rule (2) from the list of persons recommended by the Selection Committee.

(6) The Selection Committee may coopt two experts at the time of selection of persons according to the requirements of posts or category of posts for which the list of persons is to be prepared.