Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Management of Cooperative Societies

28. Final authority in a cooperative society.
  1. The final authority in a co-operative society shall vest in the general body of members :

    1. Provided that where the bye-laws of a co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, the smaller body shall, exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.

  2. Notwithstanding anything contained in sub-section (2) of section 24 each delegate shall have one vote in the affairs of the society.
29. Annual general meeting.
  1. Every co-operative society shall, within a period of six months next after the dated fixed for making-up its accounts for the year under the rules for the time being in force, call a general meeting of its member for the purpose of -

    1. approval of the Programme of the activities of the society prepared by the committee for the ensuring year.

    2. election, if any, of the members of the committee other than nominated members subject to the provisions of section 31.

    3. consideration of the audit report and the annual report.

    4. disposal of the net profit; and

    5. consideration of any other matter which may be brought forward in accordance with bye-laws.

  2. Provided that the Registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months.

  3. Provided further that, if in the opinion of the Registrar no such extension is necessary, or such meeting is not called by the society within the extended period, if any, granted by him, the Registrar 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 dully called by the 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 person or persons who in the opinion of the Registrar, where responsible for the refusal or failure to convene the general meeting.

  4. At every annual general meeting of a co-operative society, the committee shall lay before the society a statement showing the details of the loans, if any, given to any of the members of the committee during the preceding year.
30. Special general meeting.
  1. The committee of a co-operative society may, at any time, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be provided in the bye-laws.

  2. If a special general meeting of a co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorized by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee, 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 person or persons who, in the opinion of the Registrar were responsible for the refusal or failure to convene the special general meeting.
31. Election and nomination of members of committees.
  1. The superintendence, direction and control of the preparation of the electoral rolls for , and the conduct of, elections of the members of the committees of such co-operative societies or class of co-operative societies as may be prescribed shall be vested in such returning officers not below the rank of gazetted officers as may be appointed by the Lieutenant-Governor in this behalf.

  2. The vote at such elections shall be by secret ballot.

  3. The term of office of the elected members of the committee shall be such, not exceeding three co-operative years including the co-operative year of their election, as may be specified in the bye-laws of the society.

  4. Provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of the Act or the rules or bye-laws.

  5. No person shall be eligible to be elected members shall continue to hold office till their successors are elected or nominated under the provisions of Act or the rules or bye-laws.

  6. Not withstanding anything contained in this Act, a person shall be disqualified for election as, or for being, the president, vice-president, chairman, vice-chairman, managing director, secretary joint secretary or treasurer of a committee -

    1. if he has held any such office on a committee during two consecutive terms whether full or part,

    2. if he holds any such office on a committee of another co-operative society of the same type.

    3. if he holds any such office on the committees of three or more co-operative society of the same type.

  7. Provided that nothing contained in this sub-section shall be deemed to disqualify any such person for election as, or for being, a delegate of a society or a member of another committee.

  8. Explanation 1. - Where any person holding any office as aforesaid at the commencement of this Act is again elected to any such office after such commencement, he shall for the purpose of this sub-section be deemed to have held that office for one term before such election.

  9. Explanation 2 - A person who has ceased to hold any such office as aforesaid continuously for one full term shall again be qualified for election to any of those offices.

  10. On the committee of such co-operative societies or class of co-operative societies as may be prescribed, two seats shall be reserved, one for the members who belong to the Scheduled Castes and one for economically weaker sections of the members who as land-owners or tenants or as both do not hold more than the prescribed area of agriculture land or fulfill the prescribed conditions and if no such persons are elected, the committee shall co-opt the required number of members from amongst the persons entitled to such representation.

  11. Provided that in the case of a primary agricultural credit society such number of seats, being not less than one-half of the total number of members of the Committee, shall be reserved for members belonging to the Scheduled Castes and the aforesaid economically weaker sections of the members a s may be prescribed, and if no such persons are elected, the Committee shall co-opt the required number of members from amongst the persons entitled to such representation.

  12. Explanation - For the purpose of this sub-section.

    1. "Scheduled Castes" means any of the Scheduled Castes specified in part 1 of the Schedule to the Constitution (Scheduled Castes) (Union Territories) order, 1951.

    2. "Primary agricultural credit society" has the meaning assigned to it in clause (cii) of section 2 of the Reserve Bank of India Act, 1934.

    3. Notwithstanding anything contained in this Act, any dispute relating to the election of members of committee of a co-operative society mentioned in sub-section (1) shall be referred to the Lieutenant-Governor whose decision thereon shall be final.

  13. The Lieutenant-Governor may make rules generally to provide for or to regulate matters in respects of elections of member of the committees.

  14. Notwithstanding anything contained in sub-section (1) to (8).

    1. where the Central Government has subscribed to the share capital of a co-operative society, the Central Government or any person authorized by it in this behalf shall have the right to nominate on the committee such number of persons not exceeding there or one-third of the total number of members thereof, whichever is less, as the Central Government may determine.

    2. where the Industrial Finance Corporation, the State Finance Corporation or any other financing institution notified into his behalf by the Central Government has provided finance to a cooperative society, the Industrial Finance Corporation, State Finance Corporation or other financing institution, as the case may be, shall have the right to nominate one person on the committee.

  15. A person nominated under sub-section (9) shall hold office during the pleasure of the Central Government or the Corporation or other financing institution, as the case may be.
32. Super session of committee.
  1. If, in the opinion of the Registrar, the committee of any co-operative society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or commits any act which is prejudicial to the interest of the society, or its members, the Registrar may, after giving the committee an opportunity to state its objections, if any, by order in writing, remove the committee; and

    1. order fresh election of the committee, or

    2. appoint one or more administrators who need not be members of the society to manage the affairs of the society for a period not exceeding one year specified in the order which period may, at the discretion of the Registrar be extended from time to time so; however, that the aggregate period does not exceed three years.

  2. The Registrar may fix any remuneration for the administrator, as he may think fit. Such remuneration shall be paid out of the funds of the society.

  3. The administrator shall, subject to the control of the Registrar and to such instructions as he may from time to time give have power to exercise all or any of the functions of the committee he may from time to time give have power to exercise all or any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of society.

  4. The administrator shall at the expiry of his term of office, arrange for the constitution of a new committee in accordance with the bye-laws of the society.

  5. Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing institution to which it is indebted.

  6. Notwithstanding anything contained in this Act, the Registrar shall in the case of a cooperative bank, if so required in writing by the Reserve Bank in the public interest or for preventing the affairs of the co-operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of a co-operative bank pass an order for the suppression of the committee of the co-operative bank and appoint an administrator therefore, for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank.

33. Securing Possession of records etc.

  1. If the record, registers or the books of accounts of a co-operative society are likely to be tampered with or destroyed and the fund and property of society are likely to be misappropriated or misapplied; or

  2. If the committee of a co-operative society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under section 32 or if the society is ordered to be wound up under section 63 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to those having or entitled to receive such charge the Registrar may apply to the magistrate, within whose jurisdiction the society function, for securing the records and property of the society.

  3. On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorize any police officer not below the rank of sub-inspector to enter and search any place where the records and the property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new committee or administrator of the society or the liquidator, as the case may be.
34. Acts of cooperative societies not to be invalidated by certain defects.
  1. No act of a co-operative society or of any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in procedure or in the constitution of the society or of the committee or in the appointment or election of an office or on the ground that such officer was disqualified for this appointment.

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Last Updated : 23 Mar,2014