The power of the central government to issue directions to specific multi-state cooperatives in the public interest. For the purpose of registration of a multi-state co-operative society under this Act, an application shall be filed with the Central Registrar in such form and with such particulars as may be prescribed.
Multi-state cooperative society to be body corporate
Bye-laws of multi-state cooperative societies
Amendment of bye-laws of a multi-state cooperative society
In any case where a multi-state co-operative society proposes to amend its by-laws, an application for registration of such amendments shall be made to the Central Registrar together with-. a) a copy of the decision referred to in sub-section (2);. Provided that if the application for registration is not rejected within the period of three months specified in subsection (7) or the Central Registrar fails to communicate the order of rejection within such period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue registration certificate in accordance with the provisions of this law.
When amendment of bye-laws comes into force
Change of name
Publication of name by multi state cooperative society Every multi-state cooperative society-
Liability
Amalgamation or transfer of assets and liabilities, or division of multi-state cooperative societies
A resolution adopted by a multi-State cooperative society under this Article shall not come into force until the assent thereof of all members and creditors has been obtained. Central Registrar to prepare a merger or reorganization plan for a cooperative bank in certain cases.
Central Registrar to prepare scheme of amalgamation or reorganisation of a cooperative bank in certain cases
Provided, that the Multistate Cooperative shall not, while promoting such Subsidiary Institution, transfer or assign a substantial part of its business or activities carried on in furtherance of its stated objectives. Explanation – For the purposes of this section,-. a) an institution is considered a subordinate institution if it is a multinational cooperative, -. i) supervises the management or board of directors or members of the governing body of such an institution; or ii) owns more than half of the nominal value of the equity shares of such institutions; or iii) if one or more members of such multi-state cooperative, either alone or together with a subsidiary institution or their relatives, as the case may be, holds a majority of the ownership interests in such institution;.
Cancellation of registration certificate of multi-state cooperative societies in certain cases
Provided that no cooperative society shall be deemed to have been converted into a multi-state cooperative society for any reason whatsoever unless such society is registered as a multi-state cooperative society. When the amendment to the articles of association is registered by the Central Registrar, from the date of registration of the amendment the cooperative becomes a multi-state cooperative.
Registration of federal cooperative
Functions of federal cooperative
Persons who may become members
Nominal or associate members of society
Educational course for members
Members not to exercise rights till due payment made
Disqualification for member of a multi-state cooperative society
Expulsion of members
Provided that the member concerned shall not be suspended unless he has been given a reasonable opportunity to make representations in the matter. 2) No member of the multi-state cooperative association, who has been expelled under sub-section (1), shall be eligible for readmission as a member of that association for a period of one year from the date of such expulsion.
Vote of members
Manner of Exercising Vote
No member, other than the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 of a multi-state co-operative society or a co-operative society, may hold more than such portion of the total share . capital of the society (in no case more than one-fifth thereof) as prescribed in the rules or by-laws of such multi-state co-operative society.
Restriction on transfer of shares or interest
Redemption of shares
Transfer of interest on death of members
No member, other than the bodies referred to in clauses (c) to (g) of sub-section (1) of section 25 of a multi-state cooperative or co-operative society, shall hold more than such proportion of the total share capital of the company (in no case exceeding one-fifth) as may be prescribed in the rules or articles of association of such multi-state cooperative. 3) All transfers and payments made by the Multistate Cooperative pursuant to the provisions of this section shall be valid and effective against any claim made upon the Cooperative by any other person.
Liabilities of past member and estate of deceased member
Constitution, powers and functions of general body
Provided that where the articles of association of a multi-state co-operative society provide for the representation of other institutions in a meeting of a general body or on the board of directors of such multi-state co-operative society, such institutions shall be represented by its nominee.
Annual general meeting of general body
Special general meeting of general body
Board of directors
Provided also that functional directors in national cooperatives are also members of the board of directors and that such members are excluded for the purpose of counting the total number of directors specified in the first condition.
Association of employees in management decision making process
Disqualifications for being a member of board
Provided also that the functional directors in the national cooperative societies will also be the members of the board and such members will be excluded for the purpose of counting the total number of directors specified in the first proviso. is a member, or is otherwise indebted to such society and after receiving a notice of default issued to him by such society, has defaulted-. i) for repayment of such loan or debt or for payment of the price of the goods taken on credit, as the case may be, within the date fixed for such repayment or payment or where such date is extended, which in no case may not exceed six months, within the date so extended, or. ii) when such loan or debt or the price of goods taken on credit is payable in installments, in payment of any instalment, and the default amount or any part thereof has remained unpaid on the expiry of six months from the date of such default:. Provided that a member of the council who has ceased to hold office as such in terms of this clause shall not for a period of one year, from the date on which he ceased to hold office, for re-election as a member of the board of the multi-state cooperative society of which he was a member or for the election to the board of any other multi-state cooperative society;. h) is a person against whom any amount is due under a decree, decision or order pending collection under this Act;. i) is retained or employed as a legal practitioner on behalf of or against the multi-state cooperative society, or on behalf of or against any other multi-state cooperative society which is a member of the former society.
Prohibition to hold office of chairperson or president or vice- chairperson or vice president in certain cases
Prohibition of office of chairman or president or vice-chairman or vice-chairman in certain cases.
Elections of members of board
Provided that elected members shall continue to hold office until their successors are elected or nominated under the provisions of this Act or the rules or regulations and assume the control of their office.
Holding of office in cooperative society
Removal of elected members by general body
Nominee of Central Government or State Government on the board
Provided that the number of such appointed persons shall not exceed one-third of the total number of members of the Board of Directors:. Provided further that where the Central Government or a State Government has guaranteed repayment of principal and payment of interest on debentures issued by a multi-state co-operative society or has guaranteed repayment of principal and payment of interest on loans and advances to a multi-state co-operative society or has provided assistance in the form of of grant or otherwise to a multi-state co-operative society, the Central Government or the State Government in that behalf, as the case may be, or any person authorized by the Central Government shall have the right to nominate person to the board of directors of such society in such manner as had to be prescribed.
Meeting of board
Chief Executive
Powers and functions of Chief Executive
Committees of board
Insurance of possession of records, etc. a) there is a possibility that the records, including the registers and business books of the multi-state cooperative, will be altered or destroyed, or that the funds or other property of such company will be unlawfully appropriated; or b) the board of the multinational cooperative is reconvened at the general meeting of the company; or c) the multi-state cooperative is ordered to be wound up under section 86 and the outgoing board members refuse to hand over responsibility for the company's records and property to those who have or are entitled to receive such responsibility. the executive director may apply to the judge under whose jurisdiction the multi-state cooperative operates to secure the company's records and property.
Charge and set-off in respect of share or contribution or interest of members
Share of contribution or interest not liable to attachment
Register of members
Admissibility of copy of entry as evidence
Exemption from compulsory registration of instruments
Deduction from salary to meet multi-state cooperative society’s claim in certain cases
Government aid to multi-state cooperative societies
Provided that in the case of such multi-state co-operative societies having no share capital, the excess of income over expenditure shall not be treated as net profit and such excess shall be treated in accordance with the by-laws.
Disposal of net profits
Investment of funds
Provided that such society may add to the net profits for the year interest accrued in the preceding years, but actually recovered during the year:.
Restriction on contribution
Restriction on loans
Restrictions on borrowing
Restrictions on other transactions with non-members
Contributory provident fund
Provided that where such vacancy is caused by the resignation of an auditor, the vacancy shall only be submitted by the multi-state cooperative association in general meeting. Explanation- For the purposes of this subsection, any sums paid by the multi-state co-operative society in respect of the auditors'.
Provision as to resolutions for appointing or removing auditors
Any auditor appointed to a causal vacancy shall hold office until the conclusion of the next annual general meeting. Explanation- For the purposes of this sub-section, any amount paid by the multi-state co-operative society in respect of auditors. expenses shall be deemed included in the expression. a) in every notification of the decision given to the members of the multi-state cooperative society, to declare the fact of the representations made; and.
Qualifications and disqualifications of auditors
Powers and duties of auditors
Signature of audit report etc
Reading and inspection of auditor’s report
Right of auditor to attend general meeting
Power of Central Government to direct special audit in certain cases
Provided that the Central Government shall not order special audit of the accounts of a multi-state co-operative society if that Government or the State Government either alone or both own less than fifty-one per cent of the paid-up share capital or of the shares of such multi-state co-operative society. Provided that instead of submitting his report to the members of the multi-state co-operative society, the special auditor shall submit the same to the Central Government.
Inquiry by Central Registrar
Provided that if the Central Government does not take any action on the report within four months from the date of receipt, such Government shall forward a copy or relevant extract thereof to the Multi-State Cooperative with its observations. thereon and require the multi-state cooperative society to distribute such copy or extracts to its members or to read out such copy or extracts before the multi-state cooperative society at its next general meeting.
Inspection of multi-state cooperative societies
Inspection of books of indebted multi-state cooperative societies
Costs of inquiry and inspection
Recovery of costs
Provided that where the Central Registrar is satisfied that such investigation cannot be initiated within the aforesaid period of two years due to fraud or concealment of facts, he may initiate or cause to be conducted the investigation within such period, which shall no longer be may be more than six years from the date of the date of the report of the audit, inspection or investigation or the date of the order of dissolution, at its discretion.
Settlement of Disputes
- Winding up of cooperative bank at the direction of Reserve Bank
- Reimbursement to the Deposit Insurance Corporation by liquidator
- Liquidator
- Powers of liquidator
- Priority of contributions assessed by liquidator
- Power of Central Registrar to cancel registration of a multi-state cooperative society
- Execution of orders of liquidators
- Attachment before award
- Central Registrar or arbitrator or person authorised to be civil court for certain purposes
- Recovery of sums due to Government
Notwithstanding anything to the contrary contained elsewhere in this Act, the Central Registrar shall issue an order for the winding up of a co-operative bank if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporations Act. , 1961 (47 of 1961). The excess assets, as reflected in the report of a liquidator of a multi-state cooperative society under liquidation. (a) where the articles of association of the multi-state co-operative specify the purpose for which the surplus is to be used, it may be used by the Central Registrar for that purpose, and.
Appeals and Review
The Central Registrar or Arbitrator or any person authorized by him in writing in this behalf shall be deemed to exercise any power under this Act to recover any amount by attachment and sale or by sale without attachment of any property, or when conveying of any orders or of any claim made upon it for such recovery or to assist in such recovery as a civil court for the purposes of section 136 of the Schedule to the Limitation Act, 1963 (36 of 1963 ). - For the purposes of this subsection, "appropriate high court" means the high court within the local jurisdiction of which the principal place of business of the multi-state cooperative is situated.
Miscellaneous
- Democratic Member Control
- Member’s Economic Participation
- Autonomy and Independence
- Education, Training and Information
- Cooperation among Cooperatives
- Concern for Community
Provided that such inspection may be made without prior notice to the said company or any officer thereof. iii) by the members of the multi-state cooperative. The books containing minutes of the proceedings of any general meeting or of a multi-state co-operative society shall-. a) stored at the company's statutory registered office, and.
