management of -co-op society 13.02.2016 ppt

..

A cooperative is an autonomous association of persons united

voluntarily to meet their common economic, social and cultural needs

and aspirations through a jointly owned and democratically controlled

enterprise.

WHAT IS A COOPERATIVE?

3. ADHERENCE TO CO-OP. PRINCIPLES

Co-operative Principles and Practices Principles Practices

Voluntary and open membership Member recruitment policy, rules of admission, equal opportunities,

Democratic member control Constitution, voting rights, role of the board, members and management

Member economic participation Economic performance, rewards to members, capitalization and how surplus is used

Autonomy and independence Relations with government, other organisations and institutions and market position,

Education, training and information

Member, board and management training and public relations

Co-operation among members Federation, networks, joint enterprises, movement building

Concern for community Policy on community development, environment and networking

2. STUDY THE APPLICABLE LEGISLATION

• Co-op. Credit Societies Act, 1904- for credit• Co-op. Societies Act, 1912 – for non-credit• Co-op. Societies became a state subject in 1919•Various State Laws e.g. Maharashtra Co-op Soc. Act 1960, Kerala Co-op Societies Act, 1969•Multi-State Cooperative Societies Act (MSCS) 2002 – for multi-state cooperatives ( replaced the earlier Act of 1984)• Now 97th Constitutional Amendment for co-ops.

1. Principles of democratic member control- through active members.

2. Autonomous functioning 3. Professional management4. Avoid Political Interference &

corruption.5. Improve administration & Improve

reporting system to govt and members.6. Good ACCOUNTING & AUDITING

practices7. Accountability on Mgt & members

4. ENSURE GOOD GOVERNANCE

9797thth Constitutional Amendment Constitutional Amendmentfor Co-op Reforms (Jan 2012) –for Co-op Reforms (Jan 2012) –

• Amendment of Article 19 makes Right to form Cooperative Societies a Fundamental Right.

• Insertion of Article 43B makes it a Directive Principles of State to ensure voluntary formation, autonomous functioning, democratic control and professional management of Cooperative Societies.

• Election Commission-like authority mandated: “The superintendence, direction and control of the preparation of electoral rolls for, and conduct of, all elections to a co-operative society shall vest in such an authority or body, as may be provided by the Legislature of a State...”

9797thth Constitutional Amendment – Constitutional Amendment – Highlights (Cont’d)Highlights (Cont’d)

• Fixed term of five years to elected board.• Active members- Economic Participation &

attending meetings• Professional Mgt by Expert & Functional Directors • Equality by providing reservations for women &

SC/ST• Provides for independent professional audit• Gives Right to Information to Members of Co-op

Societies• Empowers Govt to obtain periodic reports & A/cs.• Provides for offences relating to Coop Societies &

penalties for such offences

ACTIVE MEMBER-As per bye laws

Provision made in New Model Bye-laws-Housing:

Bye-law No. 3(xxiv) (a) defined an "Active member" means a person: 1)Who has purchased and/or owns the F|at / Unit in the Society.2)Who attends at least one General Body Meeting of the Society in the previous Five consecutive Years. .( This clause not to apply ,if absence is condoned by GB)3)He has at least paid the amount equivalent to one Year of society Maintenance and Service charges, within a consecutive period of Five years

Provision made in New Model Bye-laws-Co-op Bank:

Bye-law No. (14) ACTIVE MEMBER :

“Active Member” means a person who has been admitted as an ‘Ordinary Member’ under the Bye-laws of the Bank and who complies following conditions:

i) To attend at least one general body meeting in the previous five consecutive years, ( This clause not to apply ,if absence is condoned by GB)

ii) To utilize minimum level of services as provided in bye - law no. 15 as following

ACTIVE MEMBER-As per bye laws

11

72. FINAL AUTHORITY OF SOCIETY- General Body

72A. FREEDOM OF AFFILIATION OR DISAFFILIATION WITH A FEDERAL STRUCTURE OF CHOICE by credit structure Entity –Resolution in GBM by 3/4th majority of total members

73. COMMITTEES. ITS POWERS AND FUNCTIONS.: 73(1) Management vests with Committee

Constituted. 73(1AB) : Joint and Several responsibility :

Dissenting member which is recorded or informed the Registrar within 15 days of the meeting

Member who did not attend and not confirm minutes.

CHAPTER – VII- MANAGEMENT OF SOCIETIES

12

73-ID. MOTION OF NO-CONFIDENCE AGAINST OFFICERS OF SOCIETIES by 2/3 of committee.

The requisition to the registrar by 1/3rd

No motion within 6 months from the date of entering upon office.

Fresh No confidence within a period of 1 year.


13

1/3rd MC members - Requisition to Registrar for special MC meeting.

Registrar to convene meeting within 7 days - meeting not later than 15 days of issue of notice.

Registrar/Assistant Registrar to preside over- but no voting right.

Meeting not to be adjourned for any reason.

Names of MC members voting for and against are read and recorded.

If rejected -no fresh motion within a period of 1 year.


MCS Act. 1960: Section 73-AAA. :

The Committee shall consist of numbers per the bye laws:

Provided that the maximum shall not exceed 21.

Provided Banking Regulation Act 1949 shall apply to all societies carrying the business of banking.

The Committee may co-opt “ 2 expert directors”

The committee may nominate 1 functional director(upto 17 members) and if more directors : 2 functional directors.

Functional and Expert directors are in addition to elected 21 directors.

Constitution of the Committee

Hsg Society Bye-laws : On Professional Mgt

Housing Society Bye-laws No 116 (b) provides as under:

1) The Committee of the society may co-opt Two "expert directors" relating to the objects and activities of the soc.

2) The number of such co-opted members shall not exceed two in addition to the strength of the committee.

3) Such co-opted members shall not have the right to vote in any election of the society & can not to be elected as office bearers of the committee.

4) 116(c) The Committee of the society may co-opt Two "functional directors", such members shall be excluded for the total com. members & shall have no right to vote.

.

16

73B. RESERVATION OF CERTAIN SEATS ON COMMITTEES OF SOCIETIES AND ELECTION THERETO:

3 seats: SC/ST = 1 seat; OBC = 1 seat; DT/NT/SBC= 1 seat.

73C. RESERVATION FOR WOMAN = 2 seats.

73CA.DISQUALIFICATION OF COMMITTEE AND ITS MEMBERS.

Dealer/carrying similar business;

Defaulter ;

Breach of co-operative discipline;


17

Non-active member;

Held responsible u/s 79 or 88 or 85;

Is a salaried employee of any society.

Has more than 2 children (3rd child born singly on or after 07-09-2002)

Held guilty of any offence u/s 146 and convicted u/s 147;

Imprisonment of not less than 1 year.

DISQAULIFICATION OF MEMBER

Bye law No. 116( a) provides that

“Election of all the members of the Committee shall be held once in 5 years, before expiry of its term, in accordance with the provisions of Sec 73- CB of the Act and the Rules / procedure framed there under. Committee to intimate to the State Election Authority for holding of its election before expiry of its term. On failure, the committee members shall cease to hold office after expiry of its term and attract action by the Registrar under section 77 A. “

Provision made inThe New Model Bye-laws

CONDCUT OF ELECTIONS(i) Date of declaration of election programme.

Date to announced at the time of declaration of programme.

(ii) Last date for making nominations.

5 days from the date of declaration of election programme.

(iii) The date of publication of list of nominations received.

As and when received till the last date fixed for making nominations.

(iv) Date of scrutiny of nominations.

Next day of the last date for making nominations.

(v) Date of publication of list of valid nominations after scrutiny.

Next day after the date of completion of scrutiny.

(vi) Date by which candidature may be withdrawn.

Within 15 days from the date of publication of list of valid nominations after scrutiny.

(vii) Date of publication of final list of contesting candidates and allotment of election symbols

The date next succeeding the last day fixed for withdrawal of candidatures.

(viii) Date and time during which and the place/ places at which the poll shall be taken if necessary

Not earlier than 7 days but not later than 15 days from the date of publication of final list of contesting candidate (time and place to be fixed by the Returning Officer)

CONDCUT OF ELECTIONS

(ix) Date, time and place for counting of votes.

Not later than 3rd day from the date of which the poll shall be taken (Time and place to be fixed by the Returning Officer).

(x) Date of declaration of results of voting.

Immediately after the counting of votes.

CONDCUT OF ELECTIONS

APPOINTMENT OF RETURNING OFFICERS, ASSISTANT

RETURNING OFFICERS AND SUCH OTHER OFFICERS

REQUIRED TO CONDUCT THE ELECTIONS.—

77. Election of Office Bearers.— As soon as the members of the committee are

elected ,the election of office bearers of any such society shall be held within the period of fifteen days from the declaration of the result as provided in it’s by-laws. The meeting of the committee for this purpose shall be presided over by officer authorized by the SCEA.

24

73CB. STATE CO-OPERATIVE ELECTION AUTHORITY

73F. ELECTION TO MORE THAN ONE SEAT ON THE COMMITTEE OF SOCIETY:

73(I), RESPONSIBILITY OF COMMITTEE OR ADMINISTRATOR OR AUTHORISED OFFICER TO INTIMATE AND ASSIST TO ARRANGE FOR ELECTION, BEFORE EXPIRY OF TERM:

74. QUALIFICATION AND APPOINTMENT OF MANAGER, SECRETARY AND OTHER OFFICERS OF SOCIETIES AND OF CHIEF EXECUTIVE OFFICER AND FINANCIAL OFFICER FOR CERTAIN SOCIETIES.


25

Sec. 75. ANNUAL GENERAL BODY MEETING:

(1)Audit within 4 months and AGBM within 6 months. (2)MC to submit before the AGM:a.Statement of loans to MC members/family members, society/firm/company in which MC members/their family members are members. b.Annual Report of its activities;c.Plan for disposal of surplus;d.List of Bye-Laws amendment;e.Declaration of date and conduct of MC election;f.Audit Report of preceding financial year;g.Rectification Report of earlier audit;h.Annual Budget for next year;


26

a. Any other informed as required by the Registrar;b. Such other business as per Bye-Laws and due notice has

been given.

75(2A). APPOINTMENT OF AUDITOR IN AGBM & FILING RETURN IN 30 DAYS.

75(3). With every Balance Sheet – Report of the Committee.

75(4). Audited Balance Sheet, Profit & Loss A/c, Audit Report of preceding financial year, Rectification Report of earlier audit and Committee’s Report.

75(5). Default by Officers/MC members – Disqualification for 5 years.


27

Default made by servant/employee – Penalty up to Rs. 5,000/-.

76. SPECIAL GENERAL BODY MEETING.

(1)Who Can call SGBM. (2) Default by Officers/MC members – Disqualification for

5 years. Default made by servant/employee – Penalty upto Rs. 5,000/-.

(3) If not called in accordance with the requisition, the Registrar/authorized person can call such meeting.

(4) Expenditure from the funds of the society or by person/s responsible.


28

77. ACTS OF SOCIETIES ETC. NOT TO BE INVALIDATED BY CERTAIN DEFECTS. - Done in good faith.

77A. APPOINTMENT OF MEMBER OF COMMITTEE, NEW COMMITTEE, AUTHORISED OFFICER, WHERE THERE IS FAILURE TO ELECT MEMBER, TO CONSTITUTE COMMITTEE OR WHERE COMMITTEE DOES NOT ENTER UPON OFFICE, ETC.

78. POWER OF SUSPENSION OF COMMITTEE.

78A. POWER OF SUPERSESSION OF COMMITTEE OR REMOVAL OF MEMBER THEREOF.


29

79. SOCIETY’S OBLIGATION TO FILE RETURNS AND STATEMENTS AND REGISTRAR’S POWER TO ENFORCE PERFORMANCE OF SUCH OBLIGATIONS:

(1) Keeping books of accounts including electronic/any other form, (1A) Filing Returns within 6 months of the close of

every financial year:•annual report of its activities;•audited statement of accounts;•plans for disposal of surplus funds as approved by GBM;•list of amendments to the bye-laws of the society, if any;


30

• declaration regarding date of GBM and conduct of election when due;

• any other information required by Registrar.

(1B) Name of Auditor/Firm from panel approved by State Govt.- appointed in GBM;

His written consent- within a period of one month from the date

of AGBM.

79A.GOVERNMENT’S POWER TO GIVE DIRECTIONS IN THE PUBLIC INTEREST, ETC.


31

81. AUDIT:

Within 4 months of close of financial year.

Responsibility of Society.

Auditor/firm from a panel prepared by Registrar and approved by State Govt.

possessing required qualifications and experience.

Appointed by GBM of society.

Audit Report to be placed before AGBM.

CHAPTER – VIII- AUDIT INQUIRY INSPECTION AND SUPERVISION

32

Education and Training Fund of Rs. 10 per member per month to be collected and such fund to be used to impart training to the members thorugh the notified training institute.NOC for society for transfer of flat or property is not required. However, Rule 24 and Bye law No : 38 on transfer of shares and interest wants the transferring member to give 15 days notice to the society of his intention to do so alaong with the consent of the transferee member.Last date for conducting AGM is 30th September.Cash in Hand at the close of the day limit is increased from Rs. 300 to Rs. 5000/- Bye lay No: 143 Rule 107C

MANAGEMENT OF SOCIETIES

Disclaimer

The above views or presentation do not and shall not be considered as a professional advice of my firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one shall act on such information without appropriate professional advice after a thorough examination of the particular situation or circumstances.

.

33

CONTACT DETAILS:• HITESH SHAH & ASSOCIATES CHARTERED ACCOUNTANTS

208, 2ND FLOOR, PLOT NO : 26,SHALIMAR MIRACLE, NEAR SARADAR PATEL HALL, OPP. CITI CENTRE, ABOVE McDONALD,

JAWAHAR NAGAR, GOREGAON (WEST), MUMBAI-400062.

• TEL : 9821140636 / 28745501 / 28744782• Email:- [email protected]

34

management of -co-op society 13.02.2016 ppt

Documents