Gujarat Cooperative Societies Act, 1961 and The Gujarat Cooperative Societies Rules 1965 provide for framework for cooperative society. But there are variety of co-operative societies and it is not possible to cover the requirements of all the types of cooperative societies in a single legislation, i.e. . Therefore, there is a provision for framing bye-laws under Rule 5 of Gujarat Cooperative Societies Rules. 1965.
The definition of bye-laws is given under Sec. 2(2) as under:
“Bye-laws means bye-laws registered under this Act and for the time-being in force, and include registered amendments of such bye-laws. “
Different Stages of Byelaws
- Under Sec. 9, the bye-laws of the society are also registered along with the registration of the Society if the bye-laws are not contrary to the Act and the Rules.
- The bye-laws, registered along with the registration of the society are placed before the first Annual General Meeting under Rule 5. The first Annual General Meeting is for approval of bye-laws under Rule 5.
- Management Committee runs the society based on bye-laws, Act and Rules.
- Annual General Meeting and Special General Meeting are convened under Sec. 77 and Sec. 78 of the Act, wherein bye-Laws can be proposed to be amended.
- The Last Annual General Meeting is convened under Sec. 114(3) after the liquidation proceeding and before the cancellation of registration.
There is no provision for model bye-laws under the Act or Rules. However, Gujarat State Cooperative Union and District Cooperative union are getting the bye-laws printed for the facility of the public.
What can included in Bye-laws
List is illustrative and can have more details as per the requirement of each society.
- Name and address of the society and its branches if any
- Class or occupation of its members, if membership is proposed to be so restricted.
- Area of its operation
- Object of the society and its liability or unlimited.
- Members related provisions.
- Terms and qualifications for admission to membership, and
- Disqualification of members
- Rights and Liabilities of members
- Shares to be held by members
- Provision related to collection of dues incase of default by members
- In case of credit societies, the conditions on which loans may be granted; the rate of interest the systems of calculation of interest; and in case of non-credit societies,
- The mode of conduction business, purchase, sale, stock-taking and other like matters
- The privilege, rights and liability of nominal, associate and sympathiser members.
- Payment and acquisition of interest in the society before the rights of membership are exercised by the members
- Rights of voting by a nominal, associate or sympathiser member and the voting rights of a federal society
- Restrictions on borrowing from members and non members
- Manner in which the loss of the society will be determined and its re-reimbursement by the members who has not disposed of his produce through the society and who is found guilty of a breach of the bye-laws of any such contracts.
- The scale of remunerations to be paid to a member who has rendered any service to the society
- Appropriation of profit for any other purpose which is not prescribed in sub-section (2) of Section 66.
- Manner of summoning general meetings under Section 73 and the manner of making, altering abrogation bye-laws.
- Constitution and election of the Managing Committee and it s powers and duties.
- Number of members required for the requisition of a special general meeting
- Utilisation of surplus assets of the society under section 115
- Manner in which capital may be raised
- Mode of custody and investments of funds
- Distribution of profits.
- Responsibility of Chairman
- Responsibility of Secretary
- Related to books of account
Lack of awareness / knowledge of various rules, regulation, bye-laws and applicable society laws leads to many issues with the housing society. Thus it is advisable, for members of society to go through the bye-laws of the society. As discussed in article “Member’s Right : Inspection of Books and Records” members can get copy of Bye-laws from society.
- Gujarat Co operative Societies Act, 1961
- Rule 5 of Gujarat Cooperative Societies Rules, 1965
- Model Bye-laws