Update: 2019-20 AGM date is further extended upto 30-Sept-2021. (Circular dt 31-Mar-21)
As seen in the earlier article “Annual General Meeting (AGM) of Cooperative Society”, first AGM of society is to be conducted within 3 months of formation of society. Post which yearly AGM should be held within 6 months of closure of the financial year.
During Covid-19 times, Lockdown 3 rules and Sec 144 still applicable, below questions were coming in front of Managing Committee:
- How to conduct AGM before 31 Sep 2020 ? Under Section 77 of the Act, it is mandatory for the Committee to call for the AGM within 6 months of completion of the financial year.
- What happens to a Committee whose tenure of 5 years is complete ? Under Section 74C (2) (1), Tenure of Managing Committee is for 5 years from the date of election. Post that they cease to hold the office on the date of expiry of their term.
- How to distribute dividend ? A society may appropriate its profits to reserves and surplus and distribute dividend only after the amount is approved in the AGM.
In order to resolve these issues, Registrar has used the power given to him under Sec 161 of Gujarat Cooperative Societies Act 1961 and has come out with 3 circulars on 25 May 2020.
Summary of Registrar Order
- Circular No. 98: AGM can be called before 31 Mar 2021 instead of 30 Sep 2020.
- Circular No. 93: Tenure of existing committee extended upto next election date or 31 Dec 2020 whichever is earlier.
- Circular No. 96: Managing Committee has authorized to distribute dividend on condition that they will take approval of such distribution when the AGM is called.
Relevant Gujarat Cooperative Society Act Sections
Above circulars has referred to various sections of Gujarat Cooperative Societies Act 1961, same has been given below for reference.
Sec 161. Power to exempt societies from provisions of the Act.
The State Government may, by general or special order, to be published in the Official Gazette, Exempt any society or class of societies from any of the provisions of this Act, or may direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order
Sec 77 (1): Every society shall convene the general meeting of its members within a period of Six months (6) of closure of the financial year to transact the business as provided under this act.
Sec 74 (1C) (2) : The elected members of the Managing Committee and its office bearers shall cease to hold the office on the date of expiry of their term.
Sec 74C (2)(i): The term of the elected members of the Managing Committee shall be of five years from the date of election.
Sec 66 (2) : A society may appropriate its profits to its reserve fund or any other fund created by it for payment of dividends to members on their shares, to contribute to the educational fund of such federal co-operative society as the State Government may by notification in the Official Gazette specify as “The Gujarat State Co-operative Union” to the payment of rebate on the basis of support received from members and persons who are not members to its business and subject to the prescribed conditions to payment of honorarium, and to any other purpose which may be specified in the rules or bye-laws;
Provided that, no part of the profits shall be appropriated except with the approval of the annual general meetings and in conformity with the Act, rules and bye-laws.
- Gujarat Cooperative Registrar Circular: GHKH/42/2021/GCS/10/2020/115/CHH (P.A 2): Extension of AGM upto 30 Sep-2021: Dated 31-Mar-2021
- Gujarat Cooperative Registrar Circular: GHKH/98/2020/GCS/10/2020/115/CHH (P.A 2): Extension of AGM upto 31 Mar 2021: Dated 25-Aug-2020
- Gujarat Cooperative Registrar Circular: GHKH/93/2020/GCS/10/2020/115/CHH: Extension of Period of Existing Committee: Dated 25-Aug-2020
- Gujarat Cooperative Registrar Circular: GHKH/96/GCS/10/2020/268/CHH: Declaring dividend without AGM for year 2019-20: Dated 25-Aug-2020
- Gujarat Co operative Societies Act, 1961