In the below article we have answers some of the questions which we regularly get from office bearers and members of a cooperative society.
1. Members want election based on position (Chairman, Secretary, Treasurer etc.)
2. Can Committee pass a resolution to remove a committee member.
Answer: Unless a committee member is eligible to be disqualified under Byelaws Section 35, committee cannot remove any committee member.
3. If a committee member is eligible to be removed under Byelaws Section 35, what steps the Committee needs to take to remove a committee member.
- To give notice in three days in advance to the member holding such disqualification, notice calling explanation as to why he should not be declared as ceased as member of the Committee
- Thereafter, if it appears that the said member of Committee has lost his qualification to be continued as member of the Committee, then, he shall be removed and declared as removed by the managing committee.
4. How to I resign from Managing Committee
A written letter to society’s address or email to official email id, could be considered as a valid resignation.
5. Resignation given by committee members requires approval of the committee
By giving resignation as the member of the Committee, he / she shall be treated automatically ceased as the member of the committee.
6. Can resignation be Withdrawn
Currently Act, Rules and Byelaws does not have a provision of revoking resignation.
Q7. What is the period of Managing Committee
As per Section 74(1C) as amended in 2015, the term of the elected members of the managing committee and its office bearers shall be five years from the date of election.
Q8. Can we reduce / increase the tenure of Managing Committee
No. Any resolution passed by committee, general body etc. for reducing / increasing the tenure of managing committee cannot supersede the Act.
9. What should be the size of the committee
Sec 74(1A): Managing committee of a society, which is not an apex society, shall consist of, such number of elected members not exceeding 21 members.
Byelaws will have exact number of committee which society can have. Refer Clause 34 of byelaws
We have seen some byelaws where a range is given for the size of the committee. Say 8 – 11 committee members. Any number between the same can be the size of committee as per resolution passed in AGM / SGM.
10. Are there any reserved seats
As per Sec 74BB of the Act, every society will have to reserve seat for women member in their committee as per below.
- One seat in a committee consisting of not more than 11 members
- Two seats in a committee consisting of more than 11 members
11. Who are Co-opted Members
There are different types of co-opted member.
As per Sec 74(1D), society shall co-opt person having experience in the field of banking, management, finance or specialization in any other field relating to the object and activities under taken by the society as the members.
12. How many members can be Co-opted (Sec 74.1D) and what are their rights
Number of Co-opted members under Sec 74(1D) shall not exceed two in addition to the twenty one members as specified in Sec 74(1A)
The Co-opted member (as per Sec 71(1D)) shall not have right to vote in any election of the society in their capacity as such members or to be eligible to be elected as office bearers of the Managing Committee.
13. Who can be officer bearer
Sec 74(1A.ii) Only elected members shall be entitled to be the officer-bearers of the managing committee
14. How to fill vacancy in Committee
If the tenure of the committee left is less than 1/2 (30 Months)
Sec 74 (1C) Managing Committee shall fill up a casual vacancy in the committee by nomination out of the same class or categories of members in respect of which the causal vacancy has arisen within 60 days from the date of such vacancy.
Such Co-opted / nominated members can continue till the end of such tenure
Byelaw 37: If the tenure of the committee is more than 1/2 (30 Months), then vacant position has to be filled by election.
15. Duties of the Officer bearers
Refer the below articles:
- Duties and Responsibilities of the Managing Committee
- Duties and Responsibilities of the Secretary
- Duties and Responsibilities of the Chairman
16. Who can be signatory in Bank account of a Society and how to decide upon the mode of operation
Bank signatories and Mode of Operations are decided by committee members by passing a resolution in committee meeting. Mostly officer bearers (Chairman, Secretary, Treasurer etc.) are Signatory in bank account.
17. Types of officers bearers and how many office bearers the society should have
- Vice Chairman
- Joint Treasurer
The Act is silent about the number of officer bearers a society should have. Managing Committee / Society can decide number and type of officer bearers by a passing resolution for the same.
18. Who’s responsibility is to manage Petty Cash
A resolution needs to be passed in the committee meeting with
- What is the maximum amount of cash-in-hand to be held in society
- In whose custody the same shall remain.
In most cases, they are managed by the Treasurer of the society.
19. Can society do transaction with committee member
Refer Article: Related Party Transaction in Cooperative Society
In brief: No officer or servant of a society shall have any interest directly or indirectly otherwise than as such officer or servant
- in any contract made with the society, or
- in any property sold or purchased by the society, or
- in any transaction of the society except as investments made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee or the society
20. Liability of Committee Members
Section 97 covers the statute for Limitation. If matters are not covered in this section, then Indian Limitation Act, 1908 will be applicable.
97.1b : When the dispute is between a society or its committee, and any past committee, any past or present officer, or past or present agent, or past or present servant or the nominee, heir or legal representative of a deceased officer, deceased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and when the dispute relates to any act or omission on the part of either party to the dispute, be six years from the date on which the act or omission with reference to which the dispute arose, took place;
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