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Managing a multi-state co-operative society is a complex tax. In this article, we will discuss the rules, regulation, and compliance of multi-state co-operative society.
The Bye-Laws of the Multi-Cooperative Society can be amended only if the resolution for the same is passed by the Two-Third majority of members present and voting at a general meeting of the society.
The resolution passed shall be deemed to be void if the notice of the meeting in which such resolution is passed is not given fifteen clear days to the members of the society.
The resolution passed by amending the Bye-Laws is not valid unless it is registered by the Central Registrar. The application for registering such an amendment should be made within 60 days from the date of such amendment.
The Chief Executive of the Society shall convene the meeting of the Board at the instance of the Chairperson or the President of the Multi-Cooperative Society.
The Board Meeting of the Society shall be held at least once in every quarter, i.e., at least years meetings shall be held in every year.
Not more than two members can be invited by the Board to its meeting. If the Chairman of the Society is unable to attend the meeting the members among themselves choose one of the members to preside over the meeting.
No part of the funds, other than the net profit of the society shall be divided by way of Bonus or Dividend or in any other way divided among the members of the society.
Provided further that in case of such multi-State Cooperative Society do not have Share Capital the surplus income, i.e., the income over expenditure shall not be treated as net profit, and that income shall be used as provided in the Bye-Laws of the Society.
A Multi-State Cooperative Society is not allowed to make loans to its members on the security of shares or the security of non-member.
But a Multi-State Cooperative Society may make a loan to a depositor on the security of his deposit.
A Multi-State Cooperative Society may receive deposits, raise loans and receive grants from external sources to such extent as specified in the Bye-Laws of the Society.
But the total amount of deposit and loans received during any of the financial years should not exceed ten times of the subscribed share capital and accumulated reserves sum.
A Multi-State Cooperative Society Registration may issue non-convertible debentures or other instruments to the extent of Twenty-Five percent of its paid-up Share Capital.
The accounts of the Multi-State Cooperative shall be audited at least once in every year by an auditor. The auditor for the same shall be appointed at each Annual General Meeting provided such auditor will be appointed from the panel of auditors approved by Central Registrar.
The quorum for any general body meeting is 1/5thof the total number of ordinary members. Out of the 1/5th of a total number of ordinary members at least 2/3rd should vote for the amendment and at least 1/3rd should vote for the successful resolution. But a quorum is not necessary for the adjourned meeting.
The Board of Directors of the Society shall lay at every annual general meeting the Balance Sheet and the Profit & Loss Account for that financial year.
No member of the Multi Co-operative Society shall be allowed to vote in a proxy, every member shall vote in person. A person cannot become members of two Cooperative Society unless he has taken permission from the Central Registrar.
Members of the Board shall be elected by the Existing Board. The election of members of the Board of Cooperative Society shall be held by secret ballot. Members must be elected to the General Meetings. If the Bye-Laws of the Society permits the members must be eligible for re-election.
The members of the Board shall not hold office for more than 5 years from the date of an election. If the Board fails to conduct the election the Central Registrar within 90 days shall appoint the Board.
Where the Central Registrar of Multi-State Cooperative Society refuse to register the society, refuse to admit any member who is eligible to be admitted an appeal regarding this can be made within a period of 60 days regarding this.
If the Central Government is of the opinion that the Board is making default or negligently performing its duties or performing acts which are prejudicial to the interest of the society the Central Government may appoint one or more administrator to manage the affairs of the society for a period not exceeding 6 months.
The returns of the Multi-State Cooperative Society shall be filed every year within 6 months from the closure of the accounting year.
As the Multi-State Cooperative Society has to open their branches in different states, it is mandatory for the Society to open at least 25 percent of the Branches in unbanked rural centers. It is now not mandatory to open the branches in Tier 3 to Tier 6 center the in underbanked districts of underbanked states.