Guidelines For Framing Bye-Laws of A Cooperative

{
    "id": 14913,
    "slug": "guidelines-for-framing-bye-laws-of-a-cooperative",
    "title": "Guidelines For Framing Bye-Laws of A Cooperative",
    "short_title": "Guidelines For Framing Bye-Laws of A Cooperative",
    "act_number": "Issued by the Govt. of Andhra Pradesh under Andhra",
    "act_year": 1995,
    "act_type": "STATE",
    "location": "Andhra Pradesh",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Guidelines For Framing Bye-Laws of A Cooperative",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Name and address of the cooperative",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Object of the cooperative",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Membership: eligibility, ineligibility, procedure for obtaining/for retaining",
            "chapter": null,
            "content": "ineligible to become a member.\nprocedure for admission",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. Membership: withdrawal, cessation, termination",
            "chapter": null,
            "content": "withdrawal from membership\nceases to be a member\ntermination of membership,",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Services to be provided to members",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Fixation of minimum performance",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Penalty for not reaching minimum performance level",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Consequence of default in payment of due",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Rights of members:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Liability of members:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Amendment of bye-laws:",
            "chapter": null,
            "content": "(a) that we will give a written notice of the general body meeting to each member at least 20 full days before the meeting;\n(b) that the notice will be accompanied by a copy of the proposed amendment;\n(c) that the notice and the proposed amendment will be displayed on the notice board of the cooperative for all of the 20 days;\n(d) that when certain provisions in our bye-laws are amended, (and we should clearly mention which ones), the chief executive should apply, by registered post, for the registration of the amendment, to the Registrar, within 30 days from the date of the resolution amending the provision/s;\n(e) that every such application shall be signed by the chairperson, shall mention the date of the meeting at which the amendment was passed, the total number of members eligible to vote on the day of the meeting, the number of members who attended, and the number that voted for the amendment; and the application shall be accompanied by a copy of the resolution adopting the amendment;\n(f) that if within seventy five days of receipt of the application for registration of the amendment, the Registrar sends a copy of the registered amendment with a certificate signed by him, the amendment shall come into force immediately, and that if no order of refusal to register the amendment is received in the same period, the amendment will be deemed to have come into force on the seventy-sixth day;\n(g) that in case of amendments to all provisions other than those requiring registration, information about the amendment shall be sent by the chief executive to the Registrar exactly as in (d) and (e) above, and the amendment will come into force 30 days after sending information to the Registrar.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. General body:",
            "chapter": null,
            "content": "(a) election of directors;\n(b) consideration of the long term plan and budget, when required;\n(c) consideration of the annual operational plan and budget for the current financial year;\n(d) appointment of auditors for the current financial year;\n(e) consideration of the annual report of activities for the previous financial year;\n(f) consideration of the annual audited statements of accounts, the auditor's report relating to the previous financial year, and the audit compliance report of the year prior to that;\n(g) consideration of the auditor's report on deviations, if any, from the approved budget relating to the previous financial year;\n(h) disposal of surplus, if any, of the previous financial year;\n(i) management of deficit, if any, of the previous financial year; creation of specific reserves and other funds;\n(k) review of actual utilisation of reserves and other funds;\n(l) review of the chief executive's report on the attendance at meeting by directors;\n(m) review of the use of the cooperative's services by the directors;\n(n) review of remuneration paid to any director or member of any committee or internal auditor in connection with his/her duties in that capacity or his/her attendance at related meetings;\n(o) review of quantum and percentage of services provided (if any) to non-members vis-a-vis services provided to the members;\n(p) report of activities and accounts related to member education and board and staff training.\n(a) amendments to bye-laws;\n(b) removal of directors;\n(c) elections/appointments to vacancies on the board;\n(d) removal, and consequent appointment, of auditors;\n(e) membership of the cooperative in secondary cooperatives;\n(f) partnership with other cooperatives;\n(g) amalgamation, division, merger, transfer of assets and liabilities;\n(h) dissolution of the cooperative;\n(i) consideration of the Registrar's report of inquiry.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. General meetings:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Manner of conducting elections:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Size and composition of the board:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Term of office of the directors:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "17",
            "title": "17. Removal of directors:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "18",
            "title": "18. Board meetings:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        },
        {
            "number": "19",
            "title": "19. Powers and duties of the board:",
            "chapter": null,
            "content": "(a) admit and terminate membership;\n(b) interpret the organisational objectives, set-up specific goals to be achieved towards these objectives, and make periodic appraisal of operations;\n(c) elect and remove the chairperson and other office bearers;\n(d) appoint and remove the chief executive;\n(e) fix staff strength;\n(f) make provisions for regulating the recruitment and appointment of all employees of the cooperative and the scales of pay, allowances and other conditions of service including disciplinary action and removal from service;\n(g) finalise the long term perspective plan, and the annual plan and budget, and direct the affairs of the cooperative in accordance with the plan and budget approved by the general body;\n(h) arrange for funds necessary for the provision of services to our members;\n(i) authorise acquisition and disposal of immovable property; and\n(j) frame, approve and amend regulations relating to services, funds, accounts and accountability, and information and reporting systems.\n(a) act honestly and in good faith and in the best interests of the cooperative; and\n(b) exercise such due care, diligence and skill as a reasonably prudent person would exercise in similar circumstances.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. Chairperson:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "21",
            "title": "21. Dealing with non-members:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "22",
            "title": "22. Eligibility for directorship:",
            "chapter": null,
            "content": "(a) such member has the right to vote in the affairs of the cooperative; and\n(b) such member has been a voting member of the cooperative for the two preceding years - this condition, obviously, can apply only after the cooperative has been in existence for more than 2 years; and\n(c) such member has attended the last two general body meetings held before the elections now due;\n(d) such member has patronised the services of the cooperative during the previous financial year to the extent and in the manner specified in the bye-laws; and\n(e) such member has no interest in any subsisting contract made with or work being done for the cooperative except as otherwise specified in the bye-laws.\n(a) he/she loses the right of vote at any time during the tenure as director; or\n(b) absents himself/herself from 3 consecutive board meeting without leave of absence; or\n(c) absents himself/herself from a general body meeting without leave of absence; or\n(d) is penalised under the Act or the bye-laws.\n(a) they do not conduct the general meeting or requisitioned general meeting within the time specified in our bye-laws; or\n(b) they do not conduct elections to the board when due, and before the expiry of the term of the retiring directors; or\n(c) they do not provide copies of the annual report of activities, audited annual financial statements, or auditor's report, to each member and place these before the general body for its approval at the annual meeting each year.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "23",
            "title": "23. Penalties:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "24",
            "title": "24. Liability of office bearers and directors:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "25",
            "title": "25. Chief executive:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "26",
            "title": "26. Delegates to federations:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "27",
            "title": "27. Rights of federation:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "28",
            "title": "28. The nature and amount of capital:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 27
        },
        {
            "number": "29",
            "title": "29. Maximum capital that a single member may hold:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 28
        },
        {
            "number": "30",
            "title": "30. Interest on Share Capital:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 29
        },
        {
            "number": "31",
            "title": "31. Funds - sources, types, extent:",
            "chapter": null,
            "content": "(a) what services we want to offer members;\n(b) the quantum of services needed by members and how much of that quantum we feel confident of meeting;\n(c) what infrastructure is needed to provide those services;\n(d) therefore, how much investment capital is needed;\n(e) how much working capital is need to provide the services;\n(f) what the cost of capital (that is, interest) will be;\n(g) how much staff is needed, what their costs will be;\n(h) what other operational costs might be - that is, costs relating to the provision of services;\n(i) what administrative costs might be - costs of meetings, rent, stationery, etc.\n(j) what minimum quantity of services have to be provided in order that the cooperative is able to cover all the costs incurred.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 30
        },
        {
            "number": "32",
            "title": "32. Use of funds:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 31
        },
        {
            "number": "33",
            "title": "33. Constitution of various funds and their uses:",
            "chapter": null,
            "content": "(a) 20% towards a deficit cover fund, for use in a year in which we have loss;\n(b) 20% towards a patronage rebate fund, out of which we will need to return to each member an amount in proportion to the member's use of the services of the cooperative, in the year in which the surplus was earned;\n(c) 20% towards a cooperative education and training fund - our aim should be that in the first few years, whatever we spend on cooperative education and training should be a part of our regular expenses, but over a period of years, we should be able to spend the interest earned on the annually growing fund set up for this purpose, which should be sufficient to have an ongoing educational and training process for members, directors, and staff;\n(d) 20% on a building cum asset replacement fund; and\n(e) 20% on a price stabilisation fund, (in a producers' cooperative), or for an inflation cover fund (in a thrift cooperative); or for an insurance fund, in a housing cooperative.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 32
        },
        {
            "number": "34",
            "title": "34. Audit of accounts:",
            "chapter": null,
            "content": "(a) our cooperative shall, at its annual general meeting, resolve to appoint a chartered accountant/auditor from the office of the Registrar, as auditor:\n(b) the remuneration of an auditor may be fixed by the board, and approved by the general body;\n(c) the auditor shall be given notice of every general meeting and, at the expense of the cooperative, will be entitled to attend and be heard on matters relating to his/her duties as auditor and their exercise;\n(d) it shall be the duty of the board to ensure that annual financial statements are prepared and presented for audit within thirty days of closure of the cooperative financial year;\n(e) it shall be the duty of the auditor to ensure that audited annual financial statements and his/her accompanying report are furnished to the cooperative within thirty days of the submission of annual financial statements by the board.\n(f) the auditor's report shall:\n(i) state whether the auditor has obtained all the information and explanations which to the best of his/her knowledge and belief were necessary for the purpose of his/her audit;\n(ii) state whether the cooperative balance sheet and income and expenditure account dealt with by the report are in agreement with the books of account;\n(iii) indicate the basis on which each asset and liability was valued, and make specific mention of any change in the manner in which such valuation was done in the year under examination and its effect on surplus/deficit;\n(iv) indicate the amount of surplus earned/deficit incurred from provision of services to non-members as distinct from surplus/deficit accruing because of members or in normal course of business;\n(v) indicate every deviation in actual expenses and income from the estimated expenses and income in the approved budget;\n(vi) state whether or not any of the directors had at any time during the year under review, become ineligible under the Act or the bye-laws to continue in office as a director; and\n(vii) state whether the decision on disposal of surplus or management of deficit, of the general body, as its previous annual general meeting were implemented correctly and completely or not;\n(g) it shall be the duty of the board to present the audited statements of accounts to each member at the annual general meeting, to be conducted within 90 days of the closure of the financial year.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 33
        },
        {
            "number": "35",
            "title": "35. Appointment of internal auditors:",
            "chapter": null,
            "content": "(a) the board approve of an internal audit check-list for the internal auditors to use as a guide;\n(b) the internal audit for a particular month be conducted in the very next month;\n(c) the internal audit report, based on the check-list be presented to the board at the latest at the meeting in the month following the month of internal audit.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 34
        },
        {
            "number": "36",
            "title": "36. Disposal of funds on liquidation:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 35
        },
        {
            "number": "37",
            "title": "37. Dissolution:",
            "chapter": null,
            "content": "(a) the liquidator shall be responsible to settle the amounts due to members only after amounts due to non-members, creditors, etc., are settled;\n(b) any funds remaining after the settlement of dues to external agencies, non-members, and members, may be distributed amongst the members, or transferred to a new cooperative to be organised in the same area, or to a non-profit public society to be set up with one or more purposes in the same area for the welfare of the community at large.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 36
        },
        {
            "number": "38",
            "title": "38. Language in which business is to be conducted:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 37
        },
        {
            "number": "39",
            "title": "39. Financial Year:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 38
        },
        {
            "number": "40",
            "title": "40. Annual Returns:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 39
        },
        {
            "number": "41",
            "title": "41. Records to be maintained:",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 40
        },
        {
            "number": "42",
            "title": "42. Settlement of disputes:",
            "chapter": null,
            "content": "(a) among members, past members and persons claiming through members and deceased members; or\n(b) between a member, past member or a person claiming through a member, past member or deceased member and the cooperative, its board, director, office-bearer, or liquidator, past or present; or\n(c) between the cooperative or its board and any past board, any director, office-bearer, or any past director, past office-bearer, or the nominee, heir, or legal representative of any deceased director or deceased office-bearer of the cooperative,\n(a) these persons should not have stood for elections to the board in the previous 5 years;\n(b) once a person has served on the Elders' Councils, he/she will not be eligible to be a director again;\n(c) no canvassing will be permitted for membership of the Elders' Council; a member nominated by the board for being considered to be a member of the Elders' Council should, at no time during his/her membership in the cooperative, have lost his/her right to vote;\n(d) the general body will have the right to reject any or all of the nominations suggested by the board.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 41
        }
    ],
    "metadata": {
        "Act ID": "AP155",
        "Act Number": "Issued by the Govt. of Andhra Pradesh under Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995",
        "Enactment Date": "",
        "Act Year": "1995",
        "Short Title": "Guidelines For Framing Bye-Laws of A Cooperative",
        "Type": "STATE",
        "Location": "Andhra Pradesh"
    },
    "updated_at": "2026-09-29 21:55:18"
}