The Multi-State Co-operative Act, 2002
106-
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Copies of bye-laws, etc., to be open to inspection.
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Every multi-State co-operative society shall keep a copy of the rules and its bye-laws and also a list of its members open to inspection free of charge at all reasonable times, at the registered address of the society.
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107-
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Place of keeping and inspection of, registers and returns.
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(1)
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The register of members commencing from the date of the registration of multi-State co-operative society, the index of members, the register of debenture holders, and copies of all annual returns prepared together with the copies of certificates and documents, shall be kept at the registered office of the multi-State co-operative society.
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(2)
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The registers, indexes, returns and copies of certificates and other documents referred to in sub-section (1) shall be open during business hours (subject to such reasonable restrictions, as the hours in each day are allowed for inspection) to the inspection-multi-State co-operative society may impose, so that not less than two (a) of any member or debenture holder, without fee; and (b) of any other person, on payment of such sum as may be prescribed for each inspection.
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108-
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Inspection of books of account, etc., of multi-State co-operative society.
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(1)
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The books of account and other books and papers of every multi-State co-operative society shall be open to inspection during business hours –
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(i)
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by the Central Registrar, or
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(ii)
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by such officer of the Government as may be authorised by the Central Government in this behalf:
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Provided that such inspection may be made without giving any previous notice to that society or any officer thereof;
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(iii)
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by the members of the multi-State co-operative society.
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(2)
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It shall be the duty of every director, other officer or employee of the multi-State co-operative society to produce to the person making inspection under sub section (1), all such books of account and other books and papers of the multi-State co-operative society in his custody or control and to furnish him with any statement, information or explanation relating to the affairs of such society as the said person may require of him within such time and at such place as he may specify.
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(3)
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It shall also be the duty of every director, other officer or employee of the multi-State co-operative society to give to the person making inspection under this section all assistance in connection with the inspection which the multi-State co-operative society may be reasonably expected to give.
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(4)
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The person making the inspection under this section may, during the course of inspection –
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(i)
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make or cause to be made copies of books of account and other books and papers, or
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(ii)
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place or cause to be placed any marks of identification thereon in token of the inspection having been made.
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(5)
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Notwithstanding anything contained in any other law for the time being in force or any contract to the contrary, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making an inspection under this section shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of the following matters, namely –
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(i)
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the discovery and production of books of account and other documents, at such place and such time as may be specified by such person;
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(ii)
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summoning and enforcing the attendance of persons and examining them on oath;
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(iii)
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inspection of any books, registers and other documents of the multi-State co-operative society at any place.
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(6)
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Where an inspection of the books of account and other books and papers of the multi-State co-operative society has been made under this section, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making the inspection shall make a report to the Central Government.
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Annual accounts and balance-sheet.
109-
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At every annual general meeting of a multi-State co-operative society, the board shall lay before the multi-State co-operative society –
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(a)
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a balance-sheet as at the end of every co-operative year; and
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(b)
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a profit and loss account for that year.
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110-
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Minutes of proceedings of general meetings and board and other meetings.
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(1)
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Every multi-State co-operative society shall cause minutes of all proceedings of every general meeting and of all proceedings of every meeting of its board or of every committee of the board, to be kept by making within thirty days of the conclusion of every such meeting concerned, entries thereof in books kept for that purpose with their pages consecutively numbered.
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(2)
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Each page of every such book shall be initialed or signed and the last page of the record of proceedings of each meeting in such books shall be dated and signed –
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(a)
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in the case of minutes of proceedings of a meeting of the board or of a committee thereof, by the chairperson of the said meeting or the chairperson of the next succeeding meeting;
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(b)
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in the case of minutes of proceedings of a general meeting, by the chairperson of the same meeting within the aforesaid period of thirty days or in the event of the death or inability of that chairperson within that period, by a member of the board duly authorised by the board for the purpose.
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(3)
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In no case the minutes of proceedings of a meeting shall be attached to any such books as aforesaid by pasting or otherwise.
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(4)
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The minutes of each meeting shall contain a fair and correct summary of the proceedings thereat.
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(5)
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All appointments of officers made at any of the meetings aforesaid shall be included in the minutes of the meeting.
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(6)
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In the case of a meeting of the board or of a committee of the board, the minutes shall also contain –
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(a)
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the names of the members of the board present at the meeting; and
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(b)
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in the case of each resolution passed at the meeting, the names of the members of the board, if any, dissenting from, or not concurring in, the resolution.
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(7)
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Nothing contained in sub-sections (1) to (6) shall be deemed to require the inclusion in any such minutes of any matter which, in the opinion of the chairperson of the meeting –
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(a)
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is, or could reasonably be regarded as, defamatory of any person;
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(b)
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is irrelevant or immaterial to the proceedings; or
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(c)
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is detrimental to the interests of the multi-State co-operative society.
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Explanation.- The chairperson shall exercise an absolute discretion in regard to the inclusion or non-inclusion of any matter in the minutes on the grounds specified in this sub-section.
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111-
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Minutes of meetings kept in accordance with the provisions of section 110 shall be evidence of the proceedings recorded therein.
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112-
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Presumptions to be drawn where minutes duly drawn and signed.
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Where minutes of the proceedings of any general meeting of the multi-State co-operative society or of any meeting of its board or a committee of the board have been kept in accordance wit the provisions of section 110, then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and in particular, all appointments of directors or liquidators made at the meeting shall be deemed to be valid.
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113-
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Inspection of minutes book of general meetings.
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The books containing the minutes of the proceedings of any general meeting of a multi-State co-operative society shall –
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(a)
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be kept at the registered office of that society, and
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(b)
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be open, during business hours, to the inspection of any member of that society.
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114-
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Liquidator to be public servant.
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Any person appointed as liquidator under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
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115-
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Notice necessary in suits.
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No suit shall be instituted against a multi-State co-operative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.
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Power to amend Second Schedule.
116-
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(1)
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If the Central Government is satisfied that any multi-State co-operative society should be designated as a national co-operative society or any national co-operative society specified in the Second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so as to include therein such multi-State co-operative society or exclude there from such national co-operative society, and thereupon the said Schedule shall be deemed o have been amended accordingly.
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(2)
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A copy of every notification under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made.
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117-
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Bar of jurisdiction of courts.
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(1)
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Save as otherwise provided in this Act, no court shall have jurisdiction in respect of –
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(a)
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the registration of a multi-State co-operative society or its bye-laws or of an amendment of the bye-laws;
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(b)
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any matter concerning the winding up and the dissolution of a multi-State co-operative society.
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(2)
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While a multi-State co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except y leave of the Central Registrar and subject to such terms and conditions as he may impose.
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(3)
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Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court.
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118-
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No suit, prosecution or other legal proceedings shall lie against the Central Registrar or, any person subordinate to him or acting on his authority or against any other person, in respect of anything in good faith done or purporting to h ve been done under this Act.
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119-
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Opening of branches.
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Notwithstanding anything contained to the contrary in any law relating to co-operative societies in force in a State, a multi-State co-operative society, not being a co-operative bank, may open branches or places of business in any place in India.
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120-
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Filling of returns.
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Every year within six months of the closure of the accounting year every multi-State co-operative society shall file the following returns with the Central Registrar, namely –
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(a)
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annual report of the activities;
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(b)
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audited statements of accounts;
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(c)
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plan for surplus disposal as approved by the general body;
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(d)
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list of amendments to the bye-laws of the multi-State co-operative society;
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(e)
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declaration regarding date of holding of general body meeting and conduct of elections where due;
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(f)
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any other information required by the Central Registrar in pursuance of any of the provisions of this Act.
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121-
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Certain Acts not to apply.
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(1)
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The provisions of the Companies Act, 1956 (1 of 1956) and the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) shall not apply to the multi-State co-operative societies.
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(2)
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The multi-State co-operative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969).
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122-
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Central Government's power to give directions to specified multi-State co-operative societies in public interest.
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If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-State co-operative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of specified multi-State co-operative societies generally or to any specified multi-State co-operative society or societies in particular, the Central Government may issue directions to it or to them, from time to time, and all such specified multi-State co-operative society or the societies concerned, as the case may be, shall be bound to comply with such directions.
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Super session of board of specified multi-State co-operative society.
123-
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(1)
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If in the opinion of the Central Government, the board of any specified multi-State co-operative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members, or has omitted or failed to comply with any directions given to it under section 122 or that the e is a stalemate in the constitution or functions of the board, the Central Government may, after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding six months, as may be specified in the order which period may, at the discretion of the Central Government, be extended from time to time; so, however, that the aggregate period does not exceed one year: Provided that in the case of a co-operative bank, the provisions of this sub-section shall have effect as if for the words "one year", the words "two years" had been substituted.
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(2)
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The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi-State co-operative society.
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(3)
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The administrator shall, subject to the control of the Central Government and to such instructions as it may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the specified multi-State co-operative society and take all such actions as may be required in the interests of the society.
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(4)
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Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board in accordance with the bye-laws of the specified multi-State co-operative society.
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(5)
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If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefore, direct the specified multi-State co-operative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted boa administrator to arrange for the constitution of a new board for such d and cease to function.
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(6)
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Where a specified multi-State co-operative society is indebted to any financial institution, the Central Government shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
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Explanation.-For the purposes of sections 122 and 123, "specified multi-State co-operative society" means any multi-State co-operative society in which not less than fifty-one per cent. of the paid-up share capital, or, of total shares, is held by the Central Government.
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124-
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(1)
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The Central Government may, by notification, make rules to carry out the provisions of this Act.
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(2)
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In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely –
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(a)
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the form to be used, the particulars to be given and the conditions to be complied with in making of applications under section 6 for the registration of a multi-State co-operative society and the procedure in the matter of such applications;
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(b)
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the matters in respect of which a multi-State co-operative society may make bye-laws under sub-section (2) of section 10;
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(c)
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the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (9) of section 11;
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(d)
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the manner in which a multi-State co-operative society shall have a principal place of business and registered address under section 14;
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(e)
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the procedure and conditions for change in the extent of the liability of a multi-State co-operative society under section 16;
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(f)
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the manner in which order of refusal to register an amendment of bye-laws shall be communicated under sub-section (4) of section 22;
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(g)
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the classification of federal co-operative and other terms and conditions applicable to in under sub-section (3) of section 23;
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(h)
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the restriction on holding the share capital of the society other than a member referred to in section 33;
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(i)
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the constitution and powers of smaller body representing the general body under the proviso to sub-section (1) of section 38;
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(j)
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the period within which annual general meeting be called and the procedure at such meetings and the powers to be exercised by such meeting under section 39;
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(k)
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the election of members of the board under sub-section (2) of section 45 through secret ballot;
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(l)
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the nomination of members under the second proviso to sub-section (1) of section 48;
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(m)
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the additional measures and acts which may be taken or, as the case may be, done by the board under section 49;
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(n)
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the salary and allowances payable to and other terms and conditions of the Chief Executive under sub-section (3) of section 51;
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(o)
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the conditions subject to which the board may constitute an Executive Committee and other committees or sub-committees under sub-section (1) of section 53;
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(p)
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the persons by whom and the form in which copies of entries in books of multi-State co-operative societies may be certified under section 58 and the charges to be levied for the supply of such copies;
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(q)
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providing aid to multi-State co-operative societies on certain terms and conditions under clause (g) of section 61;
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(r)
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the conditions under which profits may be distributed to the members of a multi-State co-operative society and the maximum rate of dividend which may be paid by the multi-State co-operative societies under section 63;
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(s)
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establishment of contributory provident fund under sub-section (1) of section 69;
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(t)
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the manner of disposing of the surplus under clause (k) of sub-section (2) of section 90;
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(u)
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the manner in which surplus assets be divided by the Central Registrar with the previous sanction of the Central Government under clause (b) of section 91;
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(v)
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the appellate authority to be specified under sub-section (2) of section 99;
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(w)
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the procedure under section 103 for reconstitution and reorganisation of societies which became the multi-State co-operative societies consequent on reorganisation of States;
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(x)
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the inspection of records of the society on payment of fees under clause (b) of sub-section (2) of section 107;
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(y)
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any other matter which is required to be, or may be, prescribed.
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(3)
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Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, a the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
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Power to remove difficulties.
125-
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(1)
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If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act s may appear to be necessary for removing the difficulty: Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
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(2)
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Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
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126-
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(1)
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The Multi-State Co-operative Societies Act, 1984 (51 of 1984) is hereby repealed.
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(2)
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Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, any notification, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act.
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(3)
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Every multi-State co-operative society, existing immediately before the commencement of this Act which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force, in a y State or in pursuance of the provisions of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942) or the Multi-State Co-operative Societies Act, 1984 (51 of 1984), shall be deemed to be registered under the corresponding provisions of this Act, an the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.
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(4)
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All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State co-operative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 86 for its being wound up.
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(5)
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The provisions of this Act shall apply to –
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(a)
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any application for registration of a multi-State co-operative society;
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(b)
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any application for registration of amendment of bye-laws of a multi-State co-operative society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof.
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(6)
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Save as otherwise provided in this Act, any legal proceeding pending in any court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that court or before the Central Registrar or that authority as if this Act had not been passed.
Website: http://registration.ozg.in/
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