Cooperative Societies Act, 2008

[29 August, 2013]

Contents
Sections	Particulars
Part I	Preliminary
1	Short title
2	Interpretation and application
3	Cooperative principles
4	Confority to cooperative principlesy
Part II	Administration
5	Registrar of cooperative societies
6	Certificate of Registrar
7	Power to refuse documents
8	Verification of documents
9	Application for registration
10	Content of by-Laws
11	Effect of by-Laws
12	Conditions for registration
13	Registration of societies
14	Effect of certificate of registration
15	Probationary societies
16	Capacity and powers
17	Registered office
18	Maintenance of mandatory records
19	Access to records
20	Suspension and cancellation of registration
21	Seal
22	Pre-registration contracts
Part III	Membership and Meetings
23	Application and qualification for membership
24	Joint accounts
25	Membership fees and membership register
26	Liability of past and present members
27	Withdrawal of membership
28	Termination of membership by Board
29	Termination of membership by members
30	Suspension of membership for misconduct
31	Appeal
32	Re-admittance
33	Voting rights
34	Representative of member who is not an individual
35	Voting procedure
36	Place of meetings
37	Members not to exercise rights until due payment
38	First general meeting
39	Annual meeting
40	Special meetings
41	Meeting called by Registrar
42	Resolution in lieu of meeting
43	Notice of meetings
44	Fixing record date
45	Quorum
46	Delegates
47	Proposals
48	Power to make by-laws
49	Effective date of laws
Part IV	Management
50	Board of Directors
51	Officers
52	Provisional directors and elected directors
53	Powers of Board
54	Committees generally
55	Tenure of committees generally
56	Credit Committee
57	Duties of Credit Committee
58	Approvals of loans
59	Credit Committee reports
60	Removal of member of Credit Committee by society
61	Removal of member of Credit Committee by Board
62	Supervisory Committee
63	Duties of Supervisory Committee
64	Removal of member of Supervisory Committee
65	Clerks
66	Misappropriation
67	Meetings
68	Removal of members of Supervisory Committee
69	Election of directors
70	Tenure of directors
71	Borrowing powers of Board
72	Validity of acts of directors and officers
73	Indemnification of directors
74	Duty of care in directors and officers
75	Ambit of director’s duty
76	Liability of directors
77	Misuse of confidential information
78	Material contracts
79	Meetings of directors generally
80	Meetings by telephone etc.
81	Attendance at meetings
82	Organisational meeting of directors
83	Director ceasing to hold office
84	Removal of directors
85	Notice of change of directors
86	Declaration by directors and officers
87	Bonding
88	Remuneration of directors
89	Remuneration of officers and other employees
Part V	Financing
90	Shares
91	Share Capital
92	Issue of shares
93	Alteration of authorised capital
94	Limitation on purchase of shares
95	Transfer of shares generally
96	Transfer of shares of member of unsound mind
97	Transfer of share or interest on death of member
98	Restriction on transfer of shares
99	Conditions for the validity of transfer of shares
100	Power of nomination
Part VI	Business of Society
101	Marketing of produce through society
102	Creation of charge in favour of society
103	Execution and registration of charge
104	Claims unaffected by charge
105	Prior claims in favour of society
106	Enforcement of charge
107	Assignment of charge
108	Bond as additional security for loan
109	Lien on shares
110	Deductions applied to loans and sharess
111	Purchase of shares
112	Prohibition on purchase of shares
113	Compulsory sale of shares
Part VII	Property And Funds of Society
114	Investment of funds
115	Loans by society
116	Prohibited loans
117	Receipt of loans and deposits
118	Receipt of deposits from minors
119	Reserve Fund, liquidity reserve and adequacy of capital
120	Development Fund
121	Pension Fund
122	Charitable contributions
123	Dividend or bonus
Part VIII	Financial Disclosure And Audit
124	Annual financial statement
125	Approval of financial statements
126	Furnishing financial statements
127	Auditor’s qualifications
128	Disqualifying auditor
129	Appointment of auditor
130	Cessation of office
131	Removal of auditor
132	Filling vacancy of auditor
133	Registrar appointed auditor
134	Auditor’s right to notice
135	Required attendance
136	Auditor’s right to comment
137	Examination by auditor
138	Auditor’s right to inspect
139	Error or misstatement
140	Privilege of auditor
141	Annual and special returns
Part IX	Reconstruction of Societies
142	Methods of reconstruction
143	Conversion
144	Effect of certificate of registration
145	Amalgamation of societies
146	Transfer of assets of societies
147	Claims of objecting creditors
148	Division of society
149	Effect of registration of new societies
Part X	Receivers and Receiver-Managers
150	Receiver appointed by Registrar
151	Functions of receiver
152	Functions of receiver-manager
153	Cessation of Board’s powers
154	Receiver’s duty
155	Directions by Court
156	Directions by Registrar
157	Required actions of receiver
Part XI	Dissolution
158	Dissolution by members
159	Notice of dissolution by members
160	Dissolution by Registrar
161	Dissolution for failure to account for business transacted
162	Dissolution by Court
163	Revival of dissolved society
164	Appointment of liquidator
165	Commencement of liquidation
166	Cessation of business
167	General provisions respecting liquidators
168	Duties of liquidator
169	Powers of liquidator
170	Limitation on liability of liquidator
171	Costs of liquidation
172	Closure of liquidation
173	Custody of records
174	Remuneration of liquidator
175	Continuation of actions
176	Unknown claimants or members
177	Power of Registrar to surcharge
178	Appeal against surcharge
179	Application of Part XI
Part XII	Investigations
180	Examination
181	Investigations
182	Court order
183	Powers of inspector
184	Hearing in camera
185	Incriminating statements
186	Absolute privilege respecting statements
Part XIII	Disputes
187	Settlement of disputes
188	cooperative Societies Appeal Tribunal
189	Question stated on question of law
190	Enforcement of award and recovery of loans
Part XIV	Specialized Societies Credit Unions
191	Interpretation and application
192	Restrictions
193	Liquid assets
194	Allowances
195	Loan approval
196	Security for loans
197	Loan limits
198	Reporting loans
199	Interest on loans
200	Deposits
201	Credit union and trusts
	Consumer's Societies and Housing Societies
202	Restrictions on directorship
203	Relationship with members
204	By-laws
205	Amendment of by-laws
206	No interest on share capital
207	Right to possession terminated
208	Abandoned goods
209	Membership
	Industrial Societies
210	By-laws
211	Restriction on registration
212	Bonus based on labour
213	Employees may be directors
Part XV	Apex Body
214	Establishment and constitution of Apex Body
215	Functions of Apex Body
216	Officers
217	Consultation by Registrar
218	Corrupt practices and bribery
219	Falsely obtaining property of society
220	Failure to comply with Act, etc.
221	Dealing in property subject to charge
222	Offences with respect to reports
223	Contravention of Act
224	Use of words "Credit Union or "cooperative"
225	Order to comply
226	Limitation
227	Preservation of civil remedy
Part XVII	Miscellaneous
228	Interpretation
229	Execution and Filing
230	Waiver of notice
231	Certificate of society
232	Copies of documents
233	Alteration
234	Corrections
235	Exemption from stamp duty and other taxes
236	Limitation on jurisdiction
237	Proof of entries in books and other documents
238	Regulations
Part XVIII	Transitional
239	Interpretation
240	Existing directors and officers
241	Existing societies
242	Savings
	Arrangement of Regulations
1	Short title
2	Definition
3	Forms
4	Fees
5	Filling out of document
6	Dividend rate
7	Transfer of Shares
8	Minimum amount of fidelity bond
9	Annual financial statements and special returns
10	Auditor's report
11	Standard of financial statements and auditor’s report
12	Election of Directors
13	Meeting of Directors
14	Appointment of Secretary and Treasurer
15	Duties of Secretary and Treasurer
16	Supervisory committee
17	Procedures on appeal of termination of membership
18	Unclaimed amounts in case of terminated membership
19	Amendment of by-law
20	By - housing society
21	Liquidity
22	Loan approval
23	Borrowing by directors and other officers
24	Security for loans
25	Maximum period for interest on loans
26	Loan terms and conditions
27	Bad and doubtful loans
28	Bad and doubtful loan allowance
29	Overdue loans
30	Investments
31	Use of Statutory Reserves
32	Credit Committee
33	Interest on loans
34	Deposits
35	Maximum liability on deposits and loans
36	Bank account
37	Branches
38	Savings
Schedules
	First Schedule
	Second Schedule

An act to make new provision with respect to the registration, supervision and management of certain societies, the members of which have a common bond of philosophy and socio-economic objectives and for related purposes.