Bare Acts Live

The Meghalaya Co-operative Societies Rules

Published vide Notification No. CG. 28/50.253, dated 4th February, 1953

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(Assam Rules, 1953 as adapted by Meghalaya)

Chapter I

Preliminary

(a) "Act" shall mean the Meghalaya Co-operative Societies Act, (Assam Act, I of 1950 as adapted by Meghalaya);

(b) Words and expressions used in these Rules shall bear the meanings respectively assigned to them in the Act;

(c) "Section" means a section of the Act;

(d) "Schedule" means the Schedule of forms appended to these Rules ;

(e) "Society" means a registered co-operative society registered or deemed to have been registered under the Act and includes a society formed after amalgamation of such two or more societies or by division of such an existing society ; a registered co-operative society may be called a Co-operative;

(f) "Director" means a member of an Administrative Council, managing committee or any managing body of society, as the case may be, vested with the powers of its management ;

(g) "Borrowed capital" means the total of loans, deposits and other borrowings of a co-operative society ;

(h) "Owned capital" means the total of paid-up share capital and accumulated reserve and other funds created out of profits of a co-operative society;

(i) "Working capital" means the total capital of a co-operative society consisting of borrowed capital and owned capital;

Chapter II

Registration of Societies

(a) hold more than such portion of the share capital of the society, subject to a maximum of one-fourth, as may be prescribed by the bye-laws of the society, or

(b) have or claim any interest in the shares of the society exceeding five thousand rupees ; provided that if the society is a Housing Society or a wholesale society for procurement and distribution of any article or any special type of society a member may have or claim an interest in the shares of the society, not exceeding Rs. 25,000. In such cases, the Registrar will decide whether the maximum limit of share allowed to an individual member should be Rs. 25,000 or less and his decision shall be final.

(a) that the application and bye-laws are in conformity with the Act and the Rules ;

(b) that the bye-laws are suitable for carrying out the objects of the society and ensure safe conduct of its business ; and

(c) that the proposed society has reasonable chances of success having regard to local conditions, and may call for further information or make such enquiry as he may deem necessary.

(b) Such registration shall be entered in a general register kept for the purpose in the form found suitable and the entry of such registration shall be attested by the seal and signature of the Registrar.

(i) no registered society with unlimited liability shall have more than 100 members, except with the approval of the Registrar which will not be given except for special reasons to be recorded in writing ;

(ii) no registered society with unlimited liability shall have more than 50 members at the start ; the member may be increased by not more than 20 members a year up to the maximum prescribed above.

(a) the name and registered address of the society and its branches, if any;

(b) the area of its operation ;

(c) the objects of the society ;

(d) the purpose to which its funds may be applied ;

(e) qualifications required for membership and the terms of admission of members ;

(f) the rights and liabilities of membership ;

(g) the maximum number of members that may be admitted ;

(h) the nature and amount of the share capital, if any, of the society and where there is a share capital, the maximum share capital which a single member can hold ;

(i) the manner in which capital may be raised by means of shares and debentures, borrowing from non-members, deposits of members or otherwise;

(j) the entrance and other fees and the fines, if any, to be collected from the members ;

(k) withdrawal, removal and expulsion of members and the payment, if any, to be made to such members ;

(l) transfer of share or interest of a member ;

(m) the circumstances under which withdrawal from membership shall be permitted and the procedure to be followed in cases of withdrawal, ineligibility and death of members ;

(n) the mode of appointment and removal of directors and office-bearers of the society and the duties and powers of the managing body and other committees or bodies which may be formed and specify the composition of such bodies, their powers, duties ;

(o) the mode of summoning and conducting meetings and the right of working fixing of quorum for meetings ;

(p) subject to the provisions of rules and the manner of making, altering and abrogating bye-laws ;

(q) the general conduct of the business of the society ;

(r) the disposal of profits ;

(s) creation and use of reserve and other funds ;

(t) the mode of custody and of investment of funds outside the business and the custody of books, accounts and securities ;

(u) the mode of keeping accounts ;

(v) settlement of disputes ;

(a) the conditions under which loans may be granted ; fixing of the maximum and normal credit of members and the maximum loan admissible to a member ;

(b) the rate of interest on loans and the system of calculation of interest;

(c) purposes for which loans may be granted ;

(d) security for payment of loans ;

(e) period of payment and recovery of loans ;

(f) extension of the period of repayment and renewal of loans ; and

(a) the mode of conducting business ;

(b) procedure to be followed in conducting business, purchasing selling, stock taking and other matters relating to stores, raw materials and finished products.

(i) every such amendment shall be made only by a resolution passed by a majority of the members at a meeting of the general assembly and at which not less than two-thirds of the members of the society are present;

(ii) no such resolution shall be valid unless not less than clear fifteen day's notice of such meetings has been given of the proposal to alter or rescind the bye-laws.

(i) that it is impracticable of the society to secure the attendance of two-thirds of the total number of members at a meeting of the general assembly ;

(ii) that the adoption of the proposed amendment is in the interest of the society; and

(iii) that such amendment is likely to meet with the approval of the general body of members.

(a) the date of the meeting of the general assembly at which the amendment was passed ;

(b) the number of members on the roll of the society on the date of issuing the notice of the general assembly meeting ;

(c) number of members present at the meeting ; and

(d) the number of members who voted in support of the amendment.

(i) withdraw the direction for amendment of the bye-laws ; or

(ii) register the same.

(a) the constitution of its administrative council and the managing body ; and

(b) the investment of funds.

(a) a copy of the proposed amendment of the bye-laws, and

(b) a copy of the resolution and decision approving such amendment.

(a) fails to make the amendment of its bye-laws, or

(b) files an objection to such an amendment,

(i) withdraw the direction for amendment of the bye-laws ; or

(ii) forward the amendment together with the objections, if any, filed by the society and its comments thereon to the Register for consideration and registration.

(a) the manner of receipt and disbursement of money ;

(b) the mode of keeping custody of books, accounts, securities and funds; and

(c) the terms of service of salaried officers dealing with pay, leave, discharge and dismissal.

(b) functions of the "Honorary Organiser of Co-operative Societies" will be to-

(i) take active interest in the working of existing co-operatives :

(ii) prepare grounds by educating the people of the locality in the principles of co-operations and creating a co-operative atmosphere amongst them ;

(iii) inspect co-operative societies within his jurisdiction submitting his report in the form prescribed by the Registrar for the purpose ; and

(iv) perform any other functions as may be consigned to him by the Registrar from time to time.

(c) The "Honorary Organiser of Co-operative Societies" shall be entitled to travailing allowance to cover expenses of journeys undertaken at rates fixed for the purpose.

Chapter III

Rights and Liabilities of Members of Registered Societies

(a) Application fee. - Every applicant for admission as a member must agree to pay an application fee as may be prescribed in the bye-laws; but such fee shall not be less than eight annas or exceed two rupees.

(b) Every applicant for admission as a member must also agree to pay such admission fee as may be prescribed in the bye-laws. Such fee shall not be less than one rupee where the applicant is an individual and five rupees where the applicant is a registered society.

(c) Where the capital is to be raised by the issue of shares, each member must agree to subscribe to at least one share or the minimum number of shares as prescribed in the bye-laws and has paid the dues on account of such share or shares as required under the provisions of the bye-laws.

(a) who does not satisfy the requirements of the Act and Rules ; or

(b) who is legally or mentally disabled ; or

(c) who is a bankrupt; or

(d) who is convicted of a criminal offence, involving moral turpitude.

(a) if such member is in any way disqualified under the provisions of the Rules or any bye-laws of the society for voting in the affairs of the society of which he is a member or for being appointed as a director ; or

(b) if, in the case of a credit society, the member is a habitual defaulter and no extension of time for payment of the instalments defaulted has been granted by the managing body ;

(c) if, in the case of any other type of societies, the member is in arrears in any way in payment of his dues or is not loyal to the society as required under the bye-laws.

(a) by a promoter signing the application, for registration of a society with unlimited liability together with the application for registration of the society; and

(b) by a member of a limited society applying for a loan or for acceptance as a surety for a loan.

(1) to show cause within a reasonable time specified in the notice why the loan shall not be recalled ;

(2) where no cause is shown to the satisfaction of the society within the specified period, the managing body may recall the loan and if the loan is not refunded immediately it shall apply to the Register for an award under Section 70 in order to recover the loan.

(a) by reference to any recorded sale of similar land in the locality during recent period ; or

(b) if no record of such sale is available the value of the land shall bear such proportion to the annual rent payable to the society for the land as may be notified by the Registrar ; or

(c) if no rent has been assessed for the land, the value shall be determined by the Managing Body subject to the approval of the Registrar.

Chapter IV

Management

(ii) The Chairman of a meeting of the general assembly shall maintain order in the meeting and shall control and conduct proceedings in such manner as may be conducive to expeditious and effective disposal of business. He shall decide all points of order and his decision upon such points shall be final.

(iii) The Chairman of the meetings of the general assembly may direct any member to withdraw for disorderly conduct and the member so ordered shall immediately withdraw and unless otherwise directed by the Chairman shall remain absent during the remaining period of the meeting and shall not be entitled to vote without the provision of the Chairman.

(iv) In the event of disorder, the Chairman of the meeting may suspend the meeting and adjourn it to such a date and time as he may think fit subject to the provisions of the bye-laws.

(ii) No business shall be transacted at any meeting of the general assembly unless there is a quorum at the time when the business of the meeting is due to commence.

(iii) If within half an hour from the time fixed of the meeting of the general assembly a quorum is not present, the meeting shall stand adjourned ordinarily on the same day in the next week at the same time and place but the Chairman of the meeting may, however, decided to adjourn the meeting to a date not later than fourteen days or as may be provided in the bye-laws of the society :

(iv) If at any time during a meeting of the general assembly, attendance of members falls below the quorum as prescribed above, the Chairman of the meeting on his attention being drawn to the fact or on his own initiative may adjourn the meeting to such a date, time and place as he may think convenient, and the business to be transacted at this meeting shall be disposed of in the usual manner at the adjourned meeting even without a quorum.

(ii) The proceedings shall be signed by the Chairman of the meeting after being read to and confirmed by the members present at that meeting or at the next meeting.

(iii) Admission of non-member. - The Chairman in his discretion may admit any person not being a member, to any meeting of the general assembly for the purpose of giving expert advice. Such person shall not be entitled to vote.

(ii) The vacancies caused by the retirement of the directors shall be filled up by election at the annual meeting of the general assembly at which they retire.

(ii) In subsequent year one-third of the directors elected by the members shall retire from office at the next annual meeting of the general assembly and shall not be eligible for re-election for one year from the date of retirement.

(iii) The vacancies caused by the retirement of directors under sub-rule (i) or sub-rule (ii) shall be filled up by election at the annual meeting of the general assembly in which they retire.

(iv) The directors who are to retire in accordance with sub-rule (ii) at the second and the third annual meetings of general assembly shall be determined by lot in a meeting of the administrative council or the managing body, as the case may be, within three months from the date of its first constitution after the commencement of these Rules. In subsequent annual meeting of the general assembly, the directors who have been longest in office shall retire.

(ii) The members so appointed shall hold office till the next election of directors appointed under this rule may or may not be members of the society.

(iii) If any vacancy occurs in the office of such an appointed director, the vacancy shall be filled up by appointment.

(a) is adjudged by a competent Court to be insolvent or of unsound mind;

(b) has been punished with imprisonment for an offence involving moral turpitude ;

(c) is concerned or participates in the profits of any contract with the society;

(d) if a credit society has failed to pay in three consecutive years immediately preceding the election at least an amount equivalent to one year's instalment fixed for the repayment of the loan.

(a) if he becomes subject to any disqualification mentioned in Rule 31, or

(b) if he resigns his office by notice in writing to the administrative council or the managing body concerned ; or

(c) if, without the consent of the administrative council or the managing body, he is absent from meeting for more than three consecutive meetings; or

(d) if the society of which he is a representative is dissolved or disaffiliated.

(i) no business transacted at meeting of the administrative council or the managing body so convened shall be deemed invalid on account of non-receipt of the notice by a member in due time ; and

(ii) any urgent business though not included in the agenda accompanying the notice, may be brought up and considered with the consent of all the members present at the meeting.

(i) to admit new members and to suspend, fine, remove or expel existing member;

(ii) to raise funds ;

(iii) to invest funds ;

(iv) to appoint salaried or non-salaried officers for proper conduct of the business, on such terms as to remuneration, security, etc. and with such powers and authorities including the power to enter into contracts on behalf of the society as they may deem fit and to define their duties;

(v) to dismiss, suspend or punish each officer mentioned in sub-clause (iv);

(vi) to institute, defend or compromise legal proceedings ;

(vii) to dispose of applications for loans and to determine the security to be taken ;

(viii) to appoint sub-committees as may be deemed necessary from time to time; and

(ix) to delegate, with or without conditions, all or any of the powers exercisable by the administrative council or the managing body to any officer-bearer or to any committee formed.

(1) to provide for the management of the affairs of the society ;

(2) to receive and disburse money ;

(3) to maintain true accounts of money received and expended and of assets and liabilities;

(4) to prepare for submission to the annual meeting of the general assembly-

(a) an annual report on the working of the society ;

(b) an annual statement of accounts which shall include-

(i) cash account;

(ii) balance-sheet;

(iii) trading account (if any);

(iv) profit and loss account; and

(v) profit and loss appropriation account;

(5) to prepare the statement of accounts required for audit and to place them before the auditors ;

(6) to prepare and submit all statements and returns required by the Registrar in such forms as he may direct;

(7) to enter account's of the society regularly in proper registers ;

(8) to maintain a register of members up-to-date ;

(9) to facilitate the inspection of books and records by the inspecting officers;

(10) to convene meetings of the general assembly on requisition :

(11) to convene the annual meeting of general assembly in due time ;

(12) to watch that the loans are applied for the purposes they are advanced and that they are repaid punctually ;

(13) to examine and take prompt action in cases of all arrears and defaults in respect of repayment of loans ;

(14) to examine the stock register and verify the actual stock ;

(15) to supervise and examine the work of the sub-committees and the office-bearers; and

(16) to perform such other duties as may be entrusted by the general assembly.

(17)(a) No society, without prior approval of the Registrar, shall take into consideration any balance sheet at its annual general meeting or make any distribution of its profits by way of dividend or bonus or otherwise among its office-bearers, employees and members, unless and until the balance sheet (for the period during which such profits have accrued) shall have been certified to be a true and correct statement of the financial position of the society by the Registrar or the person authorised by him in that behalf.

(b) All societies with limited liabilities shall obtain the Registrar's approval to their proposal of the distribution of the profits whether to their office-bearers or employees or members before considering it at the annual general meeting.

(a) have full control over the staff of the society with power to punish, suspend or dismiss any member thereof: provided that the power of dismissal shall be exercised with the previous concurrence of the administrative council or the managing body as the case may be ;

(b) to institute, defend or compromise legal proceedings.

(i) receive all money on behalf of the society and issue receipts ;

(ii) pay all costs of management and working expenses out of the funds of the society, e.g. salaries of the staff, travelling and other contingent expenses necessary for the work of the society ;

(iii) deposit all money received on behalf of the society as well as securities and other effects as prescribed under Rule 35 ;

(iv) maintain regular and accurate accounts ;

(v) maintain records in prescribed form ;

(vi) convene meetings of the administrative council or the managing body as may be necessary from time to time ;

(vii) submit such statements as required by the administrative council or the managing body.

(i) withdraw or modify the order ; or

(ii) dissolve the administrative council or the managing body.

(ii) Rule 40 shall be applicable in case of a person or persons so appointed.

(i) the date and time by which charge of the society shall be taken over from the dissolved body ;

(ii) the condition under which work shall be carried on ;

(iii) the remuneration, if any, to be paid to manage the affairs of the society ;

(iv) the security, if any to be furnished by those appointed ; and

(v) the date by which a new administrative council managing or other body, as the case may be, is to be elected.

Chapter V

Duties of Registered Society

(i) the register of members,

(ii) the register of the members of the administrative council, if any, and of the managing body, and

(iii) other books and records of the society.

(i) general register,

(ii) Certificate of Registration,

(iii) bye-laws,

(iv) amendment of bye-laws,

(v) orders for its cancellation,

(vi) the annual cash account, balance-sheet and revenue accounts, and

(vii) audit memorandum.

(a) the Apex Bank or a Central Co-operative Bank for the purpose of financing its affiliated societies the Apex Bank may incur liabilities by floating debentures, accepting deposits or in any other way to the extent of twenty times the value of paid-up share capital and the reserve fund for the time being separately invested, unless relaxation is made by Registrar by an order in writing ;

(b) an agricultural society or a bank financing such societies may, with the permission of the Registrar or any person authorised on his behalf and under such conditions as he may impose, incur liabilities for the purpose of advancing seasonal loans to members for production of crops and for financing disposal of produce, repayable within a period of twelve months, irrespective of the amount of its paid-up share capital or reserve fund separately ingested outside the business.

(i) 25 per cent of (he amount held in fixed deposits and loans due for repayment within the ensuing six months (less the amounts for which written notice of renewal has been received);

(ii) 33 per cent of the amount held in savings deposits ;

(iii) 60 per cent of the amount held in current deposits ; and

(iv) the entire amount of undrawn cash credit granted.

(a) cash in hand, or in banks or with bankers approved by the Registrar;

(b) Government securities including post office case certificates ;

(c) deposits in Post Office Saving Banks ;

(d) other investment of a liquid nature in outside concerns approved by the Registrar; and

(e) the undrawn portion of assured cash credit with-

(i) any joint-stock bank or private banker approved by the Registrar; or

(ii) the Apex Bank or any other Co-operative Bank approved by the Registrar.

(a) a society may grant loans to its members up to twenty times the amount of share capital paid up by a member, in case of such loans being issued on mortgage or valuable security, as provided in sub-section (2) (c) of Section 44 of the Act.

(b) the Apex Bank or any other financing bank may grant loans to any affiliated co-operative land mortgage bank up to twenty times the amount of share capital paid up by the land mortgage bank ;

(c) the Apex Bank may advance loans to an affiliated society engaged in the purchase of production and disposal of goods of its members in excess of ten times the share capital paid up by such society ;

(d) an agricultural society may grant loan to its members repayable within a period of twelve months for facilitating the production or disposal of produce, irrespective of the amount of the share capital paid up by such member with the previous permission of the Registrar and under such conditions as he may impose.

(a) in a primary non-agricultural credit society the maximum or normal credit of a member shall be determined by taking into consideration his assets liabilities and his repaying capacity ;

(b) in a primary agricultural credit society, the maximum or normal credit shall not exceed one-half of the total value of the agricultural lands of a member which is actually under his cultivation during the period of assessing normal credit or two-thirds of the total estimated net income from such lands during the period of the repayment of the loan whichever is less.

Chapter VI

Property and Funds of Registered Society

(i) with the Meghalaya Co-operative Apex Bank limited ; or

(ii) in the purchase or leasing of land or buildings ; or

(iii) in the construction of buildings : provided that the purchase of such land or the construction of such building is likely to be advantageous to the society in its working ; or

(iv) in any other manner permitted by the Registrar.

(ii) With the previous sanction of the Registrar, co-operative society with shares and with limited liability may meet the loss of any year partly or wholly from the reserve fund ; provided that no' dividend or shares, bonus, patronage dividend or rebate is paid during the year out of the profit. Not less than fifty per cent of the reserve fund shall be separately invested every year not to be utilised in the ordinary working of the society subject to Rule 58.

(ii) In every co-operative society with shares and with unlimited liability not less than one-half of the net profits in any year shall be carried to the preserve fund until that fund is equal to one-half of the total borrowed capital ; thereafter not less than one-third of the net profits in any year until the reserve fund equals the amount of borrowed capital ; and thereafter not less than one-fourth of the net profits in any year shall be carried to the reserve fund :

(i) up to one-third of its reserve fund when the owned capital is less than the borrowed capital ;

(ii) up to two-thirds of its reserve fund when the owned capital is equal to or exceeds the borrowed capital; and

(iii) the entire reserve fund when there is no borrowed capital :

(a) the Registrar (ex officio) ;

(b) the Deputy Registrar of Co-operative Societies (ex officio) ;

(c) an Economist;

(d) a representative of rural credit societies ;

(e) a representative of trading and consumer societies ;

(f) a representative of other types of societies ; and

(g) one member of the State Legislative Assembly.

(ii) The Registrar shall be the Chairman with the Deputy Registrar of Co-operative Societies as the Secretary and Treasurer of the Committee. The Registrar shall frame rules for the detailed procedure of working and disposal of the fund.

(a) the education of members of co-operative societies in co-operative principles and practice ; or

(b) the development of new types of co-operative societies ; or

(c) the improvement of co-operative societies in general.

(a) Payment of dividend on shares. - No co-operative society shall pay its share-holders in any year a dividend exceeding twelve and a half per cent on the paid-up shares unless otherwise permitted by the Registrar in writing :

(b) No dividend shall be paid by any co-operative society with shares and unlimited liability without the previous sanction of the Registrar and that the rate of such dividend shall not exceed 6¼ per cent per annum on the paid up share.

(c) No co-operative society shall declare a dividend at a rate exceeding that recommended by its administrative council or managing body ;

(d) Dividend Equalisation Fund. - A society may credit in any year a sum out of the dividend allotted under (a) above not exceeding 3 per cent on the paid-up share capital to a fund called the "Dividend Equalisation Fund" till the total amount in such fund accumulates to 9 per cent of the paid up share capital :

(b) In case advance patronage dividend is allowed to be paid under Section 54(2), the total amount of such patronage dividend shall not exceed the limit as provided in the bye-laws.

Chapter VII

Audit

(a) Doubtful debt. - If a member fails for three consecutive years without reasonable ground acceptable to the managing committee, to pay at least 25 per cent of each of the instalments of principal and interest fixed for repayment of a loan at the time of its issue, then notwithstanding that on an examination of his assets and the assets of his sureties, if any, the debt appears to be covered by the value of such assets, the debt may be considered as doubtful.

(b) Bad debt. - (i) When the total amount due by a member to a co-operative society by way of principal and interest exceeds the total of his assets and the available assets of his sureties, if any, and the amount due by way of arrear interest exceeds three years demand such excess of his total dues including interest over the total assets shall be considered as bad debt. Besides, where a member has inadequate repaying capacity and he and his sureties have no available assets, the debt shall be termed as bad debt.

(ii) A debt considered as doubtful if not recovered after action has been taken under Chapter X or Section 70 of the Act to recover it or the recovery of which has become barred by limitation shall be considered as a bad debt.

(i) the bad debt fund or any fund created out of profits as provision for bad debts;

(ii) any other fund created out of profits but not earmarked for any specific purpose;

(iii) the reserve fund constituted under Rules 56 and 59.

(i) in case of a primary agricultural credit society, within nine months, and

(ii) in case of any other society, within six months from the date of the close of the co-operative year.

"Certified that I have this day completed the audit of the.............for the period from to ............... and that a copy of the balance-sheet together with the statement of accounts audited and the audit report with the statement as required under Section 58 shall be sent within a week to the society for record".

"I report that I have audited the balance-sheet as at and the annexed profit and loss account for the year ended and have obtained all the informations and explanations 1 required. In my opinion the balance-sheet and the profits and loss account have been drawn up in conformity with the law' and subject to my separate report of even date, the balance sheet exhibits a true and correct view of the state of the society's affairs according to the best of my information and the explanations given to me and as shown by the books of the society."

(a) Primary Credit Societies - at annas 8 per one hundred rupees subject to a maximum of Rs. 150.

(b) All other co-operative societies - at Rs. 1 per one hundred rupees subject to a maximum of Rs. 5,000 unless the society has regional branches in which case the maximum shall be Rs. 10,000.

(i) "A" Class - Societies which are well managed, keep their accounts neatly and correctly have built up a strong financial position observe co-operative principles, have a co-operative outlook in all their dealings and do not require outside guidance or supervision and further enforce punctual recovering of dues from members with complete loyalty assured from all members.

(ii) "B" Class - Societies which may contain certain of defaultering members, their accounts are not entirely faultless but have displayed a certain amount of co-operative spirit with a general desire for self-improvement self-help and thrift. Outstanding of dues should not be more than 25 per cent of the total.

(iii) "C" Class - Societies where bye-laws and rules are not property observed management is not satisfactory, the financial position is weak and overdues exceed than that of "B" Class but within 50 per cent of the total outstanding and

(iv) "D" Class - Societies which fail to show any activity, have forfeited the confidence of creditors where the overdues are more than 50 per cent and they do not show any chance of improvement to class "C" within 2 years of such classification but where should be considered for liquidation.

Chapter VIII

Inquiry and Inspection

(ii) Such summons may be sent by registered post or served in the manner prescribed by Rule 98 (2).

(iii) Any person duly summoned under sub-rule (i) above to appear or to produce any document or cash shall be liable to the same penalties as provided in Rule 105.

(i) is a regular employee of the bank and has received training in institution or in any other way approved by the Registrar adequate for supervising and inspecting a society, and

(ii) possesses such qualifications as the Registrar may, from time to time, require.

Chapter IX

Settlement of Dispute

(i) issue a notice calling on each of the parties to nominate one person as its nominee within such time as he may direct and where a party consists of more than one person shall jointly make only one nomination ;

(ii) shall nominate the third arbitrator who shall act as Chairman.

(a) constitute a new Board under sub-section (1)(b) of Section 64 and sub-rule (1) above ; or

(b) appoint only on arbitrator ; or

(c) decide the case himself by making an award in the manner as provided in Rules 88 and 89.

(i) officers of the Co-operative Department;

(ii) officers of any other department of Government of Meghalaya ;

(iii) members, officers, or paid employees of co-operative societies ;

(iv) members of any local body ;

(v) teachers of any educational institutions ; or

(vi) Registered accountants.

(b) Remuneration to the arbitrators will be fixed by the Registrar subject to a minimum of five rupees and maximum of fifty rupees to each arbitrator in each case, payable from the funds of the society and realisable as cost against, the party or parties against whom any sum would be found due by the arbitrator or arbitrators or the Chairman.

(c) When any remuneration is to be paid to the arbitrators it shall be deposited with the Registrar by the society concerned in such manner as he may direct before the arbitrator is appointed.

(d) No remuneration shall be payable to an arbitrator till the dispute referred to him is finally decided.

(a) statement of the subject-matter of the dispute referred to in the form as set forth in the Schedule ;

(b) a statement of the claims in the form as set forth in the Schedule ;

(c) copy of the ledger account of the defendant in respect of money suit; and

(d) such other statement or records as may be required by the Registrar.

(i) the attendance of the parties concerned and of witnesses ;

(ii) the production of all books and documents relating to the matter in dispute; and

(iii) shall have the power to administer oaths of all parties concerned.

(i) personal service through the Chairman or the Secretary or a member of the staff of the society or any of the disputes ; or

(ii) registered post with acknowledgement due ; or

(iii) affixing a copy of the summons or notice at the last known place of residence or business of the person concerned through any office bearer or employee of the society, when he refuses to accept the notice and sign the acknowledgement or he cannot be found.

(i) pronouncement of the award ; or

(ii) registered post, to any party absent on such date.

(a) evidence in support of the contention that the party is about to dispose of the whole or any part of his property or is about to remove the whole or part of his property from the local limits of the jurisdiction of the Registrar and that the party has failed to furnish additional security even on demand ; and

(b) full details of the property to be attached, its estimated value and the claim of the society.

Chapter X

Desolation of Society

(i) has not commenced working within a period of twelve months from the date of registration ; and

(ii) has not carried on business during the previous eighteen months ; after giving the society a notice in writing in such manner as he thinks fit.

(i) prepare a list of the books, records, cash and other properties of the society taken charge of ;

(ii) prepare an up-to-date list of-

(a) members ;

(b) past members with dates of their withdrawal; and

(c) deceased members, with dates of their decease name of the legal heirs who represent their estates ;

(iii) make a final audit of the accounts of the society ;

(iv) draw up final balance-sheet as it stands on the date of cancellation of registration; and

(v) prepare a statement in the prescribed form, showing assets and liabilities as in the final balance-sheet.

(i) all loans including those from Central and Apex Bank ;

(ii) deposits from non-members ; and

(iii) deposits from members.

(b) Payment of interest included in the claims of the above categories shall be deferred until full payment of principal has been made to all creditors.

Chapter XI

Recovery of Sums Due and Enforcement of Obligations

(i) supply the person concerned with a copy of the proceedings and a summary of the evidence which prima facie appear against him ;

(ii) call on the person concerned to furnish his explanation by a specified date :

(iii) allow him an opportunity to look into relevant records of the society if required for furnishing an explanation of charges included in the proceedings drawn up against him ;

(iv) receive and record such evidence as may be adduced ;

(v) record a decision.

(b) The Registrar may, by an order in writing fix a sum not exceeding Rupees twenty-five to meet the cost of the proceeding under sub-section (3) of Section 71 of the Act.

(i) investment custody and employment of funds, contrary to the provisions of the Act, rules or bye-laws or any written direction of the Registrar given in accordance therewith ;

(ii) failure to remedy audit defects and irregularities in time when directed by the Registrar under Section 59 ; and

(iii) failure to file disputes against defaulters and to execute any decree or award within the period of limitation.

Schedule

[Rule 5(1)]

Form of application for the registration of a co-operative society with limited/unlimited liability under Section 11
of the Meghalaya Co-operative Societies Act, (Assam Act I of 1950 as adapted by Meghalaya)

The Registrar of Co-operative Societies, Meghalaya,
Shillong (Meghalaya)

Dated....... the..............19........

1. The name of the proposed society.............

2. The registered address of the society is Village/Town, Post Office ............... Mauza/Chowkidari Circle, Thana..............Sub-division...........district........

3. The liability of the members shall be limited/unlimited......

4. The area of operation .......

5. The object of the society....

6. Language in which the books and account will be kept.........

7. Four copies of proposed bye-laws signed by President of the inaugural meeting are sent herewith..........

8. Each member shall pay an admission fee of...........and subscribe to at least one share of nominal value of Rs......

9. A copy of the proceedings of the inaugural meeting of the proposed society is enclosed herewith.

10. Three copies of the application for registration with signatures of the applicants and particulars as required, are submitted in the prescribed form.........

Form of Certificate of Registration

[Rule 6(3)]

Under

Registrar of Co-operative Societies, Meghalaya

Form of application for the registration of amendments of bye-laws of a registered society

[Rule 10(1)]

The Registrar of Co-operative Societies, Meghalaya
(Through the Assistant Registrar of Co-operative Societies,............)
(Through the Inspector of Co-operative Societies,...........)

Dated........... the............. 19.....

We, the undersigned beg to enclose herewith-

1. The proposed amendment of bye-law No..............

2. Recession bye-law No..........

3. A complete amendment substituting entire set of bye-laws in supersession of all previous bye-laws in triplicate/quadruplicate the marginally noticed amendment of the bye-laws of the ................ at Village P.O P.S Sub-division in the district of........................and to apply for registration of the amendment under Section 13(2) of the Meghalaya Co-operative Societies Act, 1949 (Assam Act I of 1950 as adapted by Meghalaya). The necessary particulars about the meeting of the general assembly at which the amendment was passed are noted below :

(a) (1) Date of the meeting......

(2) The total number of members of the society on the date of issue of notice of the meeting of general assembly.......

(3) Number of members present at the meeting............

(4) Number and names of members who voted in support of the amendment.......

(5) Number and names of members who voted against the amendment...........

(b) For reasons noted below the quorum required under Rule 10(f) could not be secured.

Certificate of registration of amendment of bye-laws

[Rule 10(3)]

The following is the area so operation of the society :

The bye-laws amended and registered this day are also follows :

Complete amendment of previous bye-laws..........

Partial amendment of bye-laws Nos.......

Registrar of Co-operative Societies, Meghalaya

Form No. 1

Return of Audit Fees

[Rule 74(a)]

1. Name of the Society .................

2. Address .................

3. Registration No. and Date .................

4. Assessment year of Audit fee .................

5. Total capital .................

6. Funds separately invested .................

7. Net working capital to the nearest hundred rupees (See Rule 36(3)), i.e. item 5 minus item 6..........

8. Rate of Audit Fee per hundred of rupees (See Rule 36(4)

9. Provisional assessment of Audit Fee-payable to the nearest rupee...........

10. Deduction or addition on account of previous year's over or under payment (See item 14 of previous year's assessment..............

11. Total amount due (Items 9 and 10)............

12. Amount paid vide Receipt and Challan (Give Nos. and dates) to be filled in by auditing officer......

13. Final order of assessment by Regional Auditor............

14. Remarks of Regional Auditor to State amount of refund or extra payment due in next year's audit)...........
Submitted to the Auditor of Co-operative Societies..........
(Through the Co-operative Branch of the Development Office).............

Secretary of the Society.

Form No. 2

[Rule 74(7)]

Register of Collection of Audit Fees

Name of sub-division..........

Form No. 1

Application form for filing arbitration suits

[Rule 86(a)]

In the Court of the Registrar/Assistant Registrar of Co-operative
Societies, Meghalaya.

Form No. 2

[Rule 86(b)]

Signature
Secretary/Executive Officer of the............
Countersigned by the Chairman of the.................
Date..................

* If no separate bond was executed the sentence is to be struck off.

Office of the Registrar of Co-operative Societies, Meghalaya

Notice to show cause why a decision should not be given

[Rule 88(1)]

Case No...........of 19......

Registrar of Co-operative Societies, Assam

Registrar of Co-operative Societies, Meghalaya

*To be attested duly with two witnesses.

Office of the Registrar of Co-operative Societies, Meghalaya

[Rule 89]

Intimation of award given to the judgement-debtor

No. ............. dated at ............ the day ........... of ....... 19...

Member of the.........
(Through the Secretary...........)

Registrar of Co-operative Societies, Meghalaya

Memo No..........dated..........
Copy to Surety for information and necessary action Registrar of Co-operative Societies, Meghalaya

Intimation of award to the Chairman

[Rule 89]

The Chairman of the............
Village.........
P.O.............
Reference Case No..........of 19....
District........

Dated the ............ 19..

Yours faithfully                            

Registrar of Co-operative Societies, Meghalaya

Form of Simple Award

[Rule 89]

Case No....................of 19...................
District/Sub-divisional/Political Area

In the matter of.......................

Versus

...............Member of the................

Registrar of Co-operative Societies, Meghalaya

Form of Mortgage Award

[Rule 89]

Case No.......................of 19...............
District/Sub-divisional/Political Area

In the matter of the.........

Versus

............Member of the........

Registrar of Co-operative Societies, Meghalaya

Seal

Notice to furnish Security for fulfilment of Decree

[Rule 94(2)]

Under sub-section (3) of Section 64 of the Meghalaya Co-operative Societies Act, 1949

(Assam Act I of 1950 as adapted by Meghalaya)

..............member of the............

Registrar of Co-operative Societies, Meghalaya

Form of Conditional Order of Attachment Before Award

[Rule 94(6)]

Office of the Registrar of Co-operative Societies, Meghalaya

Case No.

In the matter of the..............

Versus

.............member of the..........

Registrar of Co-operative Societies, Meghalaya

Schedule

Form of order sheet

[Rule 98 (6) and (12)]

Notice of change of registered address