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Uttarakhand Self Reliant Co-Operatives Act, 2003

(Uttarakhand Act No. 04 of 2003)

Last Updated 12th March, 2020 [utr144]

Chapter I

Preliminary

(1) "arbitral tribunal" means a tribunal consisting of an individual or a group of individuals not being even in number, constituted by the general body of a cooperative for settlement of disputes, in accordance with the articles of association of that co-operative:

(2) "articles of association" means the regulations of the co-operative as originally framed by the promoters of a co-operative or as amended from time to time by the general body of that co-operative, in accordance with this act, for the management of the affairs of such co-operative.

(3) "Board" or "Board of Directors" means the governing body of a co-operative by whatever name called, to which the direction of the affairs of the cooperative is entrusted by the articles of association of that co-operative;

(4) "chief executive" means that individual, in paid or honorary capacity, nominated or elected or appointed by the Board of a co-operative from among members, directors or others, in accordance with the articles of association, who is the person to sue or be sued on behalf of the co-operative, and who performs such functions, and has such responsibilities and powers as are specified in the articles of association, and assigned by the Board;

(5) "common need" means that economic need which is common to all those who wish to form a co-operative, or have taken membership in a co-operative, and which the co-operative is expected to fulfil through the provision of core services;

(6) "co- operative", where used as a noun, means a self-reliant, self-help, mutualaid, autonomous, voluntary, democratic, business enterprise registered under this Act, which is jointly owned, managed and controlled by its members, who may be individuals or Co-operatives, for their economic and social betterment, through the financially gainful provision of core services which fulfill a common need felt by them;

(7) "co-operative business" means a business which is committed to functioning in accordance with the principles of cooperation, and includes all cooperatives registered under this Act ;

(8) "co-operative identity" means the statement of Co-operative Identity specified in Schedule A of this Act.

(9) "co-operative society" means a society registered under the U.P. co-operative Societies Act, 1965, before and after the appointed day of creation of Uttarakhand Under U.P Reorganization Act, 2000;

(10) " Co- operative society Act" means U.P. Co-operative Societies Act, 1965;

(11) "core services" means those central services provided to members, through which a co-operative intends to meet that economic need common to all members for the fulfillment of which the co-operative was established, and the fulfillment of which is expected to result in the economic and social betterment of members;

(12) "Court" means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its original civil jurisdiction;

(13) "deficit" means the excess of expenditure over income, arrived at, at the end of a financial year;

(14) "deficit charge" means the amount collected from/debited to the accounts of members, in proportion to the use and/or non-use of the services of the cooperative, in accordance with the articles of association and resolutions of the general body, to meet deficit, if any, in whole or part;

(15) "delegate" means a member nominated by a co-operative to represent its interests at the time of promotion of a secondary co-operative, and/or at meetings of a secondary co-operative to which the co-operative is affiliated;

(16) "director" means a member elected in accordance with the articles of association, to the Board of the co-operative;

(17) " Financial year" means the year commencing from the first day of April and ending on thirty first March next following, except if otherwise provided for in the articles of association;

(18) " general body" in relation to a co-operative, means all its members;

(19) "general meeting" means a meeting of the general body called and conducted in accordance with the provisions of this Act and the articles of association of the co-operative;

(20) " government" means the Government of Uttarakhand;

(21) "member" means a person who is in need of and is able to use the core services of a co-operative and who is admitted and continues a member of the co-operative, in accordance with the provisions of this Act and the articles of association of that co-operative, and includes a "member-co-operative".

(22) "Member-Co-operative" means a primary or secondary co-operative which is in need of and is able to use the core services of a secondary co-operative, and which is admitted as a member of that secondary co-operative, in accordance with the provisions of this Act and the articles of association of that secondary co-operative;

(23) "memorandum of association" means the document expressing the desire of the promoters to form themselves into a co-operative;

(24) "office-bearer" means a Director elected by the Board of a co-operative to any office of such co-operative in accordance with its articles of association;

(25) "officer of the co-operative" means the president, vice president, chairmen, vice chairmen, secretary, chief executive, member of committee of management, treasurer, liquidator, or any other persons employed by a cooperative whether with or without remuneration to carry on the business of the co-operative or to supervise its affairs;

(26) " ordinary resolution" means a resolution of the general body which has the approval of the majority of members with the right of vote, present and voting at the general meeting;

(27) " person" means an individual or institution competent to contract;

(28) "potential member" means a person who needs the core services being offered by a co-operative, and is eligible to be a member of that co-operative, but is not yet its member;

(29) "president" means the president elected among the elected members of the Board to preside over its meetings and the meetings of the general body, and to perform such other functions and have such other powers and responsibilities as are specified in the articles of association and assigned by the Board;

(30) "primary co-operative" means a co-operative whose members are individuals;

(31) " Registrar" means the person for the time being appointed as Registrar of Co-operatives by the State Government under this Act;

(32) " secondary co-operative" means a co-operative whose members are primary co-operatives;

(33) "special resolution" means a resolution of the general body, at a meeting called with at least 15 days notice, which has the approval of more than half of all the members of the co-operative with right of vote at the time of the general meeting, or of at least two-thirds of members with right of vote at the time of the general meeting and present in the general meeting, whichever is less;

(34) "surplus" means the excess of income over expenditure, arrived at, at the end of the financial year;

(35) "surplus refund" means the refund from the surplus given/credited to the accounts of members, in proportion to their use of the services of the cooperative in accordance with the provisions of the articles of association made therein;

Chapter Ii

Registration

(a) A copy of the resolution agreeing to the amendment;

(b) the date of the general meeting at which the amendment was approved;

(c) the date on which the amendment comes into force.

(a) at every office or place at which it carries on business;

(b) in all notice and other official publications;

(c) on all its contracts, business letters, orders for goods, invoices, statements of accounts, receipts and letters of credit; and

(d) on all bills of exchange, promissory notes, endorsements, cheques and orders for money it signs or that are signed on its behalf.

(a) enter the new name of the co-operative in the register of co-operatives in place of the former name;

(b) make necessary changes in the memorandum of association and articles of association;

(c) issue a fresh certificated of registration with the necessary alterations;

(d) communicate to the co-operative, by registered post, the fresh certificate of registration along with certified copies of the amended Memorandum and Articles.

(a) at every office or place at which it carries on business;

(b) in all notices and other official publications;

(c) on all its contracts, business letters, orders for goods, invoices, statements of account, receipts and letters of credit; and

(d) on all bills of exchange, promissory notes, endorsements, cheques and orders for money it signs or that are signed on its behalf.

(a) all claims of the members and creditors of each co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied; and

(b) information about the transfer of assets and liabilities has been sent by the co-operative concerned to the Registrar and the Registrar's acknowledgement of receipt of the information received.

(a) all claims of the members and creditors of the co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied;

(b) information of the impending division and settlement of claims of members and creditors is sent to the Registrar and the Registrar's acknowledgment of receipt of the information is obtained; and

(c) the certificates of registration and the copies of the registered Memorandum and articles of association of the resultant co-operatives, signed and sealed by the Registrar, are issued in accordance with section 3.

(a) all claims of the members and creditors of each co-operative who have exercised the option under sub-section (2) have been met in full of other wise satisfied;

(b) information of the impending amalgamation and settlement of claims of members and creditors is sent to the Registrar and the Registrar's acknowledgement of receipt of the information is obtained; and

(c) the certificate of registration and a copy of the Memorandum and articles of association of the resultant co-operative, signed and sealed by the Registrar, are issued in accordance with section 3.

(a) all claims of the members and creditors of each co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied; and

(b) information of the impending merger and settlement of claims of members and creditors is sent to the Registrar and the Registrar's acknowledgement of receipt of the information is obtained.

Chapter III

Membership

(a) all claims of the members and creditors of the co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied; and

(b) notice of the amendment of the articles of association of the co-operative has been received by the Registrar in accordance with this Act.

(a) in the case of a past member, on the date on which the person ceased to be a member; and

(b) in the case of a deceased member, on the date of his/her death; shall continue for a period of two years from such date.

(a) action on resolutions of the previous meeting;

(b) consideration of the long term plan and budget, when required;

(c) consideration of the annual operational plan and budget for the current financial year;

(d) appointment of auditors for the current financial year;

(e) consideration of the annual report of activities for the previous financial year;

(f) consideration of the annual audited statements of accounts, and the audit report relating to the previous financial year;

(g) consideration of the report on deviations, if any, from the approved budget relating to the previous financial year and the appropriate action to be taken;

(h) disposal of surplus, if any, of previous financial year;

(i) management of deficit, if any, of previous financial year;

(j) creation of specific reserves and other funds;

(k) review of actual utilization of reserves and other funds;

(l) review of the report on the attendance at meetings by Directors;

(m) review of the use of the co-operative's service by the Directors;

(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;

(o) review of quantum and percentage of services provided to non-members vis-a vis service provided to the members;

(p) appeal of a person whose application for membership has been rejected by the Board;

(q) appeal of a person who has been expelled from membership by the Board;

(r) report of activities and accounts related to member education and Board and staff training.

(a) election of Directors;

(b) amendments to articles of association;

(c) removal of Directors;

(d) elections/appointments to casual vacancies on the Board;

(e) removal, and consequent appointment of auditors;

(f) membership of the co-operative in secondary co-operatives;

(g) partnership with other co-operatives;

(h) amalgamation, division, merger, transfer of assets and liabilities;

(i) dissolution of the co-operative;

(j) Consideration of the Registrar's report of inquiry, if any.

(a) one- fifth of the members having the right to vote or 500 members having the right to vote; or

(b) the Registrar, in pursuance of the Registrar's functions under this Act;

Chapter IV

Management

(a) to interpret the organizational objectives, to set up specific goals to be achieved towards these objectives, and to make periodic appraisal of operations;

(b) to elect and remove office bearers;

(c) to appoint and remove the chief executive;

(d) to frame regulations for the appointment of all employees of the cooperative and the scales of pay, allowances and other conditions of service including disciplinary action;

(e) to finalize long term perspective plan, annual plan and budget, and to direct the affairs of the co-operative in accordance with the plan and budget approved by the general body;

(f) to make arrangements for the mobilization of funds;

(g) to authorize acquisition and disposal of immovable property; and

(h) to frame, approve and amend regulations relating to services, funds, accounts and accountability and information and reporting systems.

(a) act honestly and in good faith and in the best interests of the co-operative; and

(b) exercise such due care, diligence and skill as a reasonably prudent person would exercise in similar circumstances.

(1) such member has the right to vote in the affairs of the co-operative; and

(2) such member has patronized the services of the co-operative during the previous financial year to the extent and in the manner specified in the articles of association; and

(3) such member has no interest in any subsisting contract made with or work being done for the co-operative except as otherwise specified in the articles of association; and

(4) three years have lapsed from the date that such member may have ceased to be a Director of the co-operative for reason of

(a) non-conduct of general meeting;

(b) non-conduct of elections to the Board;

(c) non-submission of annual report of activities, audited annual financial statements and/ or auditor's report to the general body; or

(d) absence from Board meetings.

(a) at least one-third of the Directors on the Board; or

(b) the Auditor;

Chapter V

Finance

(a) towards a deficit cover fund;

(b) to be distributed as surplus refund among its members;

(c) to develop its business;

(d) towards reserves and funds constituted in accordance with the articles of association;

(e) to provide common services to its members;

(f) to provide rewards or incentives to staff;

(g) towards a non-divisible corpus fund;

Chapter VI

Accountability

(a) a copy of this Act, with amendments made from time to time.

(b) a copy of its articles of association, with amendments made from time to time

(c) the minutes books;

(d) account of all sums of money received and expended by the co-operative and their respective purposes;

(e) account of all purchases and sales of goods by the co-operative;

(f) account of the assets and liabilities of the co-operative;

(g) a list of members, their fulfillment of responsibilities over the previous financial year, their eligibility to exercise their rights for the current financial year updated within forty five days of closure of the cooperative's financial year; and

(h) all such other accounts, records and documents as may be required by this Act or other laws and regulations;

(a) resigns;

(b) is removed from office under sub-section (6); or

(c) completes his/her term of office.

(a) resigns; or

(b) receives a notice or otherwise learns of a Board's meeting called for the purpose of removing him/her from office;

(a) provide such access to records, documents, books, accounts and vouchers of the co-operative; and

(b) furnish such information and explanations, as are, in the opinion of the auditor, necessary to enable him/her to make the examination and report, and as the chief executive or a present or former Director, members, or employees are reasonably able to furnish.

(a) state whether the auditor has obtained all the information and explanations which to the best of the auditor's knowledge and belief were necessary for the purpose of the auditor's audit;

(b) state whether the co-operative's balance sheet and income and expenditure account dealt with by the report are in agreement with the books of accounts;

(c) 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;

(d) indicate the amount of the 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;

(e) indicate every deviation in actual expenses and income from the estimated expenses and income in the approved budget;

(f) specify the gross remuneration and/or honorarium and/or allowances paid and/or value of benefits provided, if any, to the chief executive, any of the office bearers, or Directors, in the financial year under audit;

(g) state whether or not any of the office bearers or Directors had become, at any time during the year under review, ineligible under this Act to continue in office as an office bearer or Director; and

(h) state whether the decisions on disposal of surplus or assessment of deficit, of the general body, at its previous annual general meeting were implemented correctly and completely or not.

(a) annual report of activities;

(b) audited annual statements of accounts with auditor's report;

(c) statistical statements indicating name of the co-operative; core services offered by the co-operative to its members; total number of members as on the last day of the year; total liabilities expressed as -

(i) funds from members, and surpluses,

(ii) funds from the government, if any, and

(iii) funds from other external sources as on the last day of the financial year; quantum in rupees of services:

(a) the date of the Annual General Meeting at which the returns being filed with the registrar were considered and/or approved;

(b) the total number of members on the rolls of the co-operative who were eligible to vote on the date of such Annual General Meeting;

(c) the number of eligible members present at such annual general meeting;

(d) list of names of Directors, their addresses and their terms of office;

(e) name and address of the auditor appointed for auditing the current year's accounts.

(a) to the co-operative concerned;

(b) to the applicant secondary co-operative, if any;

(c) to the applicant- creditor, if any;

(d) to the person designated by the applicant-Directors, if any;

(e) to the person designated by the applicant- members, if any; and

(f) to any person, on payment of fee specified by the Registrar.

Chapter VII

Offences

(a) without reasonable cause, contravenes any provision of this Act for which no penalty is otherwise provided; or

(b) fails to give any notice or send any return or document that is required by this Act;

Chapter -VIII

Disputes

(a) among members, past members and persons claiming through members and deceased members; or

(b) between a member, past member or a person claiming through a member, past member or deceased member and the co-operative, its Board, Director, office- bearer, or liquidator, past or present; or

(c) between the co-operative 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 co-operative, such dispute shall be referred to the Arbitral Tribunal of the co-operative.

Chapter IX

Dissolution

(a) the assets and liabilities of the co-operative;

(b) the claims of creditors;

(c) the number of members;

(d) the nature and extent of the members' interest in the co-operative;

(e) the name and address of the liquidator appointed by the co-operative.

(a) where the Registrar is satisfied that the co-operative has no assets or liabilities, the Registrar may dissolve the co-operative, strike off its name from the register of co-operatives and issue a certificate of dissolution; or

(b) the Registrar shall, within thirty days of such approval, cause at the expense of the co-operative a notice of the special resolution to be published once a week for two consecutive weeks in a newspaper published or distributed in the district where the registered office of the co-operative is located.

(a) the progress of dissolution;

(b) the distribution of any undistributed surplus or reserve; and

(c) any other relevant information that the Registrar may require.

(a) has not commenced business within two years after the date shown on its certificate of registration; or

(b) has not carried on business for two consecutive years;

(a) a letter was sent to the cooperative in pursuance of sub-section (1);

(b) no answer to that letter has been received by him/her, and

(c) if an answer is not received to the letter sent under this sub-section with in thirty days from the date it is sent, a notice will be published in the Gazette to dissolve the cooperative.

(a) receives an answer from the cooperative that it is not carrying on business; or

(b) does not, within thirty days after the date that he/she sent a letter in pursuance of Sub-section (2), receive an answer to that letter;

(a) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution; or

(b) appoint a liquidator to dissolve the cooperative, in accordance with section 53.

(a) to review the affairs of the cooperative; and

(b) to ascertain whether the general body desires to continue the cooperative.

(a) a quorum of members is not present at a special general meeting called in pursuance of sub-section(5) or (6); or

(b) the general body fails to pass a resolution to the effect that:

(i) the cooperative is to carry on business;

(ii) the board must present, within Sixty days from the date of the special general meeting, to the general body the annual returns to be filed with and the information to be furnished to the Registrar; and

(iii) the cooperative will file the returns with and furnish the information to the Registrar within ninety days from the date of the special general meeting; or

(c) the cooperative fails to file the returns with and furnish the information to the Registrar within ninety days from the date of the special general meeting; the Registrar may:

(i) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution; or

(ii) appoint a liquidator to dissolve the cooperative, in accordance with section 53.

(a) obtained its registration by fraud or mistake;

(b) exists for an illegal purpose;

(c) has will fully, after notice by the Registrar, violated any of the provisions of this Act or its articles of association; or

(d) is no longer operating on a cooperative basis.

(a) if the order is to dissolve the cooperative, dissolve it, strike off its name form the register of cooperatives and issue a certificate of dissolution; or

(b) if the order is to liquidate and dissolve the cooperative, appoint any person as a liquidator to wind up the affairs of the cooperative.

(a) immediately give notice to each claimant and creditor, known to the liquidator;

(b) immediately publish a notice regarding his/her appointment as liquidator in the Gazette, and once a week for two consecutive weeks in a local newspaper of the area where the co-operative has its registered office;

(c) place in the notice mentioned in clause (a) and (b), a provision requiring any person;

(i) indebted to the co-operative, to render an account and pay to the liquidator at the time and place specified any amount owing;

(ii) possessing property to the co-operative, to deliver it to the liquidator at the time and place specified; and

(iii) having a claim against the co-operative, whether liquidated, un-liquidate, future or contingent, to present particulars of the claim in writing to the liquidator;

(d) take into custody and control the property of the co-operative;

(e) open and maintain a trust account for the moneys of the co-operative;

(f) keep accounts of the moneys of the co-operative received and paid out by him/her;

(g) maintain separate lists of the members, creditors and other persons having claims against the co-operative;

(h) where at any time the liquidator determines that the co-operative is unable to pay or adequately provide for the discharge of its obligation, apply to the Registrar/ general body as the cause may be, for directions; and

(i) deliver to the Registrar/general body, periodically as the Registrar/ general body may require, financial statements of the co-operative in any form that the liquidator considers proper or that the Registrar/general body may require.

(a) retain lawyers, accountants, engineers, appraisers and other professional ad-visors;

(b) bring, defend or take part in any civil, criminal or administrative proceeding in the name and on behalf of the co-operative;

(c) carry on the business of the co-operative as required for an orderly liquidation;

(d) sell by public auction or private sale any property of the co-operative;

(e) do all acts execute any documents in the name and on behalf of the cooperative;

(f) borrow money on the security of the property of the co-operative;

(g) settle or compromise any claims by or against the co-operative; and

(h) do all other things that the liquidator considers necessary for the liquidation of the co-operative and distribution of its property.

(a) issue directions with respect to the custody or disposal of the documents and records of the co-operative; and

(b) Discharge the liquidator.

Chapter X

Miscellaneous

(a) the taxes on professions, trades, callings and employments;

(b) the stamp duty with which, under any law for the time being in force, instruments executed by or on behalf of a co-operative or by an office bearer or Director or member and relating to business of such co-operative or any class of such instruments or decisions or orders of the Registrar or Arbitral Tribunal or liquidator under this Act, are respectively chargeable; or

(c) any fee payable under the law relating to registration for the time being in force or court fees.

(a) any instruments relating to shares in a co-operative notwithstanding that the assets of the co-operative consist in whole or in part of immovable property;

(b) any debentures issued by any such co-operative and not creating, declaring, assigning, limiting or extinguishing and right, title or interest to or in immovable property except in so far as it entitles the holder to the security afforded by a registered instrument whereby the co-operative has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debenture; or

(c) any endorsement upon or transfer of any other debentures issued by any such co-operative.

Schedule A

[ Section 2 (8) and 3(3)]

Statement of co-operative Identity

[As adopted by the international Co- operative Alliance at Manchester on September 23. 1995]

1. Definition. - A co-operative is an autonomous association of person united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

2. Values. - Co-operative are based on the values of self-help, self-responsibility, democracy, equality, equity, and Solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibilities, and caring for others.

3. Principles. - The co-operative principles are guidelines by which co-operatives put their values into practices.

1st Principle: Voluntary and open membership

2nd Principle: Democratic member control

3rd Principle: Member Economic Participation

4th Principle: Autonomy and independence

5th Principle: Education, Training and Information

6th Principle: Co-operation among co-operatives

7th Principle: Concern for Community

Schedule B

[Section 3 (4 and 5)]

Memorandum of Association

(For co-operatives to be registered)

(Form in which to be submitted)

1. We, the following persons-

2. For the purposes of registration. Shri/Shrimati.................................at serial number....................above shall be our representative, and all communication may be addressed to him/her, at his/her address.

3. The name of our co-operative shall be..................................

4. The registered office of our co-operative will be situated in..................................

5. The object of our co-operative shall be......................................

6. We hereby declare that we are committed to the principles of cooperation as provide for in Schedule 'A' of the Act and intend to manage our co-operative in conformity with these.

7. We have enclosed

(a) the articles of association of the proposed co-operative as adopted by us, the promoters:

(b) a true copy of the resolution passed by us, at a meeting, adopting the articles of association:

(c) a declaration from advocate/chartered accountant, Shri/ Shrimati........................................... that all the requirements of this Act have been complied with by us in respect of registration.

8. Singed by us, dated........................................................at place .............................

Schedule 'C'

(Section 3 (6))

Certificate of Registration

(for a co-operative to be registered)

Registrar of Self Reliant Co-operatives

Government of Uttarakhand

Certificate of Registration under section 3 of the

Uttarakhand Self Reliant Co-operatives Act, 2003

I do herby certify that the

...................................................................................................

...................................................................................................

..................................................................................................

is registered with No..................... together with its memorandum of association and authenticated articles of association.

Given under my hand and seal this .............. day of ..............

Registrar of Self Reliant Co-operatives Government of Uttarakhand

Schedule D

[Section 4 (2) and 6 (3)]

Memorandum of Association

(for co-operatives to the converted from the Uttar Pradesh Co-operative Societies Act, 1965)

(form in which to be submitted)

1. We, the Directors of the Board of the ................................................................ state herby, that the general body of our co-operative society desires that our co-operative society now be registered as a co-operative under the uttarakhand self Reliant Co- operatives Act, 2003.

2. For the purposes of registration, all communication may be addressed to ..............at................

3. The name of our co-operative, on conversion to the Uttarakhand Self Reliant Co-operatives Act, 2003, shall remain the same/ become.............................................................. (Based on whether or not the name will undergo change, pleases strike out whatever is inapplicable above.)

4. The registered office of our co-operative society is situated in ............................ and shall remain the same/change to ........................................... (Please provide name of village/town/city in the blank space provided, and strike out that which is not applicable.)

5. The object of our co-operative society is .......................................... and on conversion shall be the same/change to ................................................

6. We have enclosed

(a) a true copy of the resolution passed by our general body expressing commitment to the principles of cooperation as provided for in Schedule A of the Act;

(b) the articles of association of the proposed co-operative as adopted by our general body;

(c) a true copy of the resolution passes by the general body, adopting the articles of association:

(d) a true copy of the declaration of the general body stating that our co-operative society is not in receipt of any share capital from the government or any other external source, and does not intend ever to raise share capital from the Government or any source other than members;

(e) a true copy of the latest annual report and audited statement of accounts;

(f) a true copy of the resolution of the general body along with particulars regarding the wiping off of accumulated losses from various reserves and/or by debiting to the accounts of members as decided at the meeting; (or) a true copy of the resolution of the general body stating that our co-operative society does not have losses. accumulated or current;

(g) the statement on adjustment of accumulated losses, if any, certified by an auditor as correct;

(h) a declaration from advocated/ Chartered accountant, Shri/Shrimati...............................that all the requirements of this Act have been complied with by us in respect of registration.

7. Particulars about the general body meeting at which the decision to convert was taken.

8. Signed by us, dated............................. at place......................

Schedule 'E'

[Section 4 (2)]

Certificate of Registration

(for co-operative to be converted from Uttar Pradesh Co-Operative Societies Act, 1965)

Registrar of Self Reliant Co- operatives Governments of Uttarakhand

Certificate of Registration under section 4 of the Uttarakhand Self Reliant Co-operatives Act, 2003.

I do herby certify that the

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is registered with No..................................... together with its memorandum of association and articles of association.

This co-operative is successor to the

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Registration No........................... Dt..................................) registered under the U.P. Co-operative Societies Act, 1965 whose registration now stands cancelled, and is now deemed to have assumed all rights and obligation and assets and liabilities of its predecessor co-operative society. All acts and transaction of that predecessor co- operative society shall stand devolved on this co-operative.

Given under my hand and seal

This .............. day of ...................................

Registrar of Self Reliant Co-operatives

Government of Uttarakhand.

Schedule 'F'

[Section 6(3)]

1. Identity of the co-operative

(a) the name of the co-operative, and any shorter name by which the co-operative is to be popularly known;

(b) the village/town/city where the registered office of the co-operative is to be located;

(c) the custody and use of the common seal.

2. Aim and services

(a) the aim of the co-operative explicitly stated as a common central need of the members which the co-operative aims at fulfilling;

(b) core services, and support services to members to fulfill the common central need stated in the aim;

(c) the conditions under which services may be provided to non-members.

3. Membership

(a) form for applying for membership;

(b) form for declaring assets by member upon which arrears due to the co-operative shall be a first charge;

(c) eligibility, intelligibility for obtaining membership;

(d) eligibility, ineligibility for continuing membership;

(e) procedure for obtaining membership;

(f) procedure for withdrawing membership;

(g) procedure for termination of membership;

(h) circumstances under which membership ceases;

(i) procedure for cessation of membership.

4. Member rights and obligations

(a) the rights of members;

(b) manner of fixation of minimum performance expected annually of each member vis-a-vis use of services, financial commitment, participation in meetings, and adherence to articles of association, in order to be eligible to exercise the rights of membership including the right to vote;

(c) the consequences of performing below the minimum level fixed;

(d) the consequences of default in payment of any sum due by a member.

5. General body

(a) the role of he general body, and of the representative general body, if any, and subjects which must be dealt with by the general body, and by the representative general body, if any;

(b) the manner and frequency of convening general meetings, and quorum required;

(c) the quorum necessary for adjourned meetings;

(d) conditions and manner in which Arbitral Tribunal may convene general meeting;

(e) the minutes of proceedings of general meeting;

(f) the person/s to take responsibility for, and the manner of convening an extraordinary general meeting, and the period within which such meeting ought to be convened, for the purpose of appointing an ad-hoc Board.

6. Board of Directors

(a) the size and composition of the Board of Directors;

(b) eligibility, ineligibility for becoming Directors;

(c) eligibility, ineligibility for retaining Directorship;

(d) the procedure for election and removal of Directors;

(e) the terms of office of the Directors;

(f) the frequency of Board meetings;

(g) the manner of convening Board meeting, and quorum;

(h) the functions, responsibilities and powers of the Board;

(i) the minutes of proceedings of Board meetings;

(j) the functions, responsibilities and powers of the Directors;

(k) eligibility, ineligibility for being appointed by Arbitral Tribunal as member of ad hoc Board.

7. President and other office- bearers

(a) the election and removal of president and other office-bears, if any;

(b) the functions, responsibilities and powers of the president and other office-bearers, if any.

8. Chief executive and staff

(a) the person to sue or be sued on behalf of the co-operative;

(b) the manner of appointment and removal of chief executive;

(c) the functions, responsibilities and powers of the chief executive.

9. Finances

(a) the financial year which the co-operative wishes to adopt;

(b) the manner of appointment of auditors and their role;

(c) the manner of appointment of internal auditors and their role;

(d) the nature and amount of equity capital, if any, of the co-operative;

(e) the maximum capital which a single member can hold;

(f) the types and extent of funds to be raised;

(g) the purposes for which the funds raised by the co-operative may be applied;

(h) the equity-debt ratio that the co-operative wishes to maintain at all times and the maximum external debt that a co-operative wishes to permit itself at any point of time;

(i) procedure for transfer of shares or interest by a member;

(j) procedure for redemption of shares by the co-operative;

(k) procedure for transfer of shares or interest by a member;

(l) the nature and extent of the liability of the members for the debts contracted by the cooperative;

(m) the nature and extent of the liability of the Directors for the debts contracted by the cooperative;

(n) the manner of disposal of funds if under liquidation;

(o) the manner of recovery of dues from members.

10. Secondary co-operatives

(a) the rights, if any, which the co-operative wishes to confer on any secondary co-operative of which it is a member, and the circumstances under which these rights may be exercised by such secondary co-operative;

(b) the procedure for appointing and changing delegates to secondary co-operative.

11. Arbitral Tribunal

(a) the manner of constitution and functioning of Arbitral Tribunal for settlement of disputes:

(b) eligibility, ineligibility for being chosen as arbitrator;

(c) eligibility, ineligibility for being continued as arbitrator;

(d) the manner in and conditions under which the Arbitral Tribunal may appoint ad hoc Board.

12. Other matters

(a) the language in which the internal affairs of the co-operative are to be conducted;

(b) any provisions of transitory nature;

(c) the manner of dissolution of the co-operative;

(d) the manner of amending articles of association;