AICMEU’s Baitulmal Cooperative Credit Society Ltd.
A1-1 Name of the Credit Society
Name of the (Urban/Rural) society shall be AICMEU'S BAITUL MAL CO-OP CREDIT SOCIETY LTD. and its address shall be 179,Vazir Building .I. R. Road Mumbai-400 003.
A1.1.A .The Area of operation of the society shall be confined to B ward Mumbai.
A1.2.A Change in the Address :- If there is any change in the registered address of the society the same shall be communicated to the registering authority within 30 days from the date of the change in the address under section 37 of the Maharashtra Co-operative Societies Act 1960.The change should be in accordance to the provisions of the rule 31 of the Maharashtra Co-operative Societies Rules1961.The change shall not be taken for granted as recorded unless it is recorded by changing the bye-laws.
A1.2.A1 Classification and Sub-Classification of the Society :- The classification of the society shall be ‘Resource Society’ and sub classification of the society shall be ‘Credit Resource Society’.
A1.2B 1. In these bye-laws wherever there is a mention of the Act and the Rules it should be referred to as the Maharashtra co-operative societies Act 1960 and as the Maharashtra Societies Rules 1961.
2. Government means Maharashtra Government.
3. Registrar means Registrar appointed as per the Maharashtra Co-operative Societies Act 1960.
4. Member means an individual, who has participated in filing an application for the Registration of the society and an individual whose membership has been accepted after the registration including nominal member.
5. Society means …………… urban/rural non agricultural cooperative credit society Ltd.
6.’Co-operative year’ means the year ending on March 31st.
7. Secretary/Manager/General Manager/Managing Director means the person appointed on salary basis by the Managing Committee of the society.
8. Office bearer means the elected member or appointed member on the Board of Directors according to the bye-laws.
B -AIMS & OBJECTS
A1.1B Aims and objects of the society shall be as follows: -
1. To encourage the members to be economic and to follow the principles of cooperation.
2. To accept deposits from the members.
3. To take loan or raise funds.
4. To give loan to the members against security or personal guarantee.
5. To purchase on ownership basis land and building for the use of the society with the prior permission of the Registrar.
6. To make arrangement to dispose of the movable or immovable property mortgaged to the society for the recovery of arrears of loan.
7. To give loan for the growth of small scale industries and self-employment.
8. To manage the property of the society, to maintain it and to look after its maintenance.
9. To do all allied activities to achieve all or any one of the aims mentioned above.
C1.1 Method for Raising Funds :- The society shall generate funds by adopting the following methods /ways.
1. Share Capital
4. Deposits from the members
7. Financial Assistance
C1.2 Deposits and loan : - The limit of the total fund raised through loan and deposits shall be in accordance to the rule 35 of the Maharashtra Co-operative Societies Rules 1961.
C1.2A The limits of loan : - The limit of the lone to be taken from the State Central Co-operative Bank by the Urban Co-operative Society shall be as follows.
Audit class Area of operation Against the authorized share capital
A Class 1.Cities having corporations 4 times
Or their growth .
2.Societies at other place 3 times
B Class 1. Cities having corporations 3 times
Or their growth
2. societies at other place 2 times
C Class 1. Societies as mentioned 1 time
above with the prior permission
Of the Registrar
C1.3A Authorized Share Capital : - The Authorized share capital of the society shall be Rs……. …….The face value of each share shall be Rs.100/- A member shall have….. ….shares in accordance to the rule 28 of the Maharashtra Co-operative Societies Act 1960.
C1.3B The society shall issue every member the share certificate in accordance to the contribution within a month after accepting the amount. The share certificates shall bear distinctive number , name of the member, number of the shares in his name and the amount. Every share certificate shall bear the stamp of the name of the society signature of the chairman, secretary and the authorized committee member of the Board of Directors.
D1.1 Eligibility for the Membership : - In accordance to the Maharashtra Co-operative Societies Act 1960 rule 33 no individual shall be eligible for the membership of the society, unless he fulfils the following condition.
1. He should be the resident/having occupation in the area of operation of the society.
2. He should be eligible to make an agreement as per the Indian Agreement Act.
3. He should pay Rs.10- as the entrance fee and the entire amount of one share.
4. The Board of Directors of the society should have approved have his written application in the prescribed form (see appendix’B’for specimen)
5. In case he is also the member of other urban cooperative credit societies he should have taken loan from only one society.
D1.2 Nominal Membership : -According to the provisions in the Rule 24 of the Maharashtra Co-operative Society Rules 1961 any individual can be admitted as a nominal member on payment of the nominal entrance fee of Rs.10/-
D1.3 Disqualification of Membership : - Any individual shall not be qualified or eligible to be the member of the society on the following ground.
1. If he has applied for insolvency or is insolvent.
2. If undergone the punishment for any crime (including immoral Act) and if the same has not been squashed.
However this disqualification shall not be applicable on the completion of five years of punishment.
3. If he is doing the same business that the society is doing.
D1.4 Method of Admitting Member : -
1. Application in the prescribed form as given in the appendix ’B’.
2. Should demand one or more than one share in accordance to the bye-laws No. 1(6).
3. The borrower shall be informed the decision in respect of admitting him as a member of the society within 15 days
from the date of taking the decision or within 3 months from the date of application, whichever is earlier. In case
the applicant is not informed any decision the society within 3 months, it shall be presumed that the applicant has
been admitted as the member of the society.
4. If the society refuses to accept the application of any person for membership along with the necessary amount for
membership the person can send the application in the prescribed form with the necessary amount to the Registrar
under the Maharashtra Co-operative Societies Act 1960. (section 23-1-A).The same will be forwarded by the
Registrar to the concerned society within 30 days from the date of receipt of the amount and the said application
and that if the society does not inform any decision within 60 days from the receipt of the said application and the
amount the said applicant shall be deemed as the member of the society.
D1.5 The society shall give the share certificate to every member without taking any fee.
The said share certificate shall mention the number of shares and their numbers in a continuous order. The said share certificate shall have been signed by the society’s Chairman , Manager and Secretary .The said share certificate should have the seal of the society.
D1.6 A] Transfer of Share:
1.The transfer of shares shall be governed under the provisions of the Maharashtra Co-operative Societies Act
2.Subject to the permission of the Board of Directors, a member can transfer to any other person his shares, if held
by him for one year.
3. No transfer shall be treated as complete unless the name of the transferee is entered in the share transfer register
and the necessary transfer fee of Rs.10/-for every transfer is paid.
B] Share Transfer can be Refused on the Following Grounds:
1. If the member is a borrower or a guarantor to other borrower.
2. If the member in whose name shares are to be transferred does not fulfil the conditions in the bye-laws no D1.1.
However the minor or retarded one in the capacity as the heir of the deceased shall not be prevented from obtaining
the shares or establish relationship with the society.
3. If the member is not ready to transfer all his shares.
D1.7 Cessation of Membership
A person ceases to be a member for the following reasons.
1. If the member is dead.
2. If the member goes mad permanently.
3. If the member tenders his resignation and it is accepted.
4. If all the shares are transferred.
5. If the member commits a breach of bey-laws D1.1.
6. If he is expelled under the provisions of the rule 35 of the Maharashtra Co-operative Societies act 1960 and the
rules 28 and 29 of the said section.
D1.8 Resignation of the Membership
A member can resign and withdrawn his share capital with the permission of the Board of Directors. However he must have paid the entire dues of the society and complete his responsibilities as the surety/guarantor and that the Period of his membership should not be less than one year before he resigns. For this provision the refund of the share capital shall not exceed 10 % of the aggregate paid up share capital of the society credit on the last day of the financial year preceding.
D1.9 Expulsion of the Membership :-The member of the society can be expelled for the following reasons. Under the provision in rule 35 of Maharashtra Co-operative Society Act 1960 and Rules 28 and 29 of the Maharashtra Co-operative Societies Rules 1961.
1.If he is a persistent defaulter.
2.If he has willfully deceived the society.
3.If he is insolvent or ineligible in by law.
4.If he has done any act that has injured the credit of the society, and disturbed the smooth working of the society.
5.If he has indulged in any act contrary to the provisions of the rule 45 of the Maharashtra Co-operative Societies
Ruels1961. In that case the shares of such an expelled member shall be confiscated.
D1.10 To Readmit the Expelled Mmber : - The expelled member can be readmitted under the provisions in the rule 35(2) of the Maharashtra cooperative society Act 1960.
D1.11 Nomination : - The member can nominate the heir for his rights in the society after his death. An application in the prescribed form should be made for the nomination and that it should be recorded in the nomination register kept in the Registered office of the Society. The new nomination can be registered any time by withdrawing the nomination already registered. However the information should be provided in the that matter.
D1.12 Responsibilities of the Members : - Responsibilities of the members shall be in accordance to the provisions in the section 33 of the Maharashtra Co-operative Societies 1960 as given below.
1.Responsibilities of the member shall be confined to the value of the shares in his name.
2.As regards the former member his responsibilities in respect of the loan from the society shall be in existence for
two years from the date of cessation of his membership.
3.Responsibilities of the deceased member shall be in existence in respect of the loan for two years from the date of
D1.13 Dividend on Share Capital and Society’s Claim on Deposit : - If the former member has to pay to the society, the society shall have the first claim on the deposits, dividend and the shares in his name. The society can recover any time his dues.
D1.14 Death of the Member : - The society shall pay the amount of the diseased to his heir or legal representative on confirmation by the Boar of Director. However the amount shall be paid after making the necessary agreement as regards the damages if any, and that it shall include the share capital, dividend, deposit and interest thereon or any other amount payable to the diseased. While refunding such amount payable to the diseased, the amount due to the society shall be deducted.
E – MEETING
E1.1 First General Meeting : - The promoters shall call the General Meeting of the society within three months from the date of the Registration of the society under section 59 of the Maharashtra Co-operative Societies Act 1960 to transact the following business.
1.To elect the Chairman for the meeting.
2.To admit the new members.
3.To accept balance sheets and report of all the transactions made by the promoters during 14 days before the
4.To appoint the interim Board of Directors till the regular election of the Board of Directors is held as per the bye
-laws. The interim Board of Directors shall enjoy the same authority as the elected Board of Directors.
5. To decide the limit of loan from outside.
6. Any other matter, which has been specifically, mentioned n the bye-laws.
E1.2 General Meeting
1. Under the provisions of Rules 1961and the rules under it all the rights as regards the transactions of the society
shall rest with the General Meeting.
2.The General meeting shall be of two kinds.
A} Annual General Meeting
B} Special General Meeting
3.Within the period of three months from the date of closing the annual account as per the rules and regulations the
society shall call the general meeting.
4.Special General Meeting shall be called in the following circumstances.
A] Such a meeting is called any time by the Chairman or by the majority in the Board of Directors.
B] If 1/5 of the members of the society or 100 members (whichever is less) demand in writing.
C] If the Registrar directs under rule76.
D] If a group of the Board of Directors suggests.
The meeting as per A,B,C,D should be called within a month from the receipt of the date of notice in this regard.
E1.3 Business of Annual General Meeting
1.To read and confirm the minutes of the last general meeting as well as the Special General Meeting.
2.To approve the balance sheet, profit and loss account, the auditor’s report and the report of the committee.
3.To consider the statement of loan given to the directors and the members of their families and its recovery under the
provision of the rule 75(2) of the maharashtra cooperative societies Act 1960.
4.To approve the amendments in the bye-laws proposed by the Board of Directors.
5.To approve the profit sharing and declare dividend.
6.If necessary to appoint a qualified auditor for the internal audit.
7.To decide the limit of loan from outside for the next year.
8.To approve the annual budget.
9.To declare the names of the elected directors, if the election of the Board of Director is held.
10.To decide as regards the expulsion of the members.
11.Any other matter with the permission of the chair.
Note: - To consider the subjects regarding the working of the society received from the members of the society three days prior to the meeting. However the subjects should not be in respect of the changes in the bye-laws and also not the matter not to be reconsidered within the period of six months.
E1.4 Transaction of the Special Genera Meeting : - The business to be transacted in the meeting should be confined to the subjects included in the notice of the Special General Meeting.
E1.5 Annual General Meeting and Special General Meeting
1.Notice of the annual general meeting along with the report of the Board of Director’s balance sheets, statement of
the profit and loss accounts and the agenda shall be sent on the registered address of the member 14 days before
the meeting. The notice shall also be displayed on the notice board of the society. It is binding to send a copy of
the notice to the Registrar.
2.The special meeting shall be convened by sending the notice, which shall include the subject matters demanded.
The notice of the meeting shall be sent on the registered address of the member within 7 days before the meeting.
It will also be displayed on the notice board of the society.
3. Non receipt of the notice is not the sufficient reason to adjourn or postpone any General Meeting.
4. Notice for any General Meeting shall clearly mention the place of the meeting, date and time. The notice should
also clearly mention the place of the meeting the date and time if the said meeting had been adjourned on account
of the quorum.
5. Notice of the General/Special general meeting shall be issued duly signed by the Manager/Secretary.
E1.6 Quorum for the Annual /General Meeting and General Meeting : -The presence of 1/5 or 100 members of the society (whichever is less) shall form a quorum for any general meeting.
E1.7 Adjournment of Annual General Meeting and Cancellation of Special Meeting
1.If the General Meeting is not held due to no quorum it shall be adjourned for half an hour, when such an adjourned
meeting is held after half an hour, matter on the agenda shall be considered even if there is a quorum or no quorum.
2.The General Meeting called on the demand in writing by the members shall be adjourned, if there is no quorum
within an hour of the scheduled time of the meeting. If the subjects on the agenda are not considered within time
the meeting can again be called within the period of subsequent 7 days.
E1.8 Chairman/Vice-Chairman of the General Meeting : - Chairman of the Board of Directors shall be the Chairman of the general meeting. In his absence the Vice-Chairman shall be elected as the Chairman of the meeting. In the absence of both the members present having right to vote shall elect any member as the Chairman for the meeting in the same way the Vice-Chairman of the Board of Directors shall be the Vice-Chairman of the meeting.
E1.9 Right to vote : -
1.Every member shall have the right of one vote irrespective of the number of shares held by him.
2.When there is a tie, the Chairman shall have a casting vote in addition to his ordinary vote.
E1.10 Resolution : - Excluding the matters having special provisions in the Act, Rules and bye-laws of the society, the resolution shall be adopted by voice vote by (raising hands). However if any member demands secret ballot, there should be immediate voting. The Chairman shall declare the decision by counting the votes.
E1.11 Report : -The report of the General Meeting shall be written within a month and after recording it in the minutes book the signature of the Chairman shall be obtained.
F – MANAGEMENT
F1.1 Board of Directors : - The Board of Directors shall consist of 13 members.
1. Elected by the members of the society. 8
2. Nomadic group/Tribes/Communities (Reserved) 1
3. Other Backward Class (Reserved) 1
4. Scheduled Casts/Tribes Communities (Reserved) 1
5. Weaker section (Reserved) 1
a. Neo Buddhists are included in the scheduled class
b. Member of the Weaker section means the members or a group of members declared as a weaker section by the government by a general or special directive.
F1.2 Election of Board of Directors
1.The election of the board of director shall be conducted as per the rules gives in the appendix ’D’.
2.The period of the Board of Directors shall be five years.
3.Notwithstanding anything concerned in these bye-laws, the period of the provisional Board of Directors elected in
the first General Meeting after the registration of the society shall not exceed one year.
4.Prior to the expiry of its period the provisional Board of Directors shall make an arrangement of the election for the
new Board of Directors.
F1.3 Election of Chairman Vice-Chairman : -
1.The first meeting of the Board of Directors shall be held within thirty days after the annual General Meeting. The
elected members shall elect in the meeting the Chairman and the Vice Chairman for a period of five years. If such
meeting is not held the Registrar shall have the right to call the meeting. The Chairman of the Board of Directors
shall preside over all the meetings. In the absence of the Chairman the Vice-Chairman shall preside over the
meeting. If both remain absent the Board of Directors shall elect any one of them to preside over the meeting.
2.The Chairman of the meeting shall have a casting vote in addition to his ordinary vote. However he can not use this
casting vote for the election of the Chairman. The decision shall be taken by drawing lots.
F1.4 Eligibility for Election of Director : -
1.The member, who desires to contest election of the directors, shall have completed one year as a member in the
year ended prior to the election.
2.He should not be ineligible under the rules and provisions under the Maharashtra Co-operative Societies Act 1960.
F1.5 Vacancy of director : - The post of director shall be considered as ceased on the following ground.
1.Disqualified under the clause 73(FF) of the rule 73 of the Maharashtra cooperative societies Act 1960 and rule 58 of
the Rules 1961.
2.If he reams absent without taking leave for the consecutive five meetings of the Board of Directors.
3.If he is declared insolvent or is legally disqualified.
4.If punished for the criminal act of immorality and that a period of five years has not been passed since the
5.If he is the borrower of the society and a defaulter.
6.If the Board of Directors fails to fulfill their responsibilities and duties, or if there is damage to the interest of the
society, all the directors, shall be held responsible jointly and severally as per the Maharashtra Co-operative
Societies Act 1960. Every director shall give a declaration in the from prescribed by the government within 15 days
to that effect after accepting the post. If he fails to do so his post shall be deemed to have been vacated. In this
connection the Registrar will shall have powers to decide as regards the loss of the society due to the negligence of
the board of directors.
F1.6 To Fill up Vacant Post of Board of Directors
1. If two or less than two vacancies occur due to the death of the members or any other reason the Board of Directors
can fill up the same by approval. The appointment of these members shall be for the reaming period of the Board of
2.Notwithstanding anything mentioned in the clause ‘F’ 1.6(1) if the reserved seats remain vacant on account of non
-receipt of applications at the time of five yearly election, the Board of Directors shall fill up their vacancies by
approval. However the information regarding this shall be placed before the General Meeting.
3. The board shall act to fill up the vacant seats within the period of two months.
F1.7 Meeting of Board of Directors and their Notification : - Meeting of the Board of Directors shall be convened as and when required. However there shall be one meeting in a month. The notice of the meeting containing the agenda shall be sent to all the directors seven days before the meeting and in case of the emergency meeting three days before the meeting. Notice of the meeting should be issued in consultation with the Chairman. The manager shall send notice of the said meeting to all the directors.
F1.8 Quorum : - The Quorum should be complete if ½ directors are present. If the quorum is not complete within an hour of the scheduled time, the said meeting shall be adjourned.
F1.9 Power and Duties of the Board of Directors : -Powers and duties of the Board of Directors shall be as follows.
1.To admit new members.
2.To appoint all employees on salary basis to decide their salary and allowances, to make them permanent, to
remove them, if on temporary basis, to fine them and to terminate their services.
3.To listen to the complaints and to dispose them of
4.To consider applications for loan
5.To observe and review the accounts
6.To inquire about the arrears and take legal action for recovery.
7.To prepare balance sheet, statements of profit and loss accounts and other allied statements to place before the
Annual General Meeting.
8.To raise loan and receive deposits as per the conditions decided.
9.To file legal cases on behalf of the society, to handle the cases as defendant and to compromise in the matter.
10.To transfer shares, government security bonds in the name of others, to sell transfer or transact by other methods
in this matter. The power in this respect should he given to two directors of the Boars Directors.
11.To decide the limit of cash balance to be kept by the Manager/Secretary accountant and to make them
responsible in this matter.
12.To see whether the amount received by the society is regularly deposited or not in the bank.
13.To make arrangement to communicate in time reports and other information required by the Co-operative
14.To get the account of the society checked by the internal auditor every three months in accordance to the bye-
laws No. E 1.3 (6).
15. To allot the work according to the requirement among the office bearers and put on them the responsibilities in
16. To decide the guarantor and the amount of guarantee from the employees as per the General or Special directives
of the Registrar or by taking prior permission of the Registrar considering the changes in the said order.
17. To prepare the report of the last cooperative year, balance sheet the statement of profit and loss accounts,
utilization of the profit ect and to get approved in the General Meeting.
18. To adopt rules and regulation concerning services of the employees, to make rules and regulations of provident
fund and make changes therein.
19. To appoint committees and sub-committees and to give them powers as the board of directors finds them
20. To utilize the fund raise under the provisions of the Maharashtra Co-operative societies act 1960 and rules therein
and the rules in the bye-laws.
21. To utilize the funds raised in accordance with the provisions in the rule 70 of Maharashtra Co-operative Societies
Act 1960 and the rule 54 and 55 of the Maharashtra Societies Rules 1961.
22. To enhance the growth of the society’s business by opening branches.
23. To place Audited Balance Sheet in the annual meeting of the society.
24. To decide the aim of the working of the society in general , to consider working of the society with responsibility
and to run the society without disturbing the interest of members and the general public.
25. To decide value of the possible bad debt and suspected loan.
26. To consider Audited Balance Sheet and to make improvement there in view of the suggestions/ discrepancies
pointed out by the auditor.
27. To empower at least one member from the Board of Directors to cheque after fifteen days cash balance written in
the cash book and to cheque other assets of the society. The said member shall submit his report of his work in
the subsequent meeting. If the report shows short fall in the Cash Balance or in other assets immediate action
should be taken to recover the loss.
28. Officer is disqualified on account of due the lacunas in the constitution of the society, or the constitution of the
board of directors or the appointment of the officer, or the findings of the election, however any act done in good
faith by the board of directors or any officer shall not be considered illegal for this reason.
29. To decided the rate of interest on deposits and loan.
30. To appoint on contract basis for the transaction of the society expert consultants, legal advisor and inquiry officer
or an institute doing such work and to give them honorarium.
31. To purchase land, building or to take it on rental basis, or on lease with the prior permission of the Registrar.
32. To prepare annual budget and to approve expenditure.
33. To authorize the employees to participate on behalf of the society in legal matters.
34. To hold elections of the new Board of Directors and to make preparation to conduct elections of the new Board of
Directors before the period of the board of directors in existence comes to end.
35. To take appropriate steps in accordance with the Act, Rules, and bye-laws in respect of fulfilling the temporary
vacant seats in the Board of Directors. To take action within two months from the time the post is vacant.
36. To affiliate and become the member of the District Credit Society Federation and State Credit Society
37. As and when required to depute representatives to attend the Annual General Meeting of other society and also
to participate in the discussions at different level and seminars.
38. To examine legal documents at the time of the disbursement of loan.
39. Subject to the approval of General Meeting, to prepare rules, to modify them, to cancel them or change them as
regards the following matters.
a) Sanction of loan and disbursement and its recovery.
b) All kinds of deposits.
c) Travelling allowance and other allowances to the employees.
d) Provident funds, gratuity and bonus.
e) Terms and conditions for the employees.
40. To do the working in accordance with the aims and the objects of the society and in view of this to take
necessary administrative measures.
41. To authorize to sign the important documents such as an agreement/Promissory note/Bonds etc. This joint
authority to sign shall be given to the Chairman/Manager/Secretary and one director. Three of them shall sign the
42. To create vacancies as per requirement, to decide their qualifications to appoint on the post a suitable person to
decide salary and other allowances.
43. To decide the date, time, place and agenda for the general meeting.
44. To look after the transactions of the society.
45. To take the policies of insurance for the cash balance for movable and immovable property and for cash while
taking it from one place to another. All these be should be covered by insurance.
46. Within the specific time limit the Boards of Directors shall start branches subject to permission by the registrar
and to submit its report to the Registrar, the information should be given in the copy appendix ’A’ of byelaws.
F1.10 Policy in Respect of Loan : - As mentioned in the appendix ’C’ society can give loan to its members.
F1.11 Charges of Interest : - If the society taker loan from the State Central Co-operative Bank rate of interest of the loan given by the society shall not exceed more then 3 % of the interest rate of the Bank. The maximum interest rate of loan shall be 16 % per annum. In addition to this the reviser interest rate announced by the Co-operative Commissioner from time to time shall be applicable.
F1.12 Fine on Interest : - 2% per annum as fine on interest shall be applicable incase of arrears of loan it shall not e more than that.
F1.13 Deposits : - Within the limit of rules and regulations framed by Board of Direction on approval of the Annual General Meeting and bye-laws society shall accept current account, savings account and deposits for the specific period. Every account holder shall be given a passbook. Interest shall be calculated after every six months and entry shall be made in the passbook.
A] On the expiry of the period of fixed deposits, if the Board of Directors does not accept the deposits for the further renewed period the interest shall be paid at the rate applicable to the saving account.
B] The society can start the others schemes for deposits.
C] The society shall invest 20% of the amount of the total deposits in the State Central Co-operative bank, Govt. Security Bonds, or as directed by the Co-operative Department.
D] The rate of interest on deposit shall not be more than 2% of the rate of interest on deposit in the district bank. The highest interest rate shall be 13% per annum. The rate of interest announced by the Co-operative Commissioner from time to time shall be applicable.
F1.14 Report : - The minutes of the meeting of the Board of Directors sub committees shall be recorded in the book specially kept for the purpose. It is necessary to number every page of the report book. The minutes of the meeting shall be closed after being signed by the Chairman of the meeting and Secretary/Manager.
F1.15 Business of the Chairman : - In the capacity of the Chairman of the Board of Directors and the Chairman of all the Sub-Committees the business of the Chairman shall be to see whether the resolution passed by the board of directors are being implemented properly for the smooth working of the society to inspect all the transactions of the society and in the same way to control the salaried employees to do activities for the benefit of the society under the general guidance of the board of directors etc.
F1.16 Duties of the Secretary/Manager : - Under the control of the Board of Directors the Secretary/Manager shall perform the following duties.
1.To do all the work of correspondence of the society and to keep all the papers and books of accounts in order.
2.To make arrangement to receive all kinds of deposits and to give receipts and pass book in respect of such
3.To receive the applications for loan and withdrawal of deposits and place them before the Board of Directors for
approval and prepare receipt and other vouchers and to give share certificate to the members.
4.To receive the amount under instructions from the Board of Directors for expenditure. To be responsible for the
cash, to implement resolutions adopted from time to time by the Board of Directors.
5.To appoint employees as directed by the Board of Directors.
6.To do entire work under the powers given by the Board of Directors.
7.To allot the work load to the employees, to give them the work, to supervise their working and to transfer employees
as per the requirements.
8.To take action against the employees to maintain discipline as per the directives/ service rules and regulations.
9.To sanction the leave application, bill of travelling, allowance bills, medical bills and bills for other matters of the
employees already granted.
10.To represent the society for legal action.
11.To do the other work assigned by the Board of Directors.
12.To send in time the information demanded by the Co-operative Department.
13.To complete the work of documentation before the disbursement of loan.
G – PROFIT SHARING
G1.1 Profit Sharing
1. The society shall segregate the net profit in accordance to the provisions in the Maharashtra Co-operative Society Act 1960 and Rules 1961.
2. The net profit shall be divided in the general meeting on the recommendation of the Board of Directors in the following manner.
A] As per the provisions in the Maharashtra Co-operative Society Act 1960 not less then 25% of the amount shall be deposited in the reserve fund and shall be invested separately in the District Central Co-operative Bank.
B] As per the highest limit in the provisions of the Act 1960 provision for giving dividend shall be made.
C] With the approval of the annual meeting the balance amount shall be transferred to the fund for building and other funds. If there is balance amount after profit sharing it shall be transferred for the subsequent year.
D] Before calculating the net profit provisions be made for bad debt and suspected debt from the amount of the gross profit.
G1.2 Reserved Fund
1. In addition to the amount recorded under the Maharashtra Co-operative Society Act 1960 and rules therein and the bye-laws the reserve fund, nominees membership fees, share transfer fee, amount of the confiscated shares, amount of the confiscated dividend and fine on interest shall be transferred to the account of the reserve fund.
2. The investment and utilization of the reserve fund shall be in accordance to the provisions in the Maharashtra Co-operative Act 1960 rule 66 and Maharashtra Co-operative Rules 1961 rule 54.
1. The amount of the dividend which is relevant to any co-operative year is paid to the members whose names are there in the register of the society on the last date of the said year.
2. If the amount of dividend is not collected within the period of three years after declaration it shall be confiscated and the same shall be transferred to the reserve fund.
H – RECORD BOOKS AND ACCOUNT
H1.1 In addition to the books of accounts, record books to be kept by the society in accordance with rule 65 of Maharashtra Co-operative Society Act 1961 the society should keep other record books of accounts ledger etc, as required by the Board of Directors or as directed by the Registrar or as proposed by the internal auditor.
H1.2 Audit : - The accounts of the society shall he audited by the auditor appointed by the district deputy registrar in accordance to the rule 81 of the maharashtra cooperative society Act 1960.
H1.3 Seal of the Society : - Society shall have seal and it shall be in the custody of the Manager/Secretary. The said seal shall be used in the presence of the director and Manager/Secretary. In accordance with the resolution of the Board of Directors.
H1.4 Amendment in Bye-laws
1. Any change in the bye-laws, amendment cancellation in the bye-laws or new bye- laws in that respect shall be made in accordance with the procedure given in the section 13 of the Maharashtra Co-operative Society Act 1960 and under the rule 12 of the Maharashtra Co-operative Society rules 1961.
2. The bye-laws amended as above (1) shall come in to force with effect for the date of approval in writing from the Registering Authority.
H1.5 Cash Balance : - Maximum cash to be handled a one and the same time and person authorized for that shall be in accordance to the rule 107-K.
1. In this matter society secretary or salaried employee authorized by the resolution of the committee can handle cash or keep it with him up to the limit given below, and deposit additional amount within three days in the District Central Co-operative Bank or other authorized bank. The society shall be responsible for the branch wise insurance of the Cash Balance.
1. Primary society
13 Urban or other urban Co-operative Societies (Branch wise)Rs.25000/-
1. Infringement of this regulation shall be a crime under the section (Q) of article 146 and if the allegation is proved the concerned person shall be punished according to the clause (Q) of article 147.
2. The Chairman and Manager/Secretary shall sign the ledger. Manager/Secretary and authorized director shall be responsible jointly or severally for the cash balance. They should record in the cash book the amount of cash balance in wordsand in figures.
H1.6 Winding the Society : - Under the article 110 of the Maharashtra Co-operative Society Act 1960 and rule 90 of Maharashtra Co-operative Society rule 1961 the additional assets of the society shall be divided at the time of winding up of the society.
RULES REGARDING LOAN
Rule No.1 The rules shall be regarded as the rules in respect of loan of the credit society and the rules shall come into force after they are recorded by the recording authorities.
Rule No.2 The applicant member shall not have taken loan from the Urban Bank/Urban Co-operative Society or the Co-operative Societies of the salaried employees.
Rule No.3 Application in writing in the prescribed form of the society should be made to get loan from the society. The application should include the following information.
1. Full name of the applicant, Occupation, Address for correspondence ,Residence (If necessary complete address of the town)
2. Amount of the loan.
3. Purpose of the loan.
4. The period of repayment and category.
5. The monthly income of the applicant (If necessary monthly income of the family)
6. Full name of the guarantor, occupation, address for correspondence, residence (Address of the town if necessary) monthly income of the guarantor, and the consent letter of the guarantor regarding the guarantee.
7. Other securities and their description.
8. If the applicant or guarantor is the member of other bank or Credit Society its recommendations.
9. Additional information to be supplied if required by the Board of Directors.
Rule No.4 Additional or allied information can be obtained properly by the Secretary/Manager in connection with the loan application or make necessary inquiry.
Rule No.5 Board of Directors can demand the necessary additional allied information from the applicant or the guarantor or make necessary inquiry.
Rule No.6 If the Board of Directors rejects loan application the applicant shall be informed about the same within a month from the date of rejecting the application.
Rule No.7 Category of Loan : - Society shall give loan
1. Against the guarantor without security
2. Against the security.
1.A New or old vehicle security loan.
2.B Immovable property such as land, open plots, flat, building, house etc security loan.
3.C Machinery security loan.
4.D Goods security loan.
5.E Other material security loan.
6.F Gold, silver articles. Security loan.
7.G Deposit security loan.
8.H Professional/education/higher education loan security loan.
9.I Emergency loan security loan.
Rule No.8 Limit of the Loan : - Within the limits given in appendix ’K’ society shall sanction loan to its members after completing the documentation according the rules and regulations approved by the Co-operative Department.
Rule No.9 Period of loan : - The period of loan of the society without security or with security shall be Short/Medium.
Rule No.10 Rate of Interest and Fine
A. Whenever the society shall or shall not take loan from the District Central Co-operative Bank the rate of interest of loan given by the society shall not be more than 3% of the rate of interest of the district central cooperative bank. The rate of interest shall be 16% per annum. In the same way the Highest rate of interest declared by the cooperative commissioner from time to time shall come into force.
B. Simple interest will be charged by counting the days. The interest on loan given on installment basis shall be charged on monthly, quarterly or six monthly basis. But the interest charged shall not be added to the principal amount.
C. If the period of loan and interest is over or if the installment is not paid it shall be considered as arrears from the date it falls due. Interest at the rate of 2% per annum shall be charged.
ELIGIBILITY OF THE MEMBER TAKING LOAN AND GUARANTOR
1. The member-taking loan shall give two legible guarantors and that these gaunter should not be from the family of the member taking the loan or from one family.
2. The member demanding loan or the guarantor shall not is defaulter introspecting of any loan.
3. One member can be the guarantor for two members taking loan.
4. A] Loan can be given to the registered partner.
B] While giving loan t the firm (Institute or the partnership) every partner shall be the member of the society.
C] All the partners of the firm shall be co-borrowers and having given consent to that effect and that they cannot be the guarantors to the loan demanded by the firm.
5. The board of directors is empowered to approve guarantors to change and to non-for additional guarantors.
6. Loan of the board of directors and their relatives : -
A] Directors and their relatives shall not be given more than 5% of the amount of the total amount of loan to be recovered by the society (Directors relative means wife, husband, father, mother son, daughter, son-in- law or daughter-in- law)
B] No director of the society shall be given loan without mortgage or security or he shall not be the guarantor for the loan without security.
Application for loan and paper to be enclosed:- Member shall demand loan in the printed application form of the society. He should attach all the necessary papers along with the application. For every loan following papers shall be attached along with the application.
Loan shall not be given for the rasns given below :- Against the security of commercial income and expenditure security, Govt. bonds of bonds of other institutions, savings bonds, company shares , book debts and bills etc.
1. Loan without security
A] To enclose statements giving information about the income.
B] If employed, to attach the certificate of salary.
C] Xerox of application and guarantors ration card or light bill.
2. Loan against security
A Vehicle security loan
1. Statements of income of the applicant are necessary.
2. If applicant is in occupation. Statement of income and expenditure, balance sheet and assessed orders to be enclosed.
3. If a new vehicle is to be purchased it is required to enclose the quotation. He should have credited in his account 25% of the amount of the quotation.
4. If the vehicle is old valuation report of the valuator of the society shall be enclosed.
5. Permit of the vehicle, RC book, insurance and all the relevant papers in respect of transfer of vehicle.
6. Whole taking the loan it is necessary to show the vehicle to the society and paint on it the name of the society.
7. It shall be the borrower responsibility to record loan of the society on the R.C book and insurance policy.
8. The security of immovable property shall be required for this loan if necessary.
9. Xerox copies of identity, electricity bills and ration card of the guarantor and the borrower should be enclosed.
10. Purchase receipt of the vehicle should be jointly in the names of the society and the borrower.
11. The borrower should have insurance policy till the amount of loan is refunded. Insurance policy should be jointly in the name of the society and the borrowers. Borrower should renew the insurance policy before the expiry of the period of loan. In case borrower fails to renew the policy society shall pay the amount of insurance and such an amount shall be deposited in the loan account of the borrower. This amount shall be considered as loan and interest shall be charged on it. The society does not any responsibility in case there is loss on account of failure in renewing the insurance policy. The borrower shall bot put forth the reason that society has not renewed the insurance policy in time.
B Loan against movable property
1. Salary certificate and the letter of guarantor in case of the applicant is in service.
2. Full information about the business, balance sheet statements of profit and loss, assessment order to be attached in case of business/occupation.
3. New property purchase card and 7/12 of the property, which is to be mortgage for the loan to be mortgaged.
4. Search report for the last 13 years of the property.
5. The borrower should obtain a certificate from the official legal advisor of the society to the effect that the property being offer as a security is fare and without liabilities and it should he submitted to the society.
6. Valuation of the property being offered as security should be vaulted from the evaluator appointed by the society.
7. The borrower should make entry on the property card 7/12 of the property being offered as a security, if having liabilities.
8. Borrower must have paid all the taxes due to the corporation etc as regards the property.
9. In case of shareholders in the property they should be included as having given their consent.
II LOAN FOR THE FLAT
1. Copy of the agreements with the original owner of the flat, builders, developer should be enclosed along with the application.
2. If there is a sale agreement it is necessary to have been registered, copy of the agreement should be enclosed.
3. Declaration under the apartment Act should be obtained.
4. It is necessary to give the entire report of the property.
5. If the flat not purchased the mortgaged deed should be singed jointly by the original landowner, builder and borrower.
6. A copy of 7/12-extract or property card and the authorized coy of the layout plan to be enclosed.
7. Valuation report and the opinion of the society’s valuator should be submitted for this loan. The borrower him self should bear the expenses for it upto date.
8. Certificates of all the taxes and fees having been paid should be enclosed.
9. The borrower should him self-pay for the insurance of the property. If the amount of insurance and for its renewal is paid by the society the said amount would be entered I to the account of the borrower and interest shall be charged on it.
10. For the new construction payment shall be made from time to time by the society on the basis of necessary certificate from the society expert.
11. The loan of the society shall be recorded in the city survey office/village talathi/and in case of housing development institution it shall be recorded with them.
C Machinery security loan
1. Name of the workshop and its activities.
2. If partnership certificate of partnership registration.
3. License of the workshop to be submitted.
4. If small scale, enclose the certificate there of.
5. Light bill, if premises is on rental basis rent receipt and the consent letter of the owner of the premises.
6. List of the machinery in the workshop with its price to be enclosed. The list of raw material and the finished goods along with price to be excludes.
7. If job work, copy of the job work order to be enclosed.
8. Information regarding income, balance sheet, certified copy of profit and loss to be attached.
9. Copy of income tax, sales tax assessment to be enclosed.
10. If purchasing new machinery quotation shall be attached and 25% of the amount of the price shall be deposited in the account.
11. The society shall have the first claim on the assets already mortgaged by the borrower and also the assets purchased from time to time or goods of all kinds produced by the borrower.
12. It is required to cover the mortgaged machinery by taking the insurance policy. If the amount of insurance or the amount of renewal of the insurance policy is paid by the society the said amount shall be transferred to the loan account of the borrower. This amount shall be treated as loan and liable for interest.
13. The bills of purchasing the machinery and raw material shall be submitted to the society.
F DEPOSIT SECUTITY LOAN
1. Personal deposits or the deposits of other shall be accepted as a security.
2. If the deposit is in the name of a minor his guardian should give a declaration to the effect that the amount of the loan shall be utilized for the benefit of the minor.
3. Difference in respect of the amount of loan shall be maintained as directed by the authorities.
4. If the loan is not refunded within the prescribed period the amount of loan shall he adjusted. Deducted from the amount of the deposit.
G GOLD, SILVER ORNAMENT SECURITY LOAN
1. The ornaments of gold and silver belonging to the member shall be accepted as a security for this loan.
2. Loan shall be given as per the limit in the appendix ’C’ price.
3. The valuation shall be made by the goldsmith authorized by the society. The borrower shall pay the necessary fee for that.
4. The borrower must be the owner of the ornaments and he shall give his declaration to that effect.
5. If the ornaments pledged are woman’s wealth a consent letter should be given.
6. The borrower shall pay the deference of the amount of loan difference in respect of the amount of loan.
7. The borrower shall pay the society the difference of the amount of loan if there is a downfall in the price of gold and silver.
8. In case of arrears society reserves the right to recover the amount by selling the ornaments independently.
H PROFESSIONAL EDUCATION, HIGHER EDUCATION LOAN
1. If the board of directors finds it appropriate educational loan shall be sanctioned to the son or daughter of any member of society or employee for the diploma in medicine or engineering faculty or degree or post graduation provided member employee son daughter demand it jointly. In the beginning son/daughter shall become nominal member of the society.
2. For this loan the father or the mother of the son/daughter, who desire to complete the course of education must be the member of the society and shall give personal guarantee along with two eligible guarantors who are the members of the society.
3. Details of estimated expenses should be given separated duly singed by the principal of the college in which son/daughter desire to complete their education should be submitted along with the loan application. It (expenses) should include academic fees, books ,note books, hostel charges and other expenses while taking the amount of loan at the initial stage for the new academic year the report stating good progress duly singed by the college in which he is studying should also be attached.
4. After the loan is sanctioned the student and his parents who are members of the society shall sign a promise notes/agreement individually as well as jointly promissory note, agreement should be renewed after a period of every three years. The educational loan shall be disbursed against the joint signatures to the student (nominal members of the society) and the member or the employee (father or mother) the amount of the loan shall be paid at the beginning of the year in entirely or on monthly basis.
5. The father or the mother of the student who is the member of the society shall be the main borrowers and the student taking loan shall be the secondary borrower and as such the installment of interest shall be recovered from the monthly salary of the borrower. If borrower desires he can also pay the installment of the said loan.
6. The said loan shall be refunded in 36 installments from the date whichever is earlier i.e after the date of compelling the course or after four years from the date of payment of loan in part or full by deducting the amount of from the salary of students father /mother the member of the society or from, the salary of the student however of any case the period of recovery shall not exceed 7 years.
7. After the completion of the course the student should submit information in detail as too where he is employed. He shall also give an authority letter along with the certificate of employee to deduct monthly installment with interest from his salary. However till the time installments of the said loan shall deducted from the salary of the main borrower.
8. Applications for loan are considered on the basis of the student’s progress, aptitude and ability. In this respect the decision of the board of directors of the society shall be final. After considering the progress report of the student certified y the principle of the college where student is taking education decision shall be taken as regards giving loan him the loan every year.
9. The student who has taken loan cannot change the educational institute, college or institute for higher education post graduation without the prior permission of the society and that he also cannot accept job whole taking education.
10. Board of directors reserve the right to cancel the loan already sanctioned or stop it and recover the amount to of loan already disburse in case the borrower students progress is not satisfactory or he discontinues his academic course or does not fulfil the conditions of the regulation of the loan.
11. If the deduction from the salary of the member is more that 75% to wards the recovery of this loan he shall not be sanctioned any other loans till the entire amount of this loan is recovered.
12. Borrower, co-borrower student and the guarantor shall mortgage to the society necessary movable or immovable property or the co-borrower shall take insurance policy covering the maximum amount of the loan and assign the policy to the society. After crediting the amount of premium in the account of this loan the main borrower should give the power of attorney to the L.I.C.. The said L.I.C. policy shall be returned to the co-borrower after the recovery of the entire loan amount.
E EMERGENCY LOAN :- Implementation shall be as loan without am mortgage.
Rule No.11 Inquiry about the sanction of loan
A] The applicant for the loan shall inquire about the decision taken by the society regarding the loan. If the amount of loan is not taken within the period of loan by the applicant of loan, the sanction of loan shall be cancelled.
B] It is not binding upon the society to disburse loan that is sanctioned.
Rule No.12 Documentation : - Borrower and the guarantor shall fill up and sign all the documents required by the society. In the presence of the officers of the society. In the absence of the same the loan shall not be disbursed.
1. The borrower should hold 2.5% of the shares in proportion to the loan (pledge) sanctioned to him.
2. The borrower should hold 5% of the shares in proportion the loan (without mortgage) sanctioned to him.
Rule No.13 Overhead expenses : - The borrower shall be responsible for the expenses incurred on investigation inspection fees, fees on legal advice stamp paper while disbursing the loan or after disbursing the loan. If the society pays the overhead charges the amount of it shall be transferred to the loan account of the borrower and the interest shall be charges on the said amount.
Rule No.14 Method disbursing the loan
A] The amount of the loan shall not be paid in cash. It shall be given by cheque or transferred to his savings account.
B] The borrower shall be given the pass boo. The borrower shall be responsible for all the entries to be made in it by the society.
Rule No.15 Utilization of loan : - The loan should be utilized for the purpose it is sanctioned. If it is observed that the loan is utilized for other purpose the society reserve the right to demand the loan amount immediately before the expiry of the time of its repayment and that the society can take further action for the recovery of the said loan.
Rule No.16 General lien : - The deposits, other amount of credited and the other properly of borrower with the society shall be considered as general lien and the same shall be recovered against the arrears.
Rule No.17 If the borrower wants to extend the period of repayment of the loan amount/installment he should submit an application a prescribed form duly signed by the guarantor. The society reserves the right to extend or not to extend the period. The period if extended in accordance with the rules and regulations shall come into force after the application is granted by the society. Such period shall not be extended more than a year at a time incases of loan under any category.
Rule No.18 The borrower shall pay the value of the valuation of income/assets etc. The society shall take the guarantor bond worth Rs. one lakh from the valuator.
Rule No.19 While disbursing the loan difference shall be maintained as mentioned in the bye laws.
Rule No.20 Ratio of shares and loan
A] Non-secured 5% B] secured 2.5%.
Rule No.21 The society shall invest 20% of the amount of deposit as liquidity in district central cooperative bank or government bonds or as directed by the cooperative department. The balance can be utilized for giving loan.
Rule No.22 Taking into account the credibility of the guarantor the board of directors shall decide whether he can stand as guarantor for one or more borrowers. However he shall to stand as guarantor to more than two borrowers.
Rule No.23 Changes can be made in the above mentioned rule and regulations on prior permission of the registrar.