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1. How to Amended Byelaws of a Society?

In the case of amended of bye-law of a society, the committee of the society should first examine the proposed amendments, approve the same and adopt necessary resolution after that, the amendment, proposed by the committee should be places before the general body for its consideration. In the notice for the general body existing provision of the bye-law and the amendments proposed should be distinctly shown and the notice issued as provided in the bye-law of the society.

The amendments proposed have to be passed by not less than 2/3 majority of the members present and voting of the general body. The amendment should be forwarded to the J.R. within one month from the date of the general body, together with necessary application. The application duplicate signed at least by the secretary and two members of the committee should contain the following particulars.

1.Date of G.B. at which the amendments was made

2.No. of days notice to convene the G.B.M.

3.No. of days notice required as per the bye-law for the G.B.M.

4.Total No. of members of the society on the date of such meeting

5.No. of members who formed quorum fall such meeting

6.No. of members present at such meeting

7.No. of members who exercised their votes at the meeting and

8.No. of members who voted for amendment

The amendment Proposal shall be accompanied by among other things

1.Application containing the particulars in Rule 9 (iii) with reasons justifying the amendment.

2.Copy of the relevant bye-law as it would stand after the amendment

3.Four copies of the text of the bye-law as it would stand after the amendment

4.The four original chellan at for rupees 50 towards registration Fee for amendments The amendment proposal duly attested by the President, Secretary and two other committee members and field within 30 days from the date of general body to the registrar and the amendment application shall be disposed by the registrar within 90 days from the date of receipt application. The registrar can amend with retrospective effect. If the general body passes such resolution with due notice inordinary case the amendment will come in to force on the date of registration unless othere wise specified.

The Order of Enquiry shall be issued as per rule 66

On receipt of the order of the person authorised to conduct the enquiry shall proceed to examine the relevant books of accounts and other documents. He shall at all responsible time have free access to the custody of the society and summon any person in possession of or responsible for the custody of any cash, books, accounts, etc. to produce the same at any place at the Head Quarters or any branch of the society. (failure to comply with directions in the summons in punishable with fine upto Rs. 5000/-) provision is the same with regard to sratutory inspection also. The enquiry report should invarioubly contain the following (Registrars circular Men. No. G6- 10710/63dt.11.3.63)

1.Correct NO. and name of the society according to its bye-laws

2.Date of registration and starting

3.Type and classification of society

4.Area of operation and postal address of the society

5.No. of members on the rolls and paid up share capital as on day

6.A brief account of the condition of the society and the attempts made by the union financing bank or department officers to improve its working and reason for failure.

7.The date of successive visit made by the officers of the department.

8.A statement of assets and liabilities as on date indicating whether any item will prove bad.

9.A statement showing in detail the amount due and overdue by member and whether any amount is irrecoverable and its so reasons thereof.

10.Whether there is any likelihood of the defaulters, members, committee members and staff alignity the property immediately and.

11.Postal address of the office bearers (managing committee and secretary) The major defects noticed in the enquiry should be brought to the notice of the general body and its views ascertained as regards the future working of the society. A general body may be convene it the enquiry order.

The report should be prepared in duplicate and submitted before the date of expiry of order. Incase extention of time is required the same should be sought for presenting and  interim report pointing out of the reasons call the extension sought for.



2. How to File Arbitration Reference?

(Section 69 and 70 of the act  chapter IX) and rule 67 and 68 of the rule (ch-IX) deal with settlement of the dispute also refer section 98and 99 of the act. Ordinary dispute regarding the non-payment of the loans and advanced available of the members of the co-operatives are refered to the registral for settlement and  non-monitary  disputes are filed before arbitration court.

Arbitration Court:- Dispute

Any dispute arising at the stage of an election Commencing from the coven of the  general body meeting for the election shall be demand to be a dispute arising in connection with the election (d) any dispute arising is connection with employment of Officers and servants of the different classes of Societies specified in subsection (1) of section 80 including their promotion and their seniority

1.The dispute regarding election shall be referd within one month from the date of the election

Fees to dispute

Monitary 50 paise for every claim of Rs 10/- subject to a minimum or Rs 75/- and maximum Rs 750/- upto Rs.1 lakh and Rs. 1500/- for value above 1) lakh Non Monitary Disputes

a.In cause filed by employees of co-operative society Rs. 150/-

b.In other cares Rs. 1500/-

Before refering the matter to the registrar to the society concerned should first issue refistered notice to the principle detter, soureties asking them to clear the dues within a specified period mentioning that the matter, will be refered  to registrar in case they fail to clear the loan/advance account concerned intidual resolution should be adopted in respect of each and every loan to refer the matter to registrar. The society should there after remit fees in the nearest tresurry and the following rates under the header “0425 Co-opn” 800 other reciept 98 arbitration fees”

Sufficient no. of copies of the –plain/ arbitration petition for service on the dependent or dependence (eg:- if there are for defendets 5 copies) should be field before the registrar together with the receipted chellahn for the remittance made in the treasury and copies of resolution desiding to file the petition with a list of relevant records. Courtfee stamp for Rs. 2/- need the affixed on the plaint.

Arbitration references can be field before the Assistance Registrar (general) of the circles, joined registrar of the district Addl. Registrar and Registrar.

3. How to Organise a Society?

First of all the chief promoter shall obtain the prior sanction for joint registrar for organising the  society and to collect initial share capital. The Promoters (in case the society is to be for individuals alone at least 25 individuals each of whom belonging to different family) should meet to constitute a committee. (Organisation committee) Consisting 3 to 5 members among themselves with a convener the chief promote to prepare the papers required for filling the applicable and draft- bye laws of the proposed society. The committee so constituted shall draft bye-law (See Rule 5) and place the same before the promoters meeting for their approval. After the by-laws are approved and application got ready the same should be field before the join Registrar either in person of by registered post.

The papers for the Registration should contain:-

1.Application form No. 1 (Duplicate) duly field up and signed by at least 25 individuals. Challan receipt for Rs. 50/- shall be appended to the application for registration.

2.Threes copies of proposed by laws duly signed by at least 25 individual if all applicants are individual.

3.Receipted Challan or a certification obtained from the financing bank in token having deposited the initial share capital.

4.List of promoters in duplicate, who have contributed to share capital showing separately the amount contributed towards share and entrance fee. Besides, the list should contain the name of each promoter, hid fathers name, his profession, age, address and signature.

5.A scheme showing the economics soundness of the proposed society. The joint Registrar after ascertaining the veracity of the statement in the applications and connected papers and if satisfied that the proposed society has complied with the requirements contemplated in the act and rules may register the society and its bye-laws and issue the certificate of registration after consulting the registrar of co-operative society, if necessary, according to standing instruction. Application for registration shall be disposed of by the registrar within 90 days of receipt.

The first general body meeting of a society registered should be convened within 3 months from the date of the registration. The following Business should in variably be transacted in the meeting

1.Admission of members and allotment of share and

2.Approval of the statements of accounts as on date rendered by chief promoters

3.Budget for the year. The promoting committee may continue in office for a period of three months from the date of registration with in which period that committee shall arranged to constitute a managing committee as per rule 35. Date of first general body is the date of starting of the working of the society.

If the first general body is not held within 6 month registrar can order winding upof the society

4. What are the Documents to be Sent To Registrar While Sending Proposals?



1.Amendements of bye-law

a.Covering letter

b.Resolution of the general body

c.Proforma details mentioned in Rule- (iii) (duplicate)

d.Details pf existing bye-laws proposed bye- law and reason for amendement (3 copies)

e.7 copies of the text of bye-law that would stood after amendement

f.Resolution  regarding amonity to

g.One copy of the general body notice. In the case of new-paper publication cercumcates from the
asst. Registrar to the effect that notice has been published on the notice board  of AR Officer.

h.Copy of the tentative balance sheet is the amendement relate to any financial aspect. Sufficient copies are to be enclosed if the registering authority is registrar.

2.Exemption fees from the priscribed qualification

a.Covering letter with details

b.Proforma Details as per circular 7/98

c.Self expalnatory resolution (Reason of giving exemption of the Board of Directors to be recorded in writing)

d.Seniority List

e.Copy of the feeder catagory rules

note: Employee who entered in the service of the Society prior to 1.1.74 are eligible for exemption from the prescribed educational qualifications-viderule 185 (8)

3.Time bound higher grade

a.Covering letter with all details

b.Resolution of the board Directors stailing the service particulars, existing scale of pay, higher grade  scale of pay date of sanctioning higher grade etc.

c.Proforma details as mentioned in circular No. 15/97

4.Solvency Certificates

a.Covering letter with all details

b.list of existing chittis and proposed chitties.

c.Statement of net Assets

d.Details of solvency Certificate issued earlier.

e.Copy of the tentative balance sheet.

1.Write of proposal

a.Covering letter the details

b.Resolution of the general body

c.Details of assets to be written of (If stock is to be written of if copy of the stock verification statements


2. Utilisation of General fund

A.  Building construction

a)Covering letter with details

b) resolution of board of directors

c) Plan and estimates approved by concerned authorities

d) Permission obtained from local bodies

e) Tentative balance sheet (latest)

f) Latest audted balance sheet

B. Purchase of land

a)  Covering later with details

b)  Resolution of the board of directors

c)  photocopy of the documents

d)  Legal pension

e) Encumbarance certificate

f)  Site plan

g)  possession of employment certificate

h)  Tax receipt

i)  Sale agreement

j)  Valuation certificate

k)  Soil suitability certificate

3.  Post sanction

a)Covering letter with details, (present classification whether all eligibility criterions are satisfied, No. of branches, financial capacity of the bank to shoulder additional expenditure etc. to be mentioned in the covering letter)

b)Resolution of the Board of directores slating the necessity of posts.

c)List showing eligible staff strength, existing staff pattem (Post sanctioned to branches are to be shown separately)

d)Latest tentative balance sheet

e)Latest Audit balance sheet

4. Opening of new branches

a)Covering letter with all details

b)Resolution of the board of directors

c)resolution board of directors stating that the proposed branch will be run by existing staff itself

d)Project report of the proposed branch

e)Approved staff strength of the bank

f) List of existing Staff (Designation only)

g)Survey sketch of the area operation marking the head office, existing  branches and proposed branch

h)Statement showing the financial position of the society for the past 3 years. (sharecapital deposits, borrowing, loans, outstanding, loan issued profits overdue, working capital etc.) I agriment with the owner of the building if the branch is proposed the sanction in rented building

i)  Tenetive balance sheet for auditor balance sheet for the last three years

j)  Details mentioned in the cercular no. 17/81

9) Freedom category rules

a) Covering letter

b) Resolution of the board of direction

c) Copt of the feedor category rules (new)

d) Copy the feedor category rules last approved by the JR

10 Plants scheme files

A) request for financial assistance (3 copies each ie 3 sets)

a) Covering letter

b) Priscribed application for

c) Copy of the resolution

i) Resolution requesting or assistance

ii) Resolution agreeding it abid the rules and regulations

iii) Authorisation sign the agreement

i) Any other of resolutions if mentained in the rules

d) draft rules and agreement

e) Documents prove in the eligibility crieterions as per rules

f) No due certificate

g) Copy of the tentetive balance sheet

B)  withdrawl proposal

a) Covering letter

b) Resolution of the board directors

c)  Rule and agreement in bond paper guil signes by all concerned bearing office in all pages

d)  Adjustment receipt

e) If share capital contribution, share certificate in favior of governer of kerala

f) Code, of the conction order which will from part of the agreement.

C)  Utilisation Certificate

a) Covering letter

b) Utilisation Certificate in the priscribed proforma



5. What is the procedure of Conduct of Election?

(sec. 28, rule 26,35,35A & 39)

Asper sec. 28 (1) the General body of the society shall constitute committee for a period not exceeding 5 years, inaccordance with bye-laws and entrust management of the affairs of the society to such committee. As per rule 39(1),the bye-laws of every society shall provide for the term of its committee its also specified in rule 39 (2) of he rules that the “not with standing anything contained in the bye-laws for the purpose of calculating the terms of committee, year shall be taken to be a period of 12 months from the date of asseption of office by the committe”. It is mandatory asper the rule 39(3), that the election of all the members of the committee shall be held before the expiry of the terms of office of the existing committee.

Sec. 28 B(1): a  State Co-operative election commission has been constituted for the superntendence, direction and control of conduct of election of the committee of all credit, apex, Central, federal Societies in the state.;


A State co-operative election commission has been appointed by the Govt. for the superitendence, direction and control of the condut of election to the committee of all credit, apex, Central Federal Societies in the state. The committee at least 60days prior to the expiration of the term pass a resolution fixing the date,time and place for the conduct of the election the new committee and sent the resolution to the election Commission within 7 days. The Election commission in their circular No: 1/2001 date. 10.5.2001 has instructed that the resolution for the conduct of election shall also contain the request for the appointment of returning officer and electorial officer, and foreword the resolution through the joint Registrar (G)

The Election commission will  appoint a Returning officer and an Electral officer for the conduct of election.

1.The state election commission shall notify the election in two vernacular dailies having wide circulation in the area.

2.The electoral Officer shall be responsible for the publication of the list of members qualifid to vote.

3.The voters list shall be approved by the committee and handover the electoral officer.

4.The electoral officer shall publish the priliminary voters list in Form No. 34& final voters listinform No. 35

5.The nomination paper shall be in form No. 36

6.Along with the nomination the candidate will deposit a sum of Rs. 100/- in the society which will refunded to him if he gets more than 10% votes polled.

7.The returning Officer shall give a written acknowledgement for the receipt of the nomination paper in form no. 37.

8.Returning officer shall hand over the list of the contesting candidates to the electoral officer on the next day of the publication of the final list of candidates.

9.The electoral officers shall undertake necessary arrangement for the printing of ballet papers and sufficient number of ballet papers shall be supplied to the returning officer on the previous day fixed for the election. The R.O. shall take charge of the ballet papers from the electoral officer and keep the same in his safe custody.

10.The electoral officer shall provide the returning officer with ballet boxes, ballet papers, copt of the list of voters and such other articles for the conduct of election.

11.A companion may be allowed to excercise the voter is unable to inscribe the mark. Before allowing the companion the returning officer should get declaration from the companion in FROM No. (38)

12.If at any stage of the polling, the proceedings are interrupted or obstructed by any riot or affray, or if at any election it is not possible to take the people for any sufficient course, the returning officer shall have power to stop the poling, recording his reasons for such an action in the minutes book of the society and the fact may be reported to the elector officer.

Provided that where the returning officer is not able to record the reason in the minute book, he shall report the fact together with reasons there to, to the electrol officer concerned and the co-operative election commission for the with.

5.The election commission shall have power to issue any direction or guide lines for the conduct of election to the society and also to the officers appointed for the election. The officers appointed on election duty shall be subject to the superintendence control and disciplin of the state co-operative election commission.

Election conducted under Election commission superintendence, the duties and responsibilities of the returning officer is similiar to that of the R.O. under rule 35 except certain powers of R.O. entrosted to the electoral officer (also vide rule 35A)

In respect of societies not coming under sec. 28B (1) the procedure followed will continue unchanged (See rule 35) Section 35 (A) proceedure regarding conduct of election to the committee of the societies by the state co-operative election commission.

Qualification and disqualification of the members of the committiee:

Section 28 of the Act and rules 44 of rules contain relevant provision on the subject. Also refer rule 37 (3) (D) of the rule.


The Also member of the society is disqualified to be a member of the committee of the society if he:-

1.Is already a member of the committee of another society  of the same type {s.28(2) a}.

2.Is member of two or more committees of different type or types {s.28(2)(b)} (but a person qualified to be a member of the committee of the apex or central society the same type is exempted. No member of a committee shall be the president or chairman of more than one society of the same type.

3.Is a near relative (See explanation to rule (44) (b) of a paid employee of the society (rule 44)(i)(f))

4.Is a paid employee of that society or any other society rule 44 (1) (f)  but registrar is compenent to give exemption from the operation of the sub-rule. These clouse  shall not apply in the case of the societies which are having member employees.

5.Is of the unsound mind, a leaper or a minor or associated member (rule 44 (1) (g))

6.Is an applicant to be adjudicated as bankrupt or an insovant or an uncertified bankrupt or undischarged in solvant (rule 44)(1)(h))

7.Is carrying on the same (not similar) business as is being carried on by society, Rule 44 (1)(i)

8.Was a member of a committee superseded a period of one year has not elasped from the date of super session {Rule 44 (1)(k)}

9.Is surcharged under S. 68 {Rule 44 (1)(1)}

10.Is employed otherwise than in an honorary capacity has legal advisor or legal practioner on behalf of the society or against the society which is member of the former society, (rule 44 (1)(e))

11.Interested directly or indirectly in an contract made with the society or in any sale, or purchase made by the society privately or in any auction or in any transaction of the society other than the investment and borrowing involving financial interest, if the contract or transaction if subsitting or if the contract, Sale, purchase or transaction be not completed {rule 44 (1) (d)}

12.Is in default (defined in rule 2 (d) to the society) or to any other society in respect of any loan or loan taken by him in which we he had stood surety, for such period as is prescribed in the bye-laws concerned in any case for a period exceeding 3 months or is defaulted to the society or to any other society. (rule 44 (1)(c) see also circular 2/78 and 22/78)

13.He has been sentenced for any offence (other than political offence not involving moral delinquencies) and period of there years has not elasped from the date of expiration of the sentence.

14.Is disqualified under any other provision one of the bye-laws of the society (rule 44 (i) (j))

15.Kerala public men’s corruption (investigation and enquires) 44E (i) (ii) (iii) (b) 4,5,6. If a committee member commits default he is to be served with a registered notice by the secretary and his membership in the committee will cease after one month, if he fails to clear all the default amount within one month from the date of receipt of the notice.

Disqualification of member of society to be deligated on another society

Privision to section no. 28 (d) and rules 44, 45, 46, relevent in his respect. A person is qualified to be deligate of a society to another society though he is already a member of the committee of the societys of different type (provision to s. 28 (2) (d)) no member shall be appointed to represent a society in any other society and vote on the date 30 days prior to the date fixed for a meeting for the conduct of any election relating the society if:-

a.He is default to the society of which he is a member in respect any loan or loans taken by him (not applicable in the case of surety). For such period as may be specified in the bye-laws or in any case for a period exceeding three months. (primary land development) banks and primary housing co-operatives 6 months)

b.He is person against whom any decision, award or order reffered to in s. 70(3) being passed in disqualified to be a deligate.

c.He is a member of a society in his individual capacity is not be elected or appointed as deligate to the society. (illestraion:’x’ is a member of primary credit society as well as primary marketting society. If so ‘x’ is not qualified  to become a deligate to the primary credit society to the primary marketing society).




6. How to Inspect a society?

S.66 of the act and rule 66of the rules deal with inspection and supervision of societies. The inspection notes are to be prepared in the forms priscribed by the registrar for different types of societies. But the preparation of the notes in the form alone will not bring out the excact achivements or business results.

Therefore, while inspecting the account of the society, inspecting offers should review and working results during the period covered by the inspection, with particular reference to the following aspects.

1.Membership: Review the position of the membership with the population in the area of operation of the society and see whether all the falilies are represented.

2.Removal of overlaping, if any’ See whether the area of operation of the society overlaps with that of any other similar type of society in the locality if so point out the names of such societies and give suggestion for sloving problems.

3.Deposits: Examine the rates of interest given by the Commercial Bank working in the area, on deposits and make observation whether the management has gained confidence of depositers, after examining the flqw of withdrawls and deposit made during the period under the review.

4.Sanction of credit limits: State whether the credit limit statements received has been forward to the financing bank in time, See whether there has been any undue/ avoidable delay in forwarding the same.

5.Issue of loan: See whether the loan are issued in time. whether the loan issued are adequate and whether the loans are issued for rhe purpose invisaged in the bye- laws. As regards the repayment of loans see whether the repayments are made regularly. The time-lag between the closure of one loan and issue of another loan to the same member may also be watched.

Non-credit activities: See whether the activities undertaken by the society are economically viable and whether standardization is brought about. It should be observed whether the society, if dealing in fertilizers has available of cash credit accomodation from the financing bank.

In the case of  processing Societies in the main aspect to be dealt by the inspecting officer is the coversion of the raw materials collected by the society. The conversion results should be scrutinished and critically reviewed to see whether the management is taking do intiative to get the desired the results





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