TAMIL NADU

GOVERNMENT GAZETTE

PUBLISHED BY AUTHORITY

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2024

[Price: Rs. 8.00 Paise.

[ 5 ]

No. 3]

CHENNAI, WEDNESDAY, JANUARY 17, 2024

Thai 3, Sobakiruthu, Thiruvalluvar Aandu–2055

Part II—Section 1

Notifications or Orders of specific character or of particular interest to the

public issued by Secretariat Departments.

NOTIFICATIONS BY GOVERNMENT

DTP—II-1—3

CONTENTS

Pages.

CO-OPERATION, FOOD AND CONSUMER PROTECTION DEPARTMENT

Model Bye Laws For The Primary Agricultural Co-operative Credit Societies Large

Area Multipurpose Societies Lamps and Other Similar Societies .. ..

6-23

TAMIL NADU GOVERNMENT GAZETTE

[Part II—Sec. 1

NOTIFICATIONS BY GOVERNMENT

CO-OPERATION, FOOD AND CONSUMER PROTECTION DEPARTMENT

Model Bye Laws For The Primary Agricultural Co-operative Credit Societies, Large Area Multipurpose Societies

Lamps and Other Similar Societies.

[G.O. Ms. No. 1, Co-operation, Food and Consumer Protection (CN1), 2nd January 2024,

மார்கழி 17, ச‚ோபகிருது, திருவள்ளுவர் ஆண்டு-2054.]

No. II(1)/CFCP/2/2024.—

CHAPTER I

IDENTIFICATION OF COOPERATIVE SOCIETY

1. NAME

Bahu-Uddeshiye Prathmik Gramin Co-operative

Samiti (B-PACS) or Bahu-Uddeshiye LAMPS

2. ADDRESS

Registered and Postal Address of the Society

(Location of the Society) and E-mail address

3. AREA OF OPERATION

The following Revenue village(s) / Panchayat(s) will

be in the area of operation of the Society;

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ii)

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iii) —————————

iv) —————————

4. DEFINITIONS.

(1)

"Act" means the Co-operative Societies Act under which the Society is registered;

(2)

"Agriculture" means agriculture and allied activities;

(3)

"Area of operation" means the geographical area (Revenue village(s)/ Panchayat(s)) from which the Society

is authorised to draw its membership as specified in the Bye-laws;

(4)

"Board of Directors" means the Managing Committee or the governing body of the Society, by whatever name

called, constituted as per the Act to which the direction, control and management of the affairs of the Society is

entrusted;

(5)

"Branches" means Branches of the Society;

(6)

"Bye-laws" means the Registered Bye-laws of the Society;

(7)

"Chief Executive Officer" means a person, who is appointed by the Common Cadre Authority as executive

head of the Society and manages the affairs and day to day operations/activities, subject to the superintendence,

control and direction of the President/Board or Common Cadre Authority, as the case may be;

(8)

"Co-operative Tribunal" means the Co-operative Tribunal constituted under concerned Act;

(9)

"Delegate" means a member nominated by the Society to represent its interests in a federation or other

organization;

(10) "Director" means a member of the Board of Directors or by whatever name called duly elected or nominated or

co-opted as per the Act, Rules and Bye-laws;

(11) "Employee" means the persons selected by the District Recruitment Bureau and appointed by the Board of

Directors/Common Cadre Authority in order to run day-to-day operations of the Society;

(12) "Farmer" means a person actively engaged in the economic and/or livelihood activity of growing crops and

producing other primary agricultural commodities and shall include poultry and livestock rearers, fishers,

bee-keepers, pastoralists, non-corporate planters as well as persons engaged in various farming related

occupations such as horticulture, floriculture, sericulture, vermiculture and agro-forestry. The term shall also

include tribal families / persons engaged in shifting cultivation and in the collection, use and sale of timber and

non-timber forest produce;

(13) "Financing Bank" means a registered society which has, as its principal object, the lending of money to other

registered societies;

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(14) "Financial Year" means the period commencing from the 1st day of April of any year and ending with the

31 st day of March of succeeding year;

(15) "General Body" means a Body consisting of all members of the Society other than Associate Members;

(16) "Government" means the State Government/Government of India/appropriate authority in the Union Territory

with reference to the context;

(17) "Liability of a member" means the extent of liability of every member and is limited to the shares held by him

towards contribution of the capital of the Society;

(18) "Member" means any individual admitted as member of the Society after registration in accordance with the

Act, the Rules and Bye-laws;

(19) "NABARD" means National Bank for Agriculture and Rural Development constituted by National Bank for

Agriculture and Rural Development Act, 1981 (Central Act 61 of 1981);

(20) "Associate Member" means any person admitted to the membership of the Society for a specific purpose as

Associate Member as provided in the Act, Rules and Bye-laws and shall have no voting right;

(21) "Office-bearer" means a President or a Vice-President of the Board by whatever name called such as

chairperson or Vice-Chairperson and includes any other person to be elected by the Board of any registered

society;

(22) "Person" means an individual not less than 18 years of age;

(23) "President" means a person elected in accordance with the provisions of Act, Rules and Bye-laws who shall

be responsible for the overall development and progress of the Society and its members, the implementation

of the policy decisions of the Managing Committee and due observance by the Society of the provisions of Co-

operative Societies Act, Rules and Bye-laws;

(24) "Professional Director" means a person appointed or co-opted as Director without voting right to the Board of

Directors of the Society by virtue of his being an expert in the field of accounting, finance, management, banking,

Information Technology, law, agriculture, co-operation, co-operative management or any other specialized field

relating to the activities of the Society, who is willing to guide and advise in the affairs or business activities of

the Society;

(25) "RBI" means Reserve Bank of India established under the Reserve Bank of India Act, 1934 (Central

Act 2 of 1934);

(26) "Registrar" means the Registrar of Co-operative Societies appointed by the Government as per the

Co-operative Societies Act to perform the functions of Registrar and includes any person appointed to assist the

Registrar and exercise all or any of the powers of the Registrar;

(27) "Rule" means the Rules framed under the Co-operative Societies Act under which the Society is registered;

(28) "Seal" means the General Seal of the Society with year of establishment;

(29) "Society" means the Co-operative Society;

(30) "Sub-Committee" means the Sub-Committee constituted by the Board of Directors as per Bye-laws for the

purpose of special/particular assignment and for a specific period by whatever name is called;

(31) "Vice-President" means a person elected in accordance with the provisions of the Act, Rules and Bye-laws

who shall act as President in the absence of the President of the Society.

CHAPTER II

OBJECTIVES AND SERVICES

5. OBJECTIVES OF THE SOCIETY:

The Objectives of the Society shall be:

(1) To provide to its members timely and adequate short and medium term credit for development of backward and

forward activities related to agriculture and its products, loan for vehicles for agricultural purpose like tractors etc, loan

for consumption or medical purpose against collateral/pledge financing like commodities / bonds / securities, etc. while

maintaining financial norms (like credit worthiness and for securing the given loan) in the area of operation through share

capital, deposits and borrowings from the District Central Cooperative Bank i.e., a Financing Bank;

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[Part II—Sec. 1

(2) To provide Long term Loan after approval of the District Central Co-operative Bank. i.e., a Financing Bank;

(3) To promote and develop backward linkages (such as demonstration plots, irrigation facilities, manure, fertilizers,

improved seeds/seed production, custom hiring centre, farm machineries/implements, insecticides, other inputs etc);

forward linkages (such as collection, grading, cleaning, packaging, branding and marketing, storage [godown and cold

storage], processing, value chain [transport, logistics, refrigerated van, etc]), for the agriculture produce and its products

(such as field crops, fruits and vegetables, floriculture, dairy activities, fisheries/shrimp farming, poultry, bee-keeping,

sericulture, plantation, sheep, goat, rabbits, piggery and any other land/sea based agriculture related activities and their

processing), by way of technical and financial support to its members in the area of operation of the Society;

(4) To facilitate or make arrangements or to collaborate with any local bodies/ Governments/Departments/ Universities/

Societies/Government undertaking sectors for achieving its objectives for the benefit of Society and its members;

(5) To engage in service or business operations (like infrastructure development, community centre, hospital, educational

institutions, procurement of food grains, Fair Price Shop, or any Government scheme, Dealership/agencylDistributorship

or supply of LPG/Petrol/Diesel/Green energy/farm or household consumables and durables/farm machineries, training of

members for skill improvement, etc.) which may enhance the facilities and income of Society or its members;

(6) To set up or arrange for Locker facilities;

(7) To collect socio-economic, financial and business-related information of all members and non-members in the area of

operation which may strengthen policy framework, development of agriculture or related business or developmental plan

and is also beneficial to all the stakeholders in the area of operation;

(8) To demonstrate, promote and develop the latest technologies or extension activities related to agriculture and its allied

activities for enhancing the income of the Society and its members;

(9) To educate its members and their families (particularly youth and women) and Management and staff about Co-operative

Principles, values and actions which may promote social harmony and economic benefits for all the stakeholders in the

area of operation by way of organizing training, exposure visits or capacity building programmes;

(10) To act as an agent or Bank Mitra/Business Correspondent/Business Facilitator (BF) for the District Central

Co-operative Banks only;

(11) To act as an agency for implementation of social security scheme for its members and to provide micro

insurance / insurance;

(12) To focus on and encourage the inclusion of youth and women in the Co-operative based activities in the area of

operation;

(13) To provide community-based services in the fields of education (school, college), health (hospital, dispensary, clinical

laboratory, ambulance service), tourism and environmental and sustainable development activities;

(14) To participate in Government Schemes for providing services through Direct Benefit Transfer (DBT) to beneficiaries

in the area of operation;

(15) To act as a source of information/data centre to be used by the Government for various purposes;

(16) To act as a Common Service Centre for facilitating on-line/digital services in the area of operation;

(17) To undertake marketing and similar activities both inside and outside its area of operation for the benefit of the

members of the Society;

(18) To own land, buildings, godowns, processing units and other such necessary assets;

(19) To undertake such other activities as are conducive and incidental to the attainment of the above objects and as

approved by the General Body for the benefit of the members and Society;

6. SERVICES OF THE SOCIETY:

The services or business facilities in which the Society can engage itself, keeping in view the above objectives, are as

follows:

(a) Any activity related to backward and forward linkages of agricultural produce and its products to support its

members;

(b) Loan facilities as per agriculture production and its processing activities, household consumption-based

requirement of members subject to necessary regulatory approval from the concerned authority;

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TAMIL NADU GOVERNMENT GAZETTE

members for production, collection, processing and marketing of the product subject to necessary regulatory

approval from the concerned authority;

(d) To engage in services or business operations like supply of consumer durables, etc;

(e) To research, promote, demonstrate innovative technology and extension work (including soil and agri-products

testing) and its allied activities;

(f) Awareness creation, capacity building programmes, skill development, fairs and exhibitions or any extension

related works;

(g) To collaborate with Government Departments/Universities/ Start-ups/Industries in public sector and its

associations / multilateral agencies with necessary approval from the concerned Authority, which is beneficial to

the Society and its members;

(h) To provide services in online mode to the extent possible and to maintain its own website;

(i) Other business or financial support necessary and required to fulfill the objectives.

CHAPTER -III

MEMBERSHIP

7.MEMBERSHIP:

(1) TYPES OF MEMBERSHIP: The Society shall have two types of membership, as provided by the State Act/Rules.

(i) MEMBERS:

Members are the shareholders of the society who can exercise all the membership rights.

(ii) ASSOCIATE MEMBERS:

Associate members are nominal members of the society having no voting rights.

(2) ELIGIBILITY FOR MEMBERSHIP:

The following persons, subject to fulfillment of the eligibility condition, shall be Members:-

(a) The promoters at the time of registration of Society;

(b) An Individual who, -

(i) is competent to contract under the provisions of section 11 of the Indian Contract Act, 1872

(Central Act 9 of 1872) (above 18 years of age, having a sound mind and not debarred by any Law);

(ii) possesses agricultural land or land for allied agricultural activities or rearing domestic cattle or having cultivable

lands and cultivation in the area of operation of the society or landless agricultural labourer;

(iii) is already a member of a primary agricultural service society or a primary land development bank may

become a member of anyone or more other societies of anyone such category or both such categories, if such

person owns or cultivates lands within the area of operation of the respective societies: Provided that the total

outstanding by way of borrowing from all such societies shall not exceed the individual maximum borrowing

power either on the security of immovable property mortgaged or on personal surety;

(iv) any person who is already a member of an agricultural producers marketing society may become a member

of anyone or more other agricultural producers marketing society who such person owns or cultivates lands

within the area of operations of the respective societies.

(d) State Government or any other Government Body.

(3) ELIGIBILITY AND OTHER CONDITIONS FOR ASSOCIATE MEMBERSHIP:

(a) A person who desires to have a business relationship with Society shall be admitted as associate member by

payment of admission fee of Rs.50/- which is non-refundable and shall be credited to Reserve Fund of the

Society;

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[Part II—Sec. 1

(b) Any organization registered under any Act in India shall be admitted as associate member for business purpose

only;

entitled for dividend from the Society;

(d) Associate member cannot contest in election for the member of the Board of Directors in the Society;

(e) An Associate member who is indebted to the Society either in his personal capacity or as surety or guarantor shall

continue to be such member so long as the liability to the Society has not been fully discharged;

(f)

No share certificate shall be issued to nominal members but separate Register shall be maintained in the Society,

which shall contain his signature and full address as proof of his membership.

(4) INELIGIBILITY OR DISQUALIFICATION OF MEMBERS:

A person shall not be eligible for admission or continuing as member of the Society, and shall cease to be member, if he,-

(a) has been sentenced for any offence involving moral turpitude punishable under any law with imprisonment for

one year and upwards, such sentence not having been annulled and a period of one year has not elapsed from

the date of the expiration of the sentence by a Court of Law;

(b) is adjudicated as bankrupt or insolvent;

(d) is of unsound mind;

(e) is in the business of providing loans;

(f) is a defaulter of any bank/financial institution/Society;

(g) does not use any service or product of the Society and remains absent in the General Body Meeting for three

consecutive years;

(h) possesses any other disqualification as per the provisions of the Act/Rules ..

(5) PROCEDURE FOR MEMBERSHIP:

(a) Any person who is desirous of becoming a member of the Society and is eligible as per the Bye-laws, may obtain

an application form at a prescribed fee and may submit the duly filled application form to the Chief Executive Officer

of the Society;

(b) Know Your Customer is mandatory for adding new members in the Society. Registration can also be done online;

(as the case may be) for final decision, who shall decide within a period of sixty days from the date of receipt of

application. If the decision of the Board or General Body (as the case may be) within a period of sixty days from the

date of receipt of the application, the individual shall be deemed to have been admitted as a member on the sixtieth

day after the date of receipt of the application;

(d) The Chief Executive Officer shall inform the applicant of the decision of the Board of Directors / General Body

(as the case may be) within 15 days (fifteen days) of the Board meeting, and if admitted, ask him to deposit the

admission fee and share money alongwith necessary documents as specified by the Board of Directors, like

identity/ residence/land holding proof, resolution of informal group/ other cooperative society etc. on submission of

which the applicant shall be admitted as member of the Society;

(e) Appeal against denial of membership can be filed before the Registrar within 60 days from the date of receipt of the

decision of Board of Directors / General Body and the decision of the Registrar will be final;

(f) Every individual shall subscribe at least one share at RS.100/- (Rupees one hundred only) to become a member.

The member shall also have to pay an admission fee of Rs.50/- (Rupees fifty only) at the time of admission, which

shall be non-refundable and shall be credited to Reserve Fund;

(g) The admitted members shall be educated about cooperative values, principles, their rights and philosophy and the

services/facilities and benefits available in the Society.

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(6) SHARES SUBSCRIPTION BY THE MEMBERS:

(a) Every individual to whom shares are allotted shall be entitled to receive share certificate specifying therein number

of shares allotted to him and amount paid by him;

(b) Every share certificate shall be signed by the President and Chief Executive Officer or any other officer authorized

by the Board of Directors of the Society;

time to time and amount of share capital available of each member with the Society;

(d) The Society shall have the absolute right to set off the share amount and the dividend earned on it towards the

respective loans or any other dues recoverable from the member. This doctrine shall also apply to past members

and the deceased members;

(e) The Society shall have the absolute right to utilize the dividend earned for strengthening the capital base of the

Society;

(f) The rate of dividend to be declared by the Society, shall be decided in the General Body Meeting in accordance

with section 72 of the Tamil Nadu Cooperative Societies Act, 1983.

(7) RIGHTS OF MEMBERS:

1.Every member shall have the following rights:-

(a) to attend, participate and vote in the General Body Meeting of the Society;

(b) to receive a copy of the annual report and accounts on payment of the cost fixed by the Society;

Society;

(d) to avail all services/facilities or infrastructural support rendered by the Society;

(e) to receive dividend as share in profit earned by the society on his subscribed share capital.

(f) to take loan or avail facilities of the Society, on such conditions as may be laid by the Board of Directors or General

Body from time to time;

(g) to inspect own accounts in the Society free of cost and to obtain a copy of the same by payment of a fee of Rs 2/-

(Rupees two only) per page;

(h) to inspect annual reports, audited statements of accounts, Audit report, Inspection report and compliance report on

payment of a fee of Rs.50/- (Rupees fifty only);

(i) to receive a copy of proceeding recorded in the minute book pertaining to General Body meetings and Board of

Director meetings on payment of a fee Rs.5/- (Rupees five only) per page;

j) to get the copy of the Act, Rules and up-to-date Bye-laws of the Society on payment of amount fixed by the Society.

2. Associate Members:- Every associate member shall have the following rights:

(a) To receive non-farm sector loan and other non-credit facilities rendered by Society on the terms and conditions

decided by the Society;

(b) To provide facilities owned by them which may be beneficial for Society and its members on mutually decided terms

and conditions within or outside the area of the operation of the Society.

(8) DUTIES OF MEMBERS:

(a) Every applicant before being admitted to the membership of the Society shall sign a declaration that he has read

and understood the provisions of the Bye-laws and shall be bound by the Bye-laws of the Society, Acts and Rules;

(b) A member who is already a member by reason of having joined the application for Registration is required to sign

such declaration within one month of the Registration of the Society;

paid the admission fee and the full value of shares subscribed by him.

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[Part II—Sec. 1

(9) LlABILlTIY OF MEMBERS:

The members of the society shall, in the event of liquidation/ dissolution be jointly and severally liable to contribute

towards deficit in the assets, limited to the extent of share capital subscribed or paid by him.

(10) WITHDRAWAL OF MEMBERSHIP AND SHARE CAPITAL:

Membership can be withdrawn only after adoption of resolution in a meeting of Board of Directors. All such

resolutions will be placed before the General Body for information. If the member has paid all the dues to the Society

and cleared liability as sureties, if any, in full, he can withdraw his membership provided that total withdrawal of share

capital in a Financial Year shall not exceed 10% of the total share capital as provided in the Tamil Nadu Co-operative

Societies Act, 1983:

Provided that transfer of share to the nominee should be as provided in the Tamil Nadu Co-operative

Societies Act, 1983.

(11) EXPULSION OF MEMBER:

(1) Any member of a registered society who has acted adversely to the interests of the Society may be expelled upon

a resolution of the General Body passed at a special meeting convened for the purpose, by the votes of not less

than two-third of the total number of the members present and voting at the meeting. The quorum for such special

meeting shall be-

(i) in the case of societies having membership not exceeding one thousand not less than one-fourth of the total

membership, or one hundred member, whichever is less.

(ii) in other cases, two hundred members:

Provided that no such special meeting shall be called by the Board except upon the requisition in writing by not

less than one fourth or the total number of members of the society or twenty-five members whichever is less;

(2) No member shall be expelled under sub-clause (1) without being given an opportunity in the manner prescribed of

making his representations and until the resolution referred to in that sub-clause is approved by the Registrar. A copy of the

resolution expelling the member as approved by the Registrar shall be communicated to the member.

(12) NOMINATION BY MEMBER:

A member may nominate a person as a nominee in whose favour the Society shall dispose of the share or interest of

such member on his death. In case no nominee is designated, nominee will be as per extant succession law.

CHAPTER IV

CAPITAL AND FUNDS

8. FUNDS AND RESOURCES:

(1) The Society shall ordinarily obtain funds from the following sources, namely:-

(a) Admission fee

(b) Share Capital

(d) Deposit

(e) Reserve and Surplus

(f) Grants and subsidies

(g) Donations

(h) Income from business activities

(2) (i) ADMISSION FEE: The Society shall collect admission fee of RS.50/-

(Rupees fifty only) both from the members and associate members.

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(ii) SHARE CAPITAL:

(a)The authorized share capital of the Society shall be fixed by the General Body as approved by the Registrar from

time to time;

(b) Each share shall be valued at RS.100/- (Rupees one hundred only). The total value of shares shall be paid in lump

sum on its allotment to the members;

(c)The dividend on share capital held by the members shall be distributed to them as decided in the General Body

subject to maximum ceiling prescribed in the Act;

(d) A member may withdraw his share capital only on withdrawal of membership from the Society. On his death, the

share capital amount shall be given to his nominee after settling dues to the Society, if any, provided that where the nominee

applies for membership, such amount shall be transferred to the share capital account of the nominee in accordance with

procedure laid down in the Tamil Nadu Co-operative Societies Act, 1983;

(e) The society may pay dividend at a rate not exceeding fourteen percent per annum on the paid-up value of each

share provided that the Government may, by general or special order, permit to declare dividend at a rate exceeding

fourteen percent per annum, subject to the condition that the amount of dividend in excess of fourteen percent shall be

credited to the share account.

(iii) BORROWINGS AND MAXIMUM BORROWING POWER OF SOCIETY:

The Society shall borrow funds only from concerned District Central Co-operative Bank provided that it may borrow

from any other financial institution with NOC (No Objection Certificate) of concerned District Central Co-operative Bank to

meet its financial requirements. The maximum outstanding borrowings shall not at any time exceed 40 times of the paid-up

Share capital and Reserves.

(iv) DEPOSITS:

The Society shall accept deposits only from its members and the interest rate of deposits shall not be more than 2%

over the corresponding deposit interest rate of District Central Co-operative Bank. The Society shall formulate separate

Deposit Rules and schemes with the approval of the Registrar.

(v) LOANS AND ADVANCES:

The applications for loans shall be placed before the Board of Directors for sanction. The Society shall frame separate

loan policy for different types of loan, rate of interest to be charged, requisite security/collateral and other terms and

conditions which shall be approved by the Registrar. Any rejection of loan would be communicated to the individual member

within a reasonable period of time. All matters of rejection shall also be placed before the General Body for information.

(vi) RESERVE AND SURPLUS:

(1) The Society shall appropriate not less than twenty percent of the net profit every year towards its Reserves Fund.

The net profit shall be appropriated as per the provisions of the Act and remaining amount of the net profit shall be credited

as provided in the Act. The Reserve Fund of the Society shall belong to it as a whole and no member shall have any claim

to a share in it.

(2) The Reserve Fund may be drawn upon with the special sanction of the Registrar to meet unforeseen losses.

When the Reserve Fund of the society exceeds twenty percent of its working capital, the excess may with the sanction of

the Registrar, be utilized in the business of the Society as per rule 99 of Tamil Nadu Co-operative Societies Rules, 1988.

(vii) GRANTS AND SUBSIDIES:

The Society may receive grants and subsidies from Government and other agencies.

(viii) DONATION:

The Society may receive donation from its members/ Government and other agencies for any specific purpose

CHAPTER V

MANAGEMENT OF SOCIETY

9.GENERAL BODY:

(1) The final authority in the Society shall vest in the General Body. The General Body of the Society shall consist of the

following:

TAMIL NADU GOVERNMENT GAZETTE

[Part II—Sec. 1

(a) All members of the Society;

(b) Nominees of State Government.

(2) Without prejudice to the other provisions of the Bye-laws, the General Body shall have the following powers and

duties: -

(a) Election and removal of the Board of Directors in accordance with the procedures laid down in the Act, Rules

and Bye-laws and guidelines/ directions issued by Registrar from time to time;

(b) Consideration of the annual report of the Society, prepared and presented by the Board;

(d) Approval of Annual budget;

(e) Consideration of matter relating to loans and advances given to the Directors and their relatives and action to

be taken for recovery thereof in case of default;

(f) Appropriation of net profits;

(g) Creation of specific reserve and other funds and reviewing the actual deployment of other funds;

(h) Amendment of Bye-laws, if any;

(i) Expulsion of member, if any;

(j) Approval of long-term perspective plan and annual operational plan.

(3) The General Body shall meet from time to time for transaction of business and such meetings shall be called the

General Body Meetings and shall be of the following three kinds:-

(a) Annual General Body Meeting: The Annual General Body meeting shall be held within 6 months of closure of

the financial year.

(b) Special General Body Meeting: A Special General Body Meeting may be convened by the Board/Registrar of

Co-operative Societies/Financing Bank at any time during the year, if they feel appropriate for a special purpose

as provided in the Act.

within 30 days of a requisition signed by at least one-fourth of members;

(ii) A requisition as mentioned above shall be addressed to the Chief Executive Officer and shall state the need for

the meeting and the proposed agenda;

(iii) If on receipt of the requisition, the Board fails to call the General Body Meeting within a reasonable time, the

signatories to the requisition may refer the matter to the Registrar who may, if he thinks fit, convene the General

Body Meeting or authorise a person to call such meeting.

(4) The General Body shall meet at least once a year. The General Body Meeting may be called by the Board or by

Chief Executive Officer of the Society under the direction of the Board.

(5) Atleast seven clear days notice, specifying the date, place and time and agenda of the meeting shall be given to all

members. The notice of a General Body Meeting may be given in one or more of the following modes:-

(a) affixing a copy of the notice at the office of the Society or at some conspicuous place in the area of operation

of the Society;

(b) circulation of the notice book and getting signatures of members on it;

(d) digital mode like e-mail, whatsapp, etc.;

(e) beat of drum in the area of operation.

(6) (a) Subject to the provisions of the Act, the rules and the bye-laws, the ultimate authority of a registered Society

shall vest in the general body of its members:

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Provided that nothing contained in this clause shall affect the exercise by the Board or any officer of a registered

Society of any power conferred on such Board or such officer by the Act or the rules or the bye-laws;

(b) Notwithstanding anything contained in clause (a) where the area of operation of the society is not less than such

area as may be prescribed or registered society consists of not less than such number of members as may be prescribed,

the registered society may provide by an amendment of its bye- laws for the constitution of a smaller body consisting of

such number of the members of the registered society as may be prescribed, elected in accordance with the rules, to

exercise all or any of the powers of the General Body as may be specified in the bye-laws.

(7) If the meeting has been called on the requisition of the members and the quorum is not complete, the meeting shall

be adjourned and no further General Body Meeting shall be convened on the strength of that requisition.

(8) The President or in his absence the Vice President shall preside over meetings of the General Body. When both of

them are absent, the members present shall elect a Chairman for the meeting.

(9) Every member of the General Body shall have one vote. Voting by proxies shall not be allowed at the General

Body. All questions shall be decided by the majority of votes of the members present and voting. When the votes

are equal, the Chairman of the General Body shall have additional casting vote.

(10) All business discussed or decided at a General Body Meeting shall be recorded in the minute book and shall be

signed by the President of the meeting, the Chief Executive Officer of the Society and the members participated in

the General Body meeting.

10. BOARD OF DIRECTORS:

(1) There shall be a Board of Directors of the Society to manage its affairs and it shall be constituted by election from

amongst members of the Society or as laid down in the Co-operative Society Act and Rules of the State. There shall be

minimum of 11 and maximum of 21 members in the Board of Directors.

(2) No person shall be eligible for election as a member of the Board of Directors of the Society, if he.-

(a) is below 21 years of age; or

(b) is a paid employee of the Society or the Financing Bank/Institution or the Government or any local body; or

(d) has applied for insolvency or is declared insolvent; or

(e) is of unsound mind; or

(f) is in default of the payment of any dues to the Society for a period exceeding 3 months; or

(g) holds an office of profit under the Society; or

(h) is in arrears of shares; or

(i) is indebted to Society beyond his maximum credit limit; or

(j)

has not been a voting member of the Society for at least 1 year immediately preceding the date of election; or

(k) has not attended General Body meeting of the Society held immediately preceding the election; or

(I) has at any time lost the right to vote as a member or to continue as member as specified in the Bye-laws; or

(m) has incurred any other disqualification for being or continuing as a Director as specified in the Act,

Rules and Bye-laws.

(3) Proper representation in the Board shall be given to Scheduled Castes/ Scheduled Tribes/ women members.

Reservation shall be provided for 3 women and 2 Scheduled Castes/ Scheduled Tribes members in the Board.

(4) The term of office of the Board of Directors shall be five years from the date of assumption of office.

(5) The Board shall take necessary steps as per the provisions of the Act and Rules to conduct election before expiry

of the five year term.

(6) Not less than three clear days' notice is required for convening the Board of Directors' meetings.

TAMIL NADU GOVERNMENT GAZETTE

[Part II—Sec. 1

(7) The Society may conduct elections to the Board of Directors in accordance with the provisions of the Act and

Rules.

(8) The Board shall meet at least once in three months for monitoring the transaction of business of the Society.

(9) A Board meeting shall also be convened on the requisition of a majority of Board members within seven days of

the receipt of such a requisition. The requisition shall be addressed to the Chief Executive Officer and shall state the need

for the meeting and the proposed agenda.

(10) The Board of Directors may decide to induct/co-opt a maximum of upto two Professional Directors having

experience and expertise in the field of Banking, Accounting, Finance, Management, Information Technology, etc in the

Board for proper guidance and advice. The Professional Directors shall be members of the Board and such members shall

be excluded for the purpose of counting the total number of Directors specified in the Act. The Professional Directors shall

have no voting right.

(11) In addition to disqualification as per the provisions of the Acts and Rules, a member of the Board shall be

disqualified or cease to hold office, if he,-

(a)

ceases to be a share-holder of the Society; or

(b) has applied for insolvency or is declared insolvent; or

(c)

is convicted of any offence for dishonesty or moral turpitude; or

(d)

holds any office or place of profit under the Society; or

(e)

resigns and his resignation is accepted by the Board; or

(f)

absents himself from three consecutive meetings of the Board of Directors without permission of the Board; or

(g) defaults in the payment of any dues to the Society for a period exceeding three months; or

(h) becomes a paid employee of the Society or Financing Bank or Government or any local body; or

(i)

fails to pay any arrear of shares; or

incurs debt from the Society in excess or beyond his maximum credit limit; or

(k)

is presently engaged directly or indirectly in any private business, trade or profession of any description which

is similar to the business carried on by the Society; or

(I)

has been penalised for offences under the Act and Rules; or

(rn) has lost the right to vote as a member under the Act/ Rules/Bye-laws; or has at any time been expelled from the

Society or any other Society within three years.

(12) If a Director of the Board absents himself from three consecutive meetings of the Board without the permission

of the Board, he shall cease to be member of such Board. This fact shall be intimated to the member concerned and it

shall be reported by the Chief Executive Officer in the next meeting of the Board with the reply received from the member.

It shall be open to the Board to reinstate such member provided that a request in writing is received from such a member

and provided also that he shall not be reinstated more than once during the term of the Director. If the President or Vice

President so loses his seat in the Board and if he is not reinstated by the Board at its next meeting he shall cease to be

the President or the Vice President, as the case may be, and also cease to be a Director and the Board shall proceed to

fill up the vacancy caused thereby.

(13) A Director of the Board shall also cease to hold office or become ineligible to contest for election or co-option as

a Director of the Board if, on an enquiry and Certification by the Registrar as per the Act, he is found: -

a) guilty of misuse of his position or property of the Society for his personal gain;

b) responsible for making any appointment to any post in the Society contravention to . the Act, Rules, relevant

service rules and regulations and as per lawful directions given by Registrar from time to time;

(14) The members of the Board shall elect from amongst themselves the President and Vice President.

Jan. 17, 2024]

TAMIL NADU GOVERNMENT GAZETTE

(15) The quorum for Board meeting shall be four or forty percent of the total number of Board of Directors, whichever

is less. The President or the Vice President or in his absence a member elected by those present in meeting shall preside

over the Board meeting. Unless otherwise provided by these Bye-laws, all matters shall be decided by a majority of votes

in the Board meeting.

(16) The Board shall exercise all the powers and discharge all the duties of the Society subject to superintendence

and control of General Body, except those specifically reserved for General Body subject to any regulation or restriction

duly laid down by the Society in General Body Meeting or in the Bye-laws. In particular, the Board of Directors shall have

the following powers and duties:-

(i)

to act, in all their transactions, as per the relevant provisions of the Act/Rules/Bye-laws;

(ii)

to maintain true and accurate accounts in respect of all money received and expenditure made and all stock

bought and sold by the Society;

(iii)

to prepare a true account of the assets and liabilities of the Society;

(iv)

to prepare an annual report on working of the Society, an annual statement of accounts including Balance

Sheet, profit and loss account and trading account for submission to the Annual General Body Meeting;

(v)

to prepare statement of accounts required for Audit and to place those along with relevant vouchers and other