Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 (Act No. 30 of 1995)

2. In this Act unless- the context otherwise requires :-:.. . •(a) ».eoardti means the BQard of Directors of a Co~~ operative Society ; · · • · • ·(b} '~bye-lam"- means the bye~law~ of a Co-operative Sodety as or.ig.inally framed or a_1: altered from time to ti;me i~ : pul'51lancc of this Act ; 217 J, No.-1854-28 '21'8 (c) "co~operath•c principles" means the Co-opcartive prfa- cip1es spedfkd in se-01 ion 3 ; (d) "Co.operative Society» means a MutunUy Aided Co- operative Society registered under se<.tlon 4 whose bye-laws prohi~ bit it from rrtising sh:ire capital from the Government a i ', ! operative Society registered under s-cclfon 7 of the Andhrn Pradesh Co-operative SOcieties Act, 1964 if it amends its bye~ I I laws where necessary to reconstitute its capital base llnd in respect i of other relevant nspCct;; to be in acco1dance with this Act and: returns to thC Government it, share capital if any, and either' I ' enters into a Meniorandum of Understanding with the Govern¥ ment-for any Quts.tanding-loans due to. or guartlntees ,given by the Governn1ent or retums to the Government of such assistance and further gets itself registered under sectioi 4 as a Co-operative I' Society under this Act ; · (e), "Co--0perative S0cicty with limited liability" ineans,• a Co-operative Society in whict1 the liability of its members for the debts of the Co-operative Society in the event of its being woWld up. is -limited by its bye~laws to such -~mount as they · may undertake to contfibutc to the•a,;sets of the- co-operative; {f) "C:>· operative Soc-1ety with ur.lfmitcd liability'' means a C'.o*opnra.tivc So<.iety the members of which-arc, in the event of its being wound up, jointly and severally Jiabfo for and in respect of alJ its obligations and to contdbutc to anv deficit, in the- :assets· of the Co•oper.1tive Society ; i (g) "Co"'Operative 'fribunaJ" means• the Tribunal or Tribunats constituted under section 32 ; (it) "ddfo:it" means the uct excess of expenditure· i;n-cr income; (i) "delegate'• means a member nominated by a Co•ope• rative Society to crepresc~{ its .int.W::rts ill a fede~arion .; (j) "director.-'' means a, dirC.ctor of the Board of direct- ton·; 219 (k) ''fEderation" mCans. a MutuaUs AidCd Co-openrtive Society 'registered under sct:tion- 4· whose lllCn'lbers are Mutually -Ai4ed Co-operative Scdeties· : (l) "fin.-incioJ year" jn reliltion to a Co.operative S:ocicly smeans the twelve montl1 r.ctountfr1g perkd as provided, for in tti.e .bye-laws ; · (m) ~ general body" Jn relation to a Co.operation s Sol'.!iety.meins all the membe!'$ of the Co-operative Society. and includes a rcpresentativegen :;i:;:t body ofthe Co-opetative Socktyl referred to in section 20 ; (n) "general meeting .. m"tans a .meeting of. the ienera.l body of a. Go-operative Sodefy, ; · (o) "Government," ml:'anh·_ the State Go,•ernment of Andhra Pradesh ; (P) mebmber means a member of a Co-operatives Sooiet-y {Q) "office-bearer" m~ans: an JndivJduttJ. elected by t]1e general body or the hord oftlte Co-o~ratlve Socicl.y to any offiee . of such Co-opetati-ve·S'ldety in ::ccordance- with its bye~Jaws; (s) "Registrnr:• means the R~glstrar of MUtuully A:ded Co,oper~tivc Societies appoinfed under-section 4ofthis, Act, and · inrludes an)' other person on whom nH or any oHhz p.-:,wers of the .Registrar undcr·this· Act ate confe-rrcd; (r) "~urplus" m):tn$ th~ net ex,;ess of incl'.,me o"\la tl1e expendi'ture. · · 3. lndvidluals or Cs'-copJtalivos intending to fomt' into Co-opcr,11ive n Co-op3ra,tiy,,,Socivt.y under 1h,;s. Act ·shall frame byc-,Jn,ws Prld,,biplc,, ' ··1ag tot h'II oon11;,m1, · • . f , ,, an •v.e~~wi ! ,-0 ,>w11ig p:mc1p1zs o co--:>p.iraetion, namc-.y,-• (a) mcmborsltip or a co-op.m1tivc Society sh:.tll be volu.'tt- f:ary and, availabl-.!' without re.-trlction of any Soc:al, p.11:t:cal. , r.ac'al or religious· tliscrlmiuation, to aU-p.>rsons who caii mah l;ISO of its service., and ar~ wli?,i1~ to aci:::opt th, -respo11.sibilite:,; '. Q.f ~~1->.;:sJtip ; 220 ~ fb) Co-ope:_ro!!,t~ve . Societies are democratic. org/:lnisations'. tbe)i' affair$ sh"a.If be .a·dministra ted by .persons elected or appoi ted .in a 1Il.a.nner agr eed by the mem n-:- bers and acc oun tabl o to them. Membors of prim ary Co-operati Ve Societies shall enja yeq ual righ of vot ing (one ·member one vot ts e) and par tici pat ion in decisions affecting their Co."-operative Soc ieties. In oth er tha n pri~ ary Co- ope rati ve Societies, the adm inistr,a tion sha ll be conducted on a democtratic bas is in a sui tab le form; 'I ·· (c)' sha re ~apita-1 sha:n only rece nte res t; if arty ; ive a ·str ictl j limited rate of I · · I J (d) tbo economic results, aris ing out of the operations of a CO-O"poritivo SocfotiOs· belong to.t ho members Of th"at _Co-operatic Societies and sha ll be distributed in such a nianners as w6uvp avoid one momber gaiPing ~t the expense of others, wh; - shall be achieved - -- clh (i) by provision for developmen t of the bud_ness of the Co- '"oP.,raiive-· Society ; (ii) - by ·provision of common services·; or (iii) by distribution_iimonng tho membe:rs in proportion to · eir transactions wilh the Co- ope rati ve Society ; __ (e) t1:ll Co---op:rativo So~ ietics shall make provisi~n for education of thefr member~, offi ce-boares and employees and he the geneTal public, in the principl es and teclmiques of co~ope· taftion, both economic and dem ocr atic ; ! (f) al1 Co--operativO Societi es, in ord er to bestse:rve ! te interest of their menbers and the ir communities, shall inembers · activity co-operate in every pra ctic al way with other. cooprativc ·at 1ocal, nat ion al and inte rna s tion al levels. -having as the ~ aim the ahievement of unif y of acti on by_ cooperatiors on through out the wodd. R•aistra. 4: (1) Where not los s-th an ten tion membOr of a different famitliy inte individuals ea.eh being nded to form a Co---0pe-rative society, or two· or· more Co--0p erative Societie's re-gistered und er tbiS section wish to form into a fed era tion , or a society-:reglstc-red 221 under -section 7 of .the Andhra Prndtsb CO--<?perative Soc_ietcs Act, .1964. intends to convert its.elf ·into a ·co--:oporntive · Socioty under this· Act, they·shaff frari1e 6)1-laWs for this purpose· iJl accordance With· section· 3 in ho ·first 'instance. 1 - · (2) th~roafter · an appli~ation for roglstraticin _shall\~ inibmitted·to the R~glstfar by hand or by r:;gistered post. (3) .Every such application shall b~ accqmpani_ed by,- (a) the origrnaland one copy ofth~ bye-lawsofi he prOposed Co...operaiive· Sxiety as adopted by·the individuals or delegates of Co-operative Societies who Wi!'.h to form into a co.operatve society under this Act or by the general body ofa S:=iciety registiered under the Andbra·PradeSh Co-OpCratiVi Societie·s Al<t, f964 wihch wishes fo C:ohvert·itsClfinlo a Co-operativ e·sociefy under thi,s Acf;' · (b) a list of.names of individua,Js or Co-opera1ives. who v,:ish to form into a Co-operativ e Society under this Act or of- the mem• bers of the Committee of the society registered under the Andhra ·prad~sh Co-operativ e Societies Act, .1964 -,~hich intends to conv~rt 'itself into a Co-opeta!i~e Society-tinder this A.ct'.,.;ith tI{eir· addre'ss~s, -o~c-~pation.s f-n~ -{he'ir finari-~iaJ coinmitm.~itts· to. the_ · pi'9pb~ed Co-Oj:,erafive S9ciety; · - · (c)_ a true copy of1he minutes oflhe meeting at which-1hc bye_-Jaws were adopted, d_uly sig.ned by atleasi: a t:11ajority ofindivi- "' duals ordekgates present at the·meetin°g.wberetliC bye-laws-were .. adopted, or by a ~jority_(:it he members Onbe ~9~mittec ofthC Co-operative s c.oncerncd where a $.)ciety registered under -the Andhra Pradesh Co~operativ e S.lcieties Act, 1964 intends to con- 1:.vert itself into a ·Co-operativ.e S:.icicty under tihs Act; (d) registration fee amounting to o~e percent of the. total authorised share capital by whatever name called subject to a ··mtnimum ofo~e buridrecl ruJ)ces·and a mil.xfrnum -o(tCri thousand .: rUj}ees f_'~rld . . . - (e) 'in·the case of. a··SJciety:·u gbtered-utid er sCction 7. of th:e A.ndhra Pcadesh Co~operative SJcicties Act, 1964 and wi:.hing.to 222 . .ron.vcrt itsdfintt, a Co-operative S:>Gicty under this Ac-t evidenc~ to. show that. tit~ S1~iety is not in pjssession of any shue capital from Qov~rn;ment, and evidence also to show that the-Sxiety i'> not in n::ceipt of an}' G.:;vemment l◊ans or g-,;arantees at the time of applying for registration as a Co-operative SJGicty under this Ao::.t, or that it has enlcrc-d into a memorandum of undcrf>ta-nding ·. with ·the Government for any such outsta.nding loans or gul!.rantcc s · (4) ·The Registrar shall Jf he is satisfied th?.f,..- :(a) tfle applic~tion ts in conformity with the requirements of_. i this Aci:; .~ i · (b) the prop.,.scd byc-la.w.; are-not i;ontnfry to- the provisions ofth:is Act; and · (c) tile n2me of the prop,,sed C-0-op~rntive Sxiety is nnt the sami: as that of a Co-operative Society already,registered under this scc:ion, or the so.me as that used by n class of S~ietie5 already _rcifst~c~ under ~et.ion 7 of the Andhni: Pmtksh Co~oper.ttive Soc-leties' Act, l964,- Rcgister the Co-opcmtive s.,cicty t-.nd r.lso it;;. byi.,-...l2sws and c-:.mmuniaatc by registered p,;,s\ acertifii;ateofregistrntion and 1\i:: orig!ru!l ofihc reg>stqred bye-law.s· signcdnnd. set1lcd by him, within a period of six.1y days from the date of submission of ippfo:ation, to the Chief Prvmoter mentioned in the application. (5) ·If the condhions lahl down in Sub-section (4} are not f.ilfillcd, the Registrar s.haU. comtnunic:i.tc· by ,r<"gl.ikrcd 'post th,:; order ·or refusal 1.og-:ther-with-ilie :re:tsons thcrcfor, whhin si11:t}~ i d-.iys from the dat<1 of Mth:ni-ssion•c,f appl:cation, ·to the Chitf P-romOter. - ·· · (6} There sh.1;ll b-=: ·app:,inttd a Registrar of- Mutua.lly· Aidct'l Co-Operative S:>eieiie:,, for 1hc S ate and as many other Officer.ii as \he Government may thin-k fit for ih,:: p:xrp.;>ses of ,this Aot, R_tgi~tration 5, Where a C.>-ol)Crmh•c $:,ciety.r~g'~erOO, the ccrtificare of CcrtffiCll!C rtg's.tn-:.tion iig,.cd and.s-eakd by lhl! Rcgi~trar :.hall be co11C1Jtt;iv<: evid;:m:e 1hat the C.,-opera:ive S:,cki.y mentioned ,herein, is a · Mmually· Aid,:d Co op.:racive $.)Clery. duly rC'1t-·stercd. under <hhr """ 223 Provided that where a ~Scicfy was earlier rtgistered under th~ Andhra Pradcsh Co~o,perative Societies Ac:t, 1964, such registration shall stand cancelled once a certi&ate of registration under· this $CGtion is issued. 1 6. (I) A. Co-operative S"'eiety registered under this Act shall to be Socit:2 be a body corp,>rate by the name under which it is registered :O~"r~e having per_pct11::il suwess:ion and a ;;;ommon seat. The Co opera ti¥e S.1-0iety shaU be entitled to a:aquire. hold and dispo~ of property, to enter intO contracts, to sue and be sued and to do all ~ther 1hirtg,; necessary to achieve its· objcctiveti. (2) AU transactions entered into in g.:iod faith prior to reils~ tration, in fur1hera.nce of the ·. objectives of the Co-operative_ S:iciety, shall be deemed to be transactions of the Co-operative ~cicty a.fter its registration"

7. A Co-operative S.lclety may be registered with limited or R~tu!~ unlimit.td .liability. Where the liability is limited, ·it shaU-ha.ve as ::~n111i:~tea a. suffix to its ns.me ~e expression "limited" or its cquivo.lcntfa any liability.- I-i:tdlan. Jangaage.

8. (1) Every Co-operative Society sltall display its full name ~sp!&'.y of registration number and tlte address of its registered offtce ill ~ legible characters in a conspicuous _position, (a) at eNery office or pin.cc a.t which. it carri~s on businek.'. (b) i_n al1 ·notlces and Other official publications; (c) on aU its contracts, business letters, ordi:;rs for goods, invoice~. sta.tements of acGount. receipts and letters OfC"redit; and (.i} -On a.11 bills of exchange, prOmisory· notes, endorsement!, <fucques and orders for money it signs or that are signcil on its behalf. (2) Where a Co-.operative .Society has. a c-orporate seal, it sha.U displaydtll· rUu name in legible bar.acters. o:q. ·its corporate seal.

9. ([}'Except on such specific: matters fot which'd1is Act has·•·y-fa:wit, provided, the functioning of very Co~operative Society_ ilrall be· · ::04'1 ft!g'µlat~ by its bye laws, Subject to the provisions of this Act and the byefaws every Co--0perative S50iety·5h4U·11ave rC,g.t.rc{ ,to the Co.-ogerative principles in its iun.ctioning. (2) Subjof't to sootlon 3, Uro byclaws: of a Co-opa~:itivc Society shalf be spocific on the foUowing m:iiters,. namely:~ " . .' ,' ' .' '' · (l) tho nami and -adJress of 'thti Co-opo~ativa Society ; · · ·, :. <' :no tJti obj~t of th.l, C ).-)p)~.;.tiv.) SJefoty ' c~;;,licitly i : st:ited as a :Omm:m cent--al need of·the membe"s which• the i Co-operative S;>Ciett aim.: at folfiUjng; · · · ((iiJ :o11~~ilily, l:ijelig(bili~Y ;i.nd pro~cd-tir~ for obtaining aitd· _:retainins m::rrbcrship; ' (iv) procedure for witiuitawal, cessation and t~nrina- tion of n1:cmo~rship; . . ('.1) }he servieos that it intends to give its members; i · (vi) fixati-on of m1nlum porfOrmaneo "expt°cfed annually of each me.mbet> vis-a...vis use of ser'\·io-• .finanlial commit~ mont and participation in mooting•·, in ordor to .be ell1:ibJe to ·oxotCi,se. th~. !'iglit<: _of mzmbc=hip incl'Udi.ng tho right to vo~;• (vii) the con eqUenco·s of porformin-g below the Jlliiur-·· mu m love! fixed; (viii) tho consequence,s of !:)efault .inpaym~&t of any suio due by a ··member; ' '. '(i~): rights ·of membe_rs_; r .. .(:t) ~.Qe nature and oxtent qf tho ~iabiltty of the_ ~ember or. tho . . contracted __ by th o Co_-oporative ~oJety; - . deb_ts . , ; (:ti} th_c minncr of making or amending bye-law&;" .• "(;;.:ii}- llte ·powers and "futtGtfon$ or the gencra:i' b->dy· an.d_ tite powers :ind functions an 'ihe;mariner of cons~ituti1'n 'rq,reseh tativc general body, if any. and :ubjects which must be defolt · · ~"-~ . ,'"wHh b_y the·gt;ncra.l°body" anP, by ~l!c rep_res~tative..gencal·body. if1~Y.;, ,·. ·, 225 (xiii) the manner and frequency of conven.ing general mcetlng5 and quorum required; (xiv} the manner of -01?nduating: elections and of filling casual '!Manoies ; / (xv) the sitt: and composition or- the Board of ·Direc- tors; (xvi) the ~rm of office of the Dfrcators; (i:.vH) the manner of removal of Directors; {xvHi) the manner and frequeuoy of convening board !llOOtings and qm:>rum; (:dx) the powres and duties of the Board; (:u.:) the powers and duties of the Chairperson; (xxi) the terms on whiah the Co,.operativc Society may deat with non-members; (xxii) eli,cibility, ineligibility t>r becoming and conti." nuin1 as Diremor; (nfo) penalties for acting apinst the interests of the Co-operative Society and for non..f'ulfiJment of duties by memb,,."1."S, office,.bearers, Directors or staff'; (;P::iv) thl! nature and ex.tent of the liability of officc- bearers. Dlroctors for debts oontraated by the O:ropera.tivc '\ . ., ,, \ ~ • ~. \ 1 ' • Society ; ;' ,, (-x:x:v) the authorisation of 'iii offloer or officers to sign documents and to institute and defend suits and other legal pro~ ,. ceedings on behalf of the Co-operative Soaiety; (w,i) the manner of choosing delegates to higher tier <.-o,,,operativc- and federations; (;t:n·ii) the rights, if,any, which the U,--<)perative Society intends to .confer on any oo--oprative society or other federatidn and the _circumstanc under which these ri,cb.t~ may be c.tcroised by the society or federation; J. No.-l854-2!l 226 (:o::viii) tho nature and amount of capital, if any, of the Co--oporativc Society; (nix) tho maximum <:Apital which II single memOOr can hold •• (n.x) the maxim,tm Interest payable to ntembors on paid up share capital; (:o=:ri) the SQurcos, types nnd extent of funds to bo raised by tho Co"'°perativo Society; (~i) the purp~sos for whio.h tho funds may bo applied.; (x:uiii) tho constitution of various fund~ and tJ1ei· pu-:- doses; (xxxiv) tlto manner of appointment of auditors and their powers and fum tions; ' (xxv) the manner of app3lntm_ont of internet auditor an(! thoir powers arid functions; (xxxvi) the manner of disposnJ of fu11ds When the- eo .. 0 -porativo Sodety is under liquidaion; and (~ii) the manner of dissolution of the Co-opornforo So<:iety. AmlM-mlln.t 10. {l) Amendment of, bye-laws:- ~A Co•operative Society ofJJyeµ.w11: may amend any of the pro"isions of its byelaws by a resolution of its genoral body, or by the re-prese1ltati\le general body, wlioro thi~ exists; Pro~idt:d, that no such .resolution shall be passed unless atfoas.t twenty cleat days of wI'ttcn notice of tho meeting has boon riven along with a. copy of the proposed amendment to cnch member of tho g1Miera.l or representative gone.ral bodv. as the case may be, and such notice and porposed amendmet is also displayed on the notice board of tho Co-opora.tive Society for a period of twenty days immediately prc«ding the date of thos meeting; 227 Provided further that the· representative general body sbaU ot alte-r any provision in the bye--lnws refating to its own consti- tution and powors., (2'). in the cue of amendment of its bye~taws with regards I to matters relating to items {i), tii), (it), (~). (xl), (xii), (:xiii), {xiv), xv) , (xvi), (xvi~. (xix), {-). (txix), (,ca,.i) and /("""'"i) of of sub..scction (2) of section 9, an application for the :registration of tho entondm.cnt shall be forwarded by tho Co--oporative Society by registe-Md pmt to the, Roilstrar within e porio~ of thirty days from tl1e date of thti resolution. (3) Evory ~pplication fonvardod to t.\tc Registrar shall be, slgned by tho Cha~:rson and shall be accorilpanied by a copy of the resolution adopting the amendment and the following pnrticulars, namely':~ (a) the dato of the ·mooting at wh'ch the amond:incnt was a.pp.roved ; (b) the total munbor of members on the ,rolls of the oo~ operative socioty wllo \'fero oliglblo to voto on tho dato of such mooting, the numbor present at tho meeting and the numbor of eligible members who voted for the resolution, (4) If tho proposed amondmont is in consonance with tho • provisions of this Act, t~ Registrar shall rogistt>J the proposed amendmontwithin a porfod of sixty days from th,csdatoof- rocoipt • of the application. (5) The Roglstrar shall forward by registered post to the Co--~mtf\'o Society with~ a period of fifteen days alter rogist,. ration, tt copj- of the rogistrep, ainendment together with a certis- ficate t.lgned And sookd by him -and such e"ertificate Shdl bi: ·'01<oluslve e1'1d(•n' e 1iw1 the: amer:drnent has been duly ~egistercd. " .. ' (6) tf the proposed Amendment is. no- in conson'anco with the provi:;.ions of this Act, .the Rcgistnu s}mll 11.'fuse, within a p::riod of sixty days from: thodate,:of recoipt oftho npplicntion, to rtgister tlie p:opo~cd amendment : • 228 Provided that no ord•r refusing to register thr a:rne:ndment shall bo passed except after giving tho Cowoperotive S!:ciety an - opportunity of Innking its reprosentation, (7) The R":&istrar shall forward by registered post to the Co-oporn+ive Society, Wlthin•a period of ftftoon days after rew fusal, the order of rofusal togt'thi>r with the reasons th\:refor. . (8) Where no order of rofusal is roceived _by tho Co-opl'!J:flw tivo Societ,}l under sub-section (7) within a period of seventy fivo days :from the date- of stibmission ·of application, it shall be &emed thai the Registr:>r h:as rogfatcred the amendment on the last do.to of the period specified in that sub-section. (9) In tho csso of all nmendmcnts to tho bye-faws othor than tho.w sp«:iiird in sub-section (2), information :1. bout the amendmont shaU ·OO forwarded by the Co--operativ<: Socfoty by registored post, with tilo enclosures and_ particulars spe,c;lfied in sub-section (3), to the Reaistmr within a period of thirty days frcm the <l «t1> of the goner al metiiing at whl•h tho resolution was nasstd, and the Registrar shall im.modiatoly take on file sucll amcndm-,nt. : Provided that such aetion shall not in any way precludo the Rogiftmr from proceeding against the Co-op1m1tivei Socfoi.,- or its mam~g~•a*, whore such amondmeint is found to be contrary to the ptovfaioas -0f thii Act. l. · (10) Ao amonda11nt to t.ilo byo-laws under sub-section (9) sh-aUOOJ»o into effoet only nfter registdtkm or on the thirtieth day from the date et tho a:11don&nt W-boi,n sont to tho .R<lgistrnr for takiDg on reoon1, as 1h oaso may be,. Cbaqo of (U) • (I) A Co operative Soaiety may; by a resolution liabllty. of its general bodyz ...,,.. transfer of ..... aad d!vim11. (a) decide to am-end its: ~ laws i:o change the form. or am.ulsama tlon, the - of Ill Uull!ty I 229 (b) d<.."<:tde to transfor its MHets and tiahlitfos~ in whole or In i,nrt, to any other Co-operative Society which agrees to suoh trnns:fcr by a resolution of its general body : (c) divide itself into two or more Co-operative Societies, (2) Any two or more Co-operative Societies may, hy a re- solution ofilieir respective general bodies, decide to amalgaltfflte themselves and form a new Co-opeffl,tive Society. (.3) Every resolution of a Co-operative Society under this section shall be passed at fts general meeting by a majority of total members with right offvote or two-thirds of.members present and voting whiciliever is less and such resolution shall contain all parti culars of the liability, transfer; division, amalgnmation as the cAse , maybe. · (4) Before passing a resolmion under this section, the a,.. operative society shall ,give notice theffOf together with a copy of the resolution to all its members. and federatfons •to which it afiiliatiro, and creditors who may give thei:r consent. Notwith" standing any bycl~a.w or con~ai;t to the contrary, any member fW.ration, or creditor not consenting to the resoh.rtlon shaH, during a period of one month from the date ,>f scrvice of the notice have the option of withdrawing their shares:, deposits, loans or services . ~s. the case may be, · (5) Any memher. federation, or creditor who or which does u0t exercise within the specified period the right under sub-sCGtion • 4) shall be deemed to have consented to the resolution. (o) A resolution passed by a 'Co-operative Suciety under this section :;hall not take clfo1,."t un1il, · (a) (t) the members, federations, and ortditors ~have conM sentcd or arc deemed to have oonScuted to the resOiutl◊n under sub section(4) or, as the case may be, sub sct:ti~:m (5) ;· Or . (/£} an claims of the members, federations and creditors .who have ~xerciaed the option referred to under sub s.ection·(S) whld,n the period specified therein have been met in full or other wise·satisflvd; and 230 (b) (i) in the case of change of liability, ·amen dment of , the bye laws of the Co-operative Society concerned is registered or is deemed to have been registered ; or (ii) in the case of divis ion or amal gama tion, certif icate of registration of the Co-operative Society or Societies is issued. (7) When a resolu·cion -passed by a Co-operative Society under sub sectio ri (2) tak~s effect the resol ution shall be a sufficient cohveyaiJ.ce to ve~t the assets and liabil ities in the transferee with out any furth er assurance. (8) The regis tratio n of a Co-opi:rative Society shall stand · cancelled and the Co.operative! Society shall be deem ed to have been dissolved and shall cafe to exist as a Corp orate body. (a) when the whole of the assets and liabilities of such Co-operp.tive Society arc transferred to anoth er Co-operative Society ; or (b) -when such Co-o perat ive Society·divides itself into two or ·m1,re Co-operative Societies. (9) \Vhere two or more Co-operative Societeh; arc amalga mate d to form a new Co opera tive Society, the regis tratio n ofthe . Co-o.perative Societies so amal aama tcd shall stand- they shall be deem ed tO have: been dissolved and CaiiccHed . and shall cease to exist as _corp orate bodies. Pro-.otion or 12. (I) Any Co-operative Society may, by a subsid!ar~ passed at gener al meeting by a majo resolution orgam~at,on. . rity of members !)resent and · , vot1D1, prom ote one or more su b s1"d•iary orgam·sat1o· ns 1or " th e furthetancC of its stated objectives, and such organ i~tiO ns may be · registerCd unde r any laW for the time being in force, as agreed to by the general body. (~) ~he annu al re~orls and aCcount~·of any _such. subsi diary organ isat1o n shall be placed ·before .the general meeting of the prom oting Co-operative Society every year. 231 (3) Any s11bsidiary organisa,,tion create d wider ,ub-se ction (1) shalle xistfo r only as long as the gener al.bod y ofthe Co-c,pcra- tive Society deems its existanc:e necessary.

13. Where the c:ollabOration between a Co-op erativ e Society and any other organ isatio n or qrgan isatio ns rcqu'ires the creati on Creation of . I of a new organ · • · . isatio n, t he new · . . organisatio n may be regist - ed new orgam- a: comp any or a public society, as appro priate for the fulfilmerent ofot?:i as saiion with crs:- the objective with which it was created, and such co\!ab oration shall be reviewed eV~ry year by the gener al body of the Co-op erativ e • Society.

14. (1) A Co-operative Society may mobilise funds in • . the· .. . shape of share captta l, deposits, debentures, Jonas and other or Mobi 11~~t10n runcf!- contribution~ fro'm its members to such extent and under such aondi tions as may be permissible under the bye·Jaws of the Co· operative Society : Provided ·that, at, the time.. of dis.solution of a Co•oj)erativ e Society the amou nts due to the members shall be settled only after the settlement of dues to others. (2) A Co·.1perative Society may also mobilise funds in the shape of deposits, debentures, loans and o'thcr contributio ns from other individuals and insthuticns, to such extent and under such conditions as may be permissible un:dcr the bye-laws; Provided that a Co-operative Society shall not acaept share • aapital from tlte Government but may acct-pt other funds i:uarantee from the Government on such terms and condi • or - tions . as arc mutu1ily agreed upon through a memorariduni of under•· stand in::•.

15. A Co- operative Society may innst or d6posit its funds . any non-s pocu I t· Investment ID a 1vo m11.nno.r outs,"do its · b usinos · s. offund outside the busine!S.

16. (1) In any year e. Co-opo.rativ• Soci•t:r shaU aUoc at'o~ J;;::1of towor ds a• doficit cove.r fund, re<:e.rvo funds, deferr ed pay.mtnt t_o mcmbors as· patro nage rebate in proportion to their use of tj c Co-operativo· S-ociotfos serviseo and payment on .£haro capita 1 l of 232' Interest nottX'COeding the r.ate of intorest paid by whedult.d bank~ such po,roontago of the surplus arising from its bus:inoss tranal <>actions in the previous year, as may be approved by tho gontr~y body. (2) Roscrvos created undor :;u'b- section (l) she.II . be• costed by orcd!ting on annual interost equa~ to tho rato paid .by scheduled hanks on fixed deposits. Ma~ J7. (L} Whe~ a @-operative S'.)illoty is loft with a defi~ of deficit, oit in any ,givony ear, the 'board of dirreto.rs shall p1aco boforf!I tho ~noral body in tho first following annual a general meeting a dotaiJed report on tho euases of dofidt and tho mnnnor in which the dotlcit is proposed fo be m~t. - (2) TM gouoral body of tho Co~ oporativo Soo.ioty shaU- decido to havo the deficit covo.red by sett.in g it oft' against the amounts available, in tho Coficit oover fund, and/or by debiting tho Mflcit to the accounts of the memb«s in proportion to tho sorvicos thoy had availed or were expected to · avail of tbo Co-- operativo Society during the year. is. A C.o-operative Society may croato & Resem, for such purpose as may be spociie:d in tho byo--law,

19. (l) Subject to tho byc~laws, any pci.;;son who is dosi~ rious of utilising tho serviws of tho Co--0p1,mi.tivo Sodcty maY- e:xpress his wiltingness to accopt the r1Jsponsibilities of molllber ship and fullfil.suck othor coat.iitions as may be spt0ifte:d Jn the b~laws of thffo-oporotiveSocicty and tktro upon ho may lllo adaittd. as. i mtntber, ,o, subjoct how•ver to tho comlitl•e hat tlt• Co-operative Society is in a position to o.Xtond its strvlecs applicant and that the Applicant i{'. not already a· :memb()r of a. Co--Opcrntive SQc.ioty registered uader this Act, or the AttdJtra. Pradesh Ce-operative Societies Aot, 1.964 Providing ,the same or similar servicfls {2} Admission of membor and removal from membership shall ho made, in aooordtmeo with the p.rooedure specifi()d in tho byo--laws,. only by an elected Board or by the, genoml bodv where :rnCh an elected Board does not exist for the timt1 bofag. (3) A p'.'.lrson udJllitted as n. member may t')J(Oroi~ the rigtd of members.hip, including the right to vote, only on fnltilntent of sueh condtions as may bo laid down from ilme to ;irue in the bye-klws; Ptovlded that a penon shall ha o beon a rnoruber for at last i ono year before b~iP_g digtb'e to exercise the rig,ht of vote. t Ptovidcd further thot tho other pzo above Prou.lsn shall no apply to the prom'..ltor membe,.·in the fi;st yo.a 11.nf regist£tatlon of a Coop::rative Society. • 20, (l) Subject to the provisions of this Act aed the bye- Genuaal aw><, the u!timiteautho".ity of a Co-op~"ative S:icle)y shall vest Body 11 its ge-no"'a'l b:::-dy, Provided that where, b:cause.ofsp"cad of niunberofmrn1be.-s, a Co-opJ~ative $:..oicty feels the need for con~titut_ig_ a Repre- scntativo Geno"a1 body for mor-o effective decision making, it may oomtiltuto a Represontativo General b::dy in such mannor aad with such funotions as may be spe-0ifled in the bye-laws. (2) Tho following mattors, am:mg others sp~.:ned in the· by~-laws. shlal be dealt with by tht gcnoraI 'bc-d-y of a Co-.op:sr2- tivo S-:cicty, n,mi::Jy : (:-.) am'Jndm-rnts to ]:)yc~l:•.wr; (b) oloction and rern-:,v:>.l of Dhx:to<>; ,, (t) oonside,.ation of, - (l) the long te"Dl pY_sp:ctive plan ar.d budget r. (2) The a norm<'.l opentk,na! plt.n aud budg .• t ; (3} thJ annucl rep )rt of ?.tt;v:tle:; for b ;ing Wed wJh th~ Registn:r ; (4) tfo, auditor's r'!p:ut and the iinnuat audited s!.ah:- m~nt of accJunts for b::.ing filed with the R""gistrnr (5) spoclal n.urlit rt'poi:t or il\quiry rrp01t 1 if ar>y; J, No. 1854-30'}!.. _ ..... 2 34 (6) complianco rep::i-rt "elatirg to audit, sp~ci12l fl.udit and/or inquiry1 if any, ; (d) approval of e.pp:.•ntmont ar.d rein.Jv.al of auditors (e) disp;:;sal of surplus ; (a) management of deficit ; · (g) creation of sl')e(»fio reserves and ether funds {h} rov1~w of actual utilisation of .rescn-es and other funds; (i) review of tho Chief exooutive's repart of tho atten- danoe at m::eting by Directors and roview of the busi- ness &mo with the Co-c,~raiw Sociely by the v1rccton. ; (j) app::>intmont, reconstitution and disbanding on tho Repro56ntativo General dy ; (k) remuneration payablo to any Director or internal auditor in conection with his duties in that cape,clty or his attendance l".t related meetings ; (1) membership of tho Co-operu.tri'O Society in fed,ratlon (m) collaboration with other organisation n;r:d its revit-w (n) prGnt:;,tion of subsidiary organisations a:ad revfow (o) ;:JiS!-Olution of the Co-op::iratiTe, Society ; a:nd (p) ell Oiher foo.c:tions expe.cied. of tho generq,I body under the other provisions of this Act. J wd nr 21. (1) There shall be .a :Boar& of Directors for every Go - ,:rcnoist- operative S:.cicty constitllted P.nd entrusted with 1he direction of 1he affairs of (he Co operative SO<l'iety in ccordtnce wiih the pro- visions of the Act and the by{l-Iaws. (2) The size of the Boerd shall be a mu1tiple of i.lie icrm of office of its D1reciors. · 235 (3) The Directors of tb~ Board sha ll have staggered terms suah that at any p-'i nt of tim e the vac an'c ies 8trising as a resu lt of the tcrm.s of Dir ecto rs comirig to an end, arc less tha n one hal f of the tota l strc ngt hof the Boa rd : ProTided that the term of a Direoto I r sha ll not exceed five yea rs : Pro vide d furt her tha t a.t the first elec tion all the Dir ecto rs shall be elected at once, and the ir term s staggered by drawal of lots specifying different terms. (4) In add itio n to ,v.ch crit eria as may be specified in the bye Iawll, a pen on shal l be inel igib le for bein g cho sen as a Dir ecto r. if such per&on, (a) has at any tim e lost the righ t to vot e as a mem ber or- · t• con tillu e as o&: as specified in the bye .law ; (b) im:urs any oth er disq uali fica tion specified in the bye - · Jaws. (5) la add itio n to suc h ariter] as may be specified in theY bye lam , a pers on shall ceas e to be a Dir ecto r if he juau rs a of t-hC sub isquali.fications specified in sub section (4) or, (&) abs ent him~elf from thre.:: cous eGUtivc Boa rd meetings t leav e or abs enc e; • (b) able nts him self from o~n era l BOdy Meetings out of three coa seou tive Boa rd meeting s wit hou t leave or abs enc e; (c) is pen alis ed und er this Aet . (6) In add itio n to !Uah criteria as way be bye-laws, the Dir ecto rs of the Boa specified in the rd sha ll inau r disq uali fica tion for a per iod of thre e yea rs for-bei1 1g cho sen as Dir ecto r and sb3.I be ineligible to con tinu e as Dir eoto rs of any Co ope rati ve Society, if dur ing thei r term. as Dir eato rs of ll Co ope rati ve Society, 236 (a) they did not conduct e[~tlons Within the time i.peoi- :ftcd in the bye laws and before, the expity of the term,; (b) they did Not conduct their annual JeReral btily •~- ting within six: months of closure of the Co--oporatlve aQCoUllttUi year, or a requistioned meeitnJ of the gcnentl bo~y wlthin t:b. the specified time; (c) They did not place the audited &oe&unts fer Uus p1i-- i:;edfng financial yeaz along with the reports of~e affllit&Ili btt'Ol'e the general body at its annual general meatinc, (7) In order to be e!egible for being chosen a.; direct.or of tlte Board of a Co.:Operative Society which has been in existence for more tfum two years a member,- (a) shall ha'iC been a voting member of the Co-operativ• Society for at least two y~ars immediately preceding !:he year of eloetton ; . (b) sh;i.11 have attended the two general bo4}' meetin.J$ of the Co-operative Society held immOOiateJy prccedlng the , elections. (8) Every Director and cmploye& of a Co•operaiivc S:iciety wtilc eXl!rcising his powers and dischar',ging ltii duties Dlaial1, (a) act honestly and m good faith and in the b.,st intere:.ts of the Co-operative Society ; iud {b) exercise such due. care, diligence and skill as reasonably prudent person would exorcise in similar cJrc:urutance<;. (9) A Director or employee who is guilty of misti:p,Propria~ . tion, breach of trust or any other Omission or commission rtaU!t~ · Jng in loss to the Co-operative Society as a result tln,reo!, shall be personally liable to mak.o good that loss, withouil prejudfot W £uch criminal action to which he is liable und$rtbe law.· -22. (l) The Board sliaH, in ao(;ordanct with tho ~C•·lam, fott,.-eu and bo ~ authority to. dill!«ons or - !:::'d (a) admit and temtinato memberelri ; (b) eleci thci chairpe rson and ?thcr oilcc U::arcrs ; (c) rcmov,: frolll oilce the chairJ)@fSOJI ad. •ther offioc beaH,I S; r (d) appoin t and remove tke chief exec\ltivc ; (e) fix staffsi rensth ; ff) frame policie , concern ing, (I) organi sation and provisi on of services ~ membe r, (ii) rccruit mrnt, a.r..d conditic-ns of ~crvice of the str.ff at tlM to-opc,re.\:ive locictJ . (iii) mcc.1.e of cuatcd y ad in~·estment of fundi ; i (i1) manner of ketp!i;g ~cCOlmts ; I (v) mobilisatloA, u.tiliu.t ion and investment of various fund11 ; (vi) mouiterin& and mana.gcment informh.tion systems I includina: 1btuto ry return , to be filed ; I (vii) such other subjcct i ~nd mi:.tters neccssa1y for the i . clftdiv e :itorformance of the Co-ope rative Society. (g) placo the annual report, annual flnancial sht~me nts, aJU1116l plan u:d bt:dgcti fer the ~pprc,val of the a:ener&l bcdy; • (h) coniid er audit and compli ance reports and place the&e before tho general bcdy ; (i) review mombt r,ltip ia otk..- co operati ves; (i) undert11ke amll'.b. otlwr fmi.atious •• JDAy ht Qc,lc.pted by tlte 1eaera l body. (2) T.lte Chairp e,on 1,hall be elected by t.11e :Beard from amonJ the elected membe rs 11.d shall, in atlcord aaae witJl-tlte bJe•laffl, (a) pr~slde at meetln ~ of1l1.c Board and the geneni.\ body; 238 (b) have only a casting vote in tlte c-v~nt of equality of votes on any matters befog decided upon by lhe Board; (c) exercise such other pow..-:rs as may be delegated by the board and specified in the p;)licics framed or resolutions adopted by the Board; l.!ections; 23. (l) The conduotof eleotions of Direc:ors of a Co-operative Society shall be the responsibility of the incumbent Board of the Co4'pcrative Soo:iety, (2) Elections sball be con.ducted , before i.he expiry of t1w trem of offu;c of the outgoing Dire.;tors in the manner spcci:iicd in the byc-la.ws. (3) \¥.here a Board does not take neacssa.ry steps to conduct clccti--0ns as spooified in the byo~laws before the expiry of the term,• or 1be Directors, ofv.'here there arc no Directors remaining on the Boa1·d, the Registrar shall at the request of not less than twenty five members or five per ocn,t o fthe total members of the Co-operative Society whfoh~e ris loss or may suo moto convene within 30 days a general meeting for appointing an ad~ hoe Board for the spcoi:fic purp.:rne of conducting ele..tions. (4) The term of the ad-hoe Board appoi11tcd under sub-section (3) shall not exceed one month over and above the minimum period required under the bye lavt£ to ;,onduct elections:, and 1he ad-hoe Board shall. cease to function a,; soon as: regular Board is elected in aucordanc.e with the bye-laws, (5) The Direotor shaH ho1d office for the p.:riod for which-, 1/: they ar elected .ind the newly e[ected DiteltOrs shall assume o:tlice .it the end of this period. (6) The Directors maybedigi bfr ree(e;;t!o 11 , if th'!l bye laws so provide.

24. (i) The bye-laws of a Co-operative Society shall specify the frequenuy of and manner in whioh Board and general body meetings shall be held, so how..:ver the Board shall 'meet at foaSt once in every three monlhs and ~he g0neral body .:hall moot at Ietut o:nae a year. 239 a g,~ucral me etin g wit hin thi oy (2) The Boa;-d sha ll con ven e ed for convening a meeting sign days of receipt of a rcq uhi tion - ope rati ve Soc iety -or ers Of the C: by nt least one tenth of memb tain -law .; and any such req uis itio n shall con as provid~d in th~ bye me etin g is felt - reasons ,vhy the the proposed i:.g·~da and the I neccssary. con ven e tho ann ual or rcqu si~ (3) Where tho Bn rd fails to 00 co:m pete nt fc.r the due tmo, it sha ll ton ed general me etin g with in or ann ual genorul me etin g, uis itio ned Reg 'str ar to con ven e tho req as tho cr,so ma y be. ute s ciety shf'.ll rec ord in the min (4) EvJ ry C'l~Jp)rativC S"'.l g and. of din gs of every g(m erd meetip: boo k, min ute s of-ci.ll pro cee of Directors. every m~oting of its B:, ard municatcd to 2.11 persons (5) Such minutes sha ll bi' c~m n of thi rty day s of tho conclusio nvitcd for th~ me~ti11g wit hin he m';.lcting. t sha ll be, signed by the p::-rson (6) Th') minutes so rec ord ed who cha ired tho said meeting. I yeo tiv~ S:>ciety shP.11 be the emplc.

25. All r.ta ffo t'th e Co -op orc y r.cc oun tab lo to th~ and sha ll be full of the Co- ope rnti vo Sccicty o :ed and fun ctio n app:Jinted,. rem Co-opore.tivo Scciot_ ap_d b-:i ml.!.y_ be fra me d b, ieo con diti ons as in accordance with such sorv tho Bo ard : tivo Soc iety ma y t~.ke p0r scnnel on · Pro vid ed tha t a Co -op ~ra 1ment ,on d,:,putr..tion fro m oth er e.g mcies including the G0,or1 egr ecd upo n. such ter ms as are mu tua lly Aooounts iety she.11 keep at its office, nd (L) EvJ ry Co.op:r<".tiw, S:ic ?6. Roco ..ds: , and documents namely: ? the following m;:counts, record1 orpo- upt o d?.te am end me nts i11c (a) a. cap y of this Ac t wit h rat ;- e( · and reg ui~ tion s to wh ich the (b) copios of oth er law s ' I' is sub jec t;· Co·opcre.tive So<.ioty 240 (c) a oopy of its registered bye-laws with amendments made from timo to time; (d) the minut es book; (c) acc::im1ts of all sums of m:moy recOived and expan ded by the Co-operative $'.)ciety and their respective pmpos cs; (f) accounts of all purcha ses and sales of goods b}' the Co-opera tho Society; (g) accou:1ts of all assets and liabilities of the Co-operative S::iciety; (h) a register showing m~mber-.wise patron age ofvarious services provid"d by the Co-op erative Socich-; (i) an uptod ato registe r, and a lii.t of all memb ers with voting rights for the cumm t year prepar ed within thirty days of closur e of th~ Co-op :n.tive Sodety's fi.t1ancial yer.r; U) c-:"OD:os of the audit rcp.::irt~ and sp~ci:.il audit and/o r fnquir y r, pJrt, if an;- and oompt rance rep:irt s thereo n; and (k) .Jl! such oth·r acooun ts, r•cord s and docun i•nts as may b.~ rcquir· ·d by this Act or oth'"r laws. (1) The bJoks of aoc:rnnts and oth.. r record s sl1:1.l1 bfl op·-n for p·•.msal by any Direct or during businC'ss hours. · (3) Cc-pies of the Act, bye-la ws, minute s b:iok po-lti;n;ng- to the Gener.'.l _Bcdy m'!etings, rep::irts and comp' iance th!,.Oo n audit, specia ' audit nnr! inquiry , votr .. s' list f'.lld such 2.ccouut n.s relate to a memb er sht>.11 b~ made availa ble to any m-:-mbers · during bu'-it:.ess hours at a fee to be decide d by the B:>ard . In tho case cf a Co-oporrrfr'l"e Soi::ieh with un 1imitcd 1fr.bilit ... , in adclit:on, a m~mbe,. m".) .i.lso have acoe1,s to all books of accoun ts r.durir g busine ss hour", at fee d~oid-:d by the Board .. AuOit 27. (1) A Co-op ,;,rntiw Sockt y may g~t it,. <!.Ccount~ audite d by a Ch:1--J:1nd Accou ntant within the m-)aning of the Cha-te -ed Acc.ou nt2ntr Act, 1949, or by any other Aud :tor from the office-- of the Regi•( -a-. 241 (2} Thl gene--at body,of a Co-ope'"atlve Society "hall app- oint an audito" by a re..-olution whi(}h wm be valid only until the ~to~e- of tl_;e next succeeding annual gone..~l body meeting. (3) The '"i,munc'1\tion of the awlito,. shall be :tlxtd with the approval of the- general body. 2&. (t} A Co"°porative Sooiety dealing with funds from the SPfft•l Goveinment or othor e1'lernal individual or illstitutions mn.y be AU ~- ~ s.ubject to a special audit initiated by the Registrar at the roquest of such creditor, on such sp::cifie terms of reforenoo as agt<:ed to by the R.,egi<;tt'at. (2} The iost of the spcialaudit under sub--seotion (t) !hall be met by the creditor: Provided that where the speclaJ audit reveals strious mis- management in thG Co~opam1tive Society, su.oh cos.ts may be reoove-ed f-om the Co~o·pe""ativo Sooiety,-or tho pe,rsons rosponsi" blo fo- the mismanagement. (3} Ev~ry speoial audit shall ho oompleted and the, report submitted to the Regis.tear within onQ hUJtdred and tw-ent:,, Gays Jf its commencement. (4) The spooi-ai audit report shall contain a statem&nt of, (a) <'Nery payment whi<ili aptw.1rs to the audit to be oon~ rtaey to law; (b) the amouut of an::,, deficiency, wMte or loss whloh app,- era& to ha'll! been caused by the gross nogligencf> or misoonduct of any person in tho perfonna.noe of-duties; - (o) the amount of a:ny sum .reooived which ought to havo boel1 acoounted f9r but is not brought into account by t\"1)1' pe"$0n.; and (d) any material impropfiet.}' ot irregularity which ho may be in tho expenditure or in tho rooovory o fmoney due. J. No.-1854:--3_l, __ - (5) tho Reg istr ar shall, within a por pd of thr ity days from tho dat e of tho rooeipt of the spe cial aud it roport oonununicato copies of the same to,- (a) tho app lica nt.c red itor ; (b) the Co•oporative Society concerned; and (o) the Co-operative Tri bun al whoro neceissary. Inq uiry :- 29. (l) Every Co-operative Soc iety shaH furnish any rolo• va nt information required by tho Reg ist• ar in ord er to ona 1_· him to satisfy whether tho Co blo -operath,e Society has conduc its affairs in accordance with the ted Co-operative principlos and the I provisions of this Act. (2) The Reg istr ar ma}, of his I own mo tion , and sha ll on tho a application, of Fed era tion to oon~emed is affiliatt"d, or ofa which tho Co•operativo Society I credito .. to whom the Co opo,.ati Society is indebted o,. of not less ve tha n one thi"d of the Directors or of not Joss tha n one ten th of , the members, bol d an inq ui') o-r cause an inquiry to be ma de into the specific ma tter or mat relating to any gross violation 1:or of any of the provisions of this Aot by the Co-operative Society . · (3) The inquiry shall be comple ted within a per iod of one hun dre d and twenty days from the dat e of ord erin g the inquirs . (4) If the inquiry is not com ple ted within the timo specified in sub-section (3) it sha ll lap se at the end of the sai d per iod and the Registrar sha ll refund to the applicants, the fee collect fro m theni. od · (5) Thc Reg istr ar shall, within a per iod of thirt)' days from of tho completion of tho mquiz y, as specified in sub section or of tho lapse, of tho inquiry (3) as specified in sub s01..tion (4), communicate the report of the enquiry or tho reasons for the non·compl!3tion of the inquiry, as the. cas e may be, ' (a) to the Co-operativo Socio(y concorned; (b) to the applicant Federation, if any; 'I ' 243 (e} to the applicant ,;edlto-r-, If any; (d) to the person designated by tho appli:cant-1.H"ectors, if (e) to the ·person designated by the applicant.members, _if any; (f) to any person, on payment of feo fixed by the Registrar; • {g) to the ():>~operative Tribunal where necessafj. : (6) the inquiry offi.cor acting under this.section shall, amo1r· othe"'i, spocificaily stato thei illllOunt of deficiency, waste O'-' fosi which a~'"S to have boon oaused by -the_ g"os.s negliience :ot" misconduct of any perwn in the performance _of his duties. ·

30. (1) The person :1uthodsed to conduct s~dal audit under Powcrto,. ·-,-. se..ition_ 28 or inquiry under sectiin 29 shall give the concerned ~ttm!On_ ~a:- Co..op.erative Soc!etv, not less than fifteen days Jlofice in writing of the date on which he propose,s to commence the speciai audit dcuoment ::1:~~. :·_ or inquiry : · Provided th:it for special reasons to be recofged in writing, he. may givo a shortor notice than fifteen days or commence a spwial" audit or inquiry on the authority of the Registrar without such notice, (2) For the purp~se of :ip.y special audit or inquiry under this Act, the porson conducting such audit or inquiry may, · •· (a) requiro in writing tho Chair por·on or other authority 'concerned to produoe _at tho head office of tho Co-.operative Society ·uch recolt,;ts, vouchers, $tatements. return", corrospon~ denc, notice 0¥ any othe,. documents as ho may t,,onsider necel s<:a"Y fo .. the pu'l)nsc of ,.;pecial audit(',.,.. inqui"Y; · · . (b)· require. in \Yritlng. . I (i) any ornploye-0 of the Cooperative socaly -or' othiir aUiho"iif)' · accountable for or having the custody or control or of ,such receipts, vouchers, statemonts, returns, correspondenoo; notes or other doOUJll,Onts. to appear in per~on ; o-r 244 (ii) e.n) pers on having dire ctly or indir ectly any shar e or inter est in any cont ract with the Co-o pera tive Society to appe ar in pers on or by an auth oris ed agen t ; befo re him at the head office of the Co:.Ope.rative Soc kty and. answ er any quos tion or sign a declaration with respect ther eto ; (o) in the event of an expl anat ion being required from the Cha irpe rson or any othe r auth ority conc eme d invit e him in writ - ing spec:if)ing the poin ts on whic h his ex:pianation is required to mee t him at the head offi.oe of the Co-- opera"tive Society ; or (d) exercise such othe r powers as can be reasonably said to be necessary for the purp oses of this section. (3) The pers on cond ucti ng speoial audi t or inquiry may fur: a rea·sonable peri od of not less than seve n days for the purp ose of ooiµplaince of the prov jsion s of sub-s ec: ion (2) , and such com plain ce shal l be man dato ry o~ the pers vide info rmat ion unde r sub-seciion (2) ... ons required to pro- Mtio non. 31. Actio =; ;i• t municatiOn of anspec on special auait or inquiry report. On ial audi t repo rt unde r sub-seCtion (5) com - tepQ rt:- tion 28 or an inquiry ropJ rt und er sub- of sec- secti on (5) of sect ion 29 to the pers ons, conc eme d, the Reg istra r may, where the special aud it or inquiry repo rt reveals mism anag eme nts on the part of any or all of the office bear ers or Dire ctor s, with out prejudice to any oivil ot crim inal proceedings to whic h the)' may be liabl e, (a) direct the Board to conv ene a Gen eral Bod y meeting with in such re.'..sonable time as he may specify, to enab le him to the notice of the Gene-at Body, eithe - di-e ctly o- th-ough his nomine_e, the fhdi ngs of the spec ial audi t or inqu iry report, for ~ecessary acti0it_ ; or (b) app: )ach the Co-o pera tive Trib unla for necc ossa r aotio n. Conttitution 32. (l) Constitution of Tribunals. The of TtibunL• for the purpoiv-, of this Act. Gov ernm ent may by notifo.ation, constitute as man y tritm,al~. ~,. may "v. n.~0 JJu1 y i·vr such area or area s as may be :.p-xified in tho notit ioatf on. 245 (2) The Provis'ons of Section 75 o.f tho Andhra Pradosh 9 f1l of Co-Ope"'ative Societies Act, 1.964 .hall, mutatsimutandis appts, for the con•titutkm of oo~ope'"ative t•"ibunal., und,e-.- thi" "ection, i .33, (1) Pewer oftlie Tribunal to order recovery,;-A mem- Po:,,;erof the ber, Di"'eeto.. of Cha!rpe=on of the O,..operative Society may ~~~at to and tlw .Re{i"trar ~haU file a oopy of the report of the Auditor or recovery:- tlto Spooial Aidito:r or the Inquiry Offiee.r, before the Tribunal with an application f'or n~e•"aJ a<:tion again"'t tht-Pif"on,on ae<:ount > of who"e conduct the Co ope"'ative Society ha~ incurred loss. Tho Tdbunal may on tM ba<is of sUCh "Opo..t disallow ovory item ofexpe,nditu'"e incurred oont"a""!/ to law and or( er recovery of the the same fr-om the persoulncurJ'ing or autho"'hing the incurring of such e ponditure, or held responsible in !-lle o,aid report for any de1iciency, loss or unproft tblo outlay occ~.sioned by his • negligence Or misc-0nd-uct or of any such amount which m,1ght to have been accounted but is not brought into account by that • p_erson and slta!J, in every such cnse, speclry the amount Jiabte to be paid by such _person to the Co-operative Society Explanation : It shall not be open to any person whose negli- gence or misconduct has caused or· contributed to any such deficiency or 1osi:, to contend that notwith:.tanding bis ne-gUgeru.e or misconduct the deficiency or Joss would not have occurred, but; for the n~Jfgence or misconduct of some other person. (2) The Tribunal shall s.t.!te >n writing t.he roasons for il:s .,. decision in respect of every dis--a110\V'..tncc, surcharge and a copy of such decision sha 1 i bo eervc-d on the perSon against whom it is ma.de-in the manner tai5i down fortlte service (If summons' in the Code of CM! Procedure, 1908 ; • Provided that the Tribuoo I shall not pass any order of recovery under thli. section unt~s the person against whom any ~ooh order is passed has ha,d an opportunity of making a representation , either by himself or through the Counsel (3) Any person aggrieved by an order passed under this St'tion tna}, within sixty ~ys aft-e.r the dat; of servico on hh:u. to 246 the order by the Tribunal, file an appeal against such order in the High Court. (4) Where an appeal is filed in the High Court Un®r sub• section (3), the persons. who filed the application before the Tri• bunal or as the case may be, the Registrar shall be the soler, respc,nden.t thoreto, and the app1lcant shall not make any otbor person a party to the proce,cdings: I S•ntl'Al Act (5) Every ordor passed by the Tribunal or an order passed 5 ofl908', by tht> High Court shall be executed in the same manner as a , decree of a Civil Court Under the Cade of Civil Procedure, 1908 34 (1) Every year, within ihirty days of the ccinduct of the annual general meeting, every Co-operative Society sbaJl file the- following with the Registrar, namely : (a) annual report of activities; (b) annual audited sta:te.ments of accounts with auditor, report ; (c) list of members as at the close of the yoa,r under report- ing.with services provlded to each member; (d) statemont on the dispoi;._-i.l of su;plus or on the alloca- tion of deficit; (e) list of namos of Directors, their addresses and their , terms of office ; and (f} oomplianco reports rclntlng to audit, special t\udit and inquiry, if.any RiJI:its and 35 A Co-operative Society shall have ali the rights and , prtvilegcs privileges available to Co-operative Societies under Chapter-V of Ac.t7of t!w Andhra Pradesh Co--opern.tive Socidie~ Act, 1964 and tb.e: 1964:- the COtre.$pOnding rules1 to the extent tl1nt they are not inconsis• tent with the provisfons oft.his Act ' Ex«:utbu of 3ti In regarc to .execution cif dec-isi:ons, d&"rees and o.~~~ ~~ _. deei,ions, au t40 p,.a;:11;:~,ions of Chapter X of the Andhm P-rade-sn Co:'.opera d"""' ordm: "°" tlv,o SodotiQs Act, a 1964 shll mutatis murw1cf1S apply to Co-opera tive- Societies registered under this Act, such howovt)i:, that au 247 · roforenoos to tho Rogistrar in the said Act sha ll bo cionstrued boa roforenco to the Co ope rati to ve Tri bun al in the ir application Co operative Societies registered to und er this Act.

37. (l) If any dispute arises touching the constitution, 1~fs~aot ~f management or business of a Co ope rati ve Society, and m.a connected therewith or incide tters pute~:- ntal thereto, fa) am ong members, pas t me mbers o_r persons claiming through momb3rs, pas t members and deceased members; or (b) between a membe , pas t me mb er or a pt,~son claimin through a membo:·, paSt memb g er or deceased m ~e r and the Co-operaiive Society, it<: Bo atd , Dir ect or, office bea rer or liqu dator, past or pr~sent ; or - (c) between the Co ope rati ve Society or it Board and any pa t Board, .Director, office bea rer , or the nominee, hei r , or leg rcpro entatjve of any deceased al Dit ect or, dec ea ed officer, of Co operatjve Society ; the or (d) between the Co ope raf oo Society and any oth er Co oporati'•o Soc iety ; or ·(e) botween the pro mo ter of a Co opo rati •e Society aml tho Regi tra r; O'" a Co operati • e Society and the Regi trar ; or (f) between a Co ope rath -e Soc iety and liquida~or of and othorCo ope rati ve Society, bet ween the liqu ida tor oftwo or Co opo.rative Soc ieti e' ; mo re • such d·i~pute~ ma y bo referred to tho Co ope rati ve Tribune! decision ; for Provided tha t no dispute sha ll be referred und er this section to • th0 Co oporative Tribunal unl ess the disputing par ties exhaus · all romedios tha t ma y be ava ted ilab le in the byo.Iaws for the me nt of disputes. sottle-- (2) Any dispute rela ting to elec tions hel d to a Co-operative Society may be referred to the Co~operative Tri bun al for decision _. 248 oftence and 38. (l) It shall be an oif<mce under this Act, if a Co..apr,tatk~ penalitles:~ Society, (a) fails: to give a notico, sond a return or dooument, or fails to do or allows to be done any ad which a Co.-operative Society is. by this Act or undor its b}'e~laws roquiced. to giv-e1 send, do or allow to be done ; (b) wilfully nogtects or refuses to do an a-Ot or to fl.llmsh lnfon:natlon required for the purposes of this Act or does an oot i forbidden by this Act, or the bye--laws; or ·' i' ' (c) makes a return, or wilfully furnishes information, .in any rtspoot fahe or insufficient. l (i)It shall bo an offenoo under this A<t. if any person or eo.. oporative Society contra'ftlnes the provisions of a Co-operative Societv. (3) An offonce by a Co-operative Socfotf shall be deemed to havo been a'ls.o oommilt3d by each office-~aror of the Co- o~rative Society bound by the byc,.laws the,,.eof' to fulfil the duties whereof the offeneo is a breach, O" if there is no such office-boaror then by each oft.he Dire,ctor, un11;!lss the office~bear-er or Dfrootoi:: provoo to have attempted to prevent the commission of the offimce. -(4) An offence under this section shall be p1.1nishable with imprisonment for a t1>.-m which :may extend to one year or :with fine w.hich may extend to ten thousand rupoos' or Witli: both' i Provided that where a penon is guilty of misllpproF'lation, . fraud, breach of trust, cheating or any other ru;:t in.volv'ng moral , nup·tudo, resutt·ng ·n a. loss to th() Co~operat've So,fety, he shal 1· =rr 00 pun'shable under tho relevant prov·s'ons of tM Ind'an Penal Code, 1860, Dissolution 3z. (1) A Co~operative Society ma.y, by a spo,cial r,:.s.olution, by mN!lbm: authorise its own dissolution ~ . Prov:ded that a not;co of the genera 1 nttt()fng shall a,lso bo sent with an invitation to attend, to th9: Regsitrar, to any federntions 249 of wh'oli ~ Co--oporat:vo Soo;ety is affil'aated, to cred"tora ans ~ any orsan·safon w'th wh"ch a partnt-rsh"p oont-a<t has emd ~lwed !ntO. ' :~) · In'f;toes undo,. tho p"oviso of sub-section (I} shall b.ave Ulo "lght to malle a "ep,.esontation to tho gene"al body if they so -1ftsh to, givjng -.._eaaons why dissolu~ion is not called ro,.-; _ . B)" Within fifteon days ofsuch autho"'lsation for dissolution, the Co-ope,rativo S:>ciety shalJ send to Ute Registrar a copy oftho autho"lsatfon to dissolve tho Co--topoartivo S.)Oiety by reg[stoted port. (4) The authorisation approved in ptU-suanee of sub--section 1) is required to S-Ot out the following, narody : (a} the aswts and liabllitios oft.ho Co-op.xative S:x:fot)'j (b) the claim of oroditors, and collaborators and protected sh':lreho!~ers ;- {c) the number oL ~embers ; (d) the naturo and e.xtont of the mcmb(rr~s interest in the Co-ope,rative Society; and (e) the name oftho liquidator, ~fapp:,inted by the g,meral <>body, or a tequest to the Registrar to app:>int the Hr!ieator or a equest to tho Registrar to "issue a corlifioat◊ of dissolution where • thtro aio no am:its or liabilities, (S) Where too Registrar rooeivt>s th<:i speo:ial resolution pauod tn pi,.rsuanoo.of snb-sootion (1), he shall cause ·at the- oxponse of the Co-op:,rativo Soofoty a notice of tho sporial resolu-- ~6n to ho publislted once a wook fo.r ~wo wooks in a. nowipaper published or distributed· in the disttict where the tegfste.rcd offioo of the Co-o~rativ~ Society is located-, (6) The Registrar may require from tho Co-<>peratJvo · sooioty, thi:, liquidator appointed b}' the Co~ox».ratJve Socil;)ty or ADY othe:r p:inmn who is required to fi.U'Jlish.information, a periodi- return showing: J. No.-1854-32· (::.) t::o progress. of di•s.oiutit;l• ; (o) the d:Stribution of any undlttr.flm,t!ltj ftllU'fltis. •i tt:l- scrv.J; ami · (C) rrny oth';)r reieant i».fot'l:Jlati1a tht.t i:.t ~--tq•irt , D1Molulbn byTr«mnnl, .:::o. (1) T.ho Registrar or an i.Jlto:mted pmo• -,.. ~ giving tilo Co-operatlv o Sooioty nin~ y d'&)I& ilotiw 9fth fAl- posd tp:,l;ct..tioll, apply to the Tribunal for ill ordk dlil&Dh'iR;' ' tho Co<•?:rr:tivc Sc>clety, whore he has :masona:'blo e&m::t'to 'DttM thct tJ::, Co-::•ptirntivo Soolety has no right to bt: or to confiAut f.e b:i r~c,,g/ciscd ::is a Co-operativo Soei~1 JKoal)D i\'!- r I ('.'.) obt.i.ined its rogistxa.tion by fraui!I er lli~llit; \0) is. serving i11ega1 purposes.; (c} h2.s wMuny, after noti~ by thti b.t'st~~ '®1tW :.;;r-y of tj,.:i rno-vlsions of this Aot or its 'bye,.11-n.;, (d) is no 1ongo1 oporating in accordanct with ~ of Co-c-p;rr:.tion and the provisions of this Aet:;· (-;) has not oommencod busifios$· wit.ma t1Ve ytam ,f ~ date of :rcgfatsation ; {f) hzs not carried -On. lnainoa& for cu.'tivo yoi:n;. t• p t tw• Uut~ (2) \V.nero an inte.tt)Sted person app1its la flUSlUIIU:• •ffii:F sootic.::., J:.o sl!i::U givo the Re£istrax notk• ot' kio ._ia:atioa 11d tho R:::gkt,:::.1· ls enfl'ed to appear and Ito kttra.i.a ~ • •:r. lff 1 counso- • (3) Who:c the Tribunal rc4ci'leS an apjt'lfutiq_ 1- pei su2.n0,:i s.u::u'J o( this sc<:tion it my. after givin a ~ • 1 tWibi'--· tuni',), to tho Co•oper:ativ'e Sooiety to stalt i t s ~• .a.- tbt. Co~opt:r.::.tive Soc:ioty be di$SO -red or liq_oidats • _._.1 under th-o supervision of the Regfalrar. , (4) Whcr the Registrar receives [ at. ord:or- JUJl.t, i• ~ sun::>.e of si:b-scction (3). he shall.- (:.:) \\!here the orderist odis~h'& ti..e«~S ..-· ssue a certifi-.:at of disaoltt.tiou ; or (b) where the order is to liqukfa.te t,;id ,\p;,oiiHm«it -.,dr.atiV 4:: ;B,iriety ,mdcr the suparvision of the Rczist:;:;, ofliqu!diuo r ,-utis.lt a notille rtt a :newspaper published or dfatr bi:tc<l jn tt\,: c3-!,trt~t rl•t ill t~Hth he registered offiae of Ccwor,;:-.railvc Soci is sa 'is ttfflltcj. 4t (1) lVklr rt iCo•oporative Society Is to be dissoh,::d and •• ll(ll.ldatoT 15. appo~t«i by he gerieral body or the 'Trib':maL tlio!,pl For-,.- (a),appoJl lt aay person 4s a Iiquldator to whtd up he ► dlirJ: •f th- Co~s,trativc ~iety ; or 00 •oie he is satisfied that the Co~op:;:rntivc Society a~ts a-.d IiabiHii~. issue a <l'ertificatc of cEs~clution. ' ~ TAC appointing aatito.rity shall-·fix the pt:y1:y::·u~ 10 the l~•tor otor his· ierTiecs. •· Qf.. hi~ appointment. a liquidator shell.~~ (a) immediately give notice of his 2ppoin'.mcol',.~ Dut:;Cl!IOf Liquid~tot-. @ii) :a tio aase of •;qu'dator not appo:ontcd by _th◊ Reg_!.<;:• t,IJY) ~ tlt• Ro.(strar ; and ~ t• .m •ei.i/mant and erQ<Hor known to 10 d r•• fit•r; {l., amt~Fatf !'y p-ub':shcd not;ce 9f h's ;-_p_,:,,_t:;:ucnt D• 'f:l+Ot fo:r two 00111,e<:ut;V'.) weeks.:n a newspap01· p:,01 :s-!1·~d ◄ 1 ,str~ •nth~ dtetr:et whorQ thQ Co~o'pcra 'he s~c:ety·h2.s ttC111tart(I ofllee ind tak.o rcasonab10 steps to g'Ve :r.ot:c~ c,f the pidatioa in tvtr1 jur'sd',cfon where the Co-op:-;:-'.'.t'v::: S.:ic:ety •~!"11- t.,,,..... ; (d) f 1a0, :• tlte 1tOt 1co m.:•mt:oned ~n c'i:wscs (::.) and (b) iJ :p,rtft~:eJt ~~rn,c any p~rson, ' {/) ;•dolt tc,cl to the Co-oporaFve- Soc'ety, to r{,r_dcr ~n ~tti.11 \pay to ~e !•qu'<lator at the t_.me and pho:.· ~:;,;:-o!fied ~~ •pa,•~1 ~w1~ ; 252 (ii) p::isses:fng prC<p~rty of th(l Co--operat'~ Soc'oty to rterwr :t to the Fqu:dator a.t the t:me and pfaoo spo effied,; and (iif) having a claim aga 1nst tho Co--opera.t;H'I Sooiet,j whetlte.r Fqu:dator uoFqu{dated, future or oont 1ngen4 to present parFcular.; of the, cla'm Jn writing to the ttqu:dator not h.~r than &~xtf days after the first pubJ=cat"on of the not'<:e; (d) taHe :nto c.ustody and control the pro~y of the_, Co--0pe"at:1;e So,fet)" ; (e) cpon and ma.':nta:n a trust account fo"' t~ ~ L-_. of tlle Co-ope"3t~ So<fQty ; t (J) HeeP aooonnts of the .mone'ls of tho Co--0PQrat~ I I SAiety-«:eW and pa'd out by h'm; (g) m.:i:nta:n :;epa..ate Fsts of the- membe-n:, ored:tots nda other p~sons hav:ng cla:ms. ag&:nst tho Co-optrat~ Sol7ety; (h) where at any t'm.o he determ:nes that the Ox,~~,,o Soc:otJ 1s unable to pay or adequately prov·de for the desoharge Of its obl'gat:ons. apply to the Rog'strer for ~r«t:orui. i and (i) <V'l'ver to the Re,glstrar1 perlodlcally as tho Registrer may require, financial ~atcments of he Co-ope,--e.tiv<i Society in. &ny form that tho liquidator considetrs proper o..- that t_po Rep 11"'!ll may re<iuiro. POWffl of 43. (1) Tholiquidatormay. liquidatott:- (a) retdn la'W)'e.n, acoountauts, onglneera, apprdtet 11114 other rofes!-f,.naladvison; bring. defend vr take part in sny civil, <lriminal ot , administrat!vv action or roceeding i:n the name and on 'oohalf of' the Co-o erat ve Society ; (c) carry on the business of the Co"° trativo S:Jciot) :is- -required for t.n orderly liquidation; (o) sl)t'Jl Uy p1.ibL.:: oi.u...;:tie,.u ant p.ropo.rly of the Co-o oratiTO $o\l'fot1 ; , . ,. 253 (4 do 111164\a and-oi·oouto any doclJ11lents in tho name and oa b,half of W Co-oporative Socitity ; (f) borrow mono1 on the security of the pt◊p';)rty of the Co· • .mtmi S<>oiety ; (g) settle or eompromise an:, claims by o> against tho Co- •pote!iYo &:;ciety ; and (h) do:> aH othor things that he ;;:onsid'lrs nt½Cess.ary for the liquidation of tho Co-operative Silciety and d<stribution of its property; (2) Whero s liquid'ltor has .reason to believe that an, pet aon has in his p:n;s.e$Sion or under his cont.rot or has concealed' withheld or misappropriated. any· property of the. Co-operativo looioty, he may apply to the spe-0ial court for an ord01 requiring a-at ponon to a.pl)t!at bofore the OOurt at the tin?,e and placeed, fosianated ,n: th0 order and to be oxaminod. 0) 'Whor<i: the o::camination mentioned in sulrseotion (2) ciao1osos that a person has concoaled, withheld or misappro prlated propwty of tho Co-operative Socioty. tho &p<mial court aa,7 o"dot that p~rson to restore the property or IXl-'Y compcny aadon to tho liquidator on. behalf of tho Co-oporativo $'..)Oiot:\'.~ i.t) No liquidator thall pU!cha'-'e• db:octty or indirtctly, &n put of the stoukin..tr&®. debts or assets of the Co,.oporativo looiet,. · • "4. (1) A. Uquidato... shall i,ay the cost. of liquidation out Final ea the p--opo.-ty oftM Co-op~tive Sooioty and shall Pay Or make a.:cOwnt:- ., ad oqut'ito pro,;Mon for all <'laim a:gafn ,t the Co-opeativr Soolt'lty,4 (2) Aftei paiing or making adequate provision for aH la\ms against the Co-o orative Sodetr, the U,quldatot shal •PPlJ to tho R-eBis.tral'.' for apProvat of his .final accounts and fot pe.rmission to dist-ibute in mone, or in kind the ·omaining prQ- pert)" vf the Co-o o·etive Sodoty in c.oco"'daanu, 1rith tho bye lun.· · 254 (3) Whor~ tho ll~.:,1stra.r .appro .~ Ut.o lin:a.1 a11Hu.afa rud,r ed by a Jiquidatoc ill pursUQnoa of sub s~tloa (2\ Ae sh,tll, (a) ii.sue di~·cctions whh r~pect to the ou:.tody or di<t- posal of the document s 11.nd r:.:i.cvrds of the Co-o cu:ti,;o S.clety; •nd (4) Whore the Registrar dis<.haracs a liquidato r Jn parsu... unet> of sub sec•ion (3), he slt.•11 i!l6uo a eortJficat~ of dlssolntl• • ~ (S} The Co"'°por,tivo 5odety ~ses to exist 011: tJ:i.o (at! shown ln. the c,.;rtificatQ of diesoluti11u1 which shall aot l,c, bt.. than tw-, years ~fter 1.he appointm~at of tlle liqu.idater. · 45, The ~strn.r may Gllil.r~ a nmoonablo fee fo.r anv 0 the services provided by him or by an o:fi-:er authoriscid by' -~im under th.e provisions of tkis Aet. · 231. ACT No. 29 OF 1998 . * [19th Augu st, 1998 ;] -AN ACT FURTH ER TO AMEND THE ANDHRA PRAD ESH MUTUALLY AIDED ·co-oP ·ERAT IVE s·ocrE TIES AC~, 19 9-5. Be it enact ·ed by the ...· L~gi siati ve ASsem bly of the State of,A ndhr a Prad esh in the Forty -ni_n th Year bf the Rep~ blic of _Indi a, as follo ws:-

1. (1) Th.is Act may b_e calle d the·Sh ort tft,-e Andh ra Prad esh Mutu ally- Aided Co-op era-ia nd tive Soci eties (Ame ndme nt) Act, 19-98· . 1 Commence- ,uent. *[Rece ived the assent of the Govern or' on the 19-08-1 998. For_ stateme nt of object and reason_s please see the Andhra i'radesh !,azett e, Part-IV -A, Extrao rdinary dated 22-07:-1 998 dt Page 3. ]_ J. 1728/1 6. 232 (2) It shal l ·come into forc e on such date _as :· the state Gove rnme nt may, ' by · notif icati on· in the Andlµ 'a Prad esh Gaze tte, appo int. Inaer tlou. . 2. Afte r sect:i ,on 36 of the Andh ra ·of .new Prade sh · Mutu ally Aided Co-o perat ive sectio n .. _ Soci eties Act, 1995 , the follo wing 36A- secti on shal l be inse rted, name ly:- Act 30 ..Appli i:ation of " 36-A. : The prov ision s of -of 199~ Cha.pie~ )(III A Chap ter XIII -A conta i~i_n g · of the .Andhra secti ons 115-A and 11:S-B Prade sh Co- · of the Andh ra Prad esh co- opera tive oper ative soci eties Act, Soµe ties Act 1 1964 shal l mUta tis, mutan ~ 1964. dis apply to all Co-o pera- tlve Bank s. Expl anati on:- For the purp oses of this secti on a ,n Co-o perat ive· Bank mean s a SOci ety regis tered unde r this Act, whic h is doing the busin ess .o"f Bank ing as Ceu.tral. Act defin ed in clau se (b) of sub- secti on (1} 10 of of. sect; ion 5 of the Bank ing ·Reg ulati on 1949.·· Act, 1949; ,•. G. BHAVANI PRASAD, Secr etary to Gove rnme nt, Le':l islati ve Affil irs· ·& Just ice. Registered No. HSE/49 [Price : Rs. 0-30 Paise. B…{«§æææþ{糧óþÔŒý Æ>fç³{™èþÐèþ$$ THE ANDHRA PRADESH GAZETTE PART IV-B EXTRAORDINARY PUBLISHED BY AUTHORITY No. 23] HYDERABAD, WEDNESDAY, APRIL 12, 2006. ANDHRA PRADESH ACTS, ORDINANCES AND REGULATIONS Etc. The following Act of the Andhra Pradesh Legislative Assembly received the assent of the Governor on the 10th April, 2006 and the said assent The following Bill was introduced in the Andhra is hereby first published on the 12th April, 2006 in the Pradesh Legislative Assembly on the 17th March, 2006. Andhra Pradesh Gazette for general information. Act NO. 20 OF 2006. AN ACT FURTHER TO AMEND THE ANDHRA PRADESH MUTUALLY AIDED CO-OPERATIVE SOCIETIES ACT, 1995. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty-seventh Year of the Republic of India as follows:-

1. (1) This Act may be called the Andhra Pradesh Short title, extent and Mutually Aided Co-operative Societies (Amendment) Act, commence- 2006. [1] ment. A-8-1 2 ANDHRA PRADESH GAZETTE EXTRAORDINARY [Part IV-B (2) It extends to the whole of the State of Andhra Pradesh. (3) It shall be deemed to have come into force with effect from the first June, 1995. Amend- 2. In the Andhra Pradesh Mutually Aided Co-operative ment of Societies Act, 1995, (herein after referred to as the principal section 2. Act 30 of Act), in section 2, in clause (d), for the expression "under 1995 section 7", the words "under the provisions" shall be substituted and the words "but does not include the Milk/ Dairy Co-operative Societies." shall be added at the end. Amend- 3. In section 4 of the principal Act,- ment of section 4. (i) in sub-section (1), for the expression, "under section 7", the words "under the provisions" shall be substituted; (ii) to sub-section (1), the following proviso shall be added, namely:- "Provided that no Co-operative Society shall be registered as a Dairy or Milk Co-operative Society and no Dairy or Milk Co-operative Society registered under any other law shall be converted into a dairy or milk co-operative society under this Act"; (iii) after sub-section (1), the following new sub- section shall be inserted, namely:- Act 7 of "(1A) Notwithstanding anything contained under this

1964. Act or under the provisions of the Andhra Pradesh Co-operative Societies Act, 1964, all the Dairy/Milk Co-operative Societies registered or deemed to have been registered or converted under the provisions of this Act, shall be deemed to have been excluded from the provisions of this Act and deemed to have been registered and Act 7 of continued under the provisions of the Andhra Pradesh

1964. Co-operative Societies Act, 1964.". April 12, 2006] ANDHRA PRADESH GAZETTE EXTRAORDINARY 3

4. The Andhra Pradesh Mutually Aided Co-operative Repeal of Societies (Amendment) Ordinance, 2006 is hereby Ordi- nance, 2 repealed. of 2006. T. MADAN MOHAN REDDY, Secretary to Government, Legislative Affairs & Justice, Law Department. PRINTED AND PUBLISHED BY THE COMMISSIONER OF PRINTING, AT LEGISLATIVE ASSEMBLY PRESS, HYDERABAD. Regi tered No. HSE/49. [Price : Rs.1-00 Paise mi RlGHTTO i.gf lNFORMATlON � �Ol9�'5ró �ee��� THE ANDHRA PRADESH GAZETTE PARTIV-B EXTRAORDINARY PUBLISHED BY AUTHORITY No. } AMARAVATI, TUESDAY, MAY 15, 2018. ANDHRA PRADESH ACTS, ORDINANCES AND REGULATIONS Etc., Toe following Act of theAndhra Pradesh Legislature received the assent of the Gover or on the 8 th May, 2018 and the said assent is hereby first published on the l 5 th M , 2018 in theAndhra Pradesh Gazette for general information :- ACT No. 20 of 2018 CT FURTHER TO AMENO THE ANDHRA PRADESH LLY AIDED CO-OPERATIVE SOCIETIES ACT, 1995. e it enacted by the Legislature of the State of Andhra Pradesh in the Si -ninth Year of the Republic of lndia as follows :-

1. (1) This Act may be called the Andhra Pradesh Mutually Aided Short title and Co-operative Societies (Amendment) Act, 2018. commencement. (2) lt shall come into force on such date as the Government may, by notification, appoint. 2. ln t e Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995, Amendment of in s ction 14,- section 14. Act 30 of 1995. (i) in sub-section (1 ), after the proviso, the following proviso shall be ins rted, namely ,- "Provided further that in the case of a coperative society, other than a c operative bank, deposits shall be mobilized only from those mem­ ber who have voting rights in that cooperative society.". after sub-section (1 ), the following sub-section shall be inserted, na ly,- J.269/18 Fl [ 1] 2 ANDHR A PRADESH GAZET TE EXTRA ORDIN ARY [PART IV-8 "(1-A) Notwithstanding anything contained in the sub-section (1 ), a cooperative bank may mobilize funds in the shape of depos its, debentures, loans and other contributions from any person other than its member, to such extent and under such conditions as may Central Act I 0 be of 1949. permissible under the bye-laws, subject to the provisions of the Banking Regulation Act, 1949.". (iii) in sub-section (2),- (a) the word "deposits" shall be omitted; (b) after the existing proviso, the following "Explanation" shall be added , namely,- "Expl anatio n : For the purpose of this section a "cooperative bank" means a society registered under this Act, which is doing the busin ess of banki ng as define d in claus e (b) of sub- section (1) of Section 5 of the Banking Regulation Act, 1949.". DUPPALA VENKATARAMANA, Secretary to Government, Legal and Legislative Affairs and Justice. Printed by the Commissioner of Printing, atA.P. Legislative Assembly Printin g Press,Amaravati.