By-Laws of Cooperative Society
Cooperative society was originated from the word of co-operating which indicates assistance. Society means association or collection of a group of people. So, It means assistance of the society where a few people create a democratic institution voluntarily.
The documents where unwritten the rules and regulations about conducting and controlling the external and internal activities the Cooperative society is called By-laws. It is also called the ‘Constitution’ because Cooperative Society is established as well as conducting on the basis of these By-laws. Two copies of By-laws must submit to the registrar along with other documents on the period of registration.
Cooperative society can’t do anything out of the By-laws. That’s why promoters should very conscious to prepare this document. It is supposed to register By-law, along with organization registration as it is law created organization. That’s why any kind of change will be completed bylaws.
The subjects which should be included in By-laws are mentioned below:
- The full name of the cooperative society
- If it is a limited liability then should mention ‘Ltd.’ to the end of the name.
- Address of the business.
- Working area.
- Right, responsibility and duty of the members.
- Sources of capital.
- Rules of omitting the members.
- Share capital, numbers, and value of per share.
- Capability and conditions of the admission of the members.
- Responsibilities, duties, and power of the manager.
- Procedures for transferring share.
- Procedures for reserving fund and utility.
- Rules for forming managing committee.
- Appointment procedures of managers.
- Procedures for discharging and retiring the managers.
- Rules for managing committee meetings.
- Rules for polling votes.
- Auditing methods of the accounts.
- Rules for giving and collecting loans.
Above 50% of the shareholders, consent must be considered in general meeting in case of change or amendment of by-laws. If any kinds of laws are changed then it must be informed to the registrar office.