By-Laws of Cooperative Society

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:

1. The full name of the cooperative society
2. If it is a limited liability then should mention ‘Ltd.’ to the end of the name.
3. Address of the business.
4. Working area.
5. Objects.
6. Right, responsibility and duty of the members.
7. Sources of capital.
8. Rules of omitting the members.
9. Share capital, numbers, and value of per share.
10. Capability and conditions of the admission of the members.
11. Responsibilities, duties, and power of the manager.
12. Procedures for transferring share.
13. Procedures for reserving fund and utility.
14. Rules for forming managing committee.
15. Appointment procedures of managers.
16. Procedures for discharging and retiring the managers.
17. Rules for managing committee meetings.
18. Rules for polling votes.
19. Auditing methods of the accounts.
20. 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.