CO-OPERATIVE SOCIETIES RULES

CO-OPERATIVE SOCIETIES RULES

CO-OPERATIVE SOCIETIES.

ARRANGEMENT OF RULES.
Rule...................................... Page

1 Citation ............................... ... ... ... ... ... 189
2-5 Register of societies .................... ... ... ... ... 189
6 Applications for registration of societies ... 190
7-9 Registration ............................. ... ... ... ... 190
10, 11 Register of fflembers and books and accounts ... ... ... 190
12-17 Membership .............................. ... 190
18 Nominees ............................... ... ... ... ... 191
19 Division of profits..................... ... ... ... ... 192
20 Maximum liability.......................... ... ... ... 192
21,..............22 General meeting ......... ... ... ... ... ... ... ... 193
23,...................24 Annual general meeting ... ... ... ... .. . ... 193
25 Special general meeting ..... . ........... ... ... ... 194
26 Quorum at general meetings .............. ... ... ... 194
27 Chairman of general meeting ............. ... ... ... ... 195
28,.....................29 Voting at general meeting ... ... ... ... ... ... 195
30 Minutes of general meeting .............. ... .... ... 196
31 Election of committee .................. ... ... ... ... ... 196
32 Chairman of committee...... ... .... ... 197
33 Duties of committee .................... ... ... ... ... 197
34 Meetings of committee .................. ... ... ... ... 197
35 Procedure at meetings of committee...... .... ... ... ... 197
36 Minutes of meetings of committee........ ... ... ... ... 198
~7 Failure to attend meetings of committee... ... ... ... 198
38 Vacancies on committee ................. ... ... ... ... 198
39 Borrowing powers ........ .............. ... ... ... ... 198
40 Banking account ........................ ... ... ... 198
41 Employees .............................. ... 199

Rules Applicable to Credit Societies.

42 Application for loan ................... ... ... ... ... 199
43 Sanction of loan ....................... ... ... ... ... ... 199
44 Security for loans ..... . . ........... ... ... ... ... ... ... 199
45 Purposes of loans ...................... ... ... ... ... ... 200
46 Documents relating to loans ............ ... ... ... ... 200
47 Restriction on loans to defaulters...... ... ... ... ... 200
48 Extensions of loans .................. ... 200
49 Misapplication of loan ................. ... ... ... 200
50 Recovery of loans ................... ... 200

Rules Applicable to Marketing Societies.

51 Marketing ... ... ... ... ... ... ... ... ... ... 201
52 Bad debts ... ... ... ... 201
53 Preparation of annual accounts and report ... ... ... ... 201
54 Transfer of shares ... ... ... ... ... ... ... ... ... 201
55 Sales of shares of members in default ... ... ... ... 202
56 Secretary ... ... ... ... ... ... ... ... ... ... - ... 202
57 Payment of secretary ... ... ... ... ... .. ... ... ... 203
58 Security by secretary ... ... ... ... ... ... ... ... ... 203





Rule Page
59 Suspension of secretary ... ... ... ... ... ... ... ... 203
60 Temporary absence of secretary ... ... ... ... ... ... 204
61 Duties of secretary ... ... ... ... ... ... ... ... ... 204
62 Treasurer ... ... ... ... ... ... ... ... ... ... 205
63 Security by treasurer ... ... ... ... ... 205
64 Duties of treasurer ... ... ... ... ... ... ... ... ... 205
65 Unilt oflicers ... ... ... ... ... ... ... ... ... ... ... 206
66 Reserve fund ... ... . ... .... .... ... ... ... . ... .... ... 206
67 Audit of accounts ... ... ... ... ... ... ... ... ... ... 206
68 Audit and supervision fund ... ... ... ... ... ... ... 207
69 By-laws ... ... ... ... ... ... ... ... ... ... ... ... 207
70 Amendment of by-laws ... ... . . ... ... ... ... ... 208
71 Copies of entries ... ... ... ... ... ... ... ... 208
72 Reference of a dispute to the Registrar for decision ... 209
73 Reference to arbitration by the Registrar ... ... ... ... 209
74 Proceedings before the arbitrator or arbitrators 210
75 Proceedings before the Registrar ... ... ... ... ... ... 211

CO-OPERATIVE SOCIETIES RULES. Ord. 43 of
1947, s.51 (3).
(Cap. 33). Schedule.

(Ordinance No. 43 Of 1947).

[15th February, 1951.]

1. These rules may be cited as the Co-operative
Societies Rules.

2. The Registrar shall keep or cause to be kept at his
office, a register to be called 'the Register of Societies'
wherein shall be entered particulars relating to the registra-
tion of societies and their by-laws.

3. All original entries in the Register of Societies shall
be made by, or under the direction of, the Registrar and
shall be signed by him.

4. Every alteration, interlineation or erasure in the
Register of Societies shall be initialled by the Registrar.

5. The Register of Societies shall be open . to inspection
by the public at all reasonable times and free of charge.






6. (1) Every application for the registration of a
society shall be submitted to the Registrar in the form
prescribed by him.

(2) Three copies of the by-laws which the society pro-
poses to adopt shall be submitted together with the
application.

7. Where the Registrar decides to register a proposed
society the society and its by-laws shall be registered in the
Register of Societies.

8. Upon the registration of a society the Registrar
shall forward to the society, free of charge-
(a) a certificate of registration;
(b)a copy of the by-laws of the society as approved
by him and certified under his hand as having been
approved by him;
(c) a copy of the Ordinance and of the rules in English.

9. When the Registrar refuses to register a society or
its by-laws he shall record in writing his reasons for so
doing.

10. Every registered societ v shall keep a register to be
called the 'Register of Members'-' wherein shall be entered-
(a)the name, address and occupation of each member
and a statement of the shares, if any, held by him;
(b)the date on which each member's name was entered
in the register;
(c)the date on which any member ceased to be a
member; and
(d) the nominee, if any, appointed under rule 18.

11. Every registered society shall keep such accounts
and shall use such books as may from time to time be
prescribed by the Registrar.

12. The election and admission of members to a
registered society, other than original members, shall be in
such manner and on such conditions as the by-laws shall
prescribe.





13. A member may withdraw from a registered society by giving
written notice to the secretary, but such withdrawall shall be without
prejudice to subsection (1) of section
29 Of the Ordinance.

14. If a member acts in contravention of the rules or by-laws or
acts in any way detrimental to the interests of the registered society
such- member may be expelled by- a vote of two-thirds of the members
present at a general meeting upon a charge communicated to him in
writing by the committee not less than one week before the meeting.
Such expulsion shall, however, be without prejudice to subsection (1) of
section 29 Of the Ordinance.

15. Any member who loses any of the qualifications for
membership prescribed by the Ordinance or the rules or the by-laws
shall cease to be a member of the registered society and the committee
shall cause his name to be struck off the Register of Members without
prejudice to any liabilities of such person under subsection (1) of
section 29 of the Ordinance.

10. In the case of any registered society of limited liability holding
deposits or loans from non-members, no member withdrawing, removed
or expelled therefor shall be entitled to a repayment of any money paid
by him towards the purchase of shares.

17. No registered society shall fix any limit to the number of its
members.

13. (1) Every appointment of a nominee by any member of a
registered society for the purposes of section 17 of the Ordinance
shall be made in writing signed by the member in the presence of two
attesting witnesses.

(2) No member of a registered society with share capitial shall be
entitled to appoint more than one nominee unless that member holds
more than one share.

(3) In any case where more than one nominee is appointed by any
member the number of shares to be transferred or the exact proportion
of the amount available that is to be transferred to each of these
nominees shall be specified at the time of the appointment.





(4) Every appointment of a nominee shall be recorded in the
Register of Members.

(5) For the purpose of a transfer to a nominee, the value of any
share or interest shall be represented by the sum actually paid for that
share or interest by the mumber holding it unless the by-laws of the
registered society otherwise provide.

(6) Where any money is paid to a nominee who is a minor, a
receipt oiven either by the minor or by his guardian shall be sufficient
discharge to the registered society.

19. (1) Unless otherwise authorized by the Governor under the
proviso to subsection (i) of section 34 Of the Ordinance no dividend or
payment on account of profits shall be made by a society registered
with unlimited liability until the reserve fund has reached a proportion
of not less than one tenth of the society's total liabilities.

(2) No registered society shall pay a dividend if the rate of interest
on loans granted by it to Its members exceeds ten per cent per aillitilli.

(3) No registered society shall pay a dividend on share capital
exceeding five per cent per annurn of the capital actually paid up.

(4) A bonus based on wages or on the value of the products of a
member, or a bonus or rebate on patronage calculated in proportion to
the amount of the business done by each member with the registered
society may be distributed periodically to the members from surplus
funds after the deduction of all expenditure and after making provision
for bad and doubtful debts and making allocation to the reserve fund.

20. (1) Every registered society shall, from time to time, fix at a
general meeting the maximum liability it may incur in loans or deposits
whether from members or nonmembers.

(2) The maximum so fixed shall be subject to the sanction of the
Registrar, who may at any time reduce it. No registered society shall
receive loans or deposits which will make its liability exceed the limit
sanclioned by the Registrar.





21. The supreme authority in a registered society shall be
vested in the general meeting of members at which every
member has a right to attend and vote on all questions. Subject
to the provisions of sections 24 and 25 of the Ordinance, each
member shall have one vote only which shall be exercised in
person and riot by, proxy.

- 22-The first -meeting of members-shall have the same-
powers as are given to the annual general meeting, and shall

.1

immediately or not later than one month after ille receipt of the
certificate of registration of the society.

23. The annual general meeting of members shall be
convened by the committee as soon as the report on the audit of
the accounts of the registered society by the Registrar, or person
authorized by him is received by the committee. At least eight
days' notice shall be given before any such general meeting is
held : Provided that the Registrar illay at any time after the audit
of the accounts has been completed convene the annual general
meeting which shall proceed as if it had been convened by the
committee.

24. The functions of the annual general meeting shall be

(a)to confirm the minutes ol' the previous annual Meeting
and of any intervening special general meeting;

(1))to consider the reports of the committee and the
balance sheet together with the report on the audit of
the accounts of the registered society for the previous
year as prepared by the Registrar or the person
authorized by him;

(c)to approve the accounts or if the accounts are not
approved to cause the secretary to notify the Registrar
who shall consider the matter and make his decision
thereon, and such decision as to the correctness of the
accounts shall be final and coneltlsive;,

(d)to hear and decide upon any complaints brought by
members aggrieved by a decision of the coinmittee :
Provided that notice of such complaints to be brought
before the meeting has been given





to the secretary at least two days prior to the meeting; and

(e)to transact any other general business of the registered
society.

1 25. A special general meeting of members may be convened at any
time by the committee; and on receipt of a demand stating the object of
the proposed meeting signed by not less than one-fifth of the members
of the registered society, if such society is composed of less than one
hundred members, or by twenty-five members if such society consists of
more than one hundred members, it shall be the duty of the chairman of
the committee to convene such a meeting giving eight days' notice. If
the chairman of the committee fails to convene a meeting within fourteen
days from the receipt of a demand as aforesaid the members applying for
such a meeting will have the right to convene the meeting by notice -
which must contain - the- object of the proposed meeting and a
statement to the effect that the meeting is convened on the failure of the
chairman of the committee to convene the meeting demanded : Provided
that the Registrar or a person authorized by him may at any time,
summon a special general meeting of the registered society, in such
manner and it such time and place as lie may direct. He may also direct
what matters shall be discussed at the meeting. Such meeting shall have
all the powers of ,a meeting alled according to the rules.

26. (1) When a registered society consists of not more than one
hundred and twenty members one-half of the number of the members or
thirty members, whichere;- is the less, shall form a quorum for the
purposes of the annual or a special general meeting, and when a
registered society consists of more than one hundred and twenty,
members onefourth 'of the total number of the members of such society
shall form a quorum for the purposes of the annual or a special general
meeting : Provided that when any meeting is summoned by the
Registrar any members present at such meeting shall be deemed to form
a quorum.

(2) If within one hour after the time fixed for any, meeting other
than a meeting convened by the Registrar the members present are riot
sufficient to form a quorum such





meeting shall be considered as dissolved if convened on the
demand of members; in all other cases it shall stand
adjourned to the same day in the next week at the same
time and place and a notice to that effect shall be posted by
the secretary within twenty-four hours, and if at the
adjourned meeting a quorum is not present within one hour
frorn the time appointed for the meeting the members present
shall form a-quorum.

27. (1) The chairman of the committee or in his
absence any other person elected by a majority of those
present shall preside at the annual or special general
meeting : Provided that the Registrar or a person appointed
by him shall preside at any meeting convened by himself
or on his demand.

(2) The secretary or in his absence any other person
nominated in writing by the chairman shall act as secretary
at the meeting. The chairman, if necessary, may nominate
other officers to assist at the meeting.

(3) The chairman may by the decision o ' f the meeting
adjourn the meeting from tirne to time and from place to
place but no business shall be transacted at any meeting so
adjourned other Lhan the business left unfinished at the
meeting from which the adjournment took place.

(4) The chairman shall have the right to order the
closure of a.discussion and put the matter to the vote.

28. Any question submitted to the decision of the
members present at a meeting, unless otherwise dealt with
in the rules, shall be decided by a majority of votes.

29. (1) At any meeting a resolution put to the vote
shall be decided on a show of hands unless voting by call
of names or a ballot is demanded by at least five of the
members present before the declaration of the result of the
show of hands, and in such case voting by call of names or
a ballot shall be taken as the case may be.

(2) The, chairman shall have an ordinary vote and in
case of an equality of votes shall be entitled to a casting
vote. In the case of a meeting convened by the Registrar





and presided over by him or his representative, he or his
representative shall riot be entitled to vote except on -an
equality of votes, in which case they shall have a casting
vote.

(3) In respect of every resolution put to the vote the
chairman shall declare whether it has been carried or lost,
and whether on a show of hands or unaniMOUSly or by a
particular nia'oritv, and an entry to that effect in the Minute
book shall be conclusive evidence ol' anything therein con-
tained.

30. Minutes of the ii-icetings shall be entered in the
ininute book and signed by the cliairnian and secretary
before the dissolution or adjournment of the meeting and
shall contain-
(a)the number and names of the members present at
the meeting and the name of the chairman or of
the person who presided it the meeting; - -
(b)the time fixed for the meeting. and the time the
meeting commenced;
(c)the total number of members on the date on which
the meeting was held ; and
(d)all resolutions passed or decisions made at the
meeting.

31. (1) The committee shall be elected at a general
meeting of the registered society to be held annually or
convened for the purpose by the Registrar, and its nienibers
shall hold office until the election of a new committee and
they shall be eligible for re-election : Provided that a
special general meeting convened for the purpose by or on
the demand of the Registrar or on demand of the members
(in the case of registered societies with less than forty
niernbers, one-half of the members or ten members which-
ever is the less or when a registered society consists
of more than forty members, one-fourth of the total
number of members) may remove the committee or any
members thereof before the expiration of their period of
office by majority of three-fourths of the members present,
who shall proceed at the same meeting to the election of
others in their stead who shall hold office until the election





of a new committee by the next general meeting convened
for this purpose by the Registrar.

(2) The committee shall consist of five members 'and
three shall constitute a quorum.

32. The committee shall elect its own chairman, who
shall have an ordinary vote and on an equality of votes
shall-be entitled-to a casting vote. In the. temporary absence
of the chairman, the committee shall elect one of its
rnembers to perform the duties of chairman.

33. (1) The committee shall represent the registered
society before all competent public authorities and in all
dealings and transactions with third persons, with power to
institute or defend suits brought in the name of or against
the society, and in general it shall carry out such duties in
the management of the affairs of the registered society as
have not been specially assigned by the rules or the by-laws
to general meetings or to any other officer of the society.

(2) The committee shall always keep a copy of the
latest 'annual balance sheet of the registered society together
with the report referred to in rule 23, hung in a conspicuous
place at the registered office of the society.

34. The committee shall meet as often as the business
of the registered society may require and in any case not
less frequently than once a month. Meetings of the
committee shall be summoned by the secretary in writing.

35. At each committee meeting the secretary shall-
(a) read the minutes of the preceding meeting;
(b)produce the cash book, detail the entries of receipts
and payments made therein since the last meeting
and with the treasurer produce the cash in their
possession for verification by the committee with
the cash book;
(c)produce a statement showing the loans due and
unpaid, for determination by the committee as to
the action to be taken in each case;
(d)produce applications for loans, if any, for deter-
mination by the committee in accordance with the
priority of receipt ; and





(e)submit any other business for consideration by the
committee.

30. Minutes of committee meetings shall be recorded
forthwith by.the secretary in the minute book and shall be
signed by the chairman or other presiding member and by
the secretary and shall contain the following particulars-
(a)the names of the members present and the date of
the meeting;
(b)the name of the chairman or other presiding
member; and
(c)a short statement of all matter discussed and de-
cisions made and a record as to whether each
decision was, made unanimously or by a majority.

37. Any member of the committee who, without due
excuse approved by the committee, fails to attend at three
consecutive meetings of the c-om--n-littee-s-liall be deemed to
have vacated his office which shall thereupon be filled as
provided by rule 38.

38. (1) Vacancies occurring on the committee shall be
filled within eight days by the election of substitutes elected
by the remaining members of the committee: Provided
that when such election does not take place the Registrar
may appoint the required substitutes.

(2) Any substitutes elected or appointed under para-
graph (i) of this rule shall hold office until the expiration
of office of the committee.

39. The committee may borrow money on behalf of the
registered society to an amount not exceeding such total
arnount as may have been fixed in accordance with rule 20.

40. The committee may, subject to the approval of the
Registrar, open a banking aCCOLint. All cheques shall be
signed by two members of the committee and the secretary :
Provided that with the authority in writing of the Registrar
previously obtained cheques may be signed by one member
of the committee and the secretary.





41. (1) The committee may-
(a)appoint such clerks or employees as it considers
necessary ; and
(b)fix the salary, wages or remuneration of every such
clerk or employee.

(2) Every clerk or employee appointed under this rule
shall hold office during the pleasure of the committee.

Rules applicable to Credit Societies.

42. Members who desire to obtain a loan slyall submit an
application to the committee stating the amount and the
purpose for which the loan is required, the term for which
it is asked, whether it is desired to repay it by instalments,
and the names of the proposed sureties or any, other security
which is offered.

43. (1 ) The committee shall consider at a meeting every
application for a loan and if the committee is sa * tisfied with
the trustworthiness of the applicant, the sufficiency of the
security offered and the prospects of advantage to the
borrower, in the way of increased production or economy
or otherwise, it may sanction the loan.

(2) No person other than members of the committee
and the secretary and the Registrar and his staff shall be
present at any meeting of the committee when an application
for a loan is under consideration. A member of the com-
mittee who applies for a. loan or who is proposed as surety
for a loan must withdraw while the relevant applicaticrn is
being discussed. If there is a difference of opinion concern-
ing the granting of a loan, the voting shall be taken by ballot.
The proceeding with regard to loans at committee' meetings
shall be kept secret, and any member of the committee or
officer of the registered society infringing this rule shall be
liable to immediate expulsion or dismissal.

44. Loans, when approved by the committee, shall be
granted to members who are able to obtain two sureties
approved by the committee, or who can give other security
to the satisfaction of the committee. If the committee are
of the unanimous opinion that the member's personal
character and industry are such that other' security is not





necessary then, on approval by the Registrar, such loan
may be made to the member without sureties or other
security.

45. (1) No loan shall be made except for a purpose to
be approved in each case by the committee.

(2) All loans made shall be applied by the borrowing
members to such purpose as the committee has approved.

46. When a loan is sanctioned by the corninittee a notice
shall be senCto the borrower to that effect, and, before the
amount is advanced, the borrower (and his sureties if any)
shall execute an instrument in writing setting out the terms
of repayment of the loan and containing such other terms
and conditions as the committee may consider necessary.

47. Where a member-
(a)is in default-in-the payment of a loan-or of an instaL
ment of a loan, and
(b)does not satisfy the committee that such default is
due to a good cause,
such member shall not be entitled to receive another loan
from the registered society.

48. If by reason of sickness or some other cause, a
member finds that he will be unable to discharge his obliga-
tion~ to the registered society and notifies the secretary in
writing before a loan is due the committee may extend the
time fixed for payment on such conditions as it tbinks fit.

49. Where the committee is satisfied that a member of
the registered society who has obtained a loan has applied
the proceeds thereof to a purpose other than the purpose
which is stated in the application therefor under rUlC 43, the
committee i-nay, by notice in.writing to the debtor, demand
payment of the. loan before the agreed date of payrnent.

50. Where---
(a)a loan or an instalment of a loan has not been paid
on the date on which it became due, and
(b)no extension for the payment thereof has been
given to the debtor by the committee under rule 48,





the committee shall take steps for the recovery of the same
by referring the matter to the Registrar as prescribed in
section 49 of the Ordinance.

Ruies applicable to Marketing Soct'eties.

51. (1) Every member of the society shall deliver to the
society at such place as the con-imittee shall direct such
arnount of articles -produced- or -obtained by- him as-may-be
prescribed in the by-laws or in the relevant contract to be
disposed of by the society.

(2) Any rrien-iber who is approved or adjudged in
accordance with the provisions Of section 49 of the Ordinance
to bc guilty of a breach of the by-laws ot- the relevant contract
as the case may be shall pay to the society as liquidated
damages such sum as may be specifically assessed or
ascertained in nianner prescribed by the by-laws or by the
relevant contract and Such sum shall be deemed to be a debt
clue to the society.

52. The committee may, with the approval of the
Registrar, cause bad debts to be written off the books of
the registered society in such manner and at such times as
the Registrar may deem fit.

53. The committee shall in every year and as soon as
conveniently possible within such time as the Registrar may
direct-
(a)cause the secretary to prepare and send to the
Registrar the yearly balance sheet closed on the
d~ite specified by the Registrar of the preceding year
together with a detailed statement of the profit and
loss account ; and
(b)prepare a report on the year's working of the
registered society to be presented to the annual
general. meeting.

54. (1) Any share, may be transferred with the approval
of the committee to any other member at the option of the
transferor, but if the transferee is not a member, be must
be approved of as a member by the committee or the general
meeting according to the by-laws relating to the admission
of members before the transfer can be registered; and if the





by-laws require a member to hold more than one share, the
transferee must acquire by the transfer, or by the transfer
and allotment, the number so required to be held before the
transfer can be registered.

(2) Special transfer forms shall be provided by the
Registrar.

(3) No transfer of a share shall be valid and effective
unless and until such transfer has been registered by the
secretary on the direction ofthe committee.

(4) No transfer of a share shall be registered if made by
a member indebted to the registered society without special
order of the committee, and until the transfer of a share is
registered no right shall be acquired against the registered
society by the transferee, nor shall any claim of the registered
society upon the transferor be. affected thereby.

55. The committee may in default of payment by any
member indebted to the registered society to in amount not
less than three-fourths of the sum paid up for the time being
on ~iny transferable share held by him, sell, transfer and
register in the books of the registered society such share to
any person entitled to hold the same under the rules or
by-laws for the best price obtainable therefor, and apply the
proceeds in or towards the discharge of the debt so due and
of any expense incurred in or about the same, paying over
the balance (if any) to the member, without being responsible
for any loss occasioned thereby, and the defaulting member
shall cease to have any further claim in.respect of such share.

56. (1) The committee shall appoint. a secretary and,
unless the person so appointed is a memUer of the committee,
shall have power to fix the remuneration for his services.

(2) The, secretary, if a member of the committee, shall
be unpaid.

(3) No appointment made under paragraph (i) of this
rule shall be valid and eflective, and no remmieration fixed
thereunder shall be payable or recoverable, unless approved
by the Registrar. Every such approval shall be coin-
municated in writing by the Registrar to the committee.





(4) In the event of failure on the part of the committee
to appoint a secretary, the Registrar shall appoint a secretary
and, unless the person so appointed is a member of the
committee, the Registrar shall fix his remuneration. Every
appointnient made by the Registrar tinder this paragraph
shal! be valid and effective, and every remuneration fixed by
the Registrar shall be payable and recoverable, as if made
-or fixed by the committee.

(5) The secretary shall occupy his office until his
services are determined by one month's notice in writing
given by the committee : Provided that no determination
as aforesaid shall be valid and effective until the approval of
the Registrar in writing has been obtained therefor.

(6) The secretary may resign his office by giving one
month's notice to the committee in writing.

(7) On the occurrence of a vacancy in the office of the
secretary, the provisions of this rule shall apply mutatis
mutandis to the filling of such vacancy.

57. The remuneration of the secretary, if any, shall be
paid froni the funds of the registered society monthly in
arrear.

58. (1) The secretary may be required to give security
in such amount as the committee may determine.

(2) Every such security and the amount thereof shall
be subject to the approval of the Registrar to be signified
in writing to the committee.

59. (1) The committee may at any time susp end the
secretary for any irregularity in the performance of his
duties.

(2) Such suspension shall be reported forthwith io the
Registrar who shall approve or disallow the same and shall
communicate his decision to the secretary and the committee
in writing, and on notification of his approval of the suspen-
sion the services of the secretary shall be determined without
further notice.





(3) In the event of the susl)etlsloti of tli~, secretary the
Committee Shall f01.111\Vitil al)pOillt a SUbSti(Ule (0 1101(1 Office
during the period of such suspension and shall report the
name of such substitute to the Registrar.

60. (1) The secretary shall not absent filinself from
duty save with the permission of the committee previously
obtained.

(2) During the absence of the secretary, the committee
shall appoint a temporary secretary and shall report the
appointment to the Registrar.

(3) In case the secretary desires to be absent fronn duty
for more than one month ,it any one time, the conimittee
shall, before granting permission for such absence, obtain
the previous approval of the Registrar therefor.

61. The duties of the secretary shall be-
(a)to attend all meetings of the registered society and
of the committee and to carry out all the instructions
of the committee;
(b)to be present at the. office during the hours of
business as fixe d from tirne to time by the committee;
(c)to record the whole of the transactions of the
registered society in the books provided for that
purpose; to conduct correspondence on behalf of the
registered society; to prepare the annual statement
of accounts and balance sheet; and to have charge
of the documents, books and vouchers for payments
and receipts on behalf of the registered society;
(d)to receive all applications for loans and bring the
same before the committee ; to prepare receipts and
other documents in the form prescribed for signa-
ture by borrowers prior to their taking the loans
sanctioned; and with the authority of the committee
to supply information about the registered society
which may be applied for bY members ;
(e)to receive all mone3,s due or payable to the registered
society and issue receipts to the payer for same from
a counterfoil receipt book supplied to the registered
b
society for the purpose by the Registrar, obtiiiiiilg
at the same time the signature of the person making





the payment on the counterfoil;
to deposit with the treasurer from moneys collected
by him on behalf of the registered society all sums
in excess of an amount to be fixed from time to
time by the committee and to obtain from him a
receipt on a form to be taken from the prescribed
counterfoil book ;
(g) to keep separate all moneys belonging to the
- -registered society-and on no account to mix them
with any other moneys; and to produce at all times
when callcd upon to the committee, or the Registrar
or any person authorized by him, all moneys in
his hands belonging to the registered society;
(h)to make payments as authorized by the committee,
obtaining the payee's signature on the payment
book prescribed by the Registrar : Provided that if
the payment is made outside the registered society's
office the secretary shall, in every instance, obtain
from the payee a manuscript receipt and attach it to
a separate page of the payment book;
(I)to issue a receipt on a form to be taken from the
prescribed counterfoil book when receiving money
from the treasurer; and
to summon meetings as provided in the rules.

62. The committee shall appoint one of the members of
of the committee, not being the chairman, to be the treasurer.

63. The treasurer may be required to give security for
such arnount is may be determined by, and to the satisfaction
of, the committee.

64. The duties of the treasurer shall be-
(a)to receive from the secretary as provided in para-
graph (1) of rule 61 moneys collected by the latter
on behalf of the registered society, furnishing hirn
with a receipt on a form taken from the counterfoil
book supplied for the purpose by the Registrar and
obtaining at the same time the signat-tire of the
secretary on the counterfoil;
(b)to advance money to the secretary for payments and
obtain from him a receipt from the prescribed
counterfoil book;





(c)to place to tile account of the registered society in
such b~ttil~ as may be approved by t tie Registrar any
amount in his hands in excess of the amount fixed
from time to tirric by the committee;
(d)to - keep separate all moneys belonging to the
registered society and on no account to mix them
with any other moneys; to produce at all tirnes when
called upon to the committee, the Registrar or any
person authorized by him, all moneys in his hands
belonging to the registered society; and
(e)to keep a record on the prescribed form of all moneys
received by hirn frorn the secretary and of all moneys
paid to the secretary.

65. If in any society, in the opinion of the Registrar,
any member of the committee or other officer is unfit for the
discharge of his duties, the society shall, on the requirement
of the Registrar, dismiss him

66. (1) The reserve fund of a registered society, created
in pursuance of the provisions of subsection (i) of section 34
of the Ordinance, may, with the sanction of the Registrar-
(a)be utilized in the business of the registered society;
or
(b)be applied to meet occasional deficiencies incurred
by the registered society.

(2) In sanctioning the utilization or application of the
reserve fund.under paragraph(i) of this rule, the Registrar
may imposd such terms and conditions as he i-nay deem fit.

67. In pursuance of the Provisions Of scctiOn 35 Of the
Ordinance, the accounts of every registered society shall be
audited once at least: in every year by sonic person
authorized by the Registrar. Such person shall have access
to all the books and accounts of the registered society and
shall examine every balance sheet and annual return of the
receipts and expenditure, funds and effects of the registered
society, and. shall verimfy the same with the accounts and
vouchers relating thereto, and shall either sign the same as
found by him to be correct, duly vouched and in accordance
with the Ordinance, and shall report to the Registrar
accordingly, or shall speciaLly report to the Registrar in





what respects he finds the same incorrect unvouched or not
in accordance with the Ordinance. The Registrar shall
thereupon forward the report of such person to the
committee.

68. (1) There shall be constituted a fund to be known
-is the audit a-nd supervision fund and every registered society
,1i.iii, _when called upon to do - so by the Registrar, make
annually a contribution to such fund.

(2) Until such time as a society has been established
and registered for the purposes of supervision and audit,
such contributions shall be held by the Registrar and ad-
ministered by him on behalf of the contributing registered
societies.

(3) So long as the Registrar administers the fund on.
behalf of the c0-ntrib-uii-n-g-r-egisfered -so-cieiies-,-he shall report
in every year to the Government in respect of the income
derived from contributions, the expenditure he has sanc-
tioned from the fund and the balance in his hands.

(4) As soon as a society for s~pervision and audit has
been established and registered, the fund shall be credited
to such society and shall be utilized by such society in
accordance with its objects and by-law.~'

(5) Until a society for supervision and audit has been
established and registered, the Registrar shall fix theamount
of the annual contribution to the fund of every registered
society called upon to contribute to the fund. The amount
of every such annual contribution shall be subject to a
maxin]Lllll . Of either five per cent of the net annual profits of
the registered society or of one per cent of the working
capital of the registered society, and shall not in any case
be less.than three per cent on the net annual profits or one
half per cent of the working capital.

69. (1) The by-laws of a proposed society shall contain
provision in respect of the following matters-
(a) the name of the society;
(b) the registered address of the society
(c) the objects for which the society was established;
(d) the purposes to which the funds may be applied;





(e)the qualifications for membership, the terms of admission of
members, and the mode of election; '

the nature and extent of the liability of members; and

(g)the manner of raising funds, including the maximum rate of
interest on deposits.

(2) If the objects of the proposed society include the creation of
funds to be lent to the members, the proposed by-laws shall, in
addition, contain provision in respect of the following matters

(a) the occupation and residence of the members;

(b)the conditions on which loans may be made to members,
including

(i) the rate of interest, and

(ii) the maximum amount which may be lent to a member;
and

(c)the consequences, if any, of default in the payment of -any
sum dite on account of shares.

70. (1) Where in pursuance of the provisions of subsection (i) of
section to of the Ordinance a registered society amends its by-laws,
such amendment shall be made by a resolution of the members of the
registered society at a general meeting.


(2) Every resolution under paragraph (i) of this rule shall n-ot-be- -
valid and- effective unless it was taken- by `a majority of not less than
three-fourths of the members present at the general meeting at which
the resolution was proposed.

(3) A copy of a resolution under paragraph (i) of this rule shall be
forwarded to the Registrar together with three copies of the
amendment.

71. For the purposes of section 20 of the Ordinance a copy of an
entry in the book of a registered society may be certified by a certificate
written at the foot of such copy, declaring that it is a true copy of such
entry and that the book containing the entry is still in the custody of
the society; such certificate being dated and signed by the secretary
and one member of the committee.





72. (1) Reference of a dispute to the Registrar for decision under
the provisions of subsection (i) of section 49 of the Ordinance may be
made

(a) by the committee; or

(b)by the registered society in pursuance of a * resolution in
that behalf taken in general meeting; or

(c) by any party to the dispute; or

(d)-where the dispute concerns-a member of the-committee and
the registered society, by any member

of the registered society.

(2) Every reference under this rule shall be made by a

statement in writing addressed to the. Registrar. Such
statement shall-
(a) be dated;
(b) specify the dispute;
(c) set out full particulars of the and
(d) be signed by the party making it.

73. (1) Where, in pursuance of the provisions of paragraph (b) of
subsection (2) of section 49 Of the Ordinance, the Registrar decides to
refer a dispute to arbitration, such decision shall be embodied in an
order of reference under his hand.

(2) Every order of reference under this rule shall-

(a)specify the name, surname, place of abode and occupation of
the arbitrator or arbitrators;

(b) set out the dispute and full particulars thereof; and

(c)limit the time within which the award shall be forwarded by
the arbitrator or arbitrators to the Registrar : Provided that,
on good cause shown to his satisfaction, the Registrar may
by a further order enlarge the time whether before or after the
time limited by the order of reference has expired.

(3) Where the Registrar decides to refer a dispute to more than one
arbitrator, such reference shall be to three .arbitrators, of whom one
shall be nominated by each of the parties to the dispute and the third
shall be nominated by the Registrar and shall act as chairman.





(4) Where under paragraph (3) of this rule reference is made to
three arbitrators, the following provisions shall have effect

(a)if any party to the dispute fails to nominate <in arbitrator
within such time as the Registrar may specify, the Registrar
may make the nomination himself ;

(b)if an arbitrator nominated by one of the parties t o the
dispute dies, or refuses or neglects to act or by absence or
otherwise becomes incapable of acting, the Registrar shall
call upon the party concerned to nominate a new arbitrator
within such time as the Registrar may specify, and if no new
arbitrator is nominated accordingly, the Registrar may
nominate one himself;

(c)if the arbitrator who dies, or refuses or neglects to act, or
becomes incapable of acting, was nominated by the R
egistrar, a new arbitrator shall be nominated in his place by
the Registrar; and

(d)the opinion of the majority of the arbitrators shall prevail.

74. (1) The proceedings before the arbitrator or arbitrators shall, as
nearly as possible, be conducted in the same
way as proceedings before a court of law, and in
the following provisions shall have effect in respect there-
of- ------

(a)notice of the time and place at which the proceedings are to
be held shall be given to the parties to the dispute, and such
notice shall be a ten days' notice ;

(b)a record of the evidence adduced before the arbitrator or
arbitrators shall be made, dated and signed by the arbitrator
or arbitrators ;

(c)documents produced as exhibits before the arbitrator or
arbitrators shall be marked, dated and initialled by the
arbitrator or arbitrators and shall be attached to the file of the
proceedings; and

(d)in the absence of any party duly notified to attend, the
dispute may be decided by the arbitrator or arbitrators
expate.

(2) The award of the arbitrator or arbitrators shall-

(a) be in writing;





(b)be dated and signed by the arbitrator or arbitrators;
and
(c)state the amount of the costs and expenses of the
arb itration, if any, and.by which party or parties to
the dispute the same are to be paid.

(3) Upon the completion of the proceedings the arbitra-
tor or arbitrators shall forward to the Registrar-
-(a) the- file- of the -proceedings, and
(b) the award.

75. Where, in pursuance of the provisions of paragraph
(a) of subsection (2) Of section 49 of the Ordinance, the Re-
gistrar exercises the power of deciding a dispute himself, the
proceedings before him in relation thereto shall, as nearly
as possible, be conducted in the same way as proceedings
before a court of law and the provisions of rule 73 shall upply
mulatis mittaizdi~ to such proceedings.
Ord. 43 of 1947, s. 51 (3). Schedule. Citation. Register of Societies. Duty of Registrar to make original entries. Duty of Registrar to initial alterations. Right of public to inspect register. Applications for registration of societies. Registration. Duty of Registrar on registration of society. Duty of Registrar to record reasons for refusal. Register of members and books and accounts. Duty of society to keep account, etc. Membership. Withdrawal from society. Expulsion of member. Loss of qualifications. Postponement of repayment of money to member. Limit of members. Nominees. [r. 18 cont.] Division of profits. Maximum liability. General meeting. First meeting. Annual general meeting. Functions of annual general meetings. [r. 24 cont.] Special general meeting. Quorum at general meetings. Chairman of general meeting. Voting at general meeting. Method of voting. [r. 29 cont.] Minutes of general meeting. Election of committee. Chairman of committee. Duties of committee. Meetings of committee. Procedure at meetings of committee. [r. 35 cont.] Minutes of meetings of committee. Failure to attend meetings of committee. Vacancies on committee. Borrowing powers. Banking account. Employees. Application for a loan. Sanction of loan. Security for loans. [r. 44 cont.] Purposes of loans. Document relating to loans. Restrictions on loans to defaulters. Extensions of loans. Misapplication of loan. Recovery of loans. Marketing. Bad debts. Preparation of annual accounts and report. Transfer of shares. [r. 54 cont.] Sales of shares of members in default. Secretary. Payment of secretary. Security by secretary. Suspension of secretary. [r. 59 cont.] Temporary absence of secretary. Duties of secretary. Treasurer. Security by treasurer. Duties of treasurer. [r. 64 cont.] Unfit officer. Reserve fund. Audit of accounts. Audit and supervision fund. By-laws. [r. 69 cont.] Amendment of by-laws. Copies of entries. Reference of a dispute to the Registrar for decision. Reference to arbitration by the Registrar. [r. 73 cont.] Proceedings before the arbitrator or arbitrators. Proceedings before the Registrar.

Ord. 43 of 1947, s. 51 (3). Schedule. Citation. Register of Societies. Duty of Registrar to make original entries. Duty of Registrar to initial alterations. Right of public to inspect register. Applications for registration of societies. Registration. Duty of Registrar on registration of society. Duty of Registrar to record reasons for refusal. Register of members and books and accounts. Duty of society to keep account, etc. Membership. Withdrawal from society. Expulsion of member. Loss of qualifications. Postponement of repayment of money to member. Limit of members. Nominees. [r. 18 cont.] Division of profits. Maximum liability. General meeting. First meeting. Annual general meeting. Functions of annual general meetings. [r. 24 cont.] Special general meeting. Quorum at general meetings. Chairman of general meeting. Voting at general meeting. Method of voting. [r. 29 cont.] Minutes of general meeting. Election of committee. Chairman of committee. Duties of committee. Meetings of committee. Procedure at meetings of committee. [r. 35 cont.] Minutes of meetings of committee. Failure to attend meetings of committee. Vacancies on committee. Borrowing powers. Banking account. Employees. Application for a loan. Sanction of loan. Security for loans. [r. 44 cont.] Purposes of loans. Document relating to loans. Restrictions on loans to defaulters. Extensions of loans. Misapplication of loan. Recovery of loans. Marketing. Bad debts. Preparation of annual accounts and report. Transfer of shares. [r. 54 cont.] Sales of shares of members in default. Secretary. Payment of secretary. Security by secretary. Suspension of secretary. [r. 59 cont.] Temporary absence of secretary. Duties of secretary. Treasurer. Security by treasurer. Duties of treasurer. [r. 64 cont.] Unfit officer. Reserve fund. Audit of accounts. Audit and supervision fund. By-laws. [r. 69 cont.] Amendment of by-laws. Copies of entries. Reference of a dispute to the Registrar for decision. Reference to arbitration by the Registrar. [r. 73 cont.] Proceedings before the arbitrator or arbitrators. Proceedings before the Registrar.

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