CO-OPERATIVE SOCIETIES RULES

CO-OPERATIVE SOCIETIES RULES

SUBSIDIARY LEGISLATION.

CO-OPERATIVE SOCIETIES RULES.

ARRANGEMENT OF RULES.

Rule........................................ page.

1. Citation ............................... ... ... ... . ... A 4
2. Register of Societies .................. ... ... ... ... ... ... ...
A 4

3. Duty of Registrar to make original entries ... ... ... ... ... ... A 4

4. Duty of Registrar to initial alterations ... ... ... ... ... ... ... A 4

5. Right of public to inspect register .... ... ... ... ... ... ... ... A 4

6. Applications for registration of societies ... ... ... ... ... ... A 4

7. Registration ........................... ... ... ... ... ... ... ... A 4

8. Duty of Registrar on registration of society ... ... ... ... ... A 4
9. Duty of Registrar to record reasons for refusal ... ... . ... A 4

10...............Register of members .......... ... ... ... ... ... ... ... ... ... A 5

11........................Duty of society to keep accounts, etc . ... ... ... ... ... ... ... A 5

12..........Membership ........................ ... ... ... ... ... ... ... ... A 5

13.................Withdrawal from society .... ... ... ... ... ... ... ... ... ... A 5
14.................Expulsion of member ..... ... ... ... ... ... ... ... ... ... A 5
15.................Loss of qualifications ..... ... ... ... ... ... ... ... ... ... A 5

16...............................Postponement of repayment of money to member ... ... ... ... A 5

17...............Limit of members .......... ... ... ... ... ... ... ... ... ... A 5

18..........Nominees ....................... ... ... ... ... ... ... ... ... A 5

19...............Division of profits .......... ... ... ... ... ... ... ... ... ... A 6

20......................Maximum total amount of debts ... ... ... ... ... ... ... ... A

21.............General meeting ................ ... ... ... ... ... ... ... ... ... A 7
22.............First meeting ............... ... ... ... ... ... ... ... A7

23..................Annual general meeting .... ... ... ... ... ... ... ... ... ... A7

24.........................Functions of annual general meeting ... ... ... ... ... ... ... A7
25. Special general meeting A7

26. Quorum at general meetings ... ... ... ... ... ... ... ... ... ... A8
27. Chairman of general meeting ... ... ... ... ... ... ... ... ... ... A8
28. Voting at general meeting ... ... ... ... ... ... ... ... ... ... A9
29. Method of voting ... ... ... ... ... ... ... ... ... ... ... ... A9
30. Minutes of general meeting ... ... ... ... ... ... ... ... ... ... A9
31. Election of committee ... ... ... ... ... ... ... ... ... ... ... A9
32. Chairman of committee ... ... ... ... ... ... ... ... ... ... ... A10





Rule........................................ Page.

33...............Duties of committee .......... ... ... ... ... ... ... ... ... ... A10
34...............Meetings of committee ........ ... ... ... ... ... ... ... ... ... A10

35........................Procedure at meetings of committee ... ... ... ... ... ... ... A10
36........................Minutes of meetings of committee ... ... ... ... ... ... ... All
37........................Failure to attend meetings of committee ... ... ... ... ... ... All

38.................Vacancies on committee ..... ... ... ... ... ... ... ... ... ... All

39...............Borrowing powers .......... ... ... ... ... ... ... ... ... ... All

40.............Banking account ................ ... ... ... ... ... ... ... ... ... All

41...........Employees ........................ ... ... ... ... ... ... ... ... All

Rules applicable to Credit Societies.

42..................Application for a loan .... ... ... ... ... ... ... ... ... ... A 12

43.............Sanction of loan ............... ... ... ... ... ... ... ... ... ... A 12
44.............Security for loans ............. ... ... ... ... . ... A 12
45.............Purposes of loans ........... ... ... ... ... ... ... ... ... ... A 12

46....................Documents relating to loans ... ... ... ... ... ... ... ... ... A 12
47....................Restrictions on loans to defaulters ... ... ... ... ... ... ... ... A 13

48...............Extensions of loans .......... ... ... ... ... ... ... ... ... ... A 13
49...............Misapplication of loan ....... ... ... ... ... ... ... ... ... ... A 13
50...............Recovery of loans ......... ... ... ... ... ... ... ... ... ... A 13

Rule applicable to Marketing Societies.

51..........Marketing ........................... ... ... ... ... ... ... ... A 13

General.

52..........Bad debts ........................... ... ... ... ... ... ... ... A 13

53...........................Preparation of annual accounts and report ... ... ... ... ... ... A 14

54...............Transfer of shares ............. ... ... ... ... ... ... ... ... A 14

55........................Sales of shares of members in default ... ... ... ... ... ... ... A 14

56...........Secretary .......................... ... ... ... ... ... ... ... A 14

57...............Payment of secretary ..... ... ... ... ... ... ... ... ... ... ... A 15
58...............Security by secretary .... ... ... ... ... ... ... ... ... ... ... A 15
59...............Suspension of secretary .. ... ... ... ... ... ... ... ... ... ... A15

60......................Temporary absence of secretary ... ... ... ... ... ... ... ... A 16

61...............Duties of secretary ......... ... . . ... ... ... ... ... ... A 16





Rule Page.

62. Treasurer ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 17
63. Security by treasurer ... ... ... ... ... ... ... ... ... ... ... ... A 17
64. Duties of treasurer ... ... ... ... ... ... ... ... ... ... ... ... A 17
65. Unfit officer ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 17
66. Reserve fund ... ... ... ... ... ... ... ... ... ... ... ... ... A 18
67. Audit of accounts ... ... ... ... ... ... ... ... ... ... ... ... A 18
68. Audit and supervision fund ... ... ... ... ... ... ... ... ... ... A 18
69. By-laws ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 19
70. Amendment of by-laws ... ... ... ... ... ... ... ... ... ... ... A 19
71. Copies of entries ... ... ... ... ... ... ... ... ... ... ... ... A 20
72. Reference of a dispute to the Registrar for decision ... ... ... ... ... A 20
73. Reference to arbitration by the Registrar ... ... ... ... ... ... ... A 20
74. Proceedings before the arbitrator or arbitrators ... ... ... ... ... ... A 21
75. Proceedings before the Registrar ... ... ... ... ... ... ... ... ... A21





SUBSIDIARY LEGISLATION.

CO-OPERATIVE SOCIETIES RULES.

(Cap. 33 section 51).

[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 registration 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 shall be 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 proposes 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.

L 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; and

(e) 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 society shall keep a register to be called Register of
the 'Register of Members' wherein shall be entered- members.
(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 Duty of society
shall use such books as may from time to time be prescribed by to keep
the Registrar. accounts, etc.
12. The election and admission of members to a registered Membership.
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 withdrawal
from
giving written notice to the secretary, but such withdrawal shall be society-
without prejudice to subsection (1) of section 29 of the Ordinance.
14. If a member acts in contravention of the rules or by-laws Expulsion of
or acts in any way detrimental to the interests of the registered member.
society, such member may be expelled by a vote of two-thirds of
the members present at a general meeting, upon a charge com-
municated to him in writing by the committee not less than one
week before the meeting. Such expulsion shall, however, be with-
out prejudice to subsection (1) of section 29 of the Ordinance.
15. Any member who loses any of the qualifications for Loss of
membership prescribed by the Ordinance or the rules or the by- qualifications.
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.
16. In the case of any registered society of limited liability Postponement
of
holding deposits or loans from non-members, no member with- repayment of
money to
drawing, removed or expelled therefrom shall be entitled to a member.
repayment of any money paid by him towards the purchase of
shares.
17. No registered society shall fix any limit to the number Of Limit of
its members. members.

18. (1) Every appointment of a nominee by any member Nominees. 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 capital 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 member holding it, unless the bylaws of the
registered society otherwise provide.

(6) Where any money is paid to a nominee who is a minor, a receipt
given 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 (1) 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

register
ed

interest on loans granted by it to its members exceeds ten per cent
per annum.

(3) No registered society shall pay a dividend on share capital
exceeding five per cent per annum 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 total amount of debts it may incur in loans
or deposits whether from members or non-members.

(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 the total amount of its debts
exceed the limit sanctioned 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 sections
24 and 25 of the Ordinance, each member shall have one vote only
which shall be exercised in person and not by proxy.

22. The first meeting of members shall have the same powers
as are given to the annual general meeting, and shall be held
immediately or not later than one month after the receipt of the
certificate of registration of the society.

23. The annual general meeting of members shall be con-
vened 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 may 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 of the previous annual general
meeting and of any intervening special general meeting;

(b)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 ap-
proved, 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 conclusive;
(d)to hear and decide upon any complaints brought by
members aggrieved by a decision of the committee,
provided that notice of such complaints to be brought
before the meeting shall be given to the secretary at least
two days prior to the meeting; and

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

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 com-
posed 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 shall have the right to convene the meeting by notice, which
shall 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 m
such manner and at such time and place as he may direct, and he may
also direct what matters shall be discussed at the meeting; such meeting
shall have all the powers of a meeting called 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. whichever 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 one-fourth. 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 not
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 from 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 of the meeting adjourn the
meeting from time to time and from place to place, but no business shall
be transacted at any meeting so adjourned other than 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 general 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 not 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 majority, and an entry to that
effect in the minute book shall be conclusive evidence of anything
therein contained.

30. Minutes of every general meeting shall be entered in the minute
book and signed by the chairman 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 at
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 fog-the purpose by by
the Registrar, and its members shall hold office until the election of a
new committee and they shall be eligible for reelection:





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 members, one-half of the members or ten members whichever
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 a majority of three-fourths of the members
present, and such members 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 members 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 an-
nual 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 veri-
fication 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 determination by the
committee in accordance with the priority of receipt; and

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

36. 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 decisions 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 committee shall 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 paragraph (1) 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 amount as may have been
fixed in accordance with rule 20.

40. The committee may, subject to the approval of the Registrar,
open a banking account. 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 shall 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 satisfied 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 committee who applies for a loan or who is proposed as
surety for a loan shall withdraw while the relevant application is being
discussed. It there is a difference of opinion concerning the granting of
a loan, the voting shall be taken by ballot. The proceeding with regard to
loans at committee meetings shall be kept seer^ 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 committee a notice shall be
sent to 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 instalment 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 obligations to the registered
society and notifies the secretary m writing before a loan is due, the
committee may extend the time fixed for payment on such conditions as it
think 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 rule 42, the committee may. by notice in writing to the
debtor, demand payment of the loan before the agreed date of payment.

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.

Rule- applicable to Marketing Societies.

51. (1) Every member of the society shall deliver to the society at
such place as the committee shall direct such amount 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 member, who is approved or adjudged in accordance with
section 49 of the Ordinance to be guilty of a breach of the by-jaws or 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 manner prescribed by the by-laws or by the relevant
contract, and such sum shall be deemed to be a debt due to the society.

General.

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 date 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 ~erred with the approval of the committee
to any other member at the option of the transferor, but if the transferee
is not a member, he 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 ~er can be registered.

(2) Special ~er forms be provided by the Registrar.

(3) No ~er of a share shall be valid and effective unless and until
such transfer has been registered by the secretary on the direction of
the 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
chum 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 an amount not less than three-
fourths of the sum paid up for the time being on any transferable share
held by him. sell, ~er 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 c~ to have any further chum m respect of such
share.

56. (1) The committee shall. appoint a secretary and, unless the
person so appointed is a member 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 (1) of this rule
shall be valid and effective, and no remuneration fixed thereunder
shall be payable Or recoverable, unless approved by the Registrar.
Every such approval shall be communicated 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 appointment made by
the Registrar under this paragraph shall 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 com-
mittee:

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
from 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 suspend the secretary
for any irregularity in the performance of his duties.

(2) Such suspension shall be reported forthwith to the Regis-
trar 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 suspension the services of the
secretary shall be determined without further notice.

(3) In the event of the suspension of the secretary the com-
mittee shall forthwith appoint a substitute to hold 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 himself 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 from duty for more
than one month at any one time, the committee 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
fixed from time 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 signature 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 moneys. due or payable to the registered society
and issue receipts to the payer for same from a counterfoil
receipt book supplied to the registered society for the purpose
by the Registrar. obtaining 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 m 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 called upon to the
committee. or the Re~ or any person authorized by him, all
moneys in his hands be~ to the registered 5~;





(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

(1) to summon meetings as provided in the rules.

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

63. The treasurer may be required to give security for such amount
as 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 paragraph of rule
61 moneys collected by the latter on behalf of the registered
society, furnishing him 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 signature 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 the account of the registered society in such bank
as may be approved by the Registrar any amount in his hands
in excess of the amount fixed from time to time 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 times 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 an moneys received
by him from 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 subsection (1) 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 (1) of this rule, the Registrar may impose such terms
and conditions as he may deem fit.

67. In pursuance of section 35 of the Ordinance, the accounts of
every registered society shall be audited once at least in every year by
some person authorized by the Registrar. Such person shall have access
to an 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 verify 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 m 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 as the audit
and supervision fund and every registered society shall, when caned
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 administered by him on behalf of the
contributing registered societies.

(3) So long as the Registrar administers the. fund on behalf of the
contributing registered societies. he shall report in every year to the
Government in respect of the income derived from contributions. the
expenditure he has sanctioned from the fund and the balance in his
hands.

(4) As soon as a society for supervision 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-laws.

(5) Until a society for supervision and audit has been established
and registered, the Registrar shall fix the amount of the annual
contribution to the fund of every registered society caned upon to
contribute to the fund. The amount of every such annual





contribution shall be subject to a maximum 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;

0) the the registered address address of 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 due on account of shares.

70. (1) Where in pursuance of subsection (1) of section 10 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 (1) of this rule shall not 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 (1) 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 shall be dated and signed by the secretary and
one member of the committee.

72. (1) Reference of a dispute to the Registrar for decision under
subsection (1) 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 dispute, and

(d) be signed by the party making it.

73. (1) Where. in pursuance 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 an 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 to 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 concemed 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 Registrar,
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 particular the following provisions shall have
effect in respect thereof

(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 ex parte.

(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 arbitration,
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 arbitrator or
arbitrators shall forward to the Registrar

(a) the file of the proceedings, and

(b) the award.

75. Where, in pursuance of paragraph (a) of subsection (2) of
section 49 of the Ordinance, the Registrar 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 rule U shall apply

mutatis mutandis to such proceedings.
43 of 1947, Schedule. G.N.A. 102/56. 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. Duty of society to keep accounts, etc. Membership. Withdrawal from society. Expulsion of member. Loss of qualifications. Postponement of repayment of money to member. Limit of members. Nominees. Division of profits. Maximum total amount of debts. G.N.A. 102/56. General meeting. First meeting. Annual general meeting. Functions of annual general meeting. Special general meeting. Quorum at general meetings. Chairman of general meeting. Voting at general meeting. Method of voting. Minutes of general meeting. Election of committee. Chairman of committee. Duties of committee. Meetings of committee. Procedure at meetings of committee. 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. Purposes of loans. Documents 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. Sales of shares of members in default. Secretary. Payment of secretary. Security by secretary. Suspension of secretary. Temporary absence of secretary. Duties of secretary. Treasurer. Security by treasurer. Duties of treasurer. Unfit officer. Reserve fund. Audit of accounts. Audit and supervision fund. By-laws. Amendment of by-laws. Copies of entries. Reference of a dispute to the Registrar for decision. Reference to arbitration by the Registrar. Proceedings before the arbitrator or arbitrators. Proceedings before the Registrar.

43 of 1947, Schedule. G.N.A. 102/56. 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. Duty of society to keep accounts, etc. Membership. Withdrawal from society. Expulsion of member. Loss of qualifications. Postponement of repayment of money to member. Limit of members. Nominees. Division of profits. Maximum total amount of debts. G.N.A. 102/56. General meeting. First meeting. Annual general meeting. Functions of annual general meeting. Special general meeting. Quorum at general meetings. Chairman of general meeting. Voting at general meeting. Method of voting. Minutes of general meeting. Election of committee. Chairman of committee. Duties of committee. Meetings of committee. Procedure at meetings of committee. 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. Purposes of loans. Documents 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. Sales of shares of members in default. Secretary. Payment of secretary. Security by secretary. Suspension of secretary. Temporary absence of secretary. Duties of secretary. Treasurer. Security by treasurer. Duties of treasurer. Unfit officer. Reserve fund. Audit of accounts. Audit and supervision fund. By-laws. Amendment of by-laws. Copies of entries. Reference of a dispute to the Registrar for decision. Reference to arbitration by the Registrar. Proceedings before the arbitrator or arbitrators. Proceedings before the Registrar.

https://oelawhk.lib.hku.hk/items/show/2277

1964

v5

33

21