The Multi-State Co-operative Societies Act, 2002
Administered Ministry: Ministry of Cooperation
Section
Section 21 Cancellation of registration certificate of multi-State co-operative societies in certain cases.
(1) Where the whole of the assets and liabilities of a multi-State co-operative society are transferred to another multi-State co-operative society or to a co-operative society in accordance with the provisions of section 17, the registration of the first mentioned multi-State co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State cooperative society in accordance with the provisions of section 17, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State co-operative society divides itself into two or more multi-State co-operative societies or two or more co-operative societies in accordance with the provisions of section 17, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or render defective any legal proceedings by or against the multi-State co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the multistate cooperative society or societies, as the case may be, before the amalgamation or division, may be continued or commenced by or against the resulting multi-State co-operative society or societies.
(2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State cooperative society in accordance with the provisions of section 17, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State co-operative society divides itself into two or more multi-State co-operative societies or two or more co-operative societies in accordance with the provisions of section 17, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or render defective any legal proceedings by or against the multi-State co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the multistate cooperative society or societies, as the case may be, before the amalgamation or division, may be continued or commenced by or against the resulting multi-State co-operative society or societies.
Section 22 Conversion of a co-operative society into a multi-State co-operative society.
(1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State co-operative society:
Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in accordance with the provisions contained in sub-section (4) of section 11.
(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment--
(i) fulfils the requirements of the members being from more than one state;
(ii) is in accordance with the provisions contained in sub-section (4) of section 11,
he may register the amendment within a period of six months from the date of receipt thereof by him:
Provided that no co-operative society shall be deemed to have been converted into a multi-State cooperative society on any ground whatsoever unless such society is registered as a multi-State co-operative society.
(3) The Central Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws or a co-operative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.
(5)(a) Once the amendment of bye-laws has been registered by the Central Registrar, the co-operative society shall, as from the date of registration of amendment, become a multi-State co-operative society.
(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered as a multi-State co-operative society under this Act and also forward a copy of the same to the Registrar of Co-operative Societies of the State concerned.
(c) The Registrar of Co-operative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to co-operative societies in force in that state.
Provided that no such amendment of bye-laws of a co-operative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in accordance with the provisions contained in sub-section (4) of section 11.
(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment--
(i) fulfils the requirements of the members being from more than one state;
(ii) is in accordance with the provisions contained in sub-section (4) of section 11,
he may register the amendment within a period of six months from the date of receipt thereof by him:
Provided that no co-operative society shall be deemed to have been converted into a multi-State cooperative society on any ground whatsoever unless such society is registered as a multi-State co-operative society.
(3) The Central Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws or a co-operative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.
(5)(a) Once the amendment of bye-laws has been registered by the Central Registrar, the co-operative society shall, as from the date of registration of amendment, become a multi-State co-operative society.
(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered as a multi-State co-operative society under this Act and also forward a copy of the same to the Registrar of Co-operative Societies of the State concerned.
(c) The Registrar of Co-operative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to co-operative societies in force in that state.
Section 23 Registration of federal co-operative.
(1) Every federal co-operative shall obtain registration certification in accordance with the provisions of this Act.
(2) Every federal co-operative shall in its general meeting be represented by its member co-operative.
(3) The classification of federal co-operative and other terms and conditions applicable to it shall be such as may be prescribed.
(4) All provisions of this Act, applicable to a multi-State co-operative society shall, as far as may be, apply to a federal co-operative.
(2) Every federal co-operative shall in its general meeting be represented by its member co-operative.
(3) The classification of federal co-operative and other terms and conditions applicable to it shall be such as may be prescribed.
(4) All provisions of this Act, applicable to a multi-State co-operative society shall, as far as may be, apply to a federal co-operative.
Section 24 Functions of federal co-operative.
(1) Subject to the provisions of this Act and any other law for the time being in force, a federal co-operative may discharge the functions to facilitate the voluntary formation and democratic functioning of co-operative societies as federal co-operative or multi-State cooperatives based on self-help and mutual aid.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the federal cooperative may--
(a) ensure compliance of the co-operative principles;
(b) make model bye-laws and policies for consideration of its member co-operative;
(c) provide specialised training, education and data-base information;
(d) undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative;
(e) promote harmonious relations amongst member co-operative;
(f) help member co-operative to settle disputes among themselves;
(g) undertake business services on behalf of its member co-operative, if specifically required by or under the resolution of the general body or the board, or bye-laws of a member of co-operative;
(h) provide management development services to a member co-operative;
(i) evolve code of conduct for observance by a member co-operative;
(j) evolve viability norms for a member co-operative;
(k) provide legal aid and advice to a member co-operative;
(l) assist member co-operative in organising self-help;
(m) develop market information system logo brand promotion, quality control and technology upgradation.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the federal cooperative may--
(a) ensure compliance of the co-operative principles;
(b) make model bye-laws and policies for consideration of its member co-operative;
(c) provide specialised training, education and data-base information;
(d) undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative;
(e) promote harmonious relations amongst member co-operative;
(f) help member co-operative to settle disputes among themselves;
(g) undertake business services on behalf of its member co-operative, if specifically required by or under the resolution of the general body or the board, or bye-laws of a member of co-operative;
(h) provide management development services to a member co-operative;
(i) evolve code of conduct for observance by a member co-operative;
(j) evolve viability norms for a member co-operative;
(k) provide legal aid and advice to a member co-operative;
(l) assist member co-operative in organising self-help;
(m) develop market information system logo brand promotion, quality control and technology upgradation.
Section 25 Persons who may become members.
(1) No person shall be admitted as a member of a multiState co-operative society except the following, namely:--
(a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);
(b) any multi-State co-operative society or any co-operative society;
(c) the Central Government;
(d) a State Government;
(e) the National Co-operative Development Corporation established under the National Cooperative Development Corporation Act, 1962 (26 of 1962);
(f) any other corporation owned or controlled by the Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(h) such class or classes or persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State co-operative society.
(2) No individual person shall be eligible for admission as a member of a national co-operative society or a federal co-operative.
(3) Any person eligible for membership of a multi-State co-operative society may, on his application, be admitted as a member by such society.
(4) Every application for admission as a member of a multi-State co-operative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision:
Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-State co-operative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant.
(5) It shall be the duty of every member of a multi-State co-operative society to promote and protect the interests and objects of such society.
(a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);
(b) any multi-State co-operative society or any co-operative society;
(c) the Central Government;
(d) a State Government;
(e) the National Co-operative Development Corporation established under the National Cooperative Development Corporation Act, 1962 (26 of 1962);
(f) any other corporation owned or controlled by the Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(h) such class or classes or persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State co-operative society.
(2) No individual person shall be eligible for admission as a member of a national co-operative society or a federal co-operative.
(3) Any person eligible for membership of a multi-State co-operative society may, on his application, be admitted as a member by such society.
(4) Every application for admission as a member of a multi-State co-operative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision:
Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-State co-operative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant.
(5) It shall be the duty of every member of a multi-State co-operative society to promote and protect the interests and objects of such society.
Section 26 Nominal or associate member of society.
A multi-State co-operative society may, if provided in its bye-laws, admit a person as nominal or associate member:
Provided that no such nominal or associate member shall be entitled to subscribe the shares of such society or have any interest in the management thereof including right to vote, elect as a director of the board or participate in the general body meetings.
Provided that no such nominal or associate member shall be entitled to subscribe the shares of such society or have any interest in the management thereof including right to vote, elect as a director of the board or participate in the general body meetings.
Section 27 Educational course for members.
(1) Every multi-State co-operative society shall organise cooperative education programmes for its members, directors and employees.
(2) Every multi-State co-operative society may provide funds for such co-operative education programmes.
(2) Every multi-State co-operative society may provide funds for such co-operative education programmes.
Section 28 Members not to exercise rights till due payment made.
No member of a multi-State cooperative society shall exercise the rights of a member, unless he has made the payment to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws.
Section 29 Disqualification for member of a multi-State co-operative society.
No person shall be eligible for being a member of a multi-State co-operative society if--
(a) his business is in conflict or competitive with the business of such multi-State co-operative society; or
(b) he used for two consecutive years the services below the minimum level specified in the byelaws; or
(c) he has not attended three consecutive general meetings of the multi-State co-operative society and such absence has not been condoned by the members in the general meeting; or
(d) he has made any default in payment of any amount to be paid to the multi-State co-operative society under the bye-laws of such society.
(a) his business is in conflict or competitive with the business of such multi-State co-operative society; or
(b) he used for two consecutive years the services below the minimum level specified in the byelaws; or
(c) he has not attended three consecutive general meetings of the multi-State co-operative society and such absence has not been condoned by the members in the general meeting; or
(d) he has made any default in payment of any amount to be paid to the multi-State co-operative society under the bye-laws of such society.
Section 30 Expulsion of members.
(1) A multi-State co-operative society may, by resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society:
Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter.
(2) No member of the multi-State co-operative society, who has been expelled under sub-section (1), shall be eligible for re-admission as a member of that society, for a period of one year from the date of such expulsion.
Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter.
(2) No member of the multi-State co-operative society, who has been expelled under sub-section (1), shall be eligible for re-admission as a member of that society, for a period of one year from the date of such expulsion.
Section 31 Vote of members.
Every member of a multi-State co-operative society, including a member who is an employee of such society, shall have one vote in the affairs of the society:
Provided that--
(a) a member who is an employee of such society shall not be entitled to vote--
(i) at the election of a member of the board of such society;
(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto;
(b) in the case of an equality of votes, the chairperson shall have a casting vote;
(c) where any of the authorities, multi-State co-operative society or a co-operative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a member of a multi-State cooperative society, each person nominated by such authority or society, on the board in accordance with the provisions contained in this Act and the rules, shall, have one vote;
(d) a multi-State co-operative society, the membership of which include co-operative societies or other multi-State co-operative society, may provide in its bye-laws for an equitable system of voting having regard to the membership of, and the extent of business carried on by such co-operative societies or multi-State co-operative societies.
Provided that--
(a) a member who is an employee of such society shall not be entitled to vote--
(i) at the election of a member of the board of such society;
(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto;
(b) in the case of an equality of votes, the chairperson shall have a casting vote;
(c) where any of the authorities, multi-State co-operative society or a co-operative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a member of a multi-State cooperative society, each person nominated by such authority or society, on the board in accordance with the provisions contained in this Act and the rules, shall, have one vote;
(d) a multi-State co-operative society, the membership of which include co-operative societies or other multi-State co-operative society, may provide in its bye-laws for an equitable system of voting having regard to the membership of, and the extent of business carried on by such co-operative societies or multi-State co-operative societies.
Section 32 Manner of exercising vote.
Every member of a multi-State co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy:
Provided that a multi-State co-operative society or a co-operative society or any other institution which is a member of any other multi-State co-operative society may, subject to the provisions of subsection (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such multi-State co-operative society.
Provided that a multi-State co-operative society or a co-operative society or any other institution which is a member of any other multi-State co-operative society may, subject to the provisions of subsection (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such multi-State co-operative society.
Section 33 Restriction on holding of shares.
No member, other than the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society.
Section 34 Restriction on transfer of shares or interest.
The transfer of share or interest of a member in the capital of a multi-State co-operative society shall be subject to such conditions as to maximum holding as specified in section 33.
Section 35 Redemption of shares.
(1) Shares held in a multi-State co-operative society by any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 shall be redeemable in accordance with the bye-laws of such multi-State co-operative society and in a case where the byelaws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-State co-operative society and such authority.
(2) The redemption of shares referred to in sub-section (1) shall be on the face value of the shares.
(2) The redemption of shares referred to in sub-section (1) shall be on the face value of the shares.
Section 36 Transfer of interest on death of members.
(1) On the death of a member, a multi-State cooperative society may transfer the share or interest of the deceased member to the person nominated in accordance with the bye-law made in this behalf or, if there is no person nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules:
Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A multi-State co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfers and payments made by a multi-State co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A multi-State co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfers and payments made by a multi-State co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
Section 37 Liabilities of past member and estate of deceased member.
(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a multi-State cooperative society for the debts of the society as they existed,--
(a) in the case of a past member, on the date on which he ceased to be a member;
(b) in the case of a deceased member, on the date of his death,
shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section (1), where a multi-State co-operative society is ordered to be wound up under section 86, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be.
(a) in the case of a past member, on the date on which he ceased to be a member;
(b) in the case of a deceased member, on the date of his death,
shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section (1), where a multi-State co-operative society is ordered to be wound up under section 86, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be.
Section 38 Constitution, powers and functions of general body.
(1) The general body of a multi-State co-operative society shall consist of all the members of such society:
Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multiState co-operative society shall vest in the general body of its members:
Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State co-operative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the general body or the board of a multistate co-operative society, a cooperative society or another multi-State co-operative society is to be represented, such co-operative society or other multi-State co-operative society shall be represented in such meeting only through the Chairperson or the president or the Chief Executive or a member of the board of such co-operative society or other multi-State co-operative society, as the case may be, if such member is so authorised by the board and where there is no board of such co-operative society or other multi-State co-operative society, for whatever reasons, through the administrator, by whatever name called, of such co-operative society or other multistate co-operative society:
Provided that where the bye-laws of a multi-State co-operative society provide for representation of other institutions in any meeting of general body or the board of such multi-State co-operative society, such institutions shall be represented through its nominee.
Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multiState co-operative society shall vest in the general body of its members:
Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State co-operative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the general body or the board of a multistate co-operative society, a cooperative society or another multi-State co-operative society is to be represented, such co-operative society or other multi-State co-operative society shall be represented in such meeting only through the Chairperson or the president or the Chief Executive or a member of the board of such co-operative society or other multi-State co-operative society, as the case may be, if such member is so authorised by the board and where there is no board of such co-operative society or other multi-State co-operative society, for whatever reasons, through the administrator, by whatever name called, of such co-operative society or other multistate co-operative society:
Provided that where the bye-laws of a multi-State co-operative society provide for representation of other institutions in any meeting of general body or the board of such multi-State co-operative society, such institutions shall be represented through its nominee.
Section 39 Annual general meeting of general body.
(1) The board of every multi-State co-operative society shall, within such period as may be prescribed, and not later than six months after the close of the corresponding year, call the annual general meeting in the manner prescribed for the purpose of--
(a) consideration of the audited statement of accounts;
(b) consideration of the audit report and annual report;
(c) consideration of audit compliance report;
(d) disposal of net profits;
(e) review of operational deficit, if any;
(f) creation of specific reserves and other funds;
(g) approval of the annual budget;
(h) review of actual utilisation of reserve and other funds;
(i) approval of the long-term perspective plan and the annual operational plan;
(j) review of annual report and accounts of subsidiary institution, if any;
(k) expulsion of members;
(l) list of employees who are relatives of members of the board or of the Chief Executive;
(m) amendment of bye-laws, if any;
(n) formulation of code of conduct for the members of the board and officers;
(o) election of members of the board, if any.
(2) Where the board of a multi-State co-operative society fails to convene the annual general meeting within the period specified in sub-section (1), the Central Registrar or the person authorised by him in this behalf shall be competent to convene such annual general meeting within a period of ninety days from the date of expiry of the period mentioned in that sub-section and the expenditure incurred on such meeting shall be borne by the society.
(3) At every annual general meeting of a multi-State co-operative society, the board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board.
(a) consideration of the audited statement of accounts;
(b) consideration of the audit report and annual report;
(c) consideration of audit compliance report;
(d) disposal of net profits;
(e) review of operational deficit, if any;
(f) creation of specific reserves and other funds;
(g) approval of the annual budget;
(h) review of actual utilisation of reserve and other funds;
(i) approval of the long-term perspective plan and the annual operational plan;
(j) review of annual report and accounts of subsidiary institution, if any;
(k) expulsion of members;
(l) list of employees who are relatives of members of the board or of the Chief Executive;
(m) amendment of bye-laws, if any;
(n) formulation of code of conduct for the members of the board and officers;
(o) election of members of the board, if any.
(2) Where the board of a multi-State co-operative society fails to convene the annual general meeting within the period specified in sub-section (1), the Central Registrar or the person authorised by him in this behalf shall be competent to convene such annual general meeting within a period of ninety days from the date of expiry of the period mentioned in that sub-section and the expenditure incurred on such meeting shall be borne by the society.
(3) At every annual general meeting of a multi-State co-operative society, the board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board.
Section 40 Special general meeting of general body.
(1) The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws.
(2) If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in subsection (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
(2) If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in subsection (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.