2. C ERTIFICATE COURSE IN CO-OPERATIVE SECTOR CA. R AMESH S. P RABHU 12/12/2015, C OMMITTEE FOR CO - OP & NPO SECTOR OF ICAI.

3. FEATURES OF BYE LAWS: Written Rules & Regulation of the Society. Mandatory for Management of Society. Framework for Management of Society. Helps for good Administration of Society. Prepared by Co-operative Department/Approved by Commissioner of co-op. Separate set for separate type of Society. Can be amended by the society or as required by Registrar.. For amendment General Body Resolution and Registrar’s approval is required.

4. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. LEGAL PROVISIONS: Four copies of proposed bye-laws should be submitted along with Application for Registration of a co-operative society. Sec. 8 of MCS Act. Proposed bye-laws should not be contrary to MCS Act. Sec. 9. Bye-laws are approved and registered by the Registering Authority along with Registration of society. Sec. 9. Rule 8 contains matters in respect of which Registrar may direct society to make bye-laws or society may make bye-laws. First bye-laws of society: When a society has been registered the bye-laws of the society as approved and registered by the Registrar shall be the bye-laws of he society. Rule 9. Amendment of bye-laws at the instance of the society. Section 13 and Rule 12 Registrar to direct societies to amend by-laws. Sec. 14.

5. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. MODEL BYE LAWS: Model Bye Laws published by Department of Co-operation from time to time are approved by the Commissioner for Co-operation and the Registrar of Co-operative Societies, Maharashtra State, Pune. Generally almost all the registered co-operative societies prefer to adopt Model Bye Laws as their registered Bye Laws.

6. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. ADOPTION OF NEW BYE-LAWS: The new revised Bye-laws, published by Department of Co- operation from time to time are required to be adopted in place of the Bye-laws under which society was registered following procedure as laid down in the section 13 of the Act. The procedure is as under: 1. The members of the society shall be informed in advance through circular about proposal of adoption of new Model Bye-laws, making available both the old and new Bye-laws for their study. 2. A General Meeting of members to discuss and decide on adoption of New Model Bye-laws shall be called giving 14 days clear notice. 3. Resolution to adopt New Model Bye-laws shall be approved by 2/3 Majority of the members present in the meeting.

7. ADOPTION OF NEW BYE-LAWS: 4. Within 2 months of the General Meeting in which adoption resolution is passed, the proposal of adoption is required to be submitted to the Registering Authority along with following documents: a) 4 copies of the Model Bye-laws adopted, dully filled in and signed at the required places. b) A certified copy of existing registered Bye-laws. c) All enclosures dully filled and signed under society stamp/seal. d) Applicable Adhesive non-judicial stamp affixed on covering letter.

8. ADOPTION OF NEW BYE-LAWS: If the proposal of adoption is not submitted to the Registering Authority, within prescribed time period of two months from its adoption, it lapses. Also without approval of Registering Authority under his sign and stamp, the provisions of the Bye-laws are not applicable. Registering Authority should take appropriate decision within 2 months, if fails, forward the proposal to immediate higher Authority within next 15 days. Higher Authority should take decision within 2 months, thus in total maximum 4 and ½ months. DEEMED REGISTRATION OF ADOPTION OF BYE LAWS: If the higher Authority also fails to take decision within 2 months = Deemed Registration of bye-laws.

9. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. CONTENTS OF BYE-LAWS: Bye-laws of co-operative housing societies contain total 177 bye-laws which are divided into XVIII (18) parts. There are three Annexures and about 28 Appendixes (prescribed forms) to the bye-laws. The Bye-laws contains following provisions: 1. Name of the Society, Procedure for changing the name of society, Classification of society, Address of the society, procedure for change in address of society, exhibition of name board of the society. 2. Interpretations/meanings of applicable words and terms. 3. Area of operation, objects, and affiliation to federal society.

10. CONTENTS OF BYE-LAWS: 4. Raising of Funds, Share Capital, Limit of Liabilities, Constitution of the Reserve Fund, Creation of Other Funds, Utilization of the funds by the society, Investment of Funds. 5. Classes of members, Eligibility for Membership, Conditions of Membership, Rights of members, Resignation of Membership, Resignation by an Associate Member, Resignation by a Nominal member, who is Sub-let tee, Licensee, Caretaker, etc., Nominations by Members, Transfer of shares and interest of the deceased member to Nominee/Heir, Transfer of shares and interest to the Transferee/s, Exchange of Flats, Sub-letting etc. Flats.

11. CONTENTS OF BYE-LAWS: 6. Responsibilities and Liabilities of Members - Maintenance of Flats by Members, Expulsion of a Member, Cessation of Membership, Liabilities of a member and the past member. 7. Levy of charges of society. 8. Incorporation, duties and powers of the society. 9. General Meetings - First General Meeting, Annual General Meetings, Special General Body Meetings, 10. Management of the affairs of the society – General Body, Managing Committee.

12. CONTENTS OF BYE-LAWS: 11. Maintenance of books of account and registers. 12. Appropriation of profits 13. Writing off of out standings found irrecoverable 14. Audit of accounts of the society 15. Conveyance of the property and repairs to and maintenance of the property 16. Other miscellaneous matters 17. Redressal of complaints.

13. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. ANNEXURES TO THE BYE LAWS: I) Membership of Corporate Bodies in Co- operative Housing Societies. II) List of forms prescribed under the bye- laws.

14. SALIENT FEATURES OF BYE LAWS OF CO-OP. HSG. SOC. APPENDICES/FORMS: LIST OF FORMS PRESCRIBED UNDER THE BYE-LAWS. Form 1: Share Certificate Form 2: Application for membership of Society by a Nominee/heir, who is minor, through his Guardian/Legal Representative. Form 3: Application for membership of the Society by an individual. Form 4: Undertaking by the Prospective Member to use the flat for the purpose for which it is purchased. Form 5: Undertaking by the person, on whom the Prospective non- earning member is dependent for discharge of liabilities to the Society. Form 6: Application for membership of the Society by a Firm, a Company or a Body Corporate. Form 7: Application for Associate Membership by an individual, who desires to hold shares jointly, with another person, who is already admitted to membership of the Society.

15. APPENDICES : Form 8: Application for Associate Membership where both the persons apply for Associate membership at a time. Form 9: Application for Associate Membership by a Firm or a Company or a Body Corporate and with the Person already admitted to membership of the Society. Form 10: Application for Associate Membership where the Firm, the Company or the Body Corporate and the other person desires to apply for such membership at a time. Form 10(A): No Objection Certificate and Undertaking from the Original Member to be submitted by the Associate Member intending to be a Member of the Managing Committee of the Society.

16. APPENDICES : Form 11: Application for Nominal membership by the Sub-Let tee, the Licensee or the Care-taker. Form 12: Letter of allotment of flats to Member. Form 13: Notice of Resignation of membership of the Society by a member. Form 14: Nomination by a member. Form 15: Application for membership by the Nominee/Nominees. Form 16: Notice, inviting claims or objections to the transfer of the shares and the interest of the Deceased Member in the Capital/Property of the Society. Form 17: Application for membership by the Heir of the Deceased Member of the Society. Form 18: Indemnity Bond where there are more nominees than one. Form 19: Indemnity Bond where there is no nomination.

17. APPENDICES : Form 20(1): Notice of intention of a member to transfer his shares and interest in the Capital/Property of the Society. Form 20(2): Letter of consent of the proposed Transferee for the transfer of the proposed Transferee for the transfer of the Shares and interest of a member(Transferor) to him (Transferee). Form 21: Application for the transfer of Shares and interest in the Capital/Property of the Society by the Proposed Transferor being an individual. Form 22: Application for the transfer of Shares and interest in the Capital/Property of the Society by the Proposed Transferor being a Body Corporate. Form 23: Application for membership of the Society by the Proposed Transferee being an individual. Form 24: Application for membership of the Society by the Proposed Transferee being a Body Corporate. Form 26: Intimation by the Society to the Transferee about exercise of rights of Membership by him. Form 27: permission to sub- let give on leave and license or caretaker basis his flat or part thereof. Form 28: application for permission to hold more than one flat in the building/buildings of the Society.

18. Co-op Enterprises & Co-op Stakeholders CA.Ramesh S. Prabhu, FCA, CISA(USA) Let us be Partner in Nation Building O9820106766/ rsprabhu13@gmail.com

19. Thank you for Getting involved in the discussion! What is all this empowering us to do? Innovate, Get involved & Solve social problems for financial inclusion and better India through Co-ops! CA R AMESH P RABHU, – 09820106766 EMAIL:rsprabhu13@gmail.com C HAIRMAN M AHARASHTRA S OCIETIES W ELFARE A SSOCIATION, MEMBER OF T ASK F ORCE FOR NPOS & C O - OPS OF M AHARASHTRA, C ONVENER TO PREPARE GUIDANCE NOTE ON AUDIT OF DISTRICT AND STATE CO - OP BANKS – PUBLISHED BY PDC OF ICAI, CO - OPTED MEMBER OF CO - OP COMMITTEE ( MAHARASHTRA ) OF WIRC OF ICAI.