Management of Cooperatives

Cooperative management Cooperative societies are essentially business enterprises Management of cooperative society is done on democratic principles and is vested with the – General body and – Managing committee

General Body Managing committee Executive committee

General Body All members of the society constitute general body The registrar or his nominee can attend general body GBM means a meeting of the members who are entitled to vote in the affairs of the society (sec 2(k) Duties – Elect the members of the managing committee – Consider audit report – pass annual report of the society – Consider and pass the budget – Amend the bye laws of the society – Consider complaint against managing committee – Affiliation of the society with the federation – Distribution of surplus (profit sharing)

Types of General Body – First General body meeting – Annual General body meeting – Representative General Body Meeting and – Special General body meeting

Within three months from the date of registration of a society The chief promoter shall convene the first GBM If chief promoter fails, registrar authorize a person to convene Business transacted – Election of president for the meeting – Admission of members, – allotment of shares – Allotment of shares, – receiving statement of accounts – Reporting all transactions of chief promoter – Passing budget for working First General Body Meeting

Annual General Meeting Held once in a year, Quorum 1/5of total members transactions – Elect the members of the managing committee – Consider audit report – pass annual report of the society – Consider and pass the budget – Amend the bye laws of the society – Consider complaint against managing committee – Affiliation of the society with the federation – Distribution of surplus (profit sharing)

Representative General Body If members is more than thousand may not be able to conduct AGBM Representatives of GBM constitute RGB as prescribed by the bye law. Total members – 50 in case total members not exceed 2500 – 200 in case total members above 2500 and below – 500 in any other case – All rights of GBM except election of managing committee members and change in bye laws relating to structure of GB

Special General Body Meeting Committee can call SGBM at any time If registrar give directions to call in writing Requisition from 1/5 th of Total members Circumstances to call SGBM – Amendment of bye laws – Election of managing committee members – Amalgamataion of societies – For meeting urgent issues

Managing Committee The general body cannot manage the day to day affairs, so they delegate the powers to a small elected body called managing committee The term of the committee is 5 years (Sec. 28) Number of members – Not exceed 15 in case of primary cooperative societies – Not exceed 25 in case of other societies Government nominee – Not more than 3 or 1/3 rd which ever is less (now there is no nominatated members in cooperative societies)

Powers and duties of Managing Committee Admit members and allot shares Elect office bearers Consideration of audit, inspection and inquiry Resolve actions against defaulting members Constitute sub committee Raise local deposits or to borrow money Issue loans and recovery Convene general body meeting Proper maintenance of accounts Control and supervise the employees of the society Frame policies, procedures and programmes Formulate plans for the development of society

Qualification of committee members Not be committee member of another society of same type Should not be committee member of 2 or more society of different type Not a near relative of a paid employee Not a defaulter of loan or default loan in which he is a surety Not sentenced for an criminal offence (if so after 3 years, he can be the committee member)

Qualification of committee members Not interested in any transaction of society directly or indirectly not a legal advisor of the society or against the society Not minor, deaf, blind, unsound mind or nominal member Bankrupt or insolvent Not engaged in any business, which is carried on by the society Not disqualified under any other provisions of bye law of the society

Executive Committee In large societies or cooperative banks in addition to managing committee executive committees may be selected The president, vice president, government nominees, ex officio members and two or three elected members of managing committee constitute executive committee

President Managing committee select president He is a member of Managing committee All powers and duties of the managing committee Over all control of the society Presides over the committee and general body All employees are under his control & supervision Privilege of casting vote Operate account of society jointly with secretary

Secretary Chief executive officer of a society Under the administrative control of president Well versed with cooperative societies Act, rules and bye laws

Duties and responsibilities of secretary Custodian of cash and other records Invest surplus funds Enter into contract with others on behalf of the society Deal in legal matters Prepare and submit periodic reports Render assistance for audit, inspection and inquiry Implement decisions of general body and managing committee Correspondence with registrar, members and others Carry out day to day administration Marinating records and accounts

Inquiry (sec 65) Inquiry may be ordered by the registrar when any serious defects on the working of society Circumstances – On suo-motto – On application of a society to which it is affiliated – Application of majority of members of the committee – Application of 1/3 rd of total members of the society

Inspection and Supervision Inspection my be – statutory or General Statutory inspection (Sec.66) certain definite points General inspection – touching all activities of the institution – Gen. inspection may be Surprise or Detailed

Procedure for inquiry, inspection & supervision Inspector of cooperative department visiting the society and checking