Kerala Co-operative Societies Act 1969

THE KERALA CO-OPERATIVE SOCIETIES ACT, 1969 (Act 21 of 1969) An Act to consolidate, amend and unify the laws relating to Co-operative Societies in the State of Kerala. 1[Preamble.-WHEREAS with a view to provide for the orderly development of the Co-operative sector in the State, 2[it is essential to organize the Co-operative Societies in accordance with Co-operative principles as self governing] democratic institutions, to achieve the objects of equity, social justice and economic development, as envisaged in the directive principles of State Policy of the Constitution of India, 2a[and to promote scientific and technological development, health care, market intervention and management excellence in the Co-operative Sector] it is expedient to consolidate, amend and unify the law relating to Co-operative societies in the State;] BE it enacted in the Nineteenth Year of the Republic of India as follows:- 1 Substituted by Act 1 of 2000 2 substituted & 2a inserted by Act 7 of 2010 file:///home/user/Desktop/share/B/2022/B1/..%2FAmendments%2FAmendment%201-%202000.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FAmendments%2FAmendment%207%20-%202010.pdf CHAPTER I Preliminary 1.Short title, extent and commencement.- (1)This Act may be called the Kerala Co-operative Societies Act, 1969. (2)It extends to the whole of the State of Kerala. (3)It shall come into force on such date as the Government may, by notification in the Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. 2. Definitions.- In this Act, unless the context otherwise requires— (a) “apex society” means a society having the whole of the State as its area of operation and having as its members only other societies with similar objects and declared as such by the Registrar; 4[(aa)“assisted society” means a co-operative society which has received the Government assistance in the form of share capital, loan, grant or any other financial assistance or any guarantee by the Government or from Boards constituted by the Government for repayment of loan, interest or deposits;] 4a [(ab)“auditing of accounts of Co-operative Societies” means a close examination of financial transactions, overdue debts, if any, maintenance of books of accounts, documents and other records of a business, preparation of audit report and includes an inquiry into the affairs of the society and subsidiary institutions in order to ascertain the correctness of accounts and the extent to which its activities were useful in promoting the economic welfare of the members in accordance with the co-operative principles;] (b) “bye-laws” means the registered bye-laws of a co-operative society for the time being in force; (c) “circle co-operative union” means a circle co-operative union constituted under section 88; 12[(d) “central society” means a society having jurisdiction over one or more Revenue Districts but not the whole of the State as its area of operation, and having as its members only other societies and declared as such by the Registrar or the Government;] 4b[(da) “chief executive” means any employee of a co-operative society by whatever designation called and includes an officer of the State Government or an employee of any other institution or co-operative society, who discharges the functions of a chief executive under the Act, the Rules or the Bye-laws;] (e)“committee” means the governing body of a co-operative society by whatever name called, to which the management of the affairs of the society is entrusted; 9[(ea) “ Co-operative Arbitration Court” means a court constituted under section 70A ;] 9[(eb) “Consortium Lending Scheme” means the Consortium Lending Scheme framed under section 57C;] 9[(ec) “Co-operative Development and Welfare Fund” means the Co- operative Development and Welfare Fund established under section 57A;] 6[(ecc) “Co-operative Ombudsman” means the person or persons appointed under sub-section (2) of section 69 A;] 4c[(eccc) “co-operative principles” means the co-operative principles listed in Schedule II appended to this Act;] 9[(ed) “Co-operative Service Examination Board” means the Co- operative Service Examination Board constituted under section 80B;] (f)“co-operative society” or “society” means a co-operative society registered or deemed to be registered under this Act; (g)“co-operative society with limited liability” means a society in which the liability of its members for the debts of the society in the event of its being wound up is limited by its bye-laws- (i)to the amount, if any, unpaid on the shares respectively held by them; or (ii)to such amount as they may, respectively, undertake to contribute to the assets of the society; (h)“co-operative society with unlimited liability” means a society, the members of which are, in the event of its being wound up, jointly and severally liable for and in respect of all its obligations and to contribute to any deficit in the assets of the society; 9a[(ha) “Deposit Guarantee Scheme” means the Deposit Guarantee Scheme framed under section 57 B;] 6a[9a[(hb) “Director of Co-operative Audit” means the Director of Co- operative Audit appointed under sub-section (1) of section 63 and any officer to whom all or any of the powers of the Director of Co-operative Audit may be delegated by the Government by general or special order under sub-section (3) of section 63 ;]] (i)“dispute” means any matter touching the business, constitution, establishments or management of a society capable of being the subject of litigation and includes a claim in respect of any sum payable to or by a society, whether such claim be admitted or not; 13b[3[3a[5[7[8[9b[10[“ (ia) District Co-operative Bank” means a Central Society having jurisdiction over one revenue district and having as its members Primary Agricultural Credit Societies, Urban Co-operative Banks and the principal object of which is to raise funds to be lent to its members, including nominal or associate members, which existed under this Act, immediately before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2019 and which has ceased to exist after the commencement of the said Amendment Act.”]]]]]]] 9b[(ib) “Federal Co-operative Society” means a society having more than one district as its area of operation and having 6b[the Government,] individuals and other co-operative societies as its members;] (j)“financing bank” means a co-operative society having as its members only other co-operative societies and the main object of which is to raise money and lend the same to its members; (k)“general body meeting” means a meeting of the members who are entitled to vote in the affairs of the society; 13b[ (ka) “Kerala State Co-operative Bank “ means an apex society having Primary Agricultural Credit Societies and Urban Co-operative Banks as its members including nominal or associate members of the District Co- operative Banks who shall continue as nominal or associate members of the Kerala State Co-operative Bank.”] (l)“member” means a person joining in the application for the registration of a co-operative society or a person admitted to membership after such registration in accordance with this Act, the rules and the bye-laws, and includes a nominal or associate member; 4d[6c[(la)“miscellaneous societies” means such societies, as may be prescribed, and which accept deposits from their members only and no deposits shall be accepted from nominal or associate members, and shall undertake business activities for the welfare of its members as per the bye- laws and shall issue loans only to members: Provided that no agricultural loans or schematic loans shall be issued to the members except the loans for welfare activities;]] (m)“nominal or associate member” means a member who possesses only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in the bye-laws; (n)“officer” means the president, vice-president, chairman, vice chairman, secretary, manager, member of committee or treasurer and includes a liquidator, administrator and any other person empowered under the rules or the bye-laws to give directions in regard to the business of a co- operative society; (o)“prescribed” means prescribed by rules made under this Act; 4e[(oa) “prescribed period” means the period of limitation specified in Schedule III appended to this Act;] 4f[6d[9c[13[(oaa) “Primary Agricultural Credit Society” means a Service Co- operative Society, a Service Co-operative Bank, a Farmers’ Service Co- operative Bank and a Rural Bank the principal object of which is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate of interest on such loans and advances shall be the rate fixed by the Registrar and having its area of operation confined to a Village, Panchayat or a Municipality: Provided that the restriction regarding the area of operation shall not apply to societies or banks in existence at the commencement of the Kerala Co- operative Societies(Amendment) Act, 1999(1 of 2000): Provided further that if the above principal object is not fulfilled, such societies shall lose all characteristic of a Primary Agricultural Credit Society as specified in the Act, Rules and Bye-laws except the existing staff strength;]]]] 10a[13[(ob) “primary credit society” means a society other than an apex or central society which has as its principal object the raising of funds to be lent to its members;]] 9d[(oc) “Primary Co-operative Agricultural and Rural Development Bank” means a society having its area of operation confined to a taluk and the principal object of which is to provide for long term credit for agricultural and rural development activities: 5b[Provided that no Primary Co-operative Agricultural and Rural Development Bank shall be registered without the bifurcation of assets and liabilities of the existing societies having the area of operation in more than one taluk and the societies shall restrict their operation in the area of the respective society on such bifurcation;]] 7a[(od) “Primary Co-operative Society” means a society having jurisdiction over a revenue district as a whole or over any specified area within such revenue district and having individual or individuals and other Co-operative Societies as its members;] 7c[(oe) “Primary Tourism Co-operative Society” means a society having its area of operation confined to a taluk and the principal object of which is to promote, organize and assist tourism activities: Provided that those societies in existence on the 5th day of July, 2018 having more than one taluk as its area of operation shall restrict such area of operation to the taluk where the headquarters of the society is situated, within a period of one year from that date.” (p)“Registrar” means the Registrar of Co-operative Societies appointed under sub-section (1) of section 3 and includes any person on whom all or any of the powers of the Registrar under this Act are conferred; (q)“rules” means the rules made under this Act; 13a[(qa)“Scheduled Castes” means the Scheduled Castes in relation to the State of Kerala as specified in the Constitution (Scheduled Castes) Order, 1950; (qb) “Scheduled Tribes” means the Scheduled Tribes in relation to the State of Kerala as specified in the Constitution (Scheduled Tribes) Order, 1950;] 5a[(qc) “Special Officer” means an officer, not below the rank of an Assistant Registrar, appointed by the Registrar to take into custody the assets and liabilities of the society which secured registration without bifurcating the area of operation of an existing society and to register new societies and to constitute committees as provided in section 28 of the Act;] (r) “State” means the State of Kerala; 9e[(ra) “State Co-operative Agricultural and Rural Development Bank” means an apex society having only Primary Co- operative Agricultural and Rural Development Banks as its members and functioning in accordance with the provisions contained in the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (20 of 1984); 13b[(rb)] (rc) “State Co-operative Election Commission” means the State Co- operative Election Commission constituted under section 28B;] (s) “State Co-operative Union” means the State Co-operative Union established under section 89; 13b[(sa) “Transferee Bank” the Kerala State Co-operative Bank; (sb) ‘Transferor Bank’ means the District Co-operative Bank as defined under clause (ia) of the Section;] (t)“Tribunal” means the Tribunal constituted under section 81; 7b[9f[10b[(ta) “Urban Co-operative Bank” means a society registered under this Act having its area of operation in the Urban areas and which undertakes banking business with the license obtained from Reserve Bank of India;]]] 6e[(taa) “Urban Co-operative Societies” means a co-operative society the principal object of which is to undertake non-agricultural credit activities and to raise funds to be lent to its members with its area of operation confined to a municipality or a corporation: Provided that the restriction regarding the area of operation shall not be applicable to the existing urban co-operative societies;] 9f[(tb)“Vigilance Officer” means the Vigilance Officer appointed under section 68A;] (u)“year” means the period commencing on the 11[first day of April of any year and ending with 31st of March] of the succeeding year or in the case of any registered society or class of registered societies, the accounts of which are made up to any other date with the previous sanction of the Registrar, the year ending with such date. 3 substituted by Act 14 of 2017 3a substituted by Act 24 of 2014 4, 4a, 4b , 4c , 4e inserted, 4d substituted & 4f Clause ‘oa’ renumbered as ‘oaa’ by Act 8 of 2013 5, 5b substituted & 5a inserted by Act 13 of 2012 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202012.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202014.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FAmendments%2FKCSAmendAct17.pdf 6, 6b, 6c, 6e inserted, 6a substituted & 6d substituted as ‘oa’ by Act 7 of 2010 7, 7b substituted & 7a inserted by Act 9 of 2009 7c inserted by Act 39 of 2018 8 substituted by Act 3 of 2002 9 clause ‘ee’ inserted by Act 15 of 1997 was relettered as clause ‘ea’ and clause ‘eb’, ‘ec’ and ‘ed’ inserted by Act 1 of 2000 9a clause ‘ha’ and ‘hb’ inserted by Act 1 of 2000 9b clause (ii) re lettered as (ia) and after clause (ia) so re lettered ‘ib’ is inserted by Act 1 of 2000 9c substituted as ‘oa’ by Act 1 of 2000 9d, 9e inserted by Act 1 of 2000 9f for clause ‘tt’, clause ‘ta’ and ‘tb’ are substituted by Act 1 of 2000 10 inserted as ‘ii’ by Act 15 of 1997 10a clause ‘oa’ re lettered as ‘ob’ and a clause ‘oa’ inserted by Act 15 of 1997 10b clause ‘tt’ inserted by Act 15 of 1997 11 substituted by Act 9 of 1997 12 substituted by Act 19 of 1987 13 inserted as ‘oa’ & 13a inserted by Act 29 of 1986 13b ‘ia’ substituted, clause ‘ka’, ‘sa’, ‘sb’ inserted by Act 1 of 2019 13b. clause ‘rb’ omitted inserted by Act 1 of 2000 and omitted by Act 1 of 2019. (rb) “State Co- operative Banks” means an apex society having only District Co-operative Banks as its members; file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%201986.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%201987.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%209-1997.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%201997.PDF file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%201997.PDF file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%201997.PDF file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202000%20English.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202002.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202009.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%2FAmendment%202010.pdf 3. Registrar.- (1)The Government may appoint a person to be the Registrar of Co-operative Societies for the State. (2)The Government may by general or special order confer on any person all or any of the powers of the Registrar under this Act. 4.Societies which may be registered.- Subject to the provisions of this Act, a co-operative society which has as its object the promotion of the economic interests of its members or of the interests of the public in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act: 14[Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which have an adverse effect on development of co-operative movement.] 5.Registration with limited liability only.-(1)A co-operative society shall be registered only with limited liability: Provided that this sub-section will not affect the rights and liabilities of societies with unlimited liability which are in existence at the time of commencement of this Act. (2)The word ‘limited’ or its equivalent in any Indian language shall be the last word in the name of a society registered under this Act with limited liability. 14. inserted by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 6. Application for registration of co- operative societies.- (1)An application for the registration of a co-operative society shall be made to the Registrar in such form as may be prescribed and the applicant shall furnish to him such information about the society as he may require. (2)Every such application shall conform to the following requirements, namely:- (a) the application shall be accompanied by three copies of the proposed bye-laws of the society; (b) where all the applicants are individuals, the number of applicants shall not be less than twenty-five, each of such persons being a member of a different family. Explanation.-For the purposes of this clause, the expression “member of a family” means wife, husband, father, mother, grand- father, grand- mother, step-father, step-mother, son, daughter, step- son, step-daughter, grand-son, grand-daughter, brother; sister, half- brother, half-sister and wife of brother or half brother; (c) the application shall be signed by every one of the applicants who is an individual 15 [as specified under clause (a) of sub-section (1) of section 16] and by a person duly authorized on behalf of the Government or any society or other body of persons which is an applicant. 15. inserted by Act 7 of 2010 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf 7.Registration.- (1)If the Registrar is satisfied— (a)that the application complies with the provisions of this Act and the rules; (b)that the objects of the proposed society are in accordance with section 4; (c)that the area of operation of the proposed society and the area of operation of another society of similar type do not overlap; (d)that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and (e)that the proposed society complies with the requirements of sound business, he may register the society and its bye-laws 16[within a period of ninety days from the date of receipt of the application.] (2)Where the Registrar refuses to register a society, he shall communicate the order of refusal together with the reasons therefore within seven days of such order to such of the applicants as may be prescribed. (3)An application for registration of a society shall be disposed of by the Registrar 16a[within ninety days] from the date of receipt of the application. 16b[(4)Where an application for registration of a society is not disposed of within the time specified in sub-section (3), the applicant may make a representation,-- (a)before the Registrar, if the application for registration is made to a person on whom the powers of the Registrar is conferred under sub- section (2) of section 3; or (b)before the Government, if the application for registration is made before Registrar, and the Registrar or the Government, as the case may be, shall, within sixty days from the date of receipt of such representation, issue directions to the authority concerned to take appropriate decision on the application for registration and the authority concerned shall comply with such directions.] 16, 16b inserted & 16a Substituted by Act 1 of 2000 8.Registration certificate.- 17[(1)Where a co- operative society is registered under this Act, the Registrar shall issue a certificate of registration signed and sealed by him, which shall be conclusive evidence that the said society is duly registered under this Act.] 17[(2)Notwithstanding anything contained in sub-section (1), where the Registrar is satisfied that the original registration certificate is irrecoverably lost and a duplicate certificate could not be issued as the files or records regarding the registration of the co-operative society was lost, after registration, the Registrar shall issue a certificate stating the registration number and date of registration of a co-operative society, on the basis of the details available in the audit certificate and the records available with the Registrar, signed and sealed by him, which shall be conclusive proof that the said society is duly registered and it shall be treated as a certificate of registration.] 17 Section 8 is numbered as sub section (1) of that section and new sub section (2) is inserted after sub section (1) by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 18[8A. Affiliation to apex Society.-(1) Every Primary Co-operative Society or Central Co-operative Society may, within such time and in such manner, as may be prescribed, apply for affiliation to the concerned apex society or Central Society, as the case may be. (2)Where the apex society or central society does not, within sixty days from the date of receipt of the application for affiliation, determine whether such affiliation should be given or not, such affiliation shall be deemed to have been given to the applicant society from the date on which the said period of sixty days expires. (3)When the apex or central society, as the case may be, rejects an application for affiliation under sub-section (1), the aggrieved society may file an appeal before the Registrar against such rejection within thirty days from the date of receipt of the order of rejection and the Registrar shall dispose of the appeal within sixty days from the date of appeal.] 18 inserted by Act 1 of 2000 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf 9.Co-operative societies to be bodies corporate.- The registration of a society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal, and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted: 19a[Provided that the Government and the Registrar shall have power to regulate 19[xxx] the working of a society for the economic and social betterment of its members and the general public.] 20[9A. Publication of name by a co-operative society.- Every co-operative society,- (a) shall paint or affix its name, register number and the address of its registered office and keep the same painted or affixed in conspicuous position, in letters easily legible to members in vernacular language and in English language, on the outside of every office or place in which its business is carried on; (b) shall have its name engraved in legible characters on its seal with common emblem; and (c) shall have its name and address of its registered office, mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundis, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the co- operative society.] 19 Omitted & 20 inserted by Act 8 of 2013 19a inserted by Act 7 of 2010 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 10.Change of name of society.- (1)A society may, by an amendment of its bye-laws, change its name. (2)Where a society changes its name, the Registrar shall enter the new name in the register of co-operative societies in the place of the former name and shall amend the certificate of registration accordingly. (3)The change of name of a society shall not affect any rights or obligations of the society or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name. 11.Change of liability.-(1)Subject to the provisions of this Act and the rules, a society may, by an amendment of its bye-laws, change the form or extent of its liability. (2)When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding the provisions of section 24 or any bye-law or contract to the contrary, any member or creditor shall, during a period of two months from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (3)Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have given his assent to the change. (4)An amendment of the bye-laws of a society changing the form or extent of its liability shall not be registered or take effect until either— (a)the assent thereto of all members and creditors has been given or deemed to have been given; or (b)all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full. 12.Amendment of bye-law of society.-(1)No amendment of any bye-law of a society shall be valid unless such amendment has been registered under this Act. (2)The provisions of section 7 specifying the conditions to be satisfied before registration of the bye-laws of a society by the Registrar shall mutatis mutandis, apply also to the registration of amendments to bye-laws: Provided that the Registrar shall before registering an amendment of any bye-law consult- (a)the State Co-operative Union if the bye-laws to be amended are that of an apex society or a central society; or (b)the circle co-operative union if the bye-laws that are to be amended are that of any other society; and (c)the financing bank if the society is indebted to the financing bank. (3)The Registrar shall forward to the society a copy of the registered amendment together with a certificate of registration signed and sealed by him, and such certificate shall be conclusive evidence that the amendment has been duly registered. (4)Where the Registrar refuses to register an amendment of the bye-laws of a society, he shall communicate the order of refusal, together with the reasons thereof, within seven days of the order to the society. 21a[ (4A) An application to register an amendment of the bye-laws of a society shall be disposed of by the Registrar within ninety days from the date of receipt of the same. (4B) Where an application to register an amendment of the bye-laws of a society is not disposed of within the time specified in sub-section (4A), the society may make a representation,- (a)before the Registrar of Co-operative Societies, if the application to register the amendment of the bye-laws is made to a person on whom the powers of the Registrar is conferred under sub-section (2) of section 3; or (b)before the Government if the application for registration of the amendment of the bye-laws is made before the Registrar, and the Registrar or the Government, as the case may be, shall within sixty days from the date of receipt of such representation, issue directions to the authority concerned, to dispose of the same.] 21[(5)xxxx (6)xxxx (7)xxxx] 21 Omitted by Act 8 of 2013 21a inserted by Act 1 of 2000 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 13.When amendments of bye-laws come into force.-An amendment of the bye-laws of a society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered. 22[13A. Subject matter of Bye-laws.- Every co-operative society shall make its bye-laws consistent with the provisions of this Act and rules and no provision in the bye-laws of a co-operative society shall be contrary to the provisions of the Act and the Rules.] 22 inserted by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 14.Amalgamation, transfer of assets and liabilities and division of societies.-(1)A society may, 23[xxx] by a resolution passed by a two-third majority of the members present and voting at a general body meeting of the society,- (a)transfer its assets and liabilities in whole or in part to any other society; (b)divide itself into two or more societies (2)Any two or more societies may, 23a[xxx] by a resolution passed by a two third majority of the members present and voting at a general body meeting of each such society, amalgamate themselves and form a new society. (3)The resolution of a society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be. (4)When a society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding the provisions of section 24 or any bye-law or contract to the contrary, any member or creditor shall, within a period of two months from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (5)Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have given his assent to the proposals contained in the resolution. (6)A resolution passed by a society under this section shall not take effect until either— (a)the assent thereto of all the members and creditors has been given or deemed to have been given; or (b)all claims of members and creditors who exercise the option referred to in sub-section (4) within the period specified therein, have been met in full. (7)Where a resolution passed by a society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance. 23b[(8)xxx (9)xxx] 23, 23a, 23b omitted by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 24a[14A.Provisions regarding transfer of assets and liabilities of District Co-operative Banks to the Kerala State Co-operative Bank. – (1) Notwithstanding anything contained in this Act or in any other law for time being in force, the District Co-operative Banks may by a resolution passed by a simple majority of the members present and voting at the special general body meeting of the members, transfer its assets and liabilities in whole to the Kerala State Co-operative Bank and such transfer shall take effect from the date on which the Registrar approves the resolution. (2) The resolution shall contain particulars of the assets and liabilities to be transferred. (3) When a District Co-operative Bank has passed any such resolution, under sub-section (1), it shall give notice thereof in a writing in all its members within 7 days from the date of resolution, notwithstanding anything contained in the provisions of section 24 or any Rules or any byelaws and sub-rules or any contract to the contrary, any member shall, within a period of 30 days from the date of issuance of the said notice, have the option of withdrawing his shares, deposits or closing loans, as the case may be: Provided that any other debtor or creditor shall be informed of such a resolution through publication of notice in two leading daily newspapers in vernacular language within 7 days from the date of resolution that they have the option to withdraw deposit, loans, as the case may be, within a period of thirty days from the date of publication of notice. (4) Any member or creditor or debtor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have given his assent to the proposals contained in the resolution. (5) On and from the date of approval of transfer of assets and liabilities of each District Co-operative Bank by the Registrar, all the assets and liabilities as it stood immediately before the transfer shall without any further Act, instrument or deed, stand transferred to and vested in the Kerala State Co-operative Bank. (6) On and from the date of approval of transfer of assets and liabilities of each of the District Co-operative Bank by the Registrar, all pending suits or legal proceedings by or against such Banks shall be continued by the Kerala State Co-operative Bank. 24a[24[14AA.Promotion of subsidiary institutions for the economic welfare of members.-(1)A co-operative society may by a resolution passed at general body meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects with the prior approval of Registrar. (2)Any subsidiary institution promoted under sub-section (1) shall exist only as long as the general body of the co-operative society deems its existence necessary: Provided that a co-operative society, while promoting such a subsidiary institution shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects to such subsidiary institutions. Explanation: For the purpose of this section,- (a)An institution shall be deemed to be a subsidiary institution where the co-operative society,- (i)controls the management or board of directors or members of governing body of such institutions; or (ii)holds more than half in nominal value of equity shares of such institutions. (b)a subsidiary institution shall not include a partnership firm. (3)The annual reports and audited accounts of any such subsidiary institution shall be placed each year before general body meeting of the promoting co-operative society. 14B. Partnership of Co-operative Societies.- (1)Any two or more Co-operative Societies with prior permission of the Registrar, may by resolution passed by the majority of the members present and voting at a general body meeting of each of such co-operative societies, may enter into partnership to carry out any one or more specific business. Written notice of the general body meeting shall be given to each member before fifteen clear days of such meeting. (2)The partnership shall be in the interest of the members of the co- operative society or the co-operative societies or shall be in the public interest or shall be in the interest of the co-operative movement in general and it does not mean to be a partnership firm registered under Indian Partnership Act, 1932 (Central Act 9 of 1932)] 24 inserted by Act 8 of 2013 24a existing Section ‘14A’ renumbered as ‘14AA’ and new section ‘14A’ inserted by Act 1 of 2019 15.Cancellation of registration certificates of societies in certain cases.- (1)Where the whole of the assets and liabilities of a society are transferred to another society in accordance with the provisions of section 14, the registration of the first mentioned society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (2)Where two or more societies are amalgamated into a new society in accordance with the provisions of section 14 the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each amalgamating society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (3)Where a society is divided into two or more societies in accordance with the provisions of section 14, 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. 16.Persons who may become members.-(1)No person shall be admitted as a member of a society except the following, namely:- (a)an individual— (i)who has attained the age of eighteen years: Provided that this sub-clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college; (ii)who is not of unsound mind; (iii)who is a resident within, or is in occupation of land in, the area of operation of the society; (b)any other society; 25[(ba) a local self government;] (c)the Government; and (d)any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order: Provided that in a society formed for the promotion of the economic interests of members through a specified activity no person other than one who is likely to be benefited directly by such activity may be admitted as a member of such society unless such admission is permitted specifically by rules: Provided further that where a society is formed exclusively for the benefit of persons engaged in any particular industry, no person who is not an actual worker in the industry shall be admitted in excess of such percentage of the total membership of the society as may be prescribed: Provided also that the Coffee Board, the Rubber Board and any other statutory or non-statutory Board, Committee or Corporation constituted for the purpose of the development of an industry, may be admitted as a member of a society engaged in marketing and processing of the products of the industry concerned and formed for the workers and growers of such industry, so however that no such Board, Committee or Corporation shall be admitted as a member of a co-operative credit society. 25a[ Provided also that in the case of hospital co-operative societies, industrial and commercial establishments and other organizations registered under any other law may be admitted as members. Explanation:-For the purpose of this sub-section ‘hospital co- operative society’ means a society, the main object of which is to run a hospital or to conduct medical or paramedical courses or to run medical shops;] (2)Membership in any society other than a society formed for the benefit of the Scheduled Castes or the Scheduled Tribes shall not be refused merely on the ground that a person belongs or does not belong to a particular religion, race, community, caste, sect or denomination. A decision on an application for membership shall be taken within two months from the date of receipt of the application. 25b[(2A)Where an application for membership in a society is not disposed of within the time specified in sub-section (2), the Registrar shall be bound, on the written request of the applicant, to determine whether such membership shall be given or not; (2B) Where the Registrar does not, within one month of the date of receipt of such written request, determine whether such membership should be given or not, the applicant may make a representation,- (a)before the Registrar if the request referred to in sub-section (2A) is made to a person on whom, the powers of the Registrar is conferred under sub-section (2) of section 3; or (b)before the Government, if the request referred to in sub- section (2A) is made to the Registrar, and the Registrar or the Government, as the case may be, shall, within thirty days from the date of receipt of such representation determine whether such membership should be given or not.] (3) Where a person is refused admission as a member in a society, the decision refusing admission together with the reasons therefor shall be communicated by the society to that person within a period of fifteen days from the date of the decision. 27[26[16A. xxx] 25, 25a, 25b inserted by Act 1 of 2000 26 inserted by Act 8 of 2013 27 omitted by Act 14 of 2017 17.Expulsion of members.- (1)Any member of a society, who has acted adversely to the interests of the society,28[or has failed to comply with the provisions of the bye- laws] may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of members present and voting at the meeting. (2)No member shall be expelled under sub-section (1) without being given an opportunity of making his representation. (3)A copy of the resolution expelling a member shall be communicated to the member within a period of fifteen days from the date of passing of the resolution. 28 [(4)The expulsion from membership may involve forfeiture of shares held by the member. file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2014-%202017.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf (5)No member of the 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.] 28 inserted by Act 8 of 2013 18.Nominal or associate members.-(1)A society may admit any individual as a nominal or associate member: 29d[29c[29b[29[xxx]]]] 29d[29c[29b[29[xxx]]]] 29a[Provided 29c[29b[also]] that a Hospital Co-operative Society may admit any other society as nominal or associate member. Explanation.-The term ‘hospital co-operative society’ shall have the same meaning as in the Explanation to the fourth proviso to sub-section (1) of section 16.] 29g[xxx] 29g[xxx] (2)A nominal or associate member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to be elected to the committee of a society. (3)Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of the society. 29 added by Act 15 of 1997 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2014-%202017.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 29a inserted by Act 1 of 2000 29b omitted by Act 3 of 2002 29c inserted by Act 9 of 2009 29d omitted by Act 13 of 2012 29e inserted by Act 24 of 2014 29f inserted by Act 14 of 2017 29g omitted by Act 1/2019 19.Member not to exercise rights till due payment made.-No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be prescribed by the rules or the bye-laws. 30a[30[19A. xxx] 19B. Right of a member to get information.-Every society shall keep open to inspection for its members, free of charge, at all reasonable times, at the registered address of the society,- (a)an up-to-date copy of the Kerala Co-operative Societies Act,1969; (b)an up-to-date copy of the Kerala Co-operative Societies Rules,1969; (c) an up-to-date copy of the bye-laws of the society; (d)a register of members; (e)the latest audited balance sheet of the society; and (f)the accounts of the society in so far as they relate to his or her transaction.] 30 inserted by Act 8 of 2013 30a Omitted by Act 14 of 2017 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2014-%202017.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%203-%202002.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%209%20-%202009.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2013%20-%20%202012.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2024%20-%202014.pdf 31a[20.Vote of members.-Notwithstanding anything contained in any other provision of this Act or any other law, 31b[every member] of a society shall have one vote in the affairs of the society: Provided that,- (a)a member admitted within sixty days immediately prior to the date of election shall not have the right to vote; (b)a nominal or associate member shall not have the right to vote; 31[(bb) xxx] (c)Where the Government is a member of a society, each person nominated by the Government on the committee of the society shall have one vote each including the right to vote for election of office bearers of the society; (d)an ex-officio member of the committee of a society shall have one vote but shall not have right to vote for election of office bearers of the society; (e)in the case of an equality of votes, the Chairman shall have and exercise a second or casting vote. 31c[xxx]] 21.Manner of exercising vote.-(1)Every member of a society shall exercise his vote in person. (2)Notwithstanding anything contained in sub-section (1), a society or corporation or a statutory or non-statutory Board, Committee or other body of persons which is a member of another society may, subject to any rules made under this Act, appoint one of its members to vote on its behalf in the affairs of that other society. 31 inserted by Act 15 of 1997 31a substituted by Act 1 of 2000 31b substituted & 31c omitted by Act 3 of 2002 31c. Inserted by Act 1 of 2000 and omitted by Act 3 of 2002. Provided further that the procedure and manner in which an active member may be identified shall be such as may be prescribed. Explanation-For the purpose of this section, active member means,- (i) in the case of a credit society, a member who has made a deposit or has become a borrower or surety or has attended any general body meeting of the society during the period of five years immediately preceding the date of resolution of the committee for the conduct of election; (ii) in the case of any other society, a member who has involved in all or any of the objects of the society specified in the bye-laws thereof during the period of five years immediately preceding the date of resolution of the committee for the conduct of election.” file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%203-%202002.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2015-1997.pdf 32[22.Restriction on holding shares.-In any society, no member other than the Government, any statutory or non- statutory Board, Committee or Corporation approved by the Government in this behalf or any other society, shall hold more than such portion of the total share capital of the society, not exceeding one fifth thereof, as may be prescribed: Provided that the Government may, by notification in the Gazette, specify in respect of any class of societies a higher maximum than one fifth of the share capital.] 23.Restrictions on transfer of shares or interest.-(1)The transfer of a share or interest of a member in the capital of a society shall be subject to such conditions and restrictions as to the maximum holdings as are specified in section 22. (2)No transfer by a member of his share or interest in a society shall be valid unless- (a)the member has held such share or interest for not less than three years; and (b) the transfer is approved by the committee of the society 24.Restriction on withdrawal of shares.- Subject to the other provisions of this Act, no withdrawal by a member of his share in a society shall be valid unless- (a)the member has held such share for not less than three years; and (b) such withdrawal is in accordance with the bye-laws of the society. 32 substituted by Act 1 of 2000 25.Transfer of interest on death of members.-(1)On the death of a member of a society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or the bye-laws or, if no person has been so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member: Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society: Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a society. (2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules or the bye-laws and the society shall pay the amount to the nominee, heir or legal representative, as the case may be, on receipt of such requisition. (3)A society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be. file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf (4)All transfers and payments made by a 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. 26.Liability of past member or of 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 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) Where a society is ordered to be wound up under section 71, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceeding 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 his ceasing to be a member, or death, as the case may be. CHAPTER IV Management of Co-operative Societies 27.Final authority in a society.-(1) Subject to the provisions of this Act, the rules and the bye-laws, the final authority of a society shall vest in the general body of its members: Provided that nothing contained in this sub-section shall affect the exercise by the committee or any officer of a society of any power conferred on such committee or such officer by this Act or the rules or the bye-laws. (2) Notwithstanding anything contained in sub-section (1), where the area of operation of a society is not less than such area as may be prescribed, or where the society consists of not less than such number of members as may be prescribed, the society may provide by an amendment of its bye- laws for the constitution of a smaller body consisting of such number of the members of the society as may be prescribed, elected in accordance with the rules (hereinafter referred to as the representative general body) to exercise all or any of the powers of the general body as may be specified in the bye-laws except the power to conduct election of members of the committee, and any reference, by whatever form of words, in this Act to the general body or a meeting thereof shall, where a representative general body has been constituted under this sub- section, have effect in respect of the powers exercisable by the representative general body as if such reference were a reference to the representative general body or a meeting thereof, as the case may be: Provided that the representative general body shall not alter any provision in the bye-laws relating to its constitution or powers. (3) The exercise of any power by the representative general body shall be subject to such restrictions and conditions as may be specified in the rules or the bye-laws. ]28.Appointment of committee.-(1)The general body of a society shall 33b[constitute a committee, for a period 33k[of] 33f[five years]] in accordance with the bye-laws and entrust the management of the affairs of the society to such committee; 33l[Explanation: Notwithstanding anything contained in the bye- laws, for the purpose of calculating the term of committee, five years from the date of election will be taken to be the term of the committee.] Provided that, in the case of a society registered after the commencement of this Act, the persons who have signed the application to register the society may appoint a committee to conduct the affairs of the society for a period of three months from the date of registration or for such further period as the Registrar may consider necessary, but the committee appointed under this proviso shall cease to function as soon as a committee has been constituted in accordance with the bye-laws: 33[Provided further that where the bye-laws so provide, the Government or the Registrar may nominate all or any of the members of the first committee, including the president or chairman, for a period not exceeding 33b[twelve months.]] 33g[33f[33b[xxx]]] 33n[33l[Provided also that the election to the committees of the societies shall not be conducted on ward basis irrespective of any provisions to the contrary contained in the bye-laws of any society.] 33h [33f[33c[(1A) Notwithstanding anything contained in the bye-laws of a Society, the number of the members of the committee shall not be less than seven and shall not exceed 33k[fifteen] in the case of Primary Co-operative Societies and 33k[twenty one] in the case of all other types of co-operative societies.] 33d[xxx]] 33i[Provided that in the case of committees of Primary Co-operative Societies constituted prior to the commencement of the Kerala Co-operative Societies (Amendment) Act, 2010 the maximum number of members shall be fifteen:] 33l[Provided further that this section shall not be applicable to the committees of Primary Co-operative Societies and all other types of Co- operative Societies constituted prior to the commencement of the Kerala Co- operative Societies (Amendment) Act,2013: Provided also that this section shall not be applicable to the societies where election notification was issued and election procedure was started on the basis of the existing provisions of the Act, prior to the commencement of the Kerala Co-operative Societies (Amendment) Act,2013;] (1B) Notwithstanding anything contained in the bye-laws of any Federal Co-operative Society, the number of individuals in the society and the Committee thereof shall not exceed twenty five percent of the total number of members in the society or in the Committee, as the case may be, 33m[subject to the limit specified in 33e[sub-section (1A) xxx] of section 28;]]]] 33i[(1C) Notwithstanding anything contained in the bye-laws of a Primary Credit Society or an Urban Co-operative Bank, one seat in the committee of each such society shall be reserved for the members having a deposit of ten thousand rupees and above.] 33j[(1D) Notwithstanding anything contained in this Act or in any Judgment, decree or order of any court, the registration of any Primary Co- operative Agricultural and Rural Development Bank without the bifurcation of area, assets and liabilities of the society and the constitution of the committee pursuant to any such a registration without such bifurcation shall be void and the Registrar shall appoint Special Officer for each of such societies which were registered without bifurcation of area, assets and liabilities. 33p[(1DA) Notwithstanding any thing contained in this Act or in any judgment, decree or order of any court the registration of any Primary Tourism Co- operative Society without bifurcation of area, assets and liabilities of the society and the constitution of the committee pursuant to any such registration without such bifurcation shall be void and the registration appoint a special officer for each of such societies.] (1E)The Special Officer so appointed shall ,- (i)take into custody or bring under his control, the property, effects and actionable claims to which the erstwhile society is, or appears to be entitled to and shall take steps as may be necessary or expedient to prevent loss or deterioration of or damage to, such property, effects and claims; (ii)take such steps for the bifurcation of area, assets and liabilities of the society and also shall take steps to register new society with the members of the society so bifurcated and constitute the committee; (iii)such bifurcation shall be completed within a period of one year from the date of commencement of the Kerala Co-operative Societies (Amendment) Ordinance, 2012 (9 of 2012). 33q[(IF) xxxx] 33k[(1G) Notwithstanding anything contained in the bye-laws of a society, the committee in office shall co-opt two persons or representatives who are having experience in the field of banking, management, finance or specialization in any other field, relating to the objects and activities undertaken by the Co-operative society as members of the Board of such society: Provided that number of such co-opted members shall not exceed two in addition to maximum limit specified in sub-section (1A): Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member and is not eligible to be elected as office bearers of the board; Provided also that such co-opted members of a co-operative society shall also be members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in sub- section (1A).] 33q[33n[(IH)xxxx]] 33o[(1I)xxxx]] 33l[(1J) Notwithstanding anything contained in the bye-laws of the society, casual vacancy of an elected member of the committee shall be filled up by nomination by the Committee out of the same class of members, if the term of office of the board is less than half of its original term.] (2) Notwithstanding anything contained in any law for the time being in force, a person shall be disqualified for appointment as, or for being, a member of a committee— (a)if he is a member of the committee of 33h[more than one society of the same type, or] (b)if he is a member of the committees of 33h[more than two societies of different types]: Provided that nothing contained in this sub-section shall be deemed to disqualify a person for election as, or for being, a delegate of a society. (3) Nothing contained in clause (a) of sub-section (2) shall be deemed to disqualify a member of the committee of a society for appointment as, or for being, a member of the committee of the apex or central society of the same type: Provided that no member of a committee shall be the president or chairman of more than one society of the same type. (4)The members of a committee may be paid honorarium, at such rates as may be prescribed. 33a[(5)The quorum for a meeting of a committee shall be such number of members just above fifty per cent of the total number of members of that committee.] 33p[(1K) Notwithstanding anything contained in this Act or Rules made thereunder or byelaws in a regional Milk Producers Union having jurisdiction over more than one revenue district, the members of the Committee representing each revenue district shall be elected by the member societies of that particular revenue district itself from among themselves.] 33 substituted 33a inserted by Act 19 of 1987 33b substituted 33c inserted by Act 5 of 1992 33d inserted 33e substituted by Act 16 of 1993 33f substituted by Act 1 of 2000 33g omitted 33h substituted 33i inserted by Act 7 of 2010 33j inserted by Act 13 of 2012 33k substituted 33l added 33m inserted by Act 8 of 2013 33n substituted 33o omitted by Act 14 of 2017 33p inserted by Act 39 of 2018 33q inserted by Act 13 of 2012, (1F), (1H) omitted by Act 1 of 2019. “(IF) Notwithstanding anything contained in the bye-laws of the District Co-operative Bank, two seats in the committee of each District Co-operative Bank shall be reserved for depositor member societies in the Bank. (1H) Notwithstanding anything contained in the bye-laws of the District Co-operative Bank at least one seat in respect of each taluk shall be reserved for the representatives of Primary Agricultural Credit Societies in the committee of the District co-operative Bank. 33q inserted by Act 13 of 2012, (1I) omitted by Act 14 of 2017. (1I) Notwithstanding anything contained in the bye-laws of the District Co-operative Bank, at least four seats in the committee of the District Co-operative Bank shall be reserved for other types of co-operative societies as members in the District co-operative Banks”. 34[28A .Reservation for women members and members belonging to Scheduled Castes or Scheduled Tribes in the committee.-34c[(1) Notwithstanding anything contained in this Act, the rules or the bye-laws, there shall be reserved 34a[in the committee of every society 34d[three of the total seats for woman members] and one seat for a member belonging to the Scheduled Castes or the Scheduled Tribes 34a[xxx]] (2)Nothing contained in sub-section (1) shall prevent the women members and members belonging to the Scheduled Castes or Scheduled Tribes from being elected to the non-reserved seats in the committee.] 34d[34c[34b[(3) Where there is no representation of women or members belonging to Scheduled Castes or Scheduled Tribes in the committee of a Society including those of the societies formed exclusively for the benefit of women and for persons belonging to Scheduled Castes or Scheduled Tribes, the Government or the Registrar shall nominate women and persons belonging to Scheduled Castes or Scheduled Tribes, to the elected committee from among the members of such societies.]] (4) A person nominated to the committee of a society or Bank shall have all the powers of a member elected to such committee and shall hold office during the pleasure of the Government or the Registrar, as the case may be.] 34 inserted by Act 29 of 1986 34a substituted 34b inserted by Act 5 of 1992 34c substituted by Act 1 of 2000 34d substituted by Act 7 of 2010 35[28AA. Reservation for persons with banking experience or professional qualification in the committees of Urban Co-operative Banks.-Notwithstanding anything contained in the bye- laws of any Urban Co-operative Bank, there shall be reserved not less than two seats in the committees of such banks for members who possess experience in banking or professional qualifications: Provided that this section shall not be applicable to the committees of Urban Co-operative Banks constituted prior to the commencement of the Kerala Co-Operative Societies (Amendment) Act, 2010. Explanation:- For the purpose of this section,- (i)“members who possess experience in banking” means members who are or were in paid service of a Commercial Bank, State Co- operative Bank, District Co-operative Bank, an Urban Co-operative Bank or a Service Co-operative Bank in the managerial cadre. (ii)“Professional qualifications” means membership in the Institute of Chartered Accountants of India or Masters Degree in Business Administration or Membership in the Institute of Cost and Works Accountants of India or Masters Degree in Commerce with experience in banking or experience in the inspection or audit of banks, including Co-operative Bank.] 35 inserted by Act 7 of 2010 36a[36[28AB.]Election and Removal of President, Vice- President etc.-(1)A committee constituted under sub-section (1) of section 28 shall elect from themselves a President, a Vice-President, a Treasurer or any other officer, by whatever name he is designated, in the manner as may be prescribed. (2)A committee shall remove from office the President, Vice- President or the Treasurer or any other officer of the committee if a motion expressing want of confidence in any or all of them is carried with the support of the majority of the members of such committee in accordance with the procedure as may be prescribed.]] 36 inserted as 28AA by Act 3 of 2002 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%203-%202002.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf 36a existing section 28AA renumbered as 28AB by Act 7 of 2010 37[28B. State Co-operative Election Commission.-37c[(1) Notwithstanding anything contained in this Act or in the rules, the Government shall by notification in the Gazette, constitute a State Co- operative Election Commission for the superintendence, directions and control of the preparation of electoral rolls and for the conduct of all elections to Co-operative Societies including election to the President/Vice-President 37b[and Representative General Body.]] 37d[37b[xxx]] 37c[(2)The State Co-operative Election Commission shall consist of not more than three members, one among them shall be the State Chief Co-operative Election Commissioner and others shall be Commissioners. The State Chief Co-operative Election Commissioner shall be an officer not file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf below the rank of Special Secretary to Government. The commissioners shall be persons, who are or have been Officers of the Department of Co-operation, not below the rank of Additional Registrar of Co-operative Societies. The appointment of State Chief Co-operative Election commissioner and the commissioners shall be for a period of five years from the date of assumption of office or sixty two years, whichever is earlier : Provided that in the case of officers in service, the Chief Election Commissioner and the commissioners shall vacate their offices on their date of superannuation: Provided further that, (i) The State Co-operative Election Commission shall in consultation with the Registrar have power to fix, alter or revise the maximum and minimum limit of election expenses to be spent by different classes of societies by special or general order; (ii)The Election Commission may fix fee or cost for election process, in accordance with rules made in this behalf; (iii)The procedure for payment of election fee or cost shall be such, as may be prescribed.] (3)The State Co-operative Election Commission shall, in consultation with the Government 37a[and the Registrar], designate or nominate officers and employees of the Government to assist the Commission in the conduct of election to the committee 37a[and Representative General Body] of such society. (4)Subject to the provisions of this Act, the Government may, by rule, make provision with respect to all matters relating to, or in connection with elections to the committee 37a[and Representative General Body] of a society.] 37 inserted by Act 1 of 2000 37a & 37b inserted by Act 7 of 2010 37c substituted & 37d Omitted by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf 29.Annual general body meeting.-(1)A general body meeting of a society shall be held 38[within a period of six months of the close of the financial year] for the purpose of- (a)approval of the budget with reference to the programme of the activities of the society prepared by the committee for the ensuing year; (b)election, if any, in the prescribed manner of the members of the committee other than nominated members; (c)consideration of the audit report 38a[and the report and follow up action of the committee thereon] and the annual report; 38b[(ca) review of operational deficit/loss, if any, and programme to reduce such deficit or loss; (cb) approval of the programme of activities of the society prepared by the committee for the ensuing year; (cc) review of annual report and accounts of any subsidiary organization, if any; (cd) amendment of byelaws; (ce) declaration regarding date of holding of its general body meeting and conduct of elections when due ; and (cf) any other information required by the Registrar in pursuance of the provisions of the Act;] (d)disposal of the net profit, and (e)consideration of any other matter which may be brought forward in accordance with the bye-laws. (2)The Registrar or any other person deputed by him shall have the right to attend the committee or general body meeting of any society. 38c[(3)Where the board of a co-operative society fails to convene the annual general meeting within the period specified in sub-section (1), the Registrar or the person authorized 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 sub-section (1) and the expenditure incurred on such meeting shall be borne by the co-operative society. (4)Members of the board who, in the opinion of the Registrar, where responsible for not convening the annual general meeting within the stipulated period shall be disqualified for one term for being elected as committee members and to continue as members of a society in addition to being liable for any other provisions under this Act: Provided that the Registrar shall, before passing order under this sub-section, afford a reasonable opportunity of being heard to each such person , who in his opinion were responsible for not convening the annual general meeting within the specified period. (5)A notice of the general meeting stating the place, date and hour of the meeting together with the agenda shall be given to every member, as may be prescribed.] 38 substituted & 38a, 38b, 38c inserted by Act 8 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf 30.Special general body meetings.-(1)The committee of a society may, at any time, call a special general body meeting of the society and shall call such meeting within one month after receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be prescribed. (2)If a special general body meeting of a society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorized by him in this behalf shall have power to call such meeting and that meeting shall be deemed to be a meeting called by the committee. (3)Notwithstanding anything contained in sub-section (1) or sub- section (2), the Registrar or any person authorized by him in this behalf may at any time, call a special general body meeting of the society in such manner and at such time and place within the area of its operation as he may direct and such meeting shall be deemed to be a meeting called by the committee. (4)Notwithstanding anything contained in the bye-laws of a society, the Registrar or any person authorized by him in this behalf may, at any time, summon a meeting of the committee of the society and that meeting shall be deemed to be a meeting called in accordance with the bye-laws of the society and shall have power to transact all business which can be transacted at a meeting of the committee under the bye-laws of the society and such other business as is specially mentioned in the requisition made by the Registrar or the person authorized. (5)The Registrar or any other person deputed by him shall have the right to attend the committee or general body meeting of any society convened in accordance with the provisions of this section. 39[31.Nominees of Government on committee of an apex or a central society.- (1)Where the Government,- (a)have subscribed to the share capital of an apex or a central society; or (b)have assisted indirectly in the formation or augmentation of the share capital of an apex or a central society; or (c)have guaranteed the repayment of principal and payment of interest on debentures issued by an apex or a central society; or (d)have guaranteed the repayment of principal and payment of interest on loans and advances to an apex or a central society, 39a[the Government or any other authority shall have the right to nominate not more than two persons to the committee of an Assisted Apex or Central Society.] (2)A person nominated to the committee of an apex or a central society under sub-section (1) shall hold office during the pleasure of the Government or the specified authority, as the case may be. 39b[(2A) The person nominated under sub-section (1) shall not be eligible to hold the office of the president/chairman or vice president/vice- chairman of the Apex or Central Society nor will be eligible for being sent as the delegate of the Apex or Central Society] (3)A person nominated to the committee of an apex or a central society under sub-section (1) shall not take part in the discussion of any no- confidence motion or vote on any such motion. 39c[ xxx]] 39 substituted by Act 19 of 1987 39a substituted, 39b inserted & 39c omitted by Act 8 of 2013 32.Supersession of committee.- 40[(1)If the Registrar, after an inquiry by himself or through his subordinates or on a report of the financing bank, or the Vigilance and Anticorruption Bureau of the Government or the Vigilance Officer or otherwise, is satisfied that the committee of any society,- (a)persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or does anything which is prejudicial to the interests of the society; or (b)willfully disobeys or fails to comply with any lawful order or direction issued under this Act or the rules; or file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2019%20-%201987.pdf (c)makes any payment contrary to this Act or the rules or the bye- laws or causes any loss or damage to the assets of the society, by breach of trust or willful negligence; or 40b[(d)misappropriates or destroys or tampers with the records or causes the destruction of records to cover up any misconduct or malpractice, he may, after giving the committee an opportunity to state its objections, if any, by order in writing, remove the committee and, appoint in its place, one administrator or an administrative committee consisting of not more than three individuals, one among them as convener, who need not be members of the society, to manage the affairs of the society for a period not exceeding six months: 40d[xxx];]] 40e[Provided that in the case of co-operative society, carrying on the business of banking the provisions of the Banking Regulation Act,1949 (Central Act 10 of 1949) shall also apply: Provided further that in the case of a co-operative society, carrying on the business of banking, appointment of administrator/administrative committee shall not exceed one year in the aggregate: Provided also that the board of a co-operative society shall not be superseded or kept under suspension where there is no Government Share holding or loan or financial assistance or any guarantee by the Government or any Board or Institutions constituted by the Government.] 40g[Explanation I.-For the purposes of this proviso, financial assistance includes any financial assistance from the Kerala Co-operative Development and Welfare Fund Board, Deposit Guarantee Scheme implemented by the Kerala Co-operative Deposit Guarantee Fund Board, Kerala Co-operative Risk Fund Scheme implemented by the Kerala Co-operative Development and Welfare Fund Board, National Bank for Agriculture and Rural Development, National Co-operative Development Corporation and any other financial institution under the control of the State or Central Government and also any financial assistance guaranteed by the said institutions.] 40f[40b[Explanation II: A notice and an order given as per this clause to the President, in his absence to the Vice President or any committee member who is holding charge of President or Vice President or to the Chief Executive of a society shall be treated as an order given to the committee of the society.]] 40c[(e)Every member of the committee superseded under this section shall from the date of order of such supersession stand disqualified to contest in the election to or to be nominated to the committee of any Society or to be appointed as an administrator in any society for two consecutive terms.] (2)The Registrar shall consult the financing bank and circle co- operative union or State Co-operative Union, as the case may be, before passing an order under sub-section (1). (3)Notwithstanding anything contained in sub-section (1) or sub- section (2) it shall not be necessary to give an opportunity to the committee to state its objections and to consult the Unions and financing banks, in cases where the Registrar is of the opinion that it is not reasonably practicable to do so, subject however to the condition that in such cases, the period of supersession shall generally be for six months and in case a new committee cannot be constituted or enter upon office in accordance with the bye-laws of the society within the period of supersession the period may be extended for a further period not exceeding six months— (a)in the case of a Co-operative society only after consulting the circle co-operative union concerned; and (b)in the case of an Apex Society or a Central Society only after consulting the State Co-operative Union. (4)The committee or administrator or administrators so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, 40a[have power to exercise all or any of the powers and functions] of the committee or of any officer of the society and take all such action as may be required in the interests of the society. (5)The committee or administrator or administrators shall, before the expiry of its or his or their term of office, arrange for the constitution of a new committee in accordance with the bye-laws of the society. (6)Every order made by the Registrar under sub-section (1) shall be communicated to the circle co-operative union. 40 , 40a substituted by Act 1 of 2000 40b substituted & 40c added by Act 7 of 2010 40d omitted & 40e inserted by Act 8 of 2013 40f renumbered as ‘Explanation II’ & 40g inserted by Act 14 of 2017 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2014-%202017.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf 33.Appointment of new committee or administrator on failure to constitute committee, etc..-(1)Where the term of office of a committee has expired and a new committee has not been constituted, or 41[where a no-confidence motion is passed by the general body against the existing committee or where the existing committee resigns enbloc or where vacancies occur in the committee either by resignation or otherwise and the number of remaining members cannot constitute the quorum for the meeting of the committee, or where the committee fails to hold its regular meeting consecutively for six months or where the Registrar is satisfied-] (a)that a new committee cannot be constituted before the expiry of the term of office of the existing committee; or 41j [(aa) there is stalemate in the constitution or functions of the committee;] 41i[(b)that a new committee is prevented from entering upon office, or a new committee fails to enter upon office, on the date on which the term of office of the existing committee expires, the Registrar may, either suo motu or on the application of any member of the society, after 41a[intimating ] the Circle Co-operative Union, appoint one administrator or an administrative committee consisting of not more than three individuals, 41k[who need not be members of the society, one among them as convener] to manage the affairs of the society, for a period not exceeding six months as may be specified in the order, which period may, at the discretion of the Registrar and for reasons to be recorded in writing, be extended, from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till a new committee enters upon office, whichever is earlier. (i) xxx 41c[ 41h[(ii) xxx]]] Provided that before making such order, the Registrar shall publish a notice on the notice board of the head office of the society inviting objections to the making of the order within a period specified in the notice and consider such objections: Provided further that it shall not be necessary to publish such notice in cases where the Registrar is satisfied that it is not reasonably practicable to do so: 41d[Provided also that, where a committee, administrator or administrators, as the case may be, is in office at the commencement of the Kerala Co-operative Societies (Amendment) Act, 1992, the Registrar may extend the term of such committee, administrator or administrators, as the case may be, for a further period not exceeding one year from the date of such commencement.] 41b[Explanation.-For the purposes of this sub-section a tender of resignation by a member of the committee shall have the effect of terminating his membership from the committee.] 41e(1A)Notwithstanding anything contained in sub-section (1), where on receipt of a report from the Registrar, the Government are satisfied that a new committee cannot be constituted or cannot enter upon office of a society before the expiry of the term of office of the 41l[administrator or administrative committee], as the case may be, appointed by the Registrar under sub-section (1) and that it is necessary in the public interest to manage the affairs of the society and to enable a new elected committee to enter upon office, the Government may, by notification in the Gazette, for reasons to be recorded, permit the Registrar to extend the term of the said 41l[administrator or administrative committee], as the case may be, for a further period not exceeding one year in the aggregate or till a new committee enters upon office, whichever is earlier.] (2)The 41l[administrator or administrative committee] appointed under 41f[sub-sections (1) and (1A)] shall, subject to the control of the Registrar and to such instructions as he may from time to time give, 41g[have power to exercise all or any of the powers and functions] of the committee or of any officer of the society and take all such action as may be required in the interests of the society. (3)The 41l[administrator or administrative committee] shall arrange for the constitution of a new committee or for the entering upon office of the new committee, as the case may be. 41, 41a substituted & 41b inserted by Act 38 of 1971 41c substituted & 41d inserted Act 5 of 1992 41e inserted & 41f substituted by Act 16 of 1993 41g & 41h substituted by Act 1 of 2000 41i substituted by Act 7 of 2010 41j inserted by Act 8/2013 41k, 41l substituted by Act 22 of 2013 file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2022-%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%208-%20%202013.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%207%20-%202010.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%201-%202000.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%2016-%201993.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%205%20-%201992.pdf file:///home/user/Desktop/share/B/2022/B1/..%2FKCS%20Act%20&%20Amendment%20-%20Copy%2FAmendment%20act%2038%20-%201971.pdf 34.Securing possession of records, etc..-(1)If the committee of a society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under section 32 or a new committee or administrator or administrators is or are appointed under section 33 or if the society is ordered to be wound up under section 71 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to the new committee or administrator or administrators or the liquidator, as the case may be, or if an outgoing president or secretary who is the custodian of the records and property of a society refuses to hand over charge of the records and property of the society to his successor, the new committee or administrator or administrators or the liquidator or the president or secretary may with the previous sanction of the Registrar apply to the Magistrate within whose jurisdiction the society functions, for securing the records and properties of the society. (2)On receipt of an application under sub-section (1), the Magistrate may, by a warrant, authorize any Police Officer, not below the rank of Sub- Inspector, to enter and search any place where the records and the property of the society are kept or are believed to be kept and to seize such records and property, and the records and property so seized shall be handed over to the new committee or administrator or administrators or the liquidator or the president or secretary, as the case may be. (3)Where the Registrar or any other officer not below the rank of Assistant Registrar of Co-operative Societies authorized by him in this behalf in the course of audit, inspection, inquiry or supervision is of opinion that there is room to suspect gross negligence of duties, misappropriation or misuse of funds of the society or irregularity in recording proceedings or keeping accounts or books or is satisfied that the records, registers or the account books of a society are likely to be tampered with or destroyed and the funds and property of a society are likely to be misappropriated or misapplied, he shall have power to take possession of any or all of the books, registers, securities or documents, cash in hand or account books of the society and remove such seized records and property and to deal with them in any manner as may be directed by the Reg