MODEL BYE- LAWS OF THE

CONSUMER’S CO-OPERATIVE

STORES LTD

BYE-LAWS

1) Name of the society : ________________________Consumer’s

Co-operative Society Ltd.,

2) Address of the Society :

3) Regd. No. of the :

Society

4) Date of Regn. of the Society :

5) Area of operation of the Society :

BYE-LAWS OF THE _____________________________________________________

CO-OPERATIVE STORES LIMITED, No________________________________________

1. NAME, CONSTITUTION AND ADDRESS

The __________________________________________________________________

Co-operative ___________________________________________________________

Stores Limited_____________________________No___________________________

Is registered as a Co-operative Stores under the Telangana State Cooperative

Societies Act, 1964. Its address shall for the

present be____________________________Post___________________________________

Mandal of ________________________Dist_______________________________________

Its operation shall extended to _______________________________________________

In the ________________________________________ Mandal of ____________ District.

The Society shall renew its registration for every 5 Years subject to the
conditions as enunciated u/s 8-A of TCS Act, 1964.
2. OBJECTS

The objects of the Stores are.

a) The encouragement of thrift and self-help;

b) The purchase and supply of necessaries of life to the members,
c) The dissemination of the knowledge of cooperative principles and their
realization and
d) The doing of all such other things as are incidental of conductive to the
attainment of the above object
e) To make supply of consumer articles

3. LIABILITY OF MEMBERS

The liability of the members of the Stores shall be limited to the share
capital subscribed by them.

4. SHARE CAPITAL

The authorised share capital of the stores shall for the present be
Rs…………….made up of …………shares of Rs……………..each. The value
of each share shall be paid in lumpsum on allotment.

5. MEMBERSHIP ELIGIBILITY

a) Any person who has attained majority and is of sound mind residing
within the area of operation of the Stores and who is not a business-man
or trade in any of the articles dealt in by the Stores shall be eligible for
admission as a member

b) No person shall be qualified for being admitted as and not being a

member if he.
i. Is an applicant to be adjudicated as insolvent or he/she is
an undischarged insolvent;
 ii. Has been sentenced for any offence involving moral
turpitude such sentence not having been reversed and a
period of 3 years has not elapsed from the date of expiration
of the sentence;
iii. Is a paid employee of the Stores or of its financing bank;
iv. Has been expelled from membership under Telangana State
Coop Societies Act and a period of one year has not elapsed
from date of such expulsion.

c) If any member of the Stores does not purchase articles

to the value of at least Rs._______/- in any cooperative year he
shall not be eligible to exercise the rights of membership.

6. APPLICAGTION FOR MEMBERSHIP

a) Every application for admission to the Stores shall be

in the form prescribed and addressed to the Secretary. The Stores
shall not without sufficient cause refuse admission to membership
to any person duly qualified under bye-law. If the Managing
Committee of the Stores decided to refuse the admission it shall
record reasons for such refusal where admission is so refused the
decision with the reasons therefore shall be communicated by the
Stores by registered post to such persons within 15 days from the
date of decision or within 60 days from the date of application for
membership. The Stores shall be deemed to have admitted such
applicant as a member on the date of expiration of 60 days from
the date of application and the Secretary should give effect to such
admission.

The name of every person either admitted as a member

under section 19 of the Telangana state coop societies Act 1964
deemed to have been admitted as a member by virtue of the
provision to the said section shall be entered in the admission
register by the Secretary of the Stores within thirty days from the
date of the resolution passed by the competent authority to admit
such person as a member or from the date on which such person
is deemed to have become a member as the case may be the
member so admitted shall be issued a photo identity card.

Note: The Secretary shall maintain a register to record the admission to

membership in the form prescribe.

7. MAXIMUM SHARE HOLDING LIMIT AND ENTRANCE FEES

Every member shall take one share and no members shall

take more than____ shares. Every member for admission shall pay
to the Stores an entrance fees of Rs…………………………….. and
every transferee of share shall pay fee an amount of
Rs…………………………in the case.

8. (A) SHARE CERTIFICATES

Share Certificates duly signed by the President and the

Secretary and with the seal of the Stores shall be issued to every
member for the shares taken by him after he completely paid to the
Stores the value of such shares.
 (b) If a share Certificate is lost or destroyed a duplicate
Certificate may be issued after giving wide publicity of the facts as
may be considered necessary by the Managing Committee. In case
any objection is raised it will be decided by the Managing
Committee whose decision in this regard will be final. If any
Certificate is torn-out or damaged, the Committee may order the
same to be cancelled and issue a duplicate certificate in lieu
thereof on surrendering the Certificates of torn-out or damaged.
For every duplicate certificate issued under this bye-law a fee of
Rs……………………………shall be collected.

9. TRANSFER OF SHARE OR INTEREST OF A MEMBER

No member shall be permitted to transfer any share or interest

held by him unless.

(1) The member has held such share or interest for not less than
one Cooperative Year; and
(2) Transfer is made to a member of the Stores.

Provided that any case the transfer of shares shall not be

operative unless and until it is sanctioned by the Managing
Committee and until the name of the transferee has been entered
in shares transfer register.

Note: - Every endorsement upon the certificate of any share

for transfer shall be signed by the Secretary or any other officer
authorised by the Managing Committee in this behalf.

10. WITHDRAWAL OF SHARE CAPITAL

No member shall be permitted to withdraw any of the shares

held by him in the Stores or resign his membership within _____
years from the date on which he was admitted as member. After
such period he may withdraw any of his shares with the consent of
the Managing Committee or resign his membership provided that
there are no debts or any amounts due from him to the Stores in
regard to which he stood surety.

When a member intends to withdraw his membership he

shall send a resignation letter (by registered post) to the Stores and
the surety and such resignation shall take effect from the date on
which the letter reaches the Stores. The value of shares to be
withdrawn from the share capital of a member who has resigned
his membership shall be paid back to him with dividend declared if
any. The total share capital withdrawn or returned in any one year
shall not exceed 10% of the aggregate paid up share capital of the
Stores. Its limit shall cover all refunds of share capital except those
made under bye-laws 11 and 13.

A person ceases to be eligible for membership either on

account of the Change of the residence from the area of operation
of the Stores or for any other cause, the Stores shall remove his
name from the list of members and shall pay back the share
 capital within a reasonable period to such members already paid
by him with dividend declared if any after deducting from the
money if any due from him to the Stores either as principal debtor
or as surety.

11. NOMINATIONS

(1) If a member dies, his membership shall IPSO facto ceases.

Every member may nominate any person or persons to whom in
the event of the death of the member the value of his share or
shares or any other money due to him shall be paid.

(2) A member can change a nomination provided the

nomination, if

i) It is made in writing and signed by the member in the

presence at least two witnesses; and

ii) It is entered in the books of Stores kept for the purpose.

(3) If no nomination has been made by a member, the Stores on

the death of the member shall issue a notice which should be
exhibited on the notice board of the Stores by inviting the
claims or objections for the payment of the value of shares of
the deceased member to heir or legal representative within the
time specified in the notice after considering the objection or the
claims and after making such enquires, the Managing
Committee if it considers necessary shall decide the legal heir
or the legal representation of the deceased member and
proceed to pay the value of the shares or interest of the
deceased member to such persons only.
(4) In case of payment of value of share or interest or other moneys
due to the deceased member, the Managing Committee shall
obtain sureties for the amounts involved in such payments to
the members

12. LIABILITIES OF THE PAST MEMBERS AND ESTATE

(a) The member shall be liable as provided in bye-law No 3 for

the debt due by the Stores as they existed on the date when he
ceased to be a member for a period of two years from such date.
The liability of a member who has transferred any share or shares
shall continue for two years after the date of transfer. The estate of
a deceased member shall be liable as provided in byelaw No. 3 for
the debts due by the Stores as they existed on the date of decease
for a period of two years after his death.
(b) Notwithstanding anything contained in clause (a) when the
Stores is wind up under Section 64 of the Telangana State Coop.
Societies Act, 1964 the liability of past member who ceased to be a
member of the estate of the deceased member who died within two
years immediately preceding the date of the order of winding up,
shall continue until completion of the liquidation proceedings but
such liability shall be limited only to the debts of the Stores as
they existed on the date of cessation of membership or death, as
the case may be.
 13.EXPULSION OF A MEMBER

(1) The General Body is competent to expel a member if

he has acted adversely to the interests of the Stores, by a
resolution passed at its meeting by majority of the total
membership of Stores is present and not less than 2/3rds of the
members present and voting at the General meeting after giving
him an opportunity to state his objection if he has acted adversely
to the interests of the Stores.

Copy of the resolution expelling the members shall be

communicated to the member within 30 days under copy to the
Registrar.

14. FUNDS OF THE STORES

The funds of the Stores may be raised in any one or all of the
following ways;
i. Share capital
ii. Entrance fee and Transfer fee
iii. Deposits from members.
iv. Borrowings from Government
v. Donation
vi. Subsidies and grants
vii. Other borrowings from Banks/Financial institutions.

15. FIXED DEPOSITS

I. A fixed deposit is a deposit of a fixed amount of money for a fixed
period of time. Fixed deposits may only at the discretion of the
Managing Committee be received at any time from members. No fixed
deposit shall be received for a sum less than Rs.____/- exact multiple
thereof and for a Period of less than ____months.
II. Interest rate on fixed deposits shall be fixed by the Managing
Committee
III. The interest on a fixed deposit shall cease on the expiry of the period
for which the deposit was made unless notice in writing of the
intention to renew the deposit for a further period of not less than six
months has been received in the office of the Stores before the expiry
of the original period. The Stores is however not bound to renew fixed
deposit after the expiry of the period for which it was made but in
case of such refusal interest shall be payable at the formal rate until
the date of such refusal.

16.TRADE DEPOSITS

A trade deposit is a deposit made by a member with the Stores in

advance of purchases in order to avoid paying every time when a
purchase is made from the Stores. The deposit will not allowed to be
withdrawn in cash unless a member ceases to continue as a member of
the Stores. Whenever a member purchases items from the Stores, the
cost thereof shall be debited against his trade deposit. Every member
paying trade deposit will be supplied with a pass book and a counterfoil
indent book free of cost. A depositor who wishes to buy items against his
trade deposit shall send along with the pass book a requisition in the
form of an indent book supplied for the purpose. No other requisition will
 be recognised. After issue of the articles, the pass-book will be returned
with the cost of the purchase made noted in it along with the indent
book. Interest shall be paid on the trade deposit at ___ percent per
annum on the lowest balance outstanding on any day in a calendar
month against the member. Interest will be calculated and added only on
the last day of each Cooperative Year. If any account is closed in the
course of the year, interest accrued up to that date will be paid along
with the outstanding amount.

17. MAXIMUM BORROWING LIMIT

The total borrowings of the Stores from members shall not at any
time exceed ______ times of the paid up share capital plus Reserve Fund

18. TERM OF THE MANAGING COMMITTEE

The members of the Managing Committee shall be elected by the

General Body in a accordance with the provisions of Telangana Coop.
Societies Act, 1964 as amended from time to time.

The Term of the members of the Managing Committee shall be for a

period of 5 years from the date of election. All the members of the
Committee shall vacate their office on expiry of their term. The members
of the Managing Committee shall be elected at once and for the specified
period of five years. Any casual vacancy or vacancies shall be filled up
by the Co-option by the remaining members of the Committee procedure
laid down in as per the Rule 22(8) (N)(ii) of the TCS Rules, 1964. . The
members of the committee co-opted in any casual vacancy shall also
vacate their office in which term of office of the Committee expires. The
proceedings of the Managing Committee shall not be invalid on account
of any vacancy or vacancies in the committee MC member may at any
time resign from his office by sending a letter of resignation to the
Secretary of the Stores, but such resignation shall take effect from the
date on which it is accepted by the Managing Committee.

19. MANAGING COMMITTEE

The Managing Committee shall meet at least once in three months

or often for the conduct of the business of the Stores, the quorum for the
meeting of the Managing Committee shall be majority of the total
members of the committee. All equal issues before the Managing
Committee shall be decided by majority of votes. In the case of votes, the
President or the member who is elected as President at the meeting shall
exercise a casting vote.

No member of the Managing Committee shall be present at any

meeting of the committee when any matter in which his personal interest
is being discussed.

Notwithstanding anything contained in the above paragraph, the

Secretary of the Stores shall call for a meeting of the Managing
Committee and shall do so within 15 days from date of requisition for at
least 7 clear days notice for a meeting of the Managing Committee.
20. ATTENDANCE OF THE MANAGING COMMITTEE

If a member of the Managing Committee absents himself from 3

consecutive meetings of the Committee he shall cease to be a member of
the committee but it is open to the Committee to reinstate him in
accordance with the Act provisions.

21. DISQUALIFICATION OF THE MEMBERS OF THE COMMITTEE:

A person shall be disqualified for election as and or being a member of

the committee of the Stores, if she/he.

a) has acquired or continues to have any of the disqualifications for

membership prescribed in bye-law No. 5 (b);
b) Is or becomes a near relative of a paid employee of Stores.
c) Is in default to the Stores in the payment of any amount due in cash
or kind to the Stores or any other Stores or stood as guarantor/
Stores co-executants to any members who committed default for the
said period as may be prescribed.
d) has or acquired any interest directly or indirectly in any subsisting
contract made with the Stores in any sale or purchase by the Stores;
and
e) appears as a legal practitioner against the Stores of its member;
f) If he has not made purchases to the extent of Rs…………………
g) Is a person against whom any amount due under a decree, decision or
order is pending recovery under this Act
h) Is a village administration officer or an employee of the state or
central Govt or an employee of any institution receiving aid and
controlled by the state or central govt

22. POWERS OF THE MANAGING COMMITTEE:

The committee of a Stores shall, subject to the provisions of the Act, Rules, bye
laws and resolutions of the General body, exercise the following powers and
functions, namely: -

(1) Admit the members to General Body

(2) Allot shares to the members and transfer of shares to General Body}
(3) Recommend removal of the members disqualified under Section 21;
(4) Recommend removal of any of the committee members disqualified
under Sections 21-A, 21-AA, 21-B and reinstatement of a Committee
member who ceased to be such member of the committee under
Section 21-B and place the reports before the General Body;
(5) Raise funds in the form of loans or deposits and invest them;
(6) Provide services or facilities including sanction of loans and advances
to the members on a specific recommendation of the Chief executive
officer on the basis of the date of admission of such members;
(7) Sanction expenditure which is necessary for the business of the
Stores subject to the provisions of annual budget;
(8) Conduct elections in the manner specified in the bye laws to the office
of the members of the Committee before the expiry of the term;
(9) Conduct general meetings as prescribed in the Act;
(10) Cause the audit of the accounts of the Stores within the time
prescribed and place the audit report before the General body;
(11) Decide matters connected with the day to day management of the
Stores;
 (12) Fix the staffing pattern, qualification, pay scales and other
allowances to the employees of the Stores, subject to the availability of
the administrative and contingent fund and approval of the General
body and Registrar;
(13) Place the reports of inquiry under Section 51 or inspection under
Section 52 or under Section 53 or special audit report under Section
50 before the General Body within the time prescribed;
(14) Rectify the defects noted in the reports of audit under Section 50
or inquiry under Section 51 or inspection under Section 52 or under
Section 53;
(15) Suspension of any officer or servant of the Stores under Section
59;
(16) Initiate action for prosecution of any person who may have
incurred criminal liability under the provisions of this Act or any other
law for the time being in force;
(17) Prepare the list of defaulters and publish the same as prescribed
and place before the General Body;
(18) review all outstanding loans and ensure coverage of legal action
on all overdue loans and advances;
(19) Give information on the affairs of the Stores to the supervisory
council, the Registrar, financing bank and the federal Stores to which
the Stores is affiliated;
(20) Place the report on the loans sanctioned to and the business done
by the members of the committee or their near relatives with the
Stores defaulters thereof and action to recover them before the
General Body;
(21) Place annual report, annual financial statement, annual plan and
budget before the General Body
(22) Ensure cooperative education of the members, officers and the
servants of the Stores;
(23) Prepare and place before the general body, information or reports
or statements relating to: -
(a) Disposal of properties:
(b) Deficits in cash or stocks;
(c) Proposals for appropriation of net profits including creation of
reserves and other funds;
(d) Write off bad debts;
(e) Removal of membership;
(f) Contribution to cooperative education fund and administrative and
contingent fund;
(g) Expulsion of member who has acted adversely to the interests of
the Stores;
(h) Affiliation of the Stores to the financing bank or other societies;
(i) Elections of delegates to the financing bank or other societies;
(j) Appointment of supervisory council and internal auditors and
consideration of their reports and follow up action.}

23. POWERS OF THE PRESIDENT AND THE VICE-PRESIDENT

Subject to such resolutions as the Managing Committee may pass

from time to time the officers of the Stores shall have the following
powers
a) The President of the Stores shall have general control over all the
affairs of the Stores. He may through a resolution of the Managing
 Committee arrange the custody of the properties, cash and stocks
of the Stores;
b) Devolution of the powers and functions of the President or Vice –
President: - If the President ceases to hold office under sub-section
(3) of Section 32 or if he has been continuously absent from the
head-quarters for more than three months, or is incapacitated for
more than three months, or is incapacitated for more than three
months, his powers and functions on such cessation or during
such absence or incapacity shall devolve on the Vice – President
and in case of absence of both, shall devolve to the senior most
member of the committee.

24. POWERS OF THE SECREATRY:

The Secretary shall have the following powers:

a) He shall be in charge of the executive administration of the Stores
subject to the control of President and shall have custody of all
properties of the Stores entrusted to him. He shall be the officer to
sue or to be sued on behalf of the Stores which shall be in his
name. All bonds and agreements shall be in favour of the Stores to
be executed by him.
b) He shall exercise such powers as may be delegated to him from
time to time by the Managing Committee.
c) He shall have powers to operate on the Bank accounts of the
Stores within the limits prescribed by the Managing Committee.
d) He shall be responsible;
i) to carry on the correspondence of the Stores to maintain its
books and accounts and registers and also to arrange for the
custody of accounts and registers;
ii) to attend of the business of the Stores with reference to the
subsidiary regulations;
iii) to receive deposits, issue deposit certificates in accordance with
the rules framed on his behalf and arrange their payment on
maturity with interest;
iv) to incur expenditure on contingencies within the limits
prescribed by the Managing Committee in respect of each item.
v) To receive applications for membership of the Stores and to
maintain record and place them before the Managing
Committee for the decision and communicate to the applicants
if there is a refusal of membership, to communicate them
within the time prescribed in Section 19 (3) of the Telangana
Coop. Societies Act, 1964.
vi) To issue receipts for all the moneys paid in to the Stores
provided that for all borrowings the receipts and the bonds etc.,
existed on behalf of the Stores shall be signed by the Secretary
and two other members of the Managing Committee out of
which the President or the Vice-President shall be one of them.
vii) To prepare all vouchers, receipts, balance sheet and other
documents or statements required for the transaction of the
business of the Stores.
25.FRAMING OF SUBSIDIARY REGULATION FOR CONSIDERING BUSINESS

The Managing Committee of the Stores is competent to

frame subsidiary regulations for the conduct of the business of the
Stores as per the Act and Rules and the bye-laws, Such subsidiary
regulations shall be entered in the Minutes Book of the Stores and
report to the Registrar for approval. This shall take effect only after
the approval by the Registrar.

26. POWER TO APPOINT SUB-COMMITTEE:

The Managing Committee may appoint such sub-committees

as may be necessary in its opinion and delegate specific powers to
such committee.

27. SERVICES OF THE MANAGING COMMITTEE

The service of the members of the Managing Committee shall be

gratuitous. The members of the Managing Committee and other sub-
Committees if any constituted by the Managing Committee under the
bye-laws shall be eligible for T.A and D. A as may be decided by the
Managing Committee with the approval of the Registrar.
However; they shall not be entitled to claim T.A and other
allowances form any other Cooperative Institution of institutions for
journeys made for the meeting. Persons claiming T.A. should furnish
certificate to the effect that they have not claimed or drawn T.A and
D.A for such journey from any other institutions.

28. SERVICE CONDITION OF EMPLOYEES:

1) No person shall be appointed as paid officer or servant in

any category of service in the Stores unless he posses the
qualifications and furnishes the security. In such form and according
to such standard as the Registrar may fix from time to time for the
category of service in the Stores or for the class of societies which it
belongs:
2) No paid officer or servant be retained in any category of
service in the Stores if he does not acquire such qualifications or
furnish such security as the Registrar may fix from time to time
within time specified for the category of service in such services in the
Stores or for the class of societies to which it belong.
3) The method of recruitment conditions of service competent
authority to recruit the post, to fix the scale of pay and allowances of
the paid officers or employees of the Stores and the procedure to be
followed in the disposal of disciplinary cases against them shall be
governed by the special bye-laws framed by the managing committee
got approved by the General body and registered by the Registrar.

29. GENERAL BODY

The ultimate authority in all the matters relating in the

administration of the Stores shall vest in the general body. Its meeting
shall be convened by the managing committee atleast within six
months from end of in a cooperative Year to conduct the business of
the Stores. Subject to the other provisions of the Act, the general body
 shall however interfere with the powers of the Managing Committee in
respect of matters delegated to it in the bye-laws.

The following among other matters shall be dealt with by the general
body.

i) Election of members of the committee;

ii) Annual report to the registrar;
iii) Consideration of the audit report and the annual report;
iv) Disposal of the net profits;
v) Amendment to the bye-laws;
vi) Expulsion of a member;
vii) Approval of the annual budget of income and expenditure;
viii) Affiliation of the Stores to the financing banks or other
Stores; and
ix) Election of delegate to the financing banks to other
societies;
The powers under item viii and IX is may be delegated by the
general body to the managing committee or withdraw by a
resolution such powers at any time.

30 GENERAL BODY MEETING

(a) The Managing Committee may at any time call a general

meeting of the Stores but such meeting shall be called for
and held at least twice in a year, once in a every half year.

(b) The general meeting shall consist of all the members of the
Stores.

(c) A General Meeting may be called at any time by the

Managing Committee and it shall be called within a period of
15 days from the date of requisition from ______of the total
number of members or ____by the Registrar or any person
authorised by him;

(d) A notice of the meeting of the general body shall be issued

specifying time, place and date of the meeting at least 15
clear days in advance. Such notice shall be sent to the
members by any one of the following modes namely;

i) By local delivery; or

ii) By post under certificate of posting.

iii) By E-Mail

iv) News paper Advertisment.

(e) The quorum for the general meeting shall be .........or 1/10th
of the total number of members on rolls whichever is less;
 (f) The President or the Vice-President or in the absence of
both, one of the senior most member of Managing Committee shall
preside at the general meeting.

Provided that in a general meeting convened for the purpose

of election of the member of the Managing Committee, the election
officer under Rule 22 of the TCS Rules shall preside over the
meeting and conduct proceedings.

(g) In case of equality of votes, the Chairman of the meeting

except the returning officer or the election officer shall have a
casting vote as a second vote.

31. The proceedings of the General Body, Managing Committee or any

sub-committee shall be recorded in the minute’s book of the Stores and
signed by the Chairman of the meeting concerned at the close of
proceedings.

32. TRADE

The Stores shall carry on such wholesale and retail trade as may
from time to time decided upon by the Managing Committee provided
that new trade shall at any time be undertaken by the Stores except with
the previous sanction of the Registrar. The Stores may open
branches/sales counter at one or more centres, within the state and
carry on such retail trade as may from time to time be decided upon by
the Managing committee.

33. All transactions by way of sales shall be strictly on the ready

money system and shall be confined to members only provided that this
shall not exclude sale inspectors of the municipalities taking samples
under the prevention of Adulteration Act.

34. At the end of each quarter, stock shall be taken and necessary
action to be taken for the recovery of amounts Involved in deficits if any
after allowing such depreciation the Managing Committee may deem
reasonable in the case of actual deficits only with reference to the nature
of articles stocked and the duration of the storage etc., and the result
reported to the concerned authority. If for any reason stock taking is not
done at the end of the quarter, special permission of the authority shall
be obtained to complete stock verification before a specific date.

35. An amendment to the Bye-laws shall be considered at a general

meeting and carried out by a majority of not less than 2/3rd of the
members present and voting prior notices of the meeting shall be given to
the members and to the Registrar within 30 days from the date of
meeting for registration.
36. PROFITS

The net profit of the Stores is decided by the Chief Auditor or any
person authorised by him in his behalf and after the issue of the audit
certificate may be disposed of as follows.

i) The Stores shall credit an amount not being more than

30% of gross profit or 2% of W.C whichever is less in a
year towards pay and other allowances of its
employees and contingencies
ii) At least 25 per cent of the net profits shall be carried
to the Reserve Fund;
iii) One percent of the gross profits subject to a maximum
Rs. 10,000/- shall be credited to the Cooperative
Education Fund to be administered by the Telangana.
State Co-operative Union. Out of the balance
remaining.
A sum equal ___ percent of the net profits may be
carried to a business loss to bad debts reserve;
a) Dividend on shares shall be paid to members on the
share capital standing on their account on the 31st
March of the last year at a rate not less than 15%.
b) a rebate on the supplies obtained by the members of
the Stores to be fixed by the general body subject to a
maximum of 15 % of the net profits after the approval
of the Registrar may be divided among members;
c) A sum not exceeding two month salary may at the
discretion of the General body may be paid as bonus
to the employees of the Stores.
d) A 10% of the utilised for any charitable purpose Act
1890

Any profits not appropriated in the manner specified above and all
undisbursable and indivisible profits shall be added to the Reserve
Fund of the Stores.

37.RESERVE FUND

(i)The Reserve Fund shall belong to the Stores as a whole

and is intended to meet unforeseen losses. It shall be undivisible
and no member shall have any claim to a share in it;

ii) The Reserve Fund of the Stores shall be invested or deposited

except in one or more of the modes mentioned in Section 46 of the
Telangana State Coop Societies Act, 1964. The Stores may however
utilise with the previous sanction of the Registrar whole or part of the
reserve fund in its business.
iii) On winding up of the Stores, the Reserve fund together with other
funds constituted by the Stores, in accordance with the byelaws shall
be applied by the liquidator to discharge such liabilities of the Stores
as may remain undischarged out of the assets of the Stores in the
following manner
a) The debts of the Stores
b) The paid up share capital and
 c) Any claim relating to the dividend upon the paid up share
capital of the members on the date of winding up of the
Stores.

Iv. Any surplus funds remaining after the payments

mentioned in clause (ii) of this bye-law shall be dealt as per the
provisions of the Telangana Coop. Societies Act, 1964.

38. STATEMENT TO BE FURNISHED TO THE REGISTRAR:

The Stores shall prepare annually in such form as may be

prescribed by the Registrar;
a) Statement showing receipts and disbursements;
b) A profit and loss account;
c) A balance sheet; and
d) Such other statements as may be prescribed by the
Registrar.
These statements shall be made up to 31st March of every
year and a copy of each shall be sent to the Registrar within
1 month after the close of the year ending 31st March

39. MISCELLANEOUS

No amendment to, alteration in or cancellation of a Bye-law

or the enactment of a new bye-law shall be deemed except at a
general meeting of the members or shall be deemed for have been
passed unless a majority of the members present vote for it or shall
not take effect until it shall have been approved and registered by
Registrar.

Provided however, the Registrar may – in his opinion an

amendment of the bye-law in necessary or desirable in the interest
of the Stores he may in the manner prescribed in Rule 21 of the
Telangana State Coop Societies Act,1964 direct such amendment
to the bye-laws and register it. Such amendment will have the
same effect as an amendment of any bye-law made by the Stores.

BYE-LAW NO - 40

The Stores shall keep a copy of the Telangana State Coop.

Societies Act, 1964 and bye-laws of the Stores. The last audited annual
balance sheet, the profit and loss account and list of the members of the
committee open to inspection by its members free of charge at all
reasonable times at its registered office. It shall also permit such of the
members whoever so request to inspect such portion of the books and
records in which transaction relation to them have been recorded.

BYE LAW NO – 41

The Stores shall not use or allow to be used any premises or

portion thereof which is intended for its business for any purpose other
than such business or other activity relating to the Stores.
BYE-LAW NO- 42

Should any doubt arise as to the constitution of the Telangana

Coop. Societies Act 1964, or any bye-law, the Managing Committee
may refer the same to the Registrar of Cooperative Societies for advice
and act according to his advice.

BYE-LAW NO 43

If any dispute touching the business of the Stores other than an

election dispute or a dispute regarding disciplinary action taken by the
Stores or its committee against a paid employee of the Stores arises;
a) Amongst members Past members and persons claiming through
members and deceased members; or
b) Between a member or past member or person claiming through
a member, past member or deceased member and the Stores or
its committees or any officer, agent or employees of the Stores;
or
c) Between the Stores or its committee and any past officer, past
agent or past employee or the nominee, heirs or legal
representatives of any deceased officer, deceased agent or
deceased employee of Stores; or
d) Between the Stores and any other registered Stores, such
dispute shall be referred to the Registrar for decision.

The Registrar may, on receipt of such reference:

i) Elect to decide this dispute himself or

ii) Transfer it for disposal to any person who has been -
invested by the state government will powers in that behalf
or
iii) Refer if for disposal to an arbitrator.

BYE - LAW NO - 44

The decision or award of the Registrar or the other person to whom

the reference was transferred or by the arbitrator to whom it was referred
shall be final, subject to the provisions of sub-section (1) of Section 76 of
the Telangana Coop. Societies Act 1964 and it may be of received in any
of the following ways, namely:

a) by an application made to the collector of the district through the

Registrar requesting that the amount due under the decision or award
may be recovered in the same manner as arrears of land revenue.
b) By an application to the civil court having jurisdiction over the subject
matter of the decision or award as if it were decree of the court; or
c) By an application to the Registrar of the District in which cause of
award, arise for the enforcement of the decision of award provided in
Section 70 of the Telangana Coop. Societies Act, 1964 and Rule 52 of
the Telangana Coop. Societies Rules.
BYE- LAW NO 45

Should any sum of property belonging to the Stores be either stolen or

otherwise lost, and fund is not recoverable, it shall be open to the
General Body to write off such amount or the value of property after
obtaining the sanction of the Registrar.

BYE- LAW 46

It shall be the duty of the Managing Committee to maintain such

accounts and registers as prescribed by the Telangana Coop. Societies
Act 1964 and by the Registrar from time to time and to place before the
general body of the Stores or for auditor or for inspection by the
Registrar.

BYE-LAW NO 47

Any amount due by the Stores and not claimed within the period of
limitation allowed by the Indian Limitation Act shall be added to the
Reserve Fund of the Stores.

-------------------**********--------------------