Rajasthan Co-operative Societies Rules, 2003 PDF

1 1 THE RAJASTHAN CO-OPERATIVE SOCIETIES RULES, 2003 G.S.R. 37 :- In exercise of the powers conferred by section 123 of the Rajasthan Co-operative Societies Act, 2001 (Rajasthan Act No. 16 of 2002), the State Government here by makes th...

1 1 THE RAJASTHAN CO-OPERATIVE SOCIETIES RULES, 2003 G.S.R. 37 :- In exercise of the powers conferred by section 123 of the Rajasthan Co-operative Societies Act, 2001 (Rajasthan Act No. 16 of 2002), the State Government here by makes the following rules, and orders with reference to proviso to sub-section (1) of section 123 of the said Act that the previous publication of these rules is dispensed with, as the State Government considers in public interest that they should be brought into force at once; namely :- CHAPTER 1 Preliminary. 1. Short title, extent and commencement. - (1) These rules may be called the Rajasthan Co-operative Societies Rules, 2003. (2) They shall extend to the whole of the State of Rajasthan. (3) They shall come into force at once. 2. Definitions. - (1) In these rules, unless the context otherwise requires, (a) "Act" means the Rajasthan Co-operative Societies Act, 2001 (Rajasthan Act No. 16 of 2002); (b) "Agricultural Marketing Society" means a society the core object of which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, of which not less than three-fourth of the 1 Published in Raj. Gazette E.O. Part 4(Ga)(I) dated 30.10.2004  2 members are agriculturists or societies formed by agriculturists; (c) "Bonus" means payment made in cash or kind out of the profits of a society to a member, or an employee, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society, and in the case of a joint farming society, on the basis both of such contribution and also the value or income or, as the case may be, the area of the lands of the members brought together for joint cultivation as may be decided by the society; (d) "Consumers Society" means a society the core object of which is the procurement, production or processing, and distribution of goods to, or the performance of other services for, its members as also other customers; (e) "Co-operative Bank" means a society registered under this act and doing the business of banking, as defined in clause (b) of section 5 of the Banking Regulation Act, 1949; (f) "Co-operative Year" means the year ending on the 31st day of March or in the case of any co-operative society or class of co-operative societies the accounts of which are balanced on any other date, with the previous sanction of the Registrar, the year ending on such date; (g) "Credit Society" means a society the core object of which is to lend money to its members; (h) "Dividend" means the amount paid, out of the profits of a society, to a member in proportion to the shares held by him;  3 (i) "Farming Society" means a society in which, with the core object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly cultivated by all the members, such lands (a) being owned by or leased to the members (or some of them), or (b) coming in possession of the society in any other manner whatsoever; (j) "General Society" means a society not failing in any of the classes of societies defined by the other clauses of this rule; (k) "Housing Society" means a society the core object of which is providing members with dwelling houses or facilitating them in the having their dwelling houses constructed by providing any one or more of the necessary components required for the purpose; (l) "Non-credit Society" means a society other than a society as defined under clause (g) of this rule; (m) "Producers Society" means a society formed with the core object of producing and disposing of goods and commodities produced by its members, and includes a society formed with the object of the collective disposal of the labour of its members; (n) "Processing Society" means a society the core object of which is the processing of goods; (o) "Recovery Officer" means a person empowered to exercise, the power of the Registrar under section 100 of the Act; (p) "Registering Authority" in relation to a Co-operative Society, means a person competent to register the society or to whom  4 powers of registration of such society have been delegated by the Government; (q) "Resource Society" means a society the core object of which is the obtaining for its members of credit, goods or services required by them and includes a service co-operative society; (r) "Sale Officer" means an officer empowered by the Registrar by general or special order, to attach and sell the property of defaulters or to execute any decree, order, decision or award, by attachment and sale of property; (s) "Section" means the section of the Act; and (t) "Women society" means a society the core object of which is the economical upliftment of women and the member of which are either women exclusively or societies having exclusively women members. (2) Words and expressions used but not defined in these rules but defined in the Act shall have the same meaning as assigned to them in the Act. CHAPTER II Incorporation 3. Rural families included in "Weaker section". - The following classes of persons having total income not exceeding rupees eleven thousand per annum, shall be categorized as economically and socially backward or neglected sections of the village community:- (i) Agriculturists owning or cultivating not more than one standard acre of land;  5 (ii) Persons belonging to scheduled castes, scheduled tribes, other backward classes and nomadic tribes; (iii) Landless agricultural labour; (iv) Village artisans and workers engaged in small crafts; and (v) Persons, other than agriculturists, engaged in productive vocations subsidiary to agriculture e.g. milk production, poultry farming etc. 4. Application for Registration. - (1) Every application for registration of a society under section 5 shall be made in such form as may be specified by the Registrar from time to time and shall, subject to the provisions of sub-rule (2) and (3), be duly signed by the applicants and be accompanied by,- (a) three copies of the proposed bye-laws of the society; (b) a certificate, from the co-operative bank stating the credit balance in favour of the proposed society; (c) a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the entrance fee paid by them; (d) the scheme showing the details explaining how the working of the society will be economically sound; (e) in case of a Service Co-operative Society, a list of the members of the weaker section as per rule (3); and (f) such other documents as may be specified, if any, by the Registrar from time to time. (2) Where any member of the proposed society is a registered society, the application for registration shall be signed by a member of  6 the registered society duly authorised for the purpose by the committee of the registered society and a copy of such resolution authorising the member shall be appended to the application. (3) Where any member of the proposed society is a corporate body, or a local authority then such corporate body or local authority shall duly authorise any person to sign the application for registration on its behalf, and a copy of the resolution giving such authority shall be appended to the application. (4) The applicants of the proposed society shall also intimate while presenting the application for registration, the name and address of one of the applicant designated by them for being given opportunity of hearing as provided in sub-section (2) of section 6 or to whom correspondence before the registration of the society, if any, may be addressed by the Registrar. (5) On receipt of an application for registration the Registering Authority shall enter particulars of the application in the register of applications to be maintained in such form as may be specified by the Registrar. 5. Registration. - (1) On receipt of an application under rule 4, the Registrar shall examine the application for registration of the society including the proposed bye-laws and may give, wherever necessary, opportunity to the person authorised by the applicants for the purpose, to modify the proposed bye-laws or to supply the additional information, if found deficient in the application before finally registering the society or rejecting the application for registration.  7 (2) On registering a society and its bye-laws under section 6, the Registrar shall grant to the society, a certificate of registration signed by him and bearing his official seal and containing the registration number of the society, and the date of its registration and shall also furnish the society with a copy of the bye-laws approved and registered by him. (3) The Registrar shall maintain a register of societies registered under the Act in such form as may be specified by the Government. (4) Where the applicants have moved to Registrar, Co-operative Societies, Rajasthan or the Government under sub-section (3) of section 6, the Registrar, Cooperative Societies, Rajasthan or the Government, as the case may be, shall enter the particulars of such application in a register to be maintained in such form, as may be specified by the Government. (5) On receipt of an application under sub-section (3) of section 6, the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall call for the necessary record from the Registering Authority. (6) The Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall decide the application within 30 days of the receipt of the application and give decisive directions to the Registering Authority. Such directions shall also include the time period within which the decisions are to be complied with. (7) The Registering Authority after receiving directions from the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall comply with the directions within the period specified in the directions.  8 (8) Where no directions are received from the Registrar, Co- operative Societies, Rajasthan or the Government, as the case may be, even after expiry of the period specified in sub-section (3) of section 6, the Registering Authority shall, after ascertaining facts from the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, issue registration certificate immediately under sub-section (3) of section 6. 6. Refusal of Registration. - (1) Where any proposed society does not furnish the information in regard to the society as required by the Registrar or fulfill any of the conditions laid down in the Act or these rules, the Registrar may refuse to register the society. (2) If the Registrar refuses to register a co-operative society, he shall communicate the order of refusal with reasons thereof to the applicant referred to in sub-rule (4) of rule 4 by registered post. 7. Cancellation of registration of a co-operative society. - (1) Where it comes to the notice of the Government that a co- operative society which has been registered or deemed to be registered under sub-section (3) of section 6 does not fulfill the requirements or registration as mentioned in sub-section (1) of section 6, the Government shall give a notice of fourteen days to the society to show cause as to why the registration of the society should not be cancelled. (2) The Government may also call the relevant record and other information, as may be necessary, from the Registrar. (3) If the society does not reply to the notice of the Government, or the Government is satisfied, after considering the reply of the society and after examining the record and other information, if any, received  9 from the Registrar, that the society which has been deemed to have been registered does not fulfill the necessary requirements of registration as laid down in sub-section (1) of section 6, the Government shall direct the Registrar to cancel the registration of the society forthwith. (4) On receiving the directions of the Government under sub- rule (3) above, the Registrar shall cancel the registration certificate of the society immediately and therewith the society shall cease to exist as a corporate body. 8. Classification, sub-classification and minimum share capital required at the time of registration - (1) The minimum share capital required for registration of a co- operative society shall be as mentioned in table below against each class or sub-class of society. S. Class Sub-class Examples of societies falling Minimum No. in the class or sub-class, as share capital the case may be. required at the time of registration. (Rs. in lakh) 1 2 3 4 5 1 Agricultural (a) Federation Having jurisdiction over the 25.00 Marketing whole of the State of society Rajasthan (b) Fruit and vegetable produce 2.00 and marketing (c) All other purchase and sale 1.00 unions and marketing societies of agricultural produce  10 S. Class Sub-class Examples of societies falling Minimum No. in the class or sub-class, as share capital the case may be. required at the time of registration. (Rs. in lakh) 1 2 3 4 5 2 Consumers (a) Federations Having jurisdiction over the 25.00 Societies whole of the State of Rajasthan (b) Central Wholesale Bhandar 2.00 (c) Primary Primary Bhandar 0.50 2 3 Co-operative (a) Apex Bank [Apex society which is the 500.00 Bank federal body of the Central Co-operative Banks in the State and is engaged in the business of banking.] (b) Central Bank [Central Society which has 50.00 primary agricultural credit societies as its members and is engaged in the business of banking] (c) Other Banks (i) Urban Banks 200.00 (ii) Land Development 25.00 Banks (iii) Salary Earners 2.00 Societies 4 Farming (a) Collective Farming Societies where as per by Society Farming Society ownership is vested in the laws Society 2 Substituted by Notification No. F. 12 (1) Coop/2011 dated 14.9.2011, pub. in Raj. Gazette E.O. Part 4 (x) (I) dated 19.9.2011, with immediate effect.  11 S. Class Sub-class Examples of societies falling Minimum No. in the class or sub-class, as share capital the case may be. required at the time of registration. (Rs. in lakh) 1 2 3 4 5 (b) Joint Farming Societies where is as per Society ownership is retained by bylaws members. 5 Housing (a) Tenant Housing Societies where as per by Society Ownership land is held either on laws Housing Society leasehold or free-hold basis by societies and houses are owned or are to be owned by members. (b) Tenant Co- Housing Societies which as per by partnership hold both land and building laws Housing Society either on leasehold or free- hold basis and allot them to their members. (c) Other Housing House Mortgage Societies as per by Societies and House Construction laws Societies. 6 Processing (a) Agriculture Societies, which process as per by Society Processing Agricultural produce like laws Society Co-operative Sugar Factories and Oil mills. (b) Industrial Wool Processing and as per by Processing Tanners' Societies, laws Society Spinning Societies. 7 Producers' (a) Industrial Weavers' and Carpenters' 0.25 society Producers' Societies. Society (b) Labourers' Forest Labourers' Societies 0.05  12 S. Class Sub-class Examples of societies falling Minimum No. in the class or sub-class, as share capital the case may be. required at the time of registration. (Rs. in lakh) 1 2 3 4 5 Industrial and Labour Contract Society Societies. (c) Agriculture Cattle Breeding, Dairy and 0.10 Producers' Poultry Societies Society 8 Resource (a) Credit Resource Employees Credit and 0.50 Society Society Thrift Societies (b) Non-Credit Seeds and implements and 1.00 Resource Agricultural Requisites Society Societies Service Co- operatives (c) Service Co- Multipurpose Co-operatives 1.00 operative and Agricultural Credit Society Societies. 9 Women Co- (a) Federation Having jurisdiction over the 5.00 operative whole of the State of Societies Rajasthan (b) Central Women multi-purpose 1.00 Central Society (c) Primary Women multi-purpose 0.05 Society 10 General (a) Social Better Living Societies and 0.50 Society Education Societies (b) Commercial Insurance and Motor as per by Rickshaw Puller Transport laws  13 S. Class Sub-class Examples of societies falling Minimum No. in the class or sub-class, as share capital the case may be. required at the time of registration. (Rs. in lakh) 1 2 3 4 5 Societies (c) Others Not falling either of the as per by above sub-clauses. laws 9. Change of form and extent of liability. - (1) A society willing to change its liability may do so by an amendment in its bye-laws subject to the provisions of this rule. The Change of liability of a society from unlimited to limited, and vice versa or in terms of multiple of share capital, shall be secured by passing a special resolution in that behalf at a general meeting of the society specially called for the purpose indicating in clear terms the manner of changing the liability. The society shall give thirty days' notice in writing of such meeting to all its members and creditors and shall furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed as a special resolution, a copy thereof shall be sent to the Registrar within thirty days of its passing. (2) Every notice to be given by the society under sub-rule (1) be sent by post under certificate of posting or otherwise to the address of each of its members and creditors as recorded in the books of the society. A copy of such notice shall be exhibited on the notice board of the society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to  14 all its members and creditors, notice not being sent to their correct address or notice not being received by them, notwithstanding. (3) After the passing of the special resolution regarding the change of liability another notice of thirty days shall be given to each of the members and creditors in the manner specified under sub-rule (2), who may opt to withdraw his shares, loans or deposits, the value of a share of a member in a society shall be ascertained as follows :- (a) In case of a society with unlimited liability, the value of a share shall be the actual amount received by the society in respect of such share. (b) In the case of a society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet, provided that it shall not exceed the actual amount receive by the society in respect of such share. (4) Any member or creditor desiring to exercise the option under sub-rule (3) shall inform the society accordingly in writing, and when he does not propose to withdraw his entire shares or deposits, the member or creditor shall clearly indicate in writing the extent of his withdrawal. The society shall examine and draw up a scheme for orderly payment of all claims in an equitable manner including shares, the value of which shall be ascertained in accordance with the provisions of sub-rule (3). The scheme may also provide for settlement of claims by mutual agreement. Where the Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective, and the form and extent of liability of a society shall not be deemed to be changed in accordance with the resolution passed aforesaid.  15 (5) After the Registrar approves the scheme, the society shall make payment to members and creditors who have opted to withdraw their shares, loans and deposits and, make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the society duly passed in that behalf. On receipt of the proposal, the Registrar shall, after ascertaining that all claims made under sub-rule (2) have been met in full, register the amendment in accordance with the provisions of section 10. 10. Expensed for change of name of the society. - (1) Where a society proposes to change its name under the provisions of section 9, it shall deposit the expenses for publication of notice as required in sub-section (1) of section 9. (2) The expenses shall be determined by the Registrar in accordance with the prevalent rates of advertisement publication in the leading newspapers having wide circulation in the area of operation of the society. The expenses so determined shall be deposited by the society in the treasury on demand raised by the Registrar within a period of seven days. The charges of publication shall be paid from the amount so deposited. 11. Procedure regarding amendment of bye-laws. - (1) Where a co-operative society proposes to amend its bye- laws, no such amendment shall be made, save by a special resolution passed at its general body meeting called for the purpose. (2) No such resolution shall be valid, unless notice of the proposed amendment has been given to the members of the society at least fifteen days before the general meeting.  16 (3) After the special resolution is passed, an application shall be made to the Registrar alongwith:- (a) a copy of the relevant bye-laws in force with amendment proposed to be made in pursuance of the special resolution together with reasons justifying such amendment; (b) three copies of the bye-laws as it would stand after amendment, signed by the officers duly authorised in this behalf by the society; (c) a copy of the notice given to the members of the society of the proposal to amend the bye-laws; (d) a copy of the special resolution referred to in sub-rule (1); (e) total number of members of the society on the date of such meeting; (f) number of members who formed the quorum of such meeting; (g) number of members present at such meeting; (h) number of members who voted for the amendment; (i) a certificate signed by the officers duly authorised by the society that the procedure specified in section 10, sub-rule (1) and bye-laws has been followed; and (j) such other information as may be required by the Registrar. (4) Every such application shall be made within fourteen days from the date of the general meeting at which special resolution for amendment was passed: Provided that the Registrar may condone the delay, if any, for sufficient cause.  17 (5) On receipt of a copy of the special resolution and other particulars referred to in sub-rule (3), the Registrar shall examine the proposed amendment and if he is satisfied, that the proposed amendments fulfill the requirements as are essential for the registration of bye-laws under section 6 1[and are in consonance with the provisions of sub- section (1) of section 10], he shall register the amendment and issue to the society a copy of the amendment registered by him. Where the Registrar is of the opinion that the proposed amendment does not fulfill the requirements as are essential for the registration of bye-laws, he shall alongwith his comments thereon, send it back to the society, for reconsideration as required under sub-section (2) of section 10. (6) Provisions of sub-rule (4) to (8) of rule 5 shall mutatis mutandis apply for action under sub-section (4) of section 10 for amendment of bye-laws. 12. Transfer of assets and liabilities, division and amalgamation of societies. - (1) Every society desiring to effect transfer assets and liabilities, division or amalgamation under section 12 shall frame a scheme of transfer of assets and liabilities, division or amalgamation indicating how the proposed transfer of assets and liabilities, division or amalgamation would be useful to the society and be given effect to. Where the scheme involves a division of a society into two or more societies, it shall contain proposals regarding the name, the area of operation, draft bye-laws and the list of members and creditors of the new societies into which the society would be divided. 1 Inserted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E. O. part 4 (x)(I) dated 10.7.2017, come into force at once.  18 (2) After framing the scheme of amalgamation or division or transfer of assets and liabilities under sub-rule (1), the society shall first inform the Registrar and then convene a special general meeting by giving a written notice of atleast fifteen days to all of its members alongwith the proposed scheme of transfer of assets and liabilities, division or amalgamation. In the case of the society desiring amalgamation with or transfer of the assets and liabilities in whole or in part to any other society (here-in-after referred to as the other society), the society shall send a copy of the notice and the proposed scheme to the other society also for information. The society shall pass a special resolution for transfer of assets and liabilities, division or amalgamation as the case may be, at the special general meeting and shall in the case of the amalgamation or transfer of assets and liabilities forward a copy of such special resolution to the other society. (3) After the receipt of the special resolution under sub-rule (2), the other society shall convene a special general meeting by giving a written notice of atleast fifteen days to the Registrar and to all its members and creditors alongwith the scheme of amalgamation or transfer of assets and liabilities and draft amendment to its bye-laws, if any, and pass a special resolution at the general meeting for approving the scheme of amalgamation or transfer of assets and liabilities, as the case may be, and the amendment to its bye-laws, if any, and send a copy of such special resolution to the society which had earlier decided to amalgamate or transfer its assets and liabilities. (4) The affected society or each of the affected societies, as the case may be, shall, in the case of amalgamation or transfer of assets and liabilities, after the conveyance of the approval under sub-rule (3) and in  19 the case of division, after passing of the special resolution under sub-rule (2) forward the proposals to the Registrar : Provided that where such proposals involve an amendment of the bye-laws, the procedure specified in rule 11 shall be followed. (5) After approval of the proposals by the Registrar, the affected society or each of the affected societies, as the case may be, shall take action under sub-section (4) to (6) of section 12. (6) The affected society or each of the affected societies, as the case may be, shall forward a report to the Registrar of the action taken by it under sub-rule (5) and request him to approve the decision for transfer of assets and liabilities, division or amalgamation. (7) The Registrar shall, after satisfying himself that the procedure has been followed pass an order transferring the assets and liabilities and register the amalgamated or divided society or societies and cancel the registration of societies which have been amalgamated or divided. (8) Provisions of sub rule (4) to (8) of rule 5 shall mutatis- mutandis apply for action to be taken by the Registrar Co-operative Societies, Rajasthan or the Government, as the case may be, under sub- section (3) of section 12. 13. Proposal by Registrar for Amalgamation, division and Reorganization of societies in public interest etc. - (1) Before sending any proposal under section 13 for the amalgamation, transfer of assets and liabilities, division or reorganization of any society or societies, the Registrar shall prepare a draft scheme in respect of such amalgamation, division, transfer of assets and liabilities or reorganization stating the manner in which the new committee or  20 committees of the society or societies resulting from such amalgamation, division or reorganization shall be constituted and the bye-laws which such society or societies shall follow. The Registrar shall send a copy of the draft of the order proposed to be issued by him under section 13, to the Chairperson and the Chief Executive Officer of the society or of each of the societies concerned requiring the proposals to be considered and decided in the general body meeting of the society or the societies within a period of three months. (2) The society or each of the societies, as the case may be, shall give a notice of not less then thirty days to the members and creditors inviting their objections and suggestions on the proposals of the Registrar. All the objections and suggestions received from the members and creditors shall be considered in the general body meeting, and a decision shall be taken on the proposals of the Registrar. (3) The Registrar shall consider all suggestions and objections and make such modifications in the draft order as may seem to him desirable in the light of those suggestions or objections and the resolution of the society thereon and then issue a final order under sub-section (2) of section 13. (4) Any member or creditor of each of the societies to be amalgamated, divided or re-organised who had objected to the scheme of amalgamation, division or reorganisation within the period specified in sub-rule (2), may apply to the Registrar for payment of his share or interest, if he be a member, and the amount in satisfaction of his dues, if he be a creditor. Such application shall be separate and distinct from the objection or suggestion, which he may have submitted to the society or the Registrar under clause (b) of sub-section (5) of section 13. It shall be competent for the Registrar to nominate an officer to investigate such  21 applications and determine the payments required to be made to the members or creditors, as the case may be. (5) Subject to the provisions of the Act, the rules and the bye- laws, the Registrar may by order require the society concerned to meet in full or satisfy otherwise all due claims of the members and creditors and thereupon the society shall be bound to meet in full or satisfy otherwise all due claims of the members and creditors within such time as may be specified by the Registrar in the order. CHAPTER III Member of co-operative societies and their rights and liabilities 14. Membership. - (1) (i) Any person eligible for membership as per provisions of the Act, rules made thereunder and the bye-laws of the society, shall not be refused membership of the society. (ii) A person willing to become member of a society may apply in Form-M alongwith the membership fee of Rs. 10/- and the necessary share money as required in the bye-laws of the society. (iii) The Chief Executive Officer of the society shall ensure that every application received for membership is entered in a chronological order in a register maintained in Form-N. (iv) The Chief Executive Officer or a person authorised by him in this behalf shall, while receiving the membership  22 form, deposit the membership fee and the share money, and issue a receipt to the applicant for the same under his signature. (v) The Chief Executive Officer shall scrutinize the applications received for membership and shall put them before the committee for consideration with his recommendations thereon regarding eligibility of the applicant for such membership. (vi) Unless it specifically comes to knowledge that the applicant has incurred any of the ineligibilities as specified in the Act, rules made thereunder and the bye- laws of the society, the committee shall accept applications put up before it and the Chief Executive Officer of the society shall inform the applicant regarding such acceptance. (vii) Where the committee refuses an application for membership, the Chief Executive Officer shall inform the applicant regarding such refusal alongwith the reasons thereof and simultaneously return the membership fee and the share money to the applicant. (viii)A person who has applied for membership shall be deemed to have become such member from the date of his filing the application unless the society refuses his application. (ix) Where a society refuses to receive an application for membership filed by an applicant, the applicant may file his application before the Registrar, who shall, in  23 turn forward it to the society immediately. An application so forwarded by the Registrar shall be deemed to have been duly filed in the office of the society on the date it was received in the office of the Registrar. (1-A) 1[xxx] (2) The following persons, bodies or local authorities may be admitted as members of a co-operative society under section 15 (1) (d) :- (a) a firm, a company or any other body corporate constituted under any law for the time being in force, or the society registered under the Societies Registration Act, 1958. (b) Zila Parishads or Panchayat Samities or Panchayats constituted under the Rajasthan Panchayti Raj Act, 1994 (Act No. 13 of 1994) (c) a Public trust registered under any law for the time being in force for the registration of such trust. (d) a municipality constituted under the Rajasthan Municipalities Act, 1959. (e) a Khadi Village Industries Board constituted under the Rajasthan Khadi and Village Industries Board Act, 1955 (Act No. 5 of 1955). Provided that a firm, a company, municipality or any other body constituted under any law for time being in force shall not be admitted as member in any co-operative society under this rule, except with the previous sanction of the Registrar and that the application for 1 Deleted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  24 membership is accompanied by a resolution authorising to apply for such membership. 15. Admission of nominal and Associate members under section 17.- (1) The following may be admitted as nominal members :- (i) a person having such transactions with the society, as may be specified in the bye-laws; (ii) a person executing guarantee in favour of a loanee of a financing bank, as may be specified in its bye-laws; (iii) in case of a financing bank, other than a Land Development Bank, a person who maintains a deposit of at least Rs. 1000/- in the deposit account of the Bank; (iv) in case a marketing society, a person who carries on business in agricultural commodities in the area of operation of the society and has dealings with it; and (v) a self help group, where bye-laws of the society so permit: Provided that, a self help group shall not be admitted, as nominal member without prior approval of the Registrar. Provided further that such self help group along with the application for membership shall furnish a copy of the resolution passed in the general body meeting of such self help group about the person who shall represent the self help group in the society. A person once authorised shall be replaced on by a similar resolution of the self help group.  25 (2) The Zila Parishads, Panchayat Samities and Panchayats constituted under Rajasthan Panchayati Raj Act, 1994 may be admitted as nominal members in a co-operative society. (3) The spouse of a member may be admitted as an associate member only in societies specified by the Government for the purpose. 16. Disqualifications for membership. - (1) No person shall be eligible for admission as member of a co- operative society, if he - (a) has applied to be adjudicated as an insolvent or is an undischarged insolvent; or (b) is adjudged by a court of competent jurisdiction to be of unsound mind or; (c) has been sentenced for any offence, involving moral turpitude; such sentence not having been reversed or the offence pardoned, and a period of five years has not elapsed from the date of expiry of the sentences: Provided that the provision of clause (c) of sub-rule (1) shall not apply to a person sentenced for any offence, during the period he is undergoing the sentence in the Jail and seeking admission as a member of a society formed for the betterment of the.prisoners and meant exclusively for the inmates of the Jail, but such person shall cease to be a member of such society as soon as he is released from the Jail: Provided further that a convict can be admitted as a member of a co-operative society even after his release from Jail if his good conduct is certified by a Jail authority not below the rank of a Superintendent of Jail.  26 (2) If a member becomes subject to any of the disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date of his incurring the disqualification. If any dispute arises, the aggrieved party may apply to the Registrar, whose decision in the matter shall be final. 17. Prohibition of membership in two credit societies. - No individual, being a member of a primary co-operative credit society shall be a member of any other such society other than a Land Development Bank or a marketing society without the general or special sanction of the Registrar, and where an individual has become a member of two such credit societies, either or both of the societies shall be bound to remove him from membership upon a written requisition from the Registrar to that effect. 18. Procedure for expulsion of Members. - (1) No member shall be expelled from membership of the society, unless he has been served a notice atleast 30 days before the general body meeting in which his expulsion has been proposed. (2) Where any member of a society proposes to bring a resolution for expulsion of any other member he shall give a written notice thereof, to the Chairman of the society. On receipt of such notice or when the Committee itself decides to bring in such resolution, the consideration of such resolution shall be included in the agenda for the next general meeting and a notice thereof shall be given to the member against whom such resolution is proposed to be brought, calling upon him to be present at the general meeting, to be held not earlier than a period of one month from the date of such notice and to show cause against his expulsion to the general body of co-operative society. After hearing the  27 member, if present, or after taking into consideration any written representation which he might have sent, the general body of co-operative society shall proceed to consider the resolution. (3) When a resolution passed in accordance with sub-rule (1) or (2) is sent to the Registrar or otherwise, brought to his notice the Registrar may consider the resolution and after making such inquiries as he may deem fit, give his approval and communicate the same to the society and the member concerned. The resolution shall be effective from date of such approval. (4) The shares held by the member expelled shall be deemed to be forfeited by the society. (5) No member of a society who has been expelled under the fore going sub-rules shall be eligible for re-admission as a member of that society, or for admission as a member of any other society, for a period of one year from the date of such expulsion: Provided that the Registrar may, on an application by the Society and in special circumstances, sanction the re-admission, or admission within the said period, of any such member as a member of the said society or of any other society, as the case may be. 19. Cessation of membership. - 1 [(1)] A person shall cease to be a member, of a society on acceptance of his resignation from the membership or on the transfer of the whole of his share or interest in the society to another member, or on his death, removal or expulsion or incurring any of the disqualification specified in the Act and rules or the bye-laws of the society: 1 Re-numbered by Notification No. F. 12(1) Coop/2011 dated 14.9.2011, pub. in Raj. Gazette E.O. part 4 (x)(I) dated 19.9.2011with immediate effect.  28 Provided that resignation of a member shall not be accepted unless all the dues against the member are recovered from him. (2) 2[xxx] 20. Nomination. - (1) A member of a co-operative society may nominate a person or persons to whom in the event of his death, his share or interest in the capital of the society shall be transferred or the value thereof or any other moneys due to him from the society shall be paid. Such member may, from time to time, revoke or vary such nomination. (2) The number of persons who may be nominated by a member shall not exceed the number of shares held by the member. (3) When a member nominates more than one person in respect of any shares held by him, he shall, as far as practicable, specify the amount to be paid or transferred to each nominee in terms of a whole share. (4) A nomination made by a member under this rule shall not be valid and shall not, in the event of the death of the member, have effect, unless :- (a) it is made in writing and is signed by the member in the presence of atleast two witnesses; and (b) it is registered in the books of the society kept for the purpose. 2 Deleted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4(x) (I) dated 10.7.2017, come in to force at once.  29 21. Procedure for admission of joint members and minor and persons of unsound mind inheriting the share or interest of deceased member. - (1) A society may admit two or more persons inheriting the share or interest of deceased member as joint members provided they make a declaration in writing that the person whose name stands first in the share certificate shall have the right to vote and all the liabilities will be borne jointly and severally by them as provided in the Act, rules and bye-laws. (2) In accordance with the procedure laid down in the bye-laws and these rules for admission of any member, a society may admit a minor or a person of unsound mind inheriting share or interest of deceased member as its member through their guardians. The member so admitted will enjoy such rights and liabilities through such guardian as are laid down in the bye-laws of the society that are consistent with the Act and rules. 22. Valuation of shares. - (1) Where a member of a society ceases to be such member, the sum representing the value of his share or interest in the share capital of the society to be paid to him or his nominee, heir, or legal representative, as the case may be, shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet preceding the cessation of membership: Provided that the amount so ascertained shall not exceed the actual amount received by the society in respect of such share or interest.  30 (2) Where a person is allotted a share by a society, the payment required to be made therefore shall not exceed the face value of the share notwithstanding anything contained in the bye-laws of the society. (3) When a share is transferred by a member to another member duly admitted as a member of a society, the transferee shall not be required to pay anything in excess of the value of the share determined in accordance with sub-rule (1). 23. Register of Members. - 1 [(1)] A register of members shall be kept by every society in such form as the Registrar may, from time to time, specify. (2) 2[xxx] 1 Re-numbered by Notification No. F. 12(1)Coop/ 2011 dated 14.9.2011, pub. in Raj. Gazette E.O. part (x)(I) dated 19.9.2011 with immediate effect. 2 Deleted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  31 24. List of members of Co-operative. - (1) Every co-operative society shall prepare a list of its members as on the last day of each co-operative year. The list shall be kept open at the office of the society during office hours for inspection by any member of the society. The list of members shall be revised thirty days prior to the date of the elections of the Committee of the society and shall include the member admitted and exclude the members removed during the period commencing from the date when the list was last revised and ending with the date of the revision of the list. The list shall be in form "A". It shall be the duty of the chief executive officer to prepare and furnish list of members to the Election officer. (2) 1[xxx] 25. Voting rights of members admitted just before annual general meeting. - No member shall exercise his vote in the annual general meeting, 2[if he is admitted] within thirty days prior to the date of its annual general meeting. 26. Chairman to have second or casting vote. - In the event of an equality or votes the chairman of a meeting of a co-operative society shall have a second or casting vote. 27. Disabilities of a defaulting member. - 3 (1) [Save as provided in 2[sub-section (4)] of Section 28, no member of a co-operative society] who is in arrears to the society in 1 Deleted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once. 2 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once. 3 Substituted by Notification No. F. 12(1) Coop/2011 dated 14.9.2011, pub. in Raj. Gazette E.O. part 4 (x)(I) dated 19.9.2011 with immediate effect.  32 respect of any loan taken by him, for such period as is specified in its bye-laws, or in any case for a period exceeding three months, shall be appointed to represent the society in any other co-operative society and to vote on its behalf in such other co-operative society. (2) Where a member of a co-operative society so appointed falls in arrears to the society for the period specified in sub-rule (1), subsequent to his appointment, he shall cease to be a representative of the society as from the end of the said period. CHAPTER IV Management of Societies 28. First general meeting - (1) Within one month from the date of registration of a society, the Chief Executive Officer of the Society shall convene the first general meeting of all persons who had joined in the application for registration of the society, and also those who were admitted as members after its registration. Where the Committee or the Officer fails to convene the meeting as aforesaid, it may be convened by a person authorised by the Registrar in this behalf. (2) At the first general meeting, the following business shall be transacted - (i) Election of a president for the meeting, if the president of the committee formed under the proviso to sub-section (1) of section 27 is not present in the meeting; (ii) Receiving a statement of accounts and reporting all transactions entered into by the society upto a date, 14 days before the meeting.  33 (iii) Fixing the limit up to which the funds may be borrowed. (iv) Decision regarding action to be taken for conduct of election to the committee in accordance with the act and the byelaws, to follow the first (pro-tem) committee formed under the proviso to sub-section (1) of section 27 : 1 [Provided that in case, the society belongs to any one of the categories wherein elections are to be conducted by the State Co- operative Election Authority under section 33 read with rule 45 of these rules, the Chief Executive Officer of the society, immediately after registration of the society shall send a written request to the State Co- operative Election Authority and a copy thereof to the registrar, to conduct elections to the committee of the society: Provided further that in a society where there is no Chief Executive Officer, a person working in place of the Chief Executive Officer, as per the bye-laws of the society and if there is no such person working as the Chief Executive Officer, then the Chairpersons of the society shall send such request to the State Co-operative Election Authority]. (v) Any other matter which has been specifically mentioned in the bye-laws. 29. Constitution of Delegate General Body. - (1) Where the size, spread or type of membership of a society is such that it is either very cumbersome to convene a meeting of the general body or no fruitful deliberations are possible in such meeting, the bye-laws of the society may provide for constitution of a Delegate General Body. 1 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  34 (2) Number of members shall 1[not be less than 30] and not more than 300 in a Delegate General Body. (3) No Delegate General Body shall be constituted in a society having membership less than 500. (4) For the purpose of constituting a Delegate General Body membership of a society may be divided into different groups on a territorial or any other suitable basis. The bye-laws of such a society may specify the number or proportion of the members of the committee who may be elected to represent each group on the committee and may specify that such representative may be elected :- (a) by all members of the society; or (b) by only that particular group of members of the society to which such representative belongs. (5) The wards or groups for the purpose of constituting the Delegate General Body shall be decided by the committee of the society with the approval of the Registrar. 1 [(6) The elections for the Delegate General Body shall be conducted in the manner prescribed in the bye-laws: Provided that in societies where election to the committee is to be conducted by the State Co-operative Election Authority as per the provisions of section 33 read with rule 45 of these rules, such elections for the Delegate General Body shall be conducted under intimation to the State Co-operative Election Authority. The Authority may appoint an observer for elections to the Delegate General Body of such society and 1 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  35 may issue such other directions as it deems necessary in the interest of conducting the elections in a fair and transparent manner.] (7) Elections to the Delegate General Body shall be conducted before every election to the Committee and the Delegate General Body so constituted shall remain in office till the elections are held for the next Delegate General Body. 30. General Meeting - (1) Every society shall within a period of three months next after the date fixed for making up its accounts for the year under the rules for the time being in force, call a general meeting of its members. (2) All general meetings of a society shall be convened by the Chief Executive Officer or any other officer authorised by and under the bye-laws to convene such meetings under intimation to the Registrar, who may attend such meetings or authorise some persons to attend such meetings on his behalf. The Chairman of the society or in his absence the Vice-Chairman or, in the absence of both, a member elected by the members present at the meeting shall preside over the meeting. (3) Unless otherwise provided in the bye-laws, a notice of the meetings stating the place, date and hour of the meeting together with a statement of business to be transacted, shall be sent to every member seven clear days before the date of the meeting in the manner provided in the bye-laws. (4) (i) Unless otherwise provided in the bye-laws, the quorum for the general meeting shall be one-fifth of the total number of the members subsisting on the date of a notice of the general meeting.  36 (ii) No general meeting shall be held or proceeded with unless the number of members required to form a quorum is present. (iii) If the general meeting cannot be held for want of quorum, it shall be adjourned to a later hour on the same day as may have been specified in the notice calling the meeting or to a subsequent date not earlier than seven days and not later than 15 days and at such adjourned meeting the business on the agenda of the original meeting shall be transacted whether there is a quorum or not: Provided that if within an hour from the time appointed for the meeting no quorum is formed, in case of a meeting called on the requisition of members under subsection (1) of section 26 the meeting shall not be adjourned but dissolved. (5) The Chief Executive Officer or any other officer convening the meeting shall read out the notice convening the meeting and the agenda for the meeting and then the subjects shall be taken up for consideration in the order in which they are mentioned in the agenda unless the members present, with the permission of the Chairman agree to change the order. Unless otherwise specified in the Act, these rules and the bye-laws, the resolutions will be passed by a majority of the members present. (6) When the members are divided on any resolution, any member may demand a poll. When poll is demanded, the Chairman shall put the resolution for vote.  37 (7) Voting may be by show of hands or by ballot as may be decided by the members present at the meeting, unless otherwise specified in the bye-laws. (8) When voting is to be by ballot, the Chairman shall take necessary steps for the issue of ballot papers and counting of votes. (9) The result of voting shall be announced by the Chairman. (10) If all the business in the agenda cannot be transacted on the date on which the general meeting is held, the meeting may be postponed to any other suitable date not later than 7 days from the date of the meeting as may be decided by the members present at the meeting. (11) The remaining subject or subjects on the agenda shall be taken up for consideration at the postponed meeting. (12) No resolution regarding expulsion of a member of the society, removal of a member of the committee or amendment of bye- laws shall be brought forward in any general meeting unless due notice thereof is given in accordance with the provisions of the Act, these rules and the bye-laws of the society. (13) (i) Every society shall cause minutes of the proceedings of general meetings to be entered in a book kept for that purpose. (ii) Unless the minutes are drawn up and are duly signed by the Chairman immediately on the termination of the meeting, the minutes free from all alteration or corrections shall be drawn up and shall be signed by the Chief Executive Officer and the Chairman within 72 hours from the time when the meeting terminated.  38 The minutes so signed shall be the evidence of the proceedings of that meeting. (iii) Until the contrary is proved, every general meeting of a society, in respect of the proceedings whereof minutes have been so recorded, shall be deemed to have been duly called and held. (14) In the event of disorder, the chairman may suspend the meeting and adjourn it to such date or time as he may fix as provided in clause (iii) of sub-rule (4). 31. Power to call annual and special general meeting - Notwithstanding anything contained in these rules or bye-laws of a society as to the mode of summoning a general meeting and the period of notice to be given for the said purpose, the Registrar or any other person authorised by him in this behalf may call the annual general meeting or special general meeting as the case may be, if the annual general meeting of the society is not called in accordance with the provisions of section 25 or if the Committee of society or an officer authorised in this behalf fails to call a special general meeting in accordance with the provisions of section 26 in such manner and at such date, time or place as he may direct and may specify what matters shall be discussed in the meeting. The Registrar or the person authorised by him in this behalf shall have all the powers and functions of the officer of the society authorised to convene such annual or special general meetings, under its bye-laws and preside at such meeting and exercise all the powers and perform all the duties of the Chairman of a meeting including the power to adjourn the meeting to a date to be specified by him but shall have no vote unless he is a member of the society. In the event of equality of votes, the question shall be decided by draw of lots.  39 32. Appointment of Committee - (1) Subject to the provisions of the Act, and these rules, the committee of a society shall be constituted in the manner provided in the bye-laws. 1 [(2) The quorum for a meeting of the committee shall be as specified in the bye-laws but shall not be less than fifty percent of the total members of the committee subsisting at the time of such meeting or seven members, whichever is more.] (3) The Registrar or any other authority competent to register a society other than a financial bank, shall be the specified authority to nominate as members of the Committee on behalf of the Government under section 29. 2 [(4) Where a casual vacancy occurs in the committee of a society and at the time of occurrence of such vacancy, the remaining term of the committee is less than half of the total term for which it was elected, the committee may fill such vacancy by co-option out of the same class of members in respect of which the vacancy has arisen: Provided that no such co-option shall be valid unless, - (i) all the sitting members of the committee and the Registrar have been served a notice of 15 days for the meeting of the committee having an agenda of the proposed co-option; (ii) the resolution of co-option is passed with a simple majority in the scheduled meeting of the committee having the necessary quorum for such meeting and in which not less than six elected members are present; and 1 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once. 2 Added by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4(x)(I) dated 10.7.2017, come into force at once.  40 (iii) the resolution of such co-option is approved by the Registrar.] 33. Disqualification for representation - (1) No society shall elect any member as its delegate to represent the society in another society or to the committee of another society, who suffers from any of the disqualifications laid down in rule 34. (2) A delegate of a society sitting on the committee of another society or representing it in another society shall cease to hold his office; (a) if he suffers from any of the disqualifications laid down under rule 34; (b) if he ceases to be a member of the society from which he is a delegate; or (c) if the society which elected him as a delegate withdraws him or elects another delegate in his place; or 2 [(d) if, for whatever reasons, he ceases to be the chairperson of the society from which he was elected as its delegate or whom he is representing; or (e) if the committee of a society which elected him has been removed under the provisions of the Act and an Administrator is appointed, the Administrator so appointed shall represent the society in place of the Chairperson so removed; or (f) if he had been appointed as an administrator under the provisions of the Act and the order of the appointment of 2 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  41 administrator has been set aside by a competent authority under the provisions of the Act; or (g) if the registration of the society of which he is a delegate is cancelled or orders for winding up of the society have been issued.] 34. Disqualification for membership of Committee - (1) No person shall be eligible for election 1[co-option, nomination] or appointment as a member of the committee of a cooperative society 1[or for continuing as its member] if he suffers from any of the disqualifications mentioned in the Act, or if, (a) he is, in the opinion of the Registrar, persistently and deliberately committing breach of the co-operative discipline with reference to linking up of credit with co-operative marketing or co-operative processing, or (b) he has, directly, or indirectly, any interest in any subsisting contract made with the society or in any property sold or purchased by the society or in any other transaction of the society, except in any investment made in, or any loan taken from, the society; or (c) he is an employee of the Central or the State Government; (d) he is a paid employee of a local authority, board, corporation, or any other body constituted by the State or the Central Government under any law for the time-being in force; or 1 Inserted by Notification No. F. 12(1) Coop/ 2011dated 14.9.2011, pub. in Raj. Gazette E.O. part 4 (x)(I) dated 19.9.2011 with immediate effect.  42 (e) he is a paid employee of a society unless the society is composed exclusively of such paid employees of societies; (f) is or becomes of unsound mind; (g) he has been convicted of an offence under Protection of Civil Rights Act, 1955 (Central Act No. 22 of 1955) (h) he has been convicted of a offence punishable under the Rajasthan Prevention of Mirtyu Bhoj Act, 1960. Provided that a government employee shall be eligible for appointment as a member of the committee of a society composed exclusively of government employees; or as a nominee of the Government or any authority specified by the Government in this behalf under section 29, or as a nominee of the Government or the Registrar under the authority given by the bye-laws, or is a representative of such a society of which all the members are government employee. 1 [(2) No member of a society shall be eligible to be elected, appointed, nominated or co-opted in the committee of a co-operative society, unless be has passed, - (i) class V from a school, in case of a primary dairy society, a weavers' society or a women's co-operative society; and (ii) class VIII from a school, in case of a primary level agricultural credit society, a consumer society, a housing society, a farming society, a marketing society, an urban co- operative bank, a primary land development bank, a credit society, a salary earners' society, a co-operative union or a central or an apex level co-operative society : 1 Inserted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  43 Provided that the above disqualification shall not be applicable on a member of a committee elected before commencement of the Rajasthan Co-operative Societies (Amendment) Rules, 2017.] 2 [(3)] A member of a society who carried on business of the kind carried on by his society, shall not be eligible to be a member of the committee of that society without the general or special sanction of the Registrar. Where any person not eligible to be a member of the committee without general or special sanction of the Registrar is elected to be a member of such committee without the sanction of the Registrar, he shall cease to be a member of the committee on receipt of a written requisition by the Committee in that behalf from the Registrar. 2 Re-numbered by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  44 1 [(4)] A member of the committee of a society shall cease to be such member if he incurs any of the disqualifications mentioned in sub- rule 2[(1) or (3)] or incurs any of the disqualifications specified by the Act or ceases to be member of the society (unless he is a member nominated by the Government). 35. Remuneration payable to Administrator. - (1) The remuneration payable to an Administrator appointed under 2[the provisions of the Act] shall be such as the Registrar may, from time to time, determine. (2) The amount of such remuneration and the other costs, if any, incurred by the Administrator in relation to management of the co- operative society shall be payable from the funds of the society. 36. Procedure for removal of committee or member thereof. - 2 [(1) Notwithstanding anything contained in the bye-laws of a society, where on the proposal of the Registering Authority of the society or otherwise, it come to the knowledge of the authority specified in sub- section (1) or (2) of section 30, that the committee or a member of the committee of a society, as the case may be, is required to be removed for the reasons mentioned in the respective sub-sections as above, he shall, before making an order of such removal, give an opportunity to the committee or member concerned to show cause, within fifteen days from the date of issue of notice, as to why such order shall not be passed. 1 Re-numbered by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once. 2 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  45 (2) If the competent authority is satisfied, after giving an opportunity o being heard to the committee or the member concerned, that the conditions exist, which make it necessary or desirable to take action under section 30, he shall, by an order in writing, - (a) remove the committee and appoint an administrator, who shall be a government servant, to manage the affairs of the society; or (b) remove the member of the committee and the vacancy shall be filled in as per the provisions of the Act. (3) Notwithstanding anything contained in this rule, the Registrar, Co-operative Societies, Rajasthan shall remove the committee of the Apex Co-operative Bank or a Central Co-operative Bank on the recommendation of the Reserve Bank of India or of any other Co- operative Bank on the recommendation of the Reserve Bank of India and appoint an administrator in its place within one month of such recommendation.] 1 [(4)] Immediately after appointment of an administrator 2[under the provisions of this Act], the committee in whose place such appointment is made and officers of the society shall give the administrator the charge of all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of the society. 1 Re-numbered by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once. 2 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  46 1 [(5)] The Chairman or any elected officer of a society may be removed from the office by a resolution passed in a general meeting specifically convened for the purpose. 1 [(6)] Immediately after the removal of the committee or a member thereof, the Chief Executive Officer shall take necessary steps for conducting elections to the committee or for filling up the vacancy of the member, as the case may be, in accordance with the provisions of the Act, these rules and the bye-laws. 37. Notice of meeting of the committee. - The notice of a meeting of the committee of a society specifying the place, date and time of the meeting together with an agenda of business to be transacted thereat shall be given not less than 7 days or such less period as may be provided in the bye-laws, to each member of the committee in writing or in such other manner as may be laid down in the bye-laws, before the date of the meeting: Provided that any urgent business though not included in the agenda accompanying the notice may, however, be brought up and considered with the consent of all the members present at the meeting: Provided further that for a matter of very urgent nature, a meeting may also be convened at a shorter notice and where the circumstances so warrant, a matter of very urgent nature may also be considered by circulation among all members of the committee but no such resolution shall be adopted, save by a unanimous resolution of all the members of the committee. 1 Re-numbered by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  47 38. Procedure to be adopted for taking possession of books documents, securities, cash, other properties etc. of the society.- (1) Where taking possession of books, accounts, documents, papers, securities, cash, or other properties of a society is considered necessary and where taking of such possession is resisted or obstructed, the Chief Executive Officer or the Registrar, or a person authorised by the Registrar, the liquidator, the administrator or any other person entitled to the same may take or cause to be taken order for seizing the books, accounts, documents, papers, securities, cash or other properties of the society, as the case may be in the manner provided in section 31: 1 [Provided that in a society where there is no Chief Executive Officer, a person working in place of the Chief Executive Officer, as per the bye-laws of the society and if there is no such person working as the Chief Executive Officer, then the Chairperson of the society may take action as above under this rule.] (2) Any person appointed by the Registrar as a Liquidator of a society or any person authorised by the Registrar to audit the accounts of a society under section 54 or any person authorised by the Registrar to hold an inquiry into the constitution, working and financial conditions of a society under section 55 or any person authorised for an inspection of books by a financing bank under section 56 shall, in cases where the misappropriation of funds, breach of trust or fraud has been committed or where it is suspected or apprehended that the books, accounts, documents, papers, securities, cash or other properties of a society are likely, to be tampered with or destroyed or removed and where taking possession of such books, accounts, papers, securities, cash or other 1 Added by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  48 properties is considered necessary, shall follow the same procedure, with the previous permission of the Registrar, as is laid down in section 31 for the purpose of obtaining such possession. 39. Officers and employees of co-operative societies. - (1) Notwithstanding anything contained in the bye-laws of any society, no co-operative society shall appoint any person as its paid officer or employee in any category of service, unless he possesses the qualifications and furnishes the security, if so specified by the Registrar from time to time, for such category of service in the society, or for the class of society to which it belongs. 1[The conditions of service including the procedure of recruitment, discipline] and control of the employees of the societies shall be such as specified by the Registrar. (2) No co-operative society shall retain in service any paid officer or employees, if he does not acquire the qualifications or furnish the security as is referred to in sub rule (1) within such time as the Registrar may direct. (3) The Registrar may for special reasons, relax in respect of any paid officer or employee, the provisions of this rule in regard to the qualifications he should possess or the security he should furnish. (4) Where it comes to the notice of the Registrar that a paid officer or servant of a society has committed or has been otherwise responsible for misappropriation, breach of trust or other offence, in relation to the society, the Registrar may, if in his opinion, there is prima facie evidence against such paid officer or servant and the suspension of such paid officer or servant is necessary in the interest of the society direct the committee of the society pending the investigation and disposal 1 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  49 of the matter, to place or cause to be placed such paid officer or servant under suspension from such date and for such period as may be specified by him. (5) On receipt of a direction from the Registrar under sub-rule (4), the committee of the society shall, notwithstanding any provision to the contrary in the bye-laws, place or cause to be placed the paid officer or servant under suspension forthwith. (6) The Registrar may direct the committee to extend from time to time the period of suspension and the paid officer or servant so suspended shall not be reinstated except with the previous sanction of the Registrar, whose decision shall be final. (7) If the committee fails to comply with the direction issued under sub-rule (4), the Registrar may make an order placing such paid officer or servant under suspension from such date and for such period, as he may specify in the order and thereupon the paid officer or servant, as the case may be, shall be under suspension. (8) Immediately after placing the employee under suspension under sub-rule (4) or (7) as the case may be, the society shall initiate disciplinary action against the suspended employee under the prevalent service/disciplinary rules applicable on the employee. 2 [(9) A short term co-operative credit structure society shall, subject to the general conditions and norms laid down by the Registrar in this regard, have autonomy in internal administrative matters including the personnel policy, staffing, recruitment, posting and compensation to staff.] 2 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  50 1 [(10) Where a Chief Executive Officer appointed by the Apex Co- operative Bank or a Central Co-operative Bank does not fulfil the eligibility criteria specified by the Reserve Bank of India or has been appointed without following the specified procedure, the Registrar may, after giving him an opportunity of hearing, pass an order for removal of such officer: Provided that where an advice has been received from the Reserve Bank of India or the National Bank for removal of a Chief Executive Officer, the orders for such removal shall be issued within a period of one month.] 3 [39-A.Recruitment Board for the co-operative societies. - (1) Recruitment of the employees of the categories of co- operative societies mentioned in sub-rule (4) shall be made by the Co- operative Recruitment Board, hereinafter called the Board in this rule, consisting of the following, namely:- (i) Additional Registrar - I, Co-operative - Chairman Department, Rajasthan (ii) One nominee of the Registrar, Co-operative - Member Societies, Rajasthan, who shall be an officer having a grade pay not below Rs. 7600/- (iii) Director, Rajasthan Institute of Co-operative - Member Education and Management, Jaipur Secretary 1 Added by Notification No. F. 12(1) Coop/2011 dated 14.9.2011, pub. in Raj. Gazette E.O. part 4 (x)(I) dated 19.9.2011 with immediate effect. 3 Inserted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  51 (2) The Government may also appoint such other officers and employees to assist the Board, as it may consider just and necessary. (3) The Board shall take up the process of recruitment on the requisition of the society concerned in accordance with the rules applicable to the society after the approval of the Registrar. (4) The Board shall be the competent authority for conducting the process of selection and recommending the names of the employees of the following categories of co-operative societies, namely:- (i) all apex and central level societies, except the societies in which there is neither any Government aid as mentioned in Chapter VII of the Act nor any Government servant posted as the Chief Executive Officer or an Executive Officer, (ii) Primary Agricultural Credit Societies, (iii) Primary Land Development Banks, (iv) Urban Co-operative Banks, (v) other societies having a Government share capital of Rs. 5 lakh or more, and (vi) such other class of societies, on the recommendation of the Board mentioned in sub-rule (1), may be notified by the State Government for this purpose. (5) Subject to the provisions of the rules applicable to the category of employees to be recruited by a society, the Board shall decide the selection criteria, procedure and criteria for short listing of candidates, including the manner of selection and other related issues, so that the recruitments are made in a fair and transparent manner.  52 (6) Where in the opinion of the Board, it is necessary to take services of an independent agency having suitable expertise and repute for conducting a particular type of examination, it may do so with the prior approval of the Registrar. (7) The Board may charge the fees for examination from the candidates as per the norms laid down therefor with the approval of the Registrar. Where the cost of conducting the examination is higher than the fees charged from the candidates, the Board shall be competent for charging the excess cost from the society concerned to recover its expenses.] 40. Prohibition against being interested in contracts etc. - (1) No officer or employee of a co-operative society or a family member of such officer or employee shall have an interest, directly or indirectly, otherwise than as such officers; (a) in any contract made with the society; or (b) in any property sold or purchased by the society; or (c) in any other transaction of the society except as investment made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee of the society. (2) No officer or employee of a co-operative society or a family member of such officer or employee shall purchase, directly or indirectly, any property of a member of the society sold for the recovery of his dues to the society.  53 41. Annual statements of accounts including balance sheet etc. - (1) Within forty-five days of the close of every co-operative year, or within such extended period, as may be specified by the Registrar in the case of any society or class of societies, the committee of every society shall prepare annual statements of accounts showing, - (i) receipts and disbursements during the previous co-operative year. (ii) the profit and loss account for the year, and (iii) the balance sheet as at the close of the year; and (iv) such other accounts, as the Registrar may specify for the class of society to which the society belongs. 1 [(2) A copy of the above statements of accounts shall be submitted within fifteen days from the date of preparation, to the auditor appointed for the audit of the society as per the provisions of the Act and such statements of accounts shall be open to inspection by any member during office hours at the office of the society.] 42. Form for the balance sheet and the profit and loss account. - (1) The balance sheet and the profit and loss account to be laid before the annual general meeting of a society by the committee shall be in form "B": Provided that, it shall be competent for the Registrar to permit a society or class of societies to adopt such other form as he may deem fit. Provided further that in case of a society not carrying on the business for profit, an income and expenditure account shall be placed before the society at the annual general meeting instead of profit and loss 1 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4 (x)(I) dated 10.7.2017, come into force at once.  54 account; and all references to profit and loss account, and to "profit" or "loss" in this Act, shall be construed in relation to such society as reference respectively, to the "excess of income over expenditure" and "excess" of expenditure over income." (2) There shall be attached to every balance sheet laid before the society in general meetings, a report by its committee, with respect to, - (a) the state of the society's affairs; (b) the amounts, if any, which it proposes to carry to any reserve either in such balance sheet; (c) the amounts, if any, which it recommends should be paid by way of dividend, bonus, or honoraria to honorary workers; and (d) list of defaulters along with the amounts outstanding against each of them. The committee's report shall also deal with any changes, which have occurred during the year for which the accounts are made up in the nature of the society's business. The committee's report shall be signed by its Chairman, or any other member authorised to sign on behalf of the committee. (3) At every annual general meeting, the balance sheet, the profit and loss account, the audit memorandum submitted by auditor appointed under section 54 and the compliance report of the previous years' reports and the committee's report shall be placed for adoption and such other business will be transacted as may be laid down in the bye- laws and of which due notice has been given. (4) A copy of the balance sheet and profit and loss account to be presented at the annual general meeting under sub-section (1) of section  55 25 and a copy of the report of the committee under sub-rule (2) above, shall be affixed on the' notice board of the society at least fourteen days before the date fixed for the annual general meeting. CHAPTER V Election 43. Restriction of defaulting member to vote at the election. - No member shall be eligible to vote at the elections, if on the date thirty days prior to the date of such elections, he is a defaulter against whom decree has been issued under section 99. 44. State Co-operative Election Authority. - (1) The Government shall appoint a Government Officer, not below the rank of an Additional Registrar of the Rajasthan State Co- operative Service as the State Co-operative Election Authority on recommendations of a committee consisting of the following :- 1 (i) [The Secretary in-charge of the - Chairman Co-operative Department, Rajasthan] 1 (ii) [The Secretary in-charge of the Department - Member of Personnel, Rajasthan] (iii) Registrar, Co-operative Society, Rajasthan - Member