How to Amend By Laws of Cooperative Society?

25 March 2024

4,534 4 mins read

A society's bye-laws are a group of regulations and rules. As society advances, it can modify its rules as necessary. This article discusses how to amend bye-laws of Cooperative Society.

There are some regulations that all cooperative committee members must follow. Their actions have an impact on other cooperative committee members or the association itself.

Once the cooperative society is established, the bye-laws come into force and are relevant to everyone. When a previously enacted bye-law is insufficient to address a society’s present position or need, it can be amended. Numerous cooperative societies also employ a fresh set of sanctions in an effort to boost member compliance.

However, amending the bye-laws is a certain way to make sure the new regulations are followed strictly. There may be many reasons for the managing committee to amend the bye-laws starting from the time the society was founded. Now a vital question arises how to amend bye-laws of Cooperative Society, but before going there, let’s get to know a few important details about the bye-laws of Cooperative Society.

Table of Contents

All About Bye-Laws of Cooperative Society

Bye-laws are the rules that contain clauses about the operations and business of the society. Bye-laws are necessary to enforce good maintenance and to address residents’ concerns quickly and effectively.

Bye-laws are legally binding documents that define how a cooperative society will operate. In addition, bye-laws contain further information about the cooperative housing society, including its name, address, and other pertinent details. Bye-laws are frequently referred to as a society’s “user manual”.

According to the guidelines in the Society Registration Act of 1860, each society must establish its bye-laws. The Vakilsearch platform provides you with all the necessary details about society registration as well as its bye-laws.

The reasons for which bye-laws are needed to be modified are:

Change in the rules of Cooperative Society results in bye-laws amendment.
Change in the composition of the committee.
On the Registrar’s instruction.

Procedures of How to Amend Bye-Laws of Cooperative Society

The answer to the question of How to amend bye-laws of Cooperative Society includes several steps, which are –

Organise a general meeting every year and send out the AGM or SGM agenda within 14 days’ notice to all the society members.
A majority portion of the committee members present at the general meeting are required for a resolution to pass. Bye-law amendments must be approved by a two-third vote of the total members present at the Special General Meeting or Annual General Meeting.
Within sixty days of the AGM or SGM, the Registrar must receive the necessary paperwork and a request for a by-law amendment. In less than 60 days after the application’s receipt, the registrar is required to take action.
The amendment may be registered if the authority is confident that it does not violate any laws or rules.
When a society’s bye-laws are amended, and the registrar records the change, the signed copy of the modification and a registration certificate will both be issued by the Registrar. Together with the resolutions adopted by the Annual General Meeting (AGM), four copies of the most recent bye-laws have to be provided by the committee.
Only after allowing the society a chance to be heard the registrar can issue an order denying the registration of the amendment. A cooperative society’s bye-laws cannot be changed until they are registered under the Gujarat Cooperative Society Act of 1962.

If the Registrar is satisfied that the recommendations to reconsider the amendment have been followed or is satisfied with the reply, after taking into account the response received in answer to the opportunity provided, he shall submit the amendment.

Sometimes the cooperative society does not respond within the time frame specified by the Supervisor, or the response is not under the direction of the Registrar. In that case, the Registrar may reject the proposal and shall interact with the judgment within 30 days of the receipt of all such responses or on the closing date noted above, as applicable.

Documents Needed for Modifying Bye Laws of Cooperative society

The documents needed for amending the bye-laws of a cooperative society are:

A PP form of a leaflet, an audit report from the previous government, and a copy of any recent amendments to the bye-laws of the Cooperative Society.
The society also needs a copy of the AGM agenda, and Annual General Meeting Resolution copy approving proposed modifications to the bye-laws.
In addition, a photocopy of the latest bye-Cooperative Society Laws is required, together with the last few incomes, expenses, and balance sheets.
Lastly, a Certificate of Society Registration and four signed copies of the proposed modification from the society’s chairman are also required.

Registrar’s Authority to Order Bye Law Amendment

The Registrar may ask a society to alter its bye-laws within a given time if it seems to him that doing so is essential or desirable for the society, other than concerning the title or objectives of the society.
The registrar will issue a notice in Form C for the above-mentioned, which must include a draft of the alteration the registrar proposes.
To discuss the adjustments, the Society must conduct a Special General Meeting (SGM). If the amendments are agreed upon, they must be sent to the Registrar.
Upon receiving a modification of the bye-laws of the Cooperative Society, the registrar will record it and provide the society with a certified copy.
The Registrar may record the amendment and immediately provide the society with a copy of it that has been certified by him if the society doesn’t make the necessary adjustments within the allotted time, after giving the society a chance to be heard and with the State Cooperative Council’s prior consent.
The day the alteration is registered via the above-mentioned approach, the bye-laws will be considered to have been properly revised.

Conclusion:-

A resolution approved by the entire body may change the bye-laws. Members of the society must create bye-laws that contain a variety of clauses to control how the society operates for it to run smoothly. The updated bye-law or one that has been modified must be declared valid.

On the Vakilsearch platform, you will get information about the need for amending the bye-laws of the Cooperative Society and also about how to amend bye-laws of Cooperative Society.

Numerous problems with the cooperative society are caused by a need for more awareness or knowledge of the different rules, regulations, existing bye-laws, and applied societal laws. Therefore, amending the bye-laws of the Cooperative Society is an essential step that needs to be performed.

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