Registrar Is Empowered To Check If Minute Books Are Maintained
Legally Speaking - Property and Housing Laws | By Solicitor Gajanan Khergamker
- Dev Mehra, Ghatkopar
According to Section 89A of the Maharashtra Co-operative Societies Act 1960, it shall be competent for the Registrar to inspect or cause to be inspected the working of any society to insure that –
(a) The provisions of the Act, rules and bye-laws of the society are being properly followed by the society;
(b) The records and books of accounts are kept in proper forms;
(c) The business of the society is being run on sound business principles;
(d) The society is following the co-operative principles and the directives or directions given by the state government in accordance with the provisions of this Act and the rules made there under:
Provided that, inspection of the societies specified under section 73G shall be undertaken by the Registrar or by the officer not below the rank of Deputy Registrar of co-operative Societies authorised by him in this behalf.
(1) For the purpose of supervision over the societies, the Registrar shall have the power –
(a) To inspect the records and books of the accounts of any society and for that purpose he shall have, at all times, access to all the records and books of accounts of the society: and
(b) To summon any officer or employee who has the custody of the records or books of accounts of the society to produce them before him.
(2) The state Government may levy supervision fees on any society or class of societies at such rates, as the State Government may, having regard to the area of operation, the nature of business and the objects of the society, b notification in the Official Gazette, fix from time to time.
(3) Every society liable to pay the fees levied under sub-section (3) shall pay such fees by such date and in such manner as the State Government may specify in the notification issued under sub-section (3).
(4) The State Government may, having regards to the financial position of any society or class of societies, by general or special order published in the official Gazette, exempt such society or class of societies from payment of such fees for such period as may be specified in such order, or reduce or remit in whole or in part such fees.
Registrar is empowered to see if minute books are correctly maintained. The society has to keep minute books for recording proceedings of general meetings and minute book for record in proceedings of committee meetings.
Members Borrowings and Restrictions By Law
Is there an extent to which a society can receive deposits and loans from members and other persons? What does the law say on this?
- Rakesh Waghela, Fort
A society shall receive deposits and loans from members and other persons, only to such extent and under such conditions, as may be prescribed, or specified by the bye-laws of the society, as laid down by Section 43 of the Maharashtra Cooperative Societies Act, 1960 which deals with Restrictions on Borrowings.
Provided that, the co-operative credit structure entity shall adopt its own policies regarding interest rates on deposits and loans in conformity with Reserve Bank of India guidelines.
If, in the opinion of the Registrar, it is necessary so to do for ensuring safety of the funds obtained under sub-section (1), for proper utilisation of such funds in furtherance of the objects of the society or societies concerned and for keeping them within the borrowing limits as laid down in the rules and bye-laws, the Registrar may, by general or special order impose additional conditions on any society or class of society subject to which and the extent up to which such society or such class of societies may receive deposits, issue debentures or raise loans from any creditor other than a Central Bank.
Provided that nothing in this sub-section shall apply to a society which has not taken any financial assistance from the Government in the form of share capital, loan or guarantee regards to its financial position.
However, such society shall send to the Registrar, in writing, full details about its borrowing policy and change, if any introduced in such policy at any time: provided that, nothing in this sub-section shall apply to the co-operative credit structure entity.
However, such entity may adopt its own policy in conformity with the Reserve Bank of India guidelines.
According to Section 44 of the Act which deals with Regulation of loan making policy:
(1) No society shall make a loan to any person other than a member, or on the security of its own shares, or in the security of any person who is not a member:
Provided that, with the special sanction of the Registrar, a society may make loan to another society:
(2) Notwithstanding anything contained in the foregoing sub-section, a society may make a loan to a depositor on the security of his deposit.
(3) if in the opinion of the state government, it is necessary in the interest of the society or societies concerned to do so, the State Government may, by general or special order, prohibit restrict or regulate the lending of money by any society or class of societies on the security of any property:
Provided that, the Registrar may, for ensuring safety of the funds of the society or societies concerned, for proper utilisation of such funds in furtherance of their objects and for keeping them within the loan making limits laid down in the rules and bye-laws, with the approval of the Apex Bank, by general, or special order, regulate further the extent, conditions and manner of making loans by any society, or class of societies to its members or other societies.
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