WORKING CULTURE

OF
CO OPERATIVES
BY
Ajit kumar verma PGDM
 Bylaws

• The co-op’s bylaws provide a more detailed description of the

cooperative’s internal structure and operations. They are a set
of written rules for how the co-op will function and govern
itself. Bylaws are not usually filed with the state in which the
co-op will operate, but they are considered legally binding on
the cooperative and its members.
 RIGHTS OF THE COPERATIVES
MEMBERS
1. Every member has one vote in the affairs of the Society
irrespective of number of shares held. All the members have right to
contest election for the post of Director.
2. The members have right to get dividend on their shares if there is
surplus.
3. Members have the right to propose any resolution and to participate
in the affairs of the society.
4. A member in combination with other member has right to request
for calling the special general body meeting of the society if the
situation so demand.
5. The member has and also right to approach the Registrar to know
about his rights and also bring to the knowledge of Registrar any
irregularities noticed by him
 DUTIES

1. A member should remain loyal to the society.

2. He should adhere to the constitution of the society and
faithfully assist the management in carrying on their duties.
3. He should follow a code conduct in his behavior with the
other members of the society.
4. He should also repay loan/dues from him in time to the
society.
5. He should not shy away from actively participating in the
General Body Meeting.
6. He should carefully go through the Audit Report and Annual
Report submitted before the General Body and offer his
suggestions and point out remedial measures to rectify the
irregularities.
 POWER AND FUNCTIONS OF
GENERAL BODY
1. The powers and functions of a General Body of a Cooperative Society in
brief are:-
2. To approve the programme of the activations of the society prepared by the
Managing Committee for the en-suing year.
3. To conduct election if any, of the members of the committee other than
nominated members.
4. To approve the Audit Report and the Annual Report.
5. To decide the manner of disposal of the net profit.
6. To deliberate and approve the Annual Budget.
7. To decide about the expulsion of members if found indulged in anti-society
activities as per provision of byelaws.
8. To write off bad debts subject to approval of the Registrar of Cooperative
Societies.
9. Amendment in Bye-Laws subject to the Registrar of Coop. Societies
approval.
 Duties of Directors

•
States the director’s specific powers and responsibilities,
including: guiding the cooperative and articulating its mission,
goals, and policies and periodically reviewing those goals.
Authorizes directors to employ a manager, define the
manager’s duties, determine his or her compensation and
evaluate his or her job performance. Specifies the director’s
responsibility to maintain an appropriate accounting system
and have the co-op’s books audited or reviewed annually.
This section also specifies the board’s responsibility to
indemnify directors, officers and management against liability.
• Specifies the duties of the president, vice president,
secretary, and treasurer. Also describes the terms of
officers and excused absences from board meetings.
• Membership Capital Contributions
•
Specifies the required equity contribution by members
and the method by which the co-op will collect the
contribution; what type of stock the cooperative has the
authority to issue; and any requirements regarding the
co-op’s stock certificates.
• Profits and Losses
• Specifies how the co-op’s profits, if any, will be distributed based on
each member’s patronage with the co-op. In addition, any losses
experienced by the co-op must be allocated across the
membership.
 Dissolution

• Identifies a procedure for dissolving the cooperative, and specifies the

distribution of any remaining assets .