MANAGING COMMITTEE

The members who are the owners of the cooperative society, are large in number and
therefore all of them cannot look after the day-to-day affairs of the cooperative society.
Hence they elect from among themselves their representatives on the managing
committee. These elected representatives form the managing committee.

The managing committee looks after the management of the society. All the managerial
powers are given to the managing committee. It is a decision making committee. It is
responsible for the efficient conduct of the business of the society. The authority and the
management flow from top to bottom. The members of a managing committee should
meet together atleast once in each quarter of the year for taking decisions.

ELECTION OF MANAGING COMMITTEE

The number of the members on the managing committee depends upon the provisions of
the Act or bye-laws of the society. The government may by general or special order direct
the society to reserve TWO seats for schedule caste and schedule tribes or vimuchkta
jaates and ONE for the weaker section of the society. If no such members are elected the
managing committee shall co-opt required members on it from among those who are
entitled for such representation. In case of Apex Bank (State cooperative Bank) there
shall not be more than one representation on the committee of such type.

GOVERNMENT’S RESERVATION POLICY REGARDING ELECTION

Government has its reservation policy by which the representatives can nominated on
such Co-operative society. The policy of the Government is as follows:

1. On the committees of the societies for scheduled castes, schedule tribes and
weaker sections of members, two seats shall be reserved i.e. one seat is reserved
for schedule caste/scheduled tribe and one for weaker sections.
2. The Government can direct to co-opt such persons if no elected at the time of
election to the managing committee.
3. The reservation of seats for employees on committee of societies is made if
number of employees is 25 or more.
4. If the number of employees is 11 or less, one seat is reserved for such employees.
5. If number of such members are 12 or more, one additional seat after every 10
members over and above first 11 is kept reserved for employees.
6. In case of Apex Co-operative Bank and federal institutions, the government has its
own reserved nominees on managing committee.
7. In case the government has contributed towards the share capital of the society, the
government has policy to appoint its own nominees.
PROCEDURE OF ELECTION

The election to the managing committee of a cooperative society is carried out as per the
rules of election made under the provisions of the act and the bye-laws of the society:

The steps of the process of election are as under:

1) Publishing of voters list on or before a specific date

2) Appointing of election committee and empowering the returning
officer/chairman of the election committee to hold free and fair election
3) Publishing of notice of election on the notice board of the society or on a local
newspaper with detail election program.
4) Filing the nomination forms for contesting election.
5) Scrutinising of nomination papers filed
6) Withdrawal of nomination filed if any, on or before specific date
7) Voting on the date fixed for the same, if required
8) Counting of the votes on specific date at specified time
9) Declaration of result after counting of votes in the Annual General Meeting.

NON –ELIGIBILITY OF MEMBER TO CONTEST ELECTION TO

MEMBERSHIP OF MANAGING COMMITTEE

1) If a person is in default to the society in respect of any dues from him either
personal capacity or as a borrower for exceeding a period of three months. Or
2) If he has been responsible under section 79 and 88 has been held responsible for
payment of cost of inquiry under section 85, he shall not be eligible for election to
member of the managing committee.

FUNCTIONS AND POWERS OF MANAGING COMMITTEE

1) To consider an application for membership.

2) To consider the registration of members.
3) To consider the complaints of the members, staff etc.
4) To appoint salaried servants to the society as and when required.
5) To punish and dismiss the salaried servants of the society if required.
6) To remove the President.
7) To consider the allotment of shares.
8) To examine the registers.
9) To raise working capital.
10) To sanction purchases of the society.
11) To fix up the selling price of the goods for sale.
12) To conduct the business of the society.
TENURE OF THE OFFICE OF MANAGING COMMITTEE

The members elected on the committee at such general meeting will hold office for a
period of 3 to 5 years from the date on which the first meeting is held and shall
continue in office until immediately before the first meeting of the members of the
new committee. The general body of the members appoint the committee of
management and the managing committee appoints other committee.
Committee elected does the management of the cooperative society. Sometimes it is also
known as Board of Directors. This board is fully authorized to decide, execute and
organize any activity in the interest of co-operative society.
However, for any reason if the member of the committee discontinues or withdraws
himself from the managing committee, any other member of the society qualified to
be on the managing committee, can be co-opted in the place of him for the
remaining tenure of the said managing committee.

TERMINATION OF MANAGING COMMITTEE

The members of the cooperative society have the power to terminate the managing
committee before the expiry of the term of office. In this regards the members of the
cooperative society should make an application or representation to the chairman by
atleast 1/5 of the members or as per the provision laid down in the Bye-laws. All the
members proposing to hold a special general meeting must sign the requisition. This
meeting should be conducted within one month from the date of receiving an
application. This is done only because the members of the cooperative society could not
wait until the Annual General Meeting to be conducted. If a chairman than does not call
such meeting, the members have the right to give an application to the Registrar to call
such a meeting. The members present in the meeting will discuss the point regarding the
reasons for terminating the managing committee. The members of the society may or
may not be satisfied with functioning of the managing committee. So, the members may
feel that the managing committee should be removed and new committee has to be
elected. The chairman or the Registrar will record the proceedings of the meeting
and pass the resolution for termination of managing committee.

OFFICE BEARERS OF A CO-OPERATIVE SOCIETY

Office bearers are the members of the managing committee. The managing committee
has the power to appoint office bearers for carrying the functions of the society. Some of
the important office bearers are chairman, secretary, treasurer etc.
 1) Chairperson
He is also known as the chairman. He is the incharge and the main trustee of the
affairs of the society. He has to hold the Annual General Meeting and preside over
it and take decisions in consultation of his other members of the managing
committee. Sometimes he is called the “manager of the meeting”.
 Election of the Chairperson
The members of the society in the general meeting elect the chairperson if it
has been provided in the bye-laws. Generally, the election of the chairperson is
carried out in the first meeting of the newly elected managing committee. In case a
society is newly formed, the promoters may appoint the first managing committee
from amongst themselves and elect the chairperson.
 Removal of Chairperson
For removal of the chairperson, the members of the society must call a Special
General Meeting or Extra Ordinary General Meeting. The right of removal
of chairperson is given to the members if they found a chairperson is not
functioning properly for the internal management of the society. The majority
members of the society should give a representation duly signed by them to the
Registrar of Co-operative Society. The Registrar may call the meeting. In the
meeting the cause of removal of Chairperson may be discussed and decision may
be taken in the matter. The members of the society present for the meeting should
take this discussion unanimously.

ROLE/DUTIES OF A CHAIRPERSON

Chairperson plays a very important role in conducting the meeting and therefore the
chairman is called “The Manager Of The Meeting”. The chairperson has to fulfill the
duties pertaining to the conduct of the meeting like:
1) To see that the meeting is duly convened and conducted.
2) To guide the discussion.
3) To control the discussion at the meeting.
4) To maintain discipline in the meeting.
5) To decide the order of motion to be discussed at the meeting.
6) To ascertain the sense of the meeting.
7) To sign the minutes of the previous meeting
8) To exercise casting vote, if necessary.
9) To put the resolution for vote if poll is demanded.
10) To declare the result of voting if poll is demanded.
11) To see that the provisions of the act, rules and bye-laws are complied
with.
 2) SECRETARY
Secretary is an important office bearer of a Cooperative Society. He is sometimes
called a “Chief Executive of the society”, as he executes all the decision taken by
the managing committee. The Secretary looks after the day –to – day
administration of the affairs of the society and is responsible to the managing
committee for the work given to him. He is appointed to conduct correspondence
with others who are involved in the functioning of the society.
 Appointment of Secretary
The secretary is the most important person in the managing committee and the
managing committee delegates powers to him. He need not be in the
managing committee. He is paid salary or remuneration for the job done
by him. Sometimes an expert is available in the managing committee itself. He
can be appointed or nominated or elected as the secretary as per the provisions
of the bye-laws. In this case he is not entitled to any salary or remuneration
from the society. However he is entitled to some honorarium for the work he
does in the society on behalf of the managing committee.

 DUTIES OF THE SECRETARY TOWARDS OFFICE

1) To maintain records.
2) To operate bank account.
3) To look after the correspondence.
4) To control the activities of the society.
5) To guide the operation of the society.
6) To prepare Trading account, Profit & Loss Account and the Balance Sheet.
7) To maintain proper books of managing committee
8) To communicate to the office staff, the decision of the managing committee.
9) To prepare periodical statements for the information of the managing
committee.

 DUTIES OF THE SECRETARY TOWARDS MEMBERS OF THE

SOCIETY
1. To issue application for shares.
2. To issue a payment for the amount of shares.
3. To transfer the shares.
4. To refund the shares to the members subject to the rules if the members have
applied for refund of money.
5. To receive application for loans from the members of the society.
6. To receive the repayment of loans from the members
7. To issue letters or circulars to the members
8. To issue notices and circulars of the meeting to the members
9. To make arrangement for the meeting.
 10. To take note of the proceedings of the meeting.
11. To record the attendance of the members for the meeting
12. To get the minutes approved in the next meeting.

 DUTIES OF THE SECRETARY TOWARDS MANAGING COMMITTEE

Why is the Secretary called “The agent of the managing committee”?
1. To make necessary arrangement for the meeting of the managing committee.
2. To issue notices and circular of the meeting of the managing committee.
3. To prepare a calendar of the meetings of the managing committee.
4. To take down the notes of the proceedings of the meeting.
5. To prepare the minutes of the meeting.
6. To get the minutes approved.
7. To supply necessary information to the managing committee.
8. To advise the members of the managing committee as regards with the conduct of
the business of the society.
9. To place before the managing committee the receipt and payment account for
consideration.
10. To act as an agent of the managing committee.

 DUTIES OF THE SECRETARY TOWARDS THE REGISTRAR OF

COOPERATIVE SOCIETY
1. To keep correspondence with the Registrar.
2. To acquaint the managing committee about the letters and circulars received
from the Registrar of Cooperative Society.
3. To furnish information about the society to the Registrar.
4. To issue notices of Annual General Meeting of the society and file the copy
of the same with the Registrar.
5. To send proposal of amendments to the Registrar in time.
6. To file annual returns along with the statement of accounts with the Registrar
within 45 days of the close of the co-operative year.
7. To submit audit rectification report to the Registrar.
C) TREASURER

The society undergoes many financial activities. Therefore, a society need a Treasurer to
look after the financial matters of the society. He is incharge of the cash and maintaining
of the books of accounts of the society.

Appointment of a Treasurer
Generally, the treasurer need not be appointed by the societies, as it is appointed if need
be and under the provisions of the societies the treasurer appointed on honorary basis and
is not entitled for any remuneration, but is entitled for some honorarium if decided by the
general body.

Role of Treasurer

Finance is very important for any organization. The proper planning regarding the
investment of finance in such resources from where returns are very high is very
important. The responsibility of proper investment lies with Treasurer. Therefore the role
of Treasurer is important in a cooperative society. The Treasurer is required to play the
following role in a Cooperative Society.
1) Maintaining of Books of Accounts and Registers up to date.
2) Preparing of the voucher and receipts on various payments and receipts.
3) Receiving and disbursing of money on behalf of the society.
4) Arranging of money at times as required for the affairs of the society.
5) Verifying of the cash at any time and hold enquiry if any misappropriation found.
6) Executing the budgetary provisions and keep the expenses in control.
7) Examining of the legality of expenditure made during the functioning of the society.
8) Holding of meetings of Finance Committee and plan the financial strategy for the
society.
9) Preparing of Profit and Loss Account and to access the financial position of the
society.
10) Getting prepared Financial Statements of the society at the close of the financial
year.
11) Preparing of all statements and schedules required for the purpose of Audit.