ANDHRA PRADESH MUTUALLY AIDED CO-OPERATIVE SOCIETIES ACT, 1995
(1)This Act may be called the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall come into force on such date as the Government may, by notification in the Andhra Pradesh Gazette, appoint.
(a) "Board" means the Board of Directors of a Co-operative Society;
(b) "Bye-laws" means the bye-laws of a Co-operative Society as originally framed or as altered from time to time in pursuance of this Act;
(c) "Co-operative principles" means the Co-operative principles specified in Section 3;
(d) "Co-operative Society" means a Mutually Aided Co-operative Society registered under Section 4 whose bye-laws prohibit it from raising share capital from the Government, a Co-operative Society registered under Section 7 of the Andhra Pradesh Co-operative Societies Act, 1964, if it amends its bye-laws where necessary to reconstitute its capital base and in respect of other relevant aspects to be in accordance with this Act, and returns to the Government its share capital, if any, and either enters into
Individuals or Co-operatives intending to form into a Co-operative Society principles under this Act shall frame bye-laws conforming to the following principles of co-operation, namely,--
(a) membership of a Co-operative Society shall be voluntary and available without restriction of any social, political, racial or religious discrimination, to all persons who can make use of its services and are willing to accept the responsibilities of membership;
(b) Co-operative Societies are democratic organisations; their affairs shall be administered by persons elected or appointed in a manner agreed by the members and accountable to them. Members of Primary Co-operative Societies shall enjoy equal rights of voting (one member one vote) and participation in decisions affecting their Co-operative Societies. In other Primary Co-operative Societies,
(1) Where not less than ten individuals each being a member of a different family intend to form a Co-operative Society, or two or more Co-operative Societies registered under this section wish to form into a federation, or a Society registered under Section 7 of the Andhra Pradesh Co-operative Society under this Act, they shall frame bye-laws for this purpose in accordance with Section 3 in the first instance.
(2) Thereafter an application for registration shall be submitted to the Registrar by hand or by registered post.
(3) Every such application shall be accompanied by,--
(a) the original and one copy of the bye-laws of the proposed Co-operative Society as adopted by the individuals or delegates of Co-operative Societies who wish to form into a Co-operative Society under this Act or by th
Where a Co-operative Society is registered, the certificate of registration signed and sealed by the Registrar shall be conclusive evidence that the Co-operative Society mentioned therein, is a Mutually aided Co-operative Society duly registered under this Act; Provided that where a Society was earlier Registered under the Andhra Pradesh Co-operative Societies Act, 1964, such registration shall stand cancelled once a certificate of registration under this section is issued.
(1) A Co-operative Society registered under this Act shall be a body corporate by the name under which it is registered having perpetual succession and a common seal. The Co-operative Society shall be entitled to acquire, hold and dispose of property, to enter into contracts, to sue and be sued and to do all other things necessary to achieve its objectives.
(2) All transactions entered into in good faith prior to registration, in furtherance of the objectives of the Co-operative Society, shall be deemed to be transactions of the Co-operative Society after its registration.
A Co-operative Society may be registered with limited or unlimited liability. Where the liability is limited, it shall have as a suffix to its name the expression "limited" or its equivalent in any Indian language.
(1) Every Co-operative Society shall display its full name, registration number and the address of its registered office in legible characters in a conspicuous position,--
(a) at every office or place at which it carries on business;
(b) in all notices and other official publications;
(c) on all its contracts, business letters, orders for goods, invoices, statements of account, receipts and letters of credit; and
(d) on all bills of exchange, promissory notes, endorsements, cheques and orders for money it signs or that are signed on its behalf.
(2) Where a Co-operative Society has a corporate seal, it shall display its full name in legible characters on its corporate seal.
(1) Except on such specific matters for which this Act has provided, the functioning of every Co-operative Society shall be regulated by its bye-laws. Subject to the provisions of this Act and the bye-laws every Co-operative Society shall have regard to the Co-operative principles in its functioning.
(2) Subject to Section 3, the bye-laws of Co-operative Society shall be specific on the following matters, namely :-
(i) the name and address of the Co-operative Society;
(ii) the object of the Co-operative Society explicitly stated as a common central need of the members which the Co-operative Society aims at fulfilling;
(iii) eligibility, ineligibility and procedure for obtaining and retaining membership;
(1) A Co-operative Society may amend any of the provisions of its bye-laws by a resolution of its general body, or by the representative general body, where this exists.
Provided, that no such resolution shall be passed unless atleast twenty clear days of written notice of the meeting has been given along with a copy of the proposed amendment to each member of the general or representative general body, as the case may be, and such notice and proposed amendment is also displayed on the notice board of the Co-operative Society for a period of twenty days immediately preceding the date of the meeting;
Provided further that the representative general body shall not alter any provision in the bye-laws relating to its own constitution and powers.
(2) in the case of amendment of its bye-laws with r
(1) A Co-operative Society may, by a resolution of its general body,--
(a) decide to amend its bye-laws to change the form or the extent of its liability;
(b) decide to transfer its assets and liabilities, in whole or in part, to any other Co-operative Society which agrees to such transfer by a resolution of its general body;
(c) divide itself into two or more Co-operative Societies.
(2) Any two or more Co-operative Societies may, by a resolution of their respective general bodies, decide to amalgamate themselves and form a new Co-operative Society.
(3) Every resolution of a Co-operative Society under this section shall be passed at its general meeting by a majority of total members with right of vote or
(1) Any Co-operative Society may, by a resolution passed at general meeting by a majority of members present and voting, promote one or more Subsidiary Organisations for the furtherance of its stated objectives, and such organisations may be registered under any law for the time being in force, as agreed to by the general body.
(2) The annual reports and accounts of any such subsidary organisation shall be placed before the general meeting of the promoting Co-operative Society every year.
(3) Any subsidiary organisation created under sub-section (1) shall exist for only as long as the general body of the Co-operative Society deems its existance necessary.
Where the collaboration between a Co-operative Society and any other organisation or organisations requires the creation of a new organisation, the new organisation may be registered as a company or a public Society, as appropriate for the fulfilment of the objective with which it was created, and such collaboration shall be reviewed every year by the general body of the Co-operative Society.
(1) A Co-operative Society may mobilise funds in the shape of share capital, deposits, debentures, loans and other contributions from its members to such extent and under such conditions as may be permissible under the bye-laws of the Co-operative Society: Provided that, at the time of dissolution of a Co-operative Society the amounts due to the members shall be settled only after the settlement of dues to others.
(2) A Co-operative Society may also mobilise funds in the shape of deposits, debentures, loans and other contributions, from other individuals and institutions, to such extent and under such conditions as may be permissible under the bye-laws:
Provided that a Co-operative Society shall not accept share capital from the Government but may accept other funds or guarantee from the Government on such terms and conditions as are mu
A Co-operative Society may invest or deposit its funds in any non-speculative manner outside its business.
(1) In any year a Co-operative Society shall allocate towards a deficit cover fund, reserve funds, deferred payment to members as patronage rebate in proportion to their use of the Co-operative Societies services and payment on share capital of interest not exceeding the rate of interest paid by scheduled banks, such percentage of the surplus arising from its business transactions in the previous year, as may be approved by the general body.
(2) Reserves created under sub-section (1) shall be costed by crediting an annual interest equal to the rate paid by scheduled banks on fixed deposits.
(1) Where a Co-operative Society is left with a deficit in any given year, the Board of Directors shall place before the general body in the first following annual general meeting, a detailed report on the causes of deficit and the manner in which the deficit is proposed to be met.
(2) the general body of the Co-operative Society shall decide to have the deficit covered by setting it off against the amounts available in the deficit cover fund, and/or by debiting the deficit to the account of the members in proportion to the services they had availed or were expected to avail of the Co-operative Society during the year.
A Co-operative Society may create a Reserve for such purpose as may be specified in the bye-law.
(1) Subject to the bye-laws, any person who is desirous of utilising the services of the Co-operative Society may express his willingness to accept the responsibilities of membership and fulfil such other conditions as may be specified in the bye-laws of the Co-operative Society and thereupon he may be admitted as a member, subject however to the condition that the Co-operative Society is in a position to extend its services to the applicant and that the applicant is not already a member of a Co-operative Society registered under this Act, or the Andhra Pradesh Co-operative Societies Act, 1964 providing the same or similar services.
(2) Admission of members and removal from membership shall be made, in accordance with the procedure specified in the bye-laws, only by an elected Board or by the General Body where such an elected Board does not exist for the time being.
(1) Subject to the provisions of this Act and the bye-laws, the ultimate authority of a Co-operative Society shall vest in its general body.
Provided that where, because of spread of number of members, a Co-operative Society feels the need for constituting a Representative General Body for more effective decision making, it may constitute a Representative General Body in such a manner and with such functions as may be specified in the bye-laws.
(2) The following matters, among others specified in the bye-laws shall be dealt with by the general body of a Co-operative Society, namely :-
(a) amendments to bye-laws;
(b) election and removal of Directors;
(c) consideration of,--
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(1) There shall be a Board of Directors for every Co-operative Society constituted and entrusted with the direction of the affairs of the Co-operative Society in accordance with the provisions of the Act and the bye-laws.
(2) The size of the Board shall be a multiple of the term of office of its Directors.
(3) The Directors of the Board shall have staggered terms such that at any point of time the vacancies arising as a result of the terms of Directors coming to an end, are less than one half of the total strength of the Board;
Provided that the term of a Director shall not exceed five years;
Provided further that at the first election all the Directors shall be elected at once, and their terms staggered by drawal of lots specifying different terms
(1) The Board shall, in accordance with the bye-laws, be the authority to,--
(a) admit and terminate membership;
(b) elect the Chairperson and other office bearers;
(c) remove from office the Chairperson and other office bearers;
(d) appoint and remove the Chief Executive;
(e) fix staff strength;
(f) frame policies concerning,--
(i) organisation and provision of services to members;
(ii) recruitment, and conditions of service of the staff at the Co-operative Society;
(iii) mode of custody and investment of funds;
(1) The conduct of elections of Directors of a Co-operative Society shall be the responsibility of the incumbent Board of the Co-operative Society.
(2) Elections shall be conducted before the expiry of the term of office of the outgoing Directors in the manner specified in the bye-laws.
(3) Where a Board does not take necessary steps to conduct elections as specified in the bye-laws before the expiry of the term of the Directors, of where there are no of Directors remaining on the Board, the Registrar shall at the request not less than twenty-five members or five per cent of the total members of the Co-operative Society whichever is less or may suo moto convene within 30 days a general meeting for appointing an ad hoc Board for the specific purpose of conducting elections.
(4) The term of the
(1) The bye-laws of a Co-operative Society shall specify the frequency of and manner in which Board and General Body meetings shall be held, so however the Board shall meet at least once in every three months and the General Body shall meet at least once a year.
(2) The Board shall convene a general meeting within thirty days of receipt of a requisition for convening a meeting signed by at least one-tenth of members of the Co-operative Society or as provided in the bye-laws and any such requisition shall contain the proposed agenda and the reasons why the meeting is felt necessary.
(3) Where the Board fails to convene the annual or requisitioned general meeting within due time, it shall be competent for the Registrar to convene the requisitioned or annual general meeting, as the case may be.
(
All Staff of the Co-operative Society shall be employees of the Co-operative Society and shall be fully accountable to the Co-operative Society and be appointed, removed and function in accordance with such service conditions as may be framed by the Board:
Provided that a Co-operative Society may take personnel on deputation from other agencies including the Government, on such terms as are mutually agreed upon.
(1) Every Co-operative Society shall keep at its office, the following accounts, records and documents, namely :-
(a) a copy of this Act with upto date amendments incorporated;
(b) copies of other laws and regulations to which the Co-operative Society is subject;
(c) a copy of its registered bye-laws with amendments made from time to time;
(d) the minutes book;
(e) accounts of all sums of money received and expanded by the Co-operative Society and their respective purposes;
(f) accounts of all purchases and sales of goods by the Co-operative Society;
(g) accounts of all assets and liabilities of the Co-operative Soc
(1) A Co-operative Society may get its accounts audited by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949, or by any other Auditor from the office of the Registrar.
(2) The General Body of a Co-operative Society shall appoint an auditor by a resolution which will be valid only until the close of the next succeeding annual General Body meeting.
(3) The remuneration of the auditor of the auditor shall be fixed with the approval of the general body.
(1) A Co-operative Society dealing with funds from the Government or other external individual or institutions may be subject to a special audit initiated by the Registrar at the request of such creditor, on such specific terms of reference as agreed to by the Registrar.
(2) The cost of the special audit under sub-section (1) shall be met by the creditor:
Provided that where the special audit reveals serious mismanagement in the Co-operative Society, such costs may be recovered from the Co-operative Society or the persons responsible for the mismanagement.
(3) Every special audit shall be completed and the report submitted to the Registrar within one hundred and twenty days of its commencement.
(4) The special audit report shall contain a statement
(1) Every Co-operative Society shall furnish any relevant information required by the Registrar in order to enable him to satisfy whether the Co-operative Society has conducted its affairs in accordance with the Co-operative Principles and the provisions of this Act.
(2) The Registrar may, of his own motion, and shall on the application of a Federation to which the Co-operative Society concerned is affiliated, or of a creditor to whom the Co-operative Society is indebted or of not less than one-third of the Directors, or of not less than one-tenth of the members, hold an inquiry or cause an inquiry to be made into the specific matter or matters relating to any gross violation of any of the provisions of this Act by the Co-operative Society.
(3) The inquiry shall be completed within a period of one hundred and twenty days from the date of
Section 29 of the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995, primarily deals with the inquiry powers of the Registrar regarding cooperative societies. It establishes the authority of the Registrar to examine the functioning and compliance of societies with the provisions of the Act, ensuring transparency and accountability within the cooperative sector .
Section 29 authorizes the Registrar to conduct inquiries into the affairs of any cooperative society. It mandates societies to furnish any relevant information required by the Registrar to facilitate such inquiries. The section also empowers the Registrar to order inspections, investigations, or inquiries to verify compliance with the Act and the society’s bye-laws .
Section 29 covers:- All cooperative societies registered under the Act .- Powers to conduct inquiries into the society’s financial health, management, and compliance.- The obligation of societies to cooperate by providing necessary information.- The capacity of the Registrar to order inspections or investigations to safeguard the interests of members and ensure proper functioning .
While Section 29 itself primarily deals with inquiry powers, failure to cooperate or furnish required information may lead to penalties or disciplinary actions as prescribed under related provisions of the Act. For example, non-compliance with inquiry orders might result in legal consequences, including fines or other penalties .
(1) The person authorised to conduct special audit under Section 28 or inquiry under Section 29 shall give the concerned Co-operative Society, not less than fifteen days notice in writing of the date on which he proposes to commence the special audit or inquiry:
Provided that for special reasons to be recorded in writing, he may give a shorter notice than fifteen days or commence a special audit or inquiry on the authority of the Registrar without such notice.
(2) For the purpose of any special audit or inquiry under this Act, the person conducting such audit or inquiry may,--
(a) require in writing the Chairperson or other authority concerned to produce at the head office of the Co-operative Society such receipts, vouchers, statements, returns, correspondence, notice or any other documents
On communication of a Special audit report under sub-section (5) of Section 28 or an inquiry report under sub-section (5) of Section 29 to the persons concerned, the Registrar may, where the special audit or inquiry report reveals mismanagement on the part of any or all of the office bearers or Directors, without prejudice to any civil or criminal proceedings to which they may be liable,--
(a) direct the Board to convene a General Body meeting within such reasonable time as he may specify, to enable him to bring to the notice of the General Body, either directly or through his nominee, the findings of the special audit or inquiry report, for necessary action; or
(b) approach the Co-operative Tribunal for necessary action.
(1) The Government may, for the purposes of this Act, by notification, constitute as many tribunals as may be necessary for such area or areas as may be specified in the notification.
(2) The provisions of Section 75 of the Andhra Pradesh Co-operative Societies Act, 1964 shall, mutatis mutandis apply for the constitution of Co-operative Tribunals under this Section.
(1) A Member, Director or Chairperson of the Co-operative Society may and the Registrar shall file a copy of the report of the auditor or the Special Auditor or the Inquiry Officer, before the Tribunal with an application for necessary action against the person on account of whose conduct the Co-operative Society has incurred loss. The Tribunal may on the basis of such report disallow every item of expenditure incurred contrary to law and order recovery of the same from the person incurring or authorising the incurring of such expenditure, or held responsible in the said report for any deficiency, loss or unprofitable outlay occasioned by his negligence or misconduct or of any such amount which ought to have been accounted but is not brought into account by that person and shall, in every such case, specify the amount liable to be paid by such person to the Co-operative Society.
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(1) Every year, within thirty days of the conduct of the annual general meeting, every Co-operative Society shall file the following with the Registrar, namely:-
(a) annual report of activities;
(b) annual audited statements of accounts with auditors report;
(c) list of members as at the close of the year under reporting with services provided to each member;
(d) statement on the disposal of surplus or on the allocation of deficit;
(e) list of names of Directors, their addresses and their terms of office; and
(f) compliance reports relating to audit, special audit and inquiry, if any.
A Co-operative Society shall have all the rights and privileges available to Co-operative Societies under Chapter-V of the Andhra Pradesh Co-operative Societies Act, 1964 and the corresponding rules, to the extent that they are not inconsistent with the provisions of this Act.
In regard to execution of decisions, decrees and orders, all the provisions of Chapter-X of the Andhra Pradesh Co-operative Societies Act, 1964 shall mutatis-mutandis apply to Co-operative Societies registered under this Act, such however, that all references to the Registrar in the said Act shall be construed to be a reference to the Co-operative Tribunal in their application to Co-operative Societies registered under this Act.
The provisions of Chapter XIII A containing Sections 115-A and 115-B of the Andhra Pradesh Co-operative Societies Act, 1964 shall mutatis, mutandis apply to all Co-operative Banks.
Explanation :--For the purposes of this Section a "Co-operative Bank means a Society registered under this Act, which is doing the business of Banking as defined in clause (b) of sub-section (1) of Section 5 of the Banking Regulation Act, 1949 (Central Act 10 of 1949).
(1) If any dispute arises touching the constitution, management or business of a Co-operative Society, and matters connected therewith or incidental thereto,--
(a) among members, past members or persons claiming through members, past members and deceased members; or
(b) between a member, past member or a person claiming through a member, past member or deceased member and the Co-operative Society, its Board, Director, office-bearer or liquidator, past or present; or
(c) between the Co-operative Society or its Board and any past Board, Director, office-bearer or the nominee, heirs, or legal representatives of any deceased Director, deceased Officer, of the Co-operative Society; or
(d) between the Co-operative Society and any other Co-operative Socie
(1) It shall be an offence under this Act, if a Co-operative Society,--
(a) fails to give a notice, send a return or document, or fails to do or allows to be done any act which a Co-operative Society is by this Act or under its bye-laws required to give, send, do or allow to be done;
(b) wilfully neglects or refuses to do an act or to furnish information required for the purposes of this Act or does an act forbidden by this Act, or the bye-laws; or
(c) makes a return, or wilfully furnishes information, in any respect false or insufficient.
(2) It shall be an offence under this Act, if any person or Co-operative Society contravenes the provisions of this Act or the bye-laws of a Co-operative Society.
(3)
(1) A Co-operative Society may, by a special resolution, authorise its own dissolution;
Provided that a notice of the general meeting shall also be sent with an invitation to attend, to the Registrar, to any Federations of which the Co-operative Society is affiliated, to creditors and to any organisation with which a partnership contract has been entered into.
(2) Invitees under the proviso of sub-section (1) shall have the right to make a representation to the General Body if they so wish to, giving reasons why dissolution is not called for.
(3) Within fifteen days of such authorisation for dissolution, the Co-operative Society shall send to the Registrar a copy of the authorisation to dissolve the Co-operative Society by registered post.
(4) The
(1) The Registrar or an interested person may, after giving the Co-operative Society ninety days notice of the proposed application, apply to the Tribunal for an order dissolving the Co-operative Society, where he has reasonable cause to believe that the Co-operative Society has no right to be or to continue to be recognised as a Co-operative Society, because it,--
(a) obtained its registration by fraud or mistake;
(b) is serving illegal purposes;
(c) has wilfully, after notice by the Registrar, violated any of the provisions of this Act or its bye-laws;
(d) is no longer operating in accordance with principles of co-operation and the provisions of this Act;
(e) has not commenced business within two years
(1) Where a Co-operative Society is to be dissolved and no liquidator is appointed by the General Body or the Tribunal, the Registrar, may,--
(a) appoint any person as a liquidator to wind up the affairs of the Co-operative Society; or
(b) where he is satisfied that the Co-operative Society has no assets and liabilities, issue a certificate of dissolution.
(2) The appointing authority shall fix the payment to the liquidator for his services.
On his appointment, liquidator shall,--
(a) immediately give notice of his appointment,--
(i) in the case of liquidator not appointed by the Registrar, to the Registrar; and
(ii) to each claimant and creditor known to the liquidator;
(b) immediately publish notice of his appointment once a week for two consecutive weeks in a newspaper published or distributed in the district where the Co-operative Society has its registered office and take reasonable steps to give notice of the liquidation in every jurisdiction where the Co-operative Society carries on business;
(c) place in the notice mentioned in clauses (a) and (b) a provision requiring any person,--
(i)
(1) The liquidator may,--
(a) retain lawyers, accountants, engineers, appraisers and other professional advisors;
(b) bring, defend or take part in any civil, criminal or administrative action or proceeding in the name and on behalf of the Co-operative Society;
(c) carry on the business of the Co-operative Society as required for an orderly liquidation;
(d) shall by public auction any property of the Co-operative Society;
(e) do all acts and execute any documents in the name and on behalf of the Co-operative Society;
(f) borrow money on the security of the property of the Co-operative Society;
(g) settle or compromi
(1) A liquidator shall pay the costs of liquidation out of the property of the Co-operative Society and shall pay or make adequate provision for all claims against the Co-operative Society.
(2) After paying or making adequate provision for all claims against the Co-operative Society, the liquidator shall apply to the Registrar for approval of his final accounts and for permission to distribute in money or in kind the remaining property of the Co-operative Society in accordance with the bye-laws.
(3) where the Registrar approves the final accounts rendered by a liquidator in pursuance of sub-section (2), he shall,--
(a) issue directions with respect to the custody or disposal of the documents and records of the Co-operative Society; and
(b) discharg
The Registrar may charge a reasonable fee for any of the services provided by him or by an officer authorised by him under the provisions of this Act.
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