Q.What are bye-laws? State the main matters usually contained in the bye-laws of a co-operative society.

The bye-laws are the internal rulebook of the society, and they are so central that they are registered together with the society itself.

The bye-laws of a co-operative society are its internal constitution or rulebook — the set of rules by which the society agrees to govern its own working. They occupy a special place in the formation process because they are not merely submitted with the application but are actually registered along with the society itself: under Section 9 of the Maharashtra Co-operative Societies Act, 1960, the Registrar registers the society and its bye-laws together, and he will do so only if the proposed bye-laws are not contrary to the Act or the Rules. Once registered, the bye-laws become binding on the society and on all its members, so they must be framed with care during the promotion stage, usually by adapting the model bye-laws approved for that class of society.

The bye-laws typically contain the main matters needed to run the society. They begin with the name of the society (including its liability status) and its registered address, and set out the area of operation within which the society will work and admit members. They state the objects of the society — the purposes for which it is formed — which must be genuine co-operative objects consistent with Section 4 of the Act.

On membership, the bye-laws lay down the qualifications a person must have to become a member, the procedure for admission, and the rights and duties of members, including how a member may cease to be one. On finance, they fix the authorised share capital, the value of each share, the maximum shares a member may hold, entrance fees, and the way in which the surplus (profit) is to be dealt with — how much goes to reserves and how dividend, if any, is distributed. On management, they provide for the constitution, powers, and duties of the managing committee, the term of office of committee members, and the manner in which elections are held. …