AGM of a Coop Society

GENERAL MEETING

Annual General Body of a Cooperative Society

What? Where? How?

about-Dominica-Cooperative-Societies-League-LimitedWhen the first General Meeting can be convened?

  • The first General Meeting can be convened within a period of three months from the date of registration of CHS

Who can convene the first General Meeting ?

  • Chief Promoter of the CHS can convene the first General Meeting of the members.

What is the remedy if the first General Meeting is not called by Chief Promoter in time ?

  • On failure to call the first General Meeting of the CHS in time the said meeting can be called by Registering Authority.

What business is to be transacted in the first General meeting ?

  • Following business shall be transacted in the first General Meeting
  • Election of a president
  • Admission of new members, if applications are received.
  • Receiving a statement of accounts and report stating all transaction entered in by Chief Promoter upto 14 days before the meeting.
  • Constitution of provisional committee for a period of one year.

Who is responsible to convene the AGM ?

  • Rule 60 of the MCS Rules 1961 provides that the secretary of the CHS is responsible to convene the AGM

Who is responsible to ensure the AGM is convened within the stipulated time ?

  • Bye law No 139 (16) provides that the committee of the CHS should ensure the holding of AGM within the prescribed period.

What is the business to be transacted in AGM

  • Following business is required to be transacted in AGM
  • To receive a report of the committee together with statement of accounts for the preceding cooperative year/years.
  • To consider audit report received from the Statutory Auditor for the previous Cooperative year/years.
  • To declare the result of election if held prior to AGM
  • To consider the appointment of Statutory Auditor.

If the business on the agenda is partly transacted then what are the provisions?

  • If the business on the agenda of the general meeting of the CHS is partly transacted then the said meeting shall be postponed to any other suitable date, not later than 30 days from the date of the meeting as may be decided by the members present at the meeting.

Whether the AGM can be adjourned due to want of quorum ?

  • AGM can be adjourned for want of quorum
  • To the time as may be specified in the notice on the same day or
  • To a subsequent date, not earlier than seven days.
  • Holding of adjourned meeting will not required quorum.

What business cannot be transacted in AGM without due notice ?

  • Following business cannot be transacted in AGM without due notice
  • Expulsion of members of the CHS
  • Amendment of bye laws
  • Bifurcation, amalgamation, division of the CHS
  • Transfer of Property of the CHS

What is the minimum period of notice of AGM

  • 14 clear days notice is required to be given for calling the AGM.

Whether AGM is treated as invalid if the notice is not served to any members of the CHS?

  • Once AGM is called it cannot be treated as invalid unless and until such order are passed by the Cooperative Court.

What is the period for finalizing the accounts of the CHS

  • The period for finalizing the accounts of the CHS is 15th May every year.

What remedy is available if the accounts are not finalized before 15th May ?

  • On failure for finalising the accounts of the CHS on or before 15th May committee may appeal to the Registrar in time.

What remedy is available if the committee fails to finalize the account before 15th May or extended period ?

  • Registrar may exercise his powers vested under section 79 (2) of MCS Act 1960 to finalize the account through an authorised officer.

What remedy is available if the AGM is not called before 30th June.?

  • An automatic extension of 90 days is now granted – which is 30th September of every year. 180 days from the closure of the financial year – 31st march. No extension is available under any circumstances after 30th Sept. Not holding of the AGM in stipulated time period will be considered a criminal offence under section 146 of the MCA which can result in imprisonment, fine or both.

What action can be initiated on failure to call AGM before the stipulated  or extended period?

  • Registrar may disqualify the members of the committee who is responsible for calling such meeting to remain or to get elected to the committee upto a period of three years and initiate action under section 146.

What remedy is available for challenging the resolution passed in AGM.?

  • Resolutions passed in AGM may be challenged in the Cooperative Court under section 91 of MCS Act 1960. By filing disputes.

What remedy is available in case resolutions are not recorded modified altered deleted etc.?

  • Only remedy available is to file a dispute under section 91 of the MCS Act 1960 before the Cooperative Court.

Resolution passed in AGM/SGM neither stayed nor set aside by Court, Whether it is obligatory on the members to follow it ?

  • Resolutions passed in AGM/SGM remains in force unless and until stayed or set aside by the Cooperative Court.

Whether resolutions passed for removal of members of the committee can be brought before the AGM/SGM ?

  • No such resolutions can be brought before the AGM/SGM

When SGM can be called ?

  • SGM can be called at any time by the Chairman or the majority of the committee.
  • SGM shall be called within a period of one month
  • On written requisition of 1/5 of the members
  • At the instance of the Registrar

Who can call the requisitioned SGM ?

  • Secretary of the society can call the SGM under the intimation to the Registrar.

What is the remedy available if the SGM is not called ?

  • On failure to call SGM the Registrar may call such meeting at the expenses of the CHS
  • The Registrar can order to recover such expenses from the persons concerned.

What is the minimum notice period required to call SGM ?

  • The minimum notice period for calling such SGM is five days.

Whether resolutions passed in AGM/SGM can be modified ?

  • Unless 6 clear months have expired after passing of the previous resolution no such resolution can be brought before the AGM /SGM for its cancellation or modification.

Whether AGM/SGM not held in the premises of CHS can be treated invalid ?

  • AGM/SGM once held irrespective of the place of the meeting cannot be treated as invalid unless and until such order are not passed by Cooperative Court.

Whether non member can participate in the business of General Meeting ?

  • No , non member has no right to participate in the business of General Meeting.

Whether associate member can participate in business of General Meeting.

  • Yes, an associate member can attend and participate in business of General Meeting in absence of original member and with written consent given by original member.

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