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Statutory Obligations of Coop Societies on the close of Coop Year

Delhi Co-Operative Housing Finance Society Ltd.
15/16, Janpath Lane, New Delhi-11001

F. No. 20 (40)/84-85/DCHFS Dated: 10.7.1984

To,
All Members Societies

Subject: Statutory obligations of Housing Societies on the close of the Cooperative Year.

Dear Member,

You are aware that the Cooperative Year 1983-84 has just closed on 30th, June, 1984.

A Cooperative Society is required to perform certain statutory obligations at the close of a Cooperative Year. For guidance and benefit we enclose herewith a note explaining these statutory obligations. We hope that you will find it useful.

Yours faithfully
Sd\­
(Sanat Kaul)
RegistrarCooperative Societies, Delhi Admn.
Delhi

Delhi Cooperative Housing Finance Society Ltd.
15/16, JANPATH LANE
NEW DELHI – 110001 

Sub: Statutory obligations of Housing Cooperative Societies on the close of the Cooperative Year.

A Housing Cooperative Society is required to attend to the following statutory obligations under the Delhi Cooperative Societies Act, 1972, 
Delhi Cooperative Societies Rules, 1973 (as amended) and the bye-laws of the Society:

i) Finalization of Accounts.
ii) Holding of Annual General Meeting.
iii) Statutory Audit.
iv) Election of Office Bearers

1. FINALIZATION OF ACCOUNTS:

1.1 Immediately after the close of the cooperative year, the first and most important function of the Managing Committee of a Cooperative Society is 
to see that its accounts are finalized by 30th April of the year (Rule 42 Closing of Accounts).

1.2 Accounts and other books to be maintained by cooperative societies have been given in the Rule 43.

1.3 Under Rule 46, every cooperative society is required to submit to the Register annually within April each year a copy of the statements indicated 
below: -

a) a statement showing the receipts and disbursement for the year in Form 11;
b) a profit and loss account in Form 12;
c) a balance sheet in Form 13;
d) such other statement or return as may be specified by the Registrar from time to time.

1.4 Finalization of accounts of a society is essential for submission of loan application by the primary society, because only on its basis a true picture 
of the financial position of a society could be ascertained and early audit of the society under taken by the Registrar.

2. Holding of Annual General Meeting:

2.1 According to Section 29 of the Act every Cooperative Society shall within a period of six months next after the date fixed for making up of its account 
for the year underthe Rules for time being in force, call a General Meeting of its members for the purpose of:

(a) Approval of the programme of activities of the society prepared by the committee for the ensuing year;
(b) Election, if any, of the members of the committee other than nominated members subject to the provisions of Section 31;
(c) Consideration of audit report and annual report;
(d) Disposal of net profits; arid
(e) Consideration of any other matter which may be brought forward in accordance with the bye-laws of the society.

2.2 This provision makes it clear that the Annual General Body Meeting of the Society shall be held latest by 30th September of a year [Rule 51(3) (b). This 
period can be extended by the Registrar foronly 3 months more (provision to Section 29 (i).

2.3 Further under Sub-section (2) of section 29 at every Annual General Meeting the Committee shall lay before the G. Body a statement showing the details of 
loans if any, given to any of the members of the committee during the preceding year.

2.4 For the purpose of loan from the DCHFS, in the agenda of the Annual General Body Meefig of a Society the Managing Committee is required to include the 
quantum of loan to be raised from the DCHFS as one item of the programme of work of the society for the ensuing year. It will have also to authorise persons 
who could raise loan and execute documents on behalf of the society with DCHFS.

2.5 If the Maximum Credit Limit for the purpose of raising loan from DCHFS has not been sanctioned by Registrar. An item for determination and fixation of the 
Maximum Credit Limit of the Society under Rule 68 of the Delhi Cooperative Societies Rules 1973 be included in the agenda of the Annual General body Meeting of 
the Society, if the society has raised sufficient Share Capital for the purpose (68[iii] (Procedure can be obtained from Delhi State Cooperative Union.

3. Procedure for Holding Annual General Meeting:

3.1 List of Members of the Society.

(i) Under Rule 37 (1) every cooperative society is required to prepare a list of its members as on the last day of each cooperative year (31st March). The list 
is to be revised 45 (forty five) days prior to the date of meeting of election fixed. The list shall be in Form 10.

(ii) List to be made available to members on payment of Rs. 5/- per 100 members or thereof (Rule 37 (2).

(iii) A copy of the said list shall be sent to the Registrar free of charge at least 14th days before the General Meeting fixed to elect the members of the 
Committee (Rule 37 (3).

3.2 Length and service of notice of Calling General Meeting (Rule 56).

(i) 14th lays clear notice in writing for calling the Annual General Meeting is required (i.e. to leave a margin of 48 hours for the delivery of letter and to 
exclude the day of meeting).

(ii) Meeting Notice shall be sent Under Certificate of Post (U.P.C.).

(iii) The Notice of an Annual General Meeting shall be accompanied by a copy each of audited balance sheet, profit and loss account together with the audit certificate thereon relating to the preceding year and report of the committee and budget estimates for the ensuing year (Rule 56(6).

3.3 Quorum of General Meeting (Rule 53):

The quorum for a General Meeting shall be one third of the total number of members subsisting as such on the date of notice of meetings subject to minimum of ten members.Due to lack of quorum the General Meeting shall stand adjourned for one hour. After one hour the Meeting will start for which no quorum is required in the adjourned meeting.

Important : The Notice for the General Meeting should invariably have a note regarding holding of the adjourned meeting in manner stated above in the event there is no quorum in the General Meeting.

Section 29

(a) Approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) Election, if any, of the members of the committee other than nominated members subject to the provisions of Section 31.
(c) Consideration of the audit report and the annual report;
(d) Disposal of the net profits; and
(e) Consideration of any other matter which may be brought forward in accordance with bye-laws;

Rule 54
(i) Fixing the Maximum Credit Limit of a Cooperative Society subject to the approval of the Registrar (Rule 68).
(ii) Election, suspension and removal of members of the Committee other than the nominated members.
(iii) Expulsion of the members (Note : A detailed procedure expulsion of members is given in Rule 36. Expulsion of a member would be effective and operative 
only on approval of the Registrar.
(iv) Amendment of bye-laws, if any.

4. Statutory Audit:

Approach the Registrar to get the Society’s Audit conducted immediately.

5. Election of Office Bearers:

Election of the office bearers of the society, if due, shall be conducted in accordance with schedule II or III appended to Rule 58.
Generally, it is seen that with the change in the management of the society, the registered office is also shifted. As required in. The bye-laws, the newly elected 
Managing Committee should intimate the change of the registered office address of the society within 14th days alongwith a list of new office-bearers to the Registrar, 
DCHFS, DDA, Banks etc. 

Last Updated Date :- 22-06-2018

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