After discussing about Annual filing of returns (https://taxguru.in/corporate-law/annual-filing-returns-multi-state-cooperative-society-section-120-mscs-act-2002.html ), we will discuss about types of meetings conducted in a multi-state co-operative society.
There is certain difference in conducting meetings as compared to companies.
Broadly, there are four types of meetings which a MSCS conducts, namely, Annual General Body Meeting, Special General Body Meeting, Committee Meeting and Meeting of Board of Directors.
Annual General Body Meeting and Special General Body Meeting are conducted by the members of the society whereas Committee Meeting and Meeting of Board of Directors are conducted by Board of the Society.
1. Annual general meeting of general body: Section 39 of MSCS Act 2002 governs provisions of Annual general meeting of general body
The board of every multi-state cooperative society shall call the annual general meeting not later than six months after the close of the corresponding financial year for the purpose as mentioned below-
I. consideration of the audited statement of accounts;
II. consideration of the audit report and annual report;
III. consideration of audit compliance report;
IV. disposal of net profits;
V. review of operational deficit, if any;
VI. creation of specific reserves and other funds;
VII. approval of the annual budget;
VIII. review of actual utilization of reserve and other funds;
IX. approval of the long-term perspective plan and the annual operational plan;
X. review of annual report and accounts of subsidiary institution, if any;
XI. expulsion of members;
XII. list of employees who are relatives of members of the board or of the Chief Executive;
XIII. amendment of bye-laws, if any;
XIV. formulation of code of conduct for the members of the board and officers;
XV. election of members of the board, if any.
If the board of a multi-state cooperative society fails to convene the annual general meeting within six months after the close of the corresponding financial year, the central registrar or the person authorized by him in this behalf shall be competent to convene such annual general meeting within a period of ninety days from the date of expiry of the period of six months and the expenditure incurred on such meeting shall be borne by the society. Further, At every annual general meeting of a multi-state cooperative society, the board lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board respectively.
2. Special general meeting of general body: Section 40 of MSCS Act 2002 governs provisions of Special general meeting of general body
The Chief Executive Officer (CEO) may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws. If a special general meeting of a multi-state cooperative society is not called in accordance with the requisition above, the Central Registrar or any person authorized by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
3. Meeting of Board: Section 50 of MSCS Act 2002 governs provisions of meeting of Board
Chief Executive Officer convenes meetings of board at the instance of Chairman or Chairperson or president of MSCS by whatever name called.
The total number of meetings in a year and its venue can be mentioned in Bye-laws of the society; provided the board shall meet at least once in every quarter of year. It should be noted that not more than two persons can be invited by the board in its meetings.
If the Chairperson is unable to attend a meeting of the board, any other member of the board chosen by the members of the board present from among st themselves at the meeting, shall preside at the meeting.
The board mat discuss following matters in the meeting:
(a) to admit members;
(b) to interpret the organizational objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint and remove a Chief Executive and such other employees of the society as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-state cooperative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against such employees;
(f) to place the annual report, annual financial statements, annual plan and budget for the approval of the general body;
(g) to consider audit and compliance report and place the same before the general body;
(h) to acquire or dispose of immovable property;
(i) to review membership in other cooperatives;
(j) to approval annual and supplementary budget;
(k) to raise funds;
(l) to sanction loans to the members; and
(m) to take such other measures or to do such other acts as may be prescribed or required under this Act or the bye-laws or as may be delegated by the general body.
4. Committee Meeting of Board: Section 53 of MSCS Act 2002 governs provisions of Committee meeting of Board
The board may constitute an executive committee and other committees or sub-committees as may be considered necessary. It may be noted that other committees or sub-committees, other than the Executive Committee shall not exceed three.
The purpose of executive committee or other committee or sub-committee can be defined in Bye-Laws of the society.
It may be noted that the minutes of all the four types of meeting should be properly recorded and binded chronologically to avoid any kind of discrepancy.
Minutes Book forms a crucial documentation in a society.
For keeping your Minutes book updated and well drafted, contact [email protected], +91-9711372050
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