Section 10(2) in The Karnataka Souharda Sahakari Act, 1997
(2)The bye-laws of every Co-operative shall provide for the following matters, namely:-(i)the name, address and area of operation of the Co-operative;(ii)the objects of the Co-operative;(iii)conditions of eligibility, disqualifications for, and procedure for admission, withdrawal, removal or cessation of membership including that of the directors and office bearers;(iiia)[ the rights, privileges, duties and liabilities of membership including those of [nominal members] [Inserted by Act 21 of 2004 w.e.f. 31.3.2004.]](iv)recruitment and conditions of service of staff of the Co-operative;(v)procedure to conduct the board meetings, rights of members including the right to vote and contest for elections;(vi)the consequences of default in payment of any sum due by a member to the Co-operative;(vii)the powers and functions of the general body and the manner of election of representative general body, if any, and matters which must be dealt with by the general body and by the representative general body, if any;(viii)the manner and frequency of convening general meetings and quorum required;[(ix ****)] [Omitted by Act 16 of 2005 w.e.f. 1.6.2005.](x)the composition of the board and number of office bearers; [and the powers, functions and duties of the board] [Inserted by Act 4 of 2013 w.e.f 11.02.2013.][(x-a) the travelling allowance, daily allowance, sitting fee and other allowances of the directors.] [Inserted by Act 4 of 2013 w.e.f 11.02.2013.](xi)the extent and conditions for mobilisation of funds in the form of share capital, deposits, debentures, loans and other contributions from its members other than Government;(xii)the powers, functions and duties of the President or Chairperson;(xiii)the powers, functions and duties of Chief Executive;(xiv)the terms and conditions on which the Co-operative may deal with non-members;(xv)the manner of electing representatives to union Co-operatives and the Federal Co-operative;(xvi)the nature and amount of authorised share capital of the Co-operative;(xvii)the maximum shares which a member can hold;(xviii)the maximum dividend payable to members on paid up share capital;(xix)the purpose for which the funds may be applied;(xx)contribution towards Federal Co-operative Fund and the constitution of various funds and their purposes;(xxi)[ appropriation of amount out of the net profit specifically for the following: - [Inserted by Act 4 of 2013 w.e.f 11.02.2013.](a)twenty five percent towards the reserve fund constituted by the co-operative;[(a-a) 0.50 percent towards the Sahakara Academy (Reg), Mysore, registered under the Karnataka Societies Registration Act, 1960 and sponsored by the State Government for the purpose of carrying out Co-operative education, training and research.](b)two percent towards the cooperative education fund to the Karnataka State Souharda Federal cooperative. provided that no cooperative which has failed to contribute to the Cooperative Education Fund shall pay dividend to its members.(c)twenty percent towards the operational reserve to meet unforeseen losses or contingencies;(d)five percent towards the Common Good Fund whose purpose is approved by the general body;(e)constitution of, or contribution to, such special funds as may be specified in the bye-laws.(f)bonus not exceeding two months pay to be paid to the employees;(g)dividend to the members.](xxii)fixation of quantum and procedure to make good the operational deficiency incurred by the Co-operative out of its reserve fund and operational reserve fund;(xxiii)the manner of appointment of auditors or Chartered Accountants and their powers and functions;(xxiv)the manner of disposal of funds when the Co-operative is under liquidation;(xxv)the circumstances and manner of winding up of the Co-operative; and(xxvi)any other matter which is required to be or may be provided in the bye-laws.
