Kerala Co-operative Societies Rules 1969
KCS rules came into force on 14.07.1969
Chapter -15
Rule 3 – Application for Registration
➢ Application for registration of society shall be made in
Form No.1
➢ 3 copies of the proposed bye- laws
➢ A certificate from financing Bank.
➢ Application shall be signed by not less than 25
members.
Registration fee:
➢Within a taluk – 2000, A taluk and above but less than a
district – 4000, A district - 5000 , More than one Districts -
10,000
Rule 4 – Registration of Societies
➢ Registrar shall enter the application in Form no.2
➢ Registrar shall issue Registration Certificate in Form
no.3
➢Any decision to register the society or refusal of
registration shall be made with in 90 days.
Rule 5- Subject matter of Bye-laws
Rule 6 – Model Bye-laws
➢ Registrar to frame model bye-laws for societies.
Rule – 8 First General Body Meeting
➢ within 3 months from the date of registration , the Chief
Promoter shall convene the first general body meeting
➢If he fails to convene the First General Body Meeting,it
shall be convened by any person authorized by RCS.
Rule – 8A General Body Meeting
➢ A notice of the general body meeting shall be given to
every member at least 15 days before the meeting.
Rule 9 – Procedure regarding amendment of bye-laws
➢A resolution for amendment shall be passed by 2/3rd
majority of the members
➢Application shall be signed by the secretary and two
members of the committee
Fee for amendment
Rs.500, (Women, SC/ST-Rs 50)
Rule 13 - Amalgamation, Transfer of Assets and
Liabilities or division of societies.
Rule 15- Classification of societies according to
types
Rule 16A - Identity Card
➢ ID Card shall be issued in form no. 6A
Rule 18 - Procedure for the Expulsion of Members
Rule 19 - Voting
Rule 23 - Nomination of a Heir
Rule 29 - Accounts and other books to be
maintained by Societies.
➢Minutes book, Share Application Register , Day book,
General Ledger , Receipt book etc.
Rule 34 - Representative General Body
➢It is constituted under Sec.27(2)
➢If the number of members in co-operative societies is less
than 1000, RGB cannot be constituted.
➢ State Co-operative Election Commission conducted
elections to the RGB.
➢Maximum members in RGB=500
➢Total [Link] members of the society does not exceed
2500(50 members)
➢Above 2500,below 10000(200 members)
➢All other cases (500)
Rule 35B - State Co-operative Election Commission(Sec.28B)
➢ Conducts elections to the societies including the post of
President , vice-president, and RGB.
➢Secretary of the SCEC shall be an officer not below the
rank of Joint Registrar of Co-operative department.
➢It consists of not more than 3members
➢They hold office for a term of 5 year or 62 years which ever
is earlier.
Rule 36 – Power to call a Special General Body
Meeting(sec 30(1))
➢The committee of a society shall call a SGBM
a) within 1 month from the date of requisition by RCS
b) within 1 month from the date of requisition from 1/5 th of
the total members
Rule 37- Appointment of Nominees to the
committee(sec-31)
Rule 43- Election of President and Vice president
Rule 51A – Procedure for creating Gehan(sec.36A)
➢ A declaration creating a Gehan Shall be in Form no.8A
➢SCB, DCB, PACS,Urban Banks dealing with credit societies
maintain a register of declaration in Form no 8B(Immovable
property), Form no. 8C (Movable Property).
Rule -53 : Constitution of Co-operative Education
Fund
➢ Every society having a net profit shall set apart a 5%
of the net profit to the Co-operative Education Fund.
➢Maximum Education Fund – Rs.60000 per annum
➢Minimum Education Fund –Rs.2000 per annum
➢Education Fund shall be remitted within 2 months
from the date of receipt of Audit Certificate.
➢Education fund shall be maintained by the SCU.
➢5% of the net profit shall be transferred to
Professional Education Fund maintained by the RCS
Rule 53A: Constitution of Co-operative Member Relief
Fund
➢ Every society having net profit shall transferred 10% of the
net profit to the Member Relief Fund (maximum-1 lakh)
➢ This fund is maintained and administered by the RCS
➢ Shall be remitted within 2 months from the date of receipt
of audit certificate.
Kerala Co-operative Societies Rules 1969
Rule -53 : Constitution of Co-operative Education
Fund
➢ Every society having a net profit shall set apart a 5%
of the net profit to the Co-operative Education Fund.
➢Maximum Education Fund – Rs.60000 per annum
➢Minimum Education Fund –Rs.2000 per annum
➢Education Fund shall be remitted within 2 months
from the date of receipt of Audit Certificate.
➢Education fund shall be maintained by the SCU.
➢5% of the net profit shall be transferred to
Professional Education Fund maintained by the RCS
Rule 53A: Constitution of Co-operative Member Relief
Fund
➢ Every society having net profit shall transferred 10% of the
net profit to the Member Relief Fund (maximum-1 lakh)
➢ This fund is maintained and administered by the RCS
➢ Shall be remitted within 2 months from the date of receipt
of audit certificate.
Rule 58- Provident Fund
Rule 59- Gratuity
Rule 62 – Writing off Bad debts and Losses
Rule 63- Maintenance of Fluid Resources by the societies
Rule 64- Audit
➢Every co-operative societies get its accounts audited at
least once in each year by an auditor appointed by General
Body of a cooperative society.
Rule 64A- Qualifications of an Auditor
➢ An auditor to submit the report within 30 days from the
date of completion of the audit of the society
.
Rule 64B - Audit Report
➢Within 3 months from the date of receipt of the audit
report the DCA shall issue the certificate of audit and copy
of an Audit Memorandum.
Rule 65- Levy of Audit Fees
➢Every co-operative society shall pay audit fees to the
government within one month from the receipt of Audit
Certificate.
Type of society
1. Credit societies = On working Capital(Rs.50000)
(except PCARDB, Housing societies , House mortgage bank)
2. PCARDB, Housing Societies, House mortgage bank(Rs.50000)
=On the aggregate of loan issued and that recovered during the
year.
3. Societies having Credit and Non-credit activities(Rs.50000)
= On working capital or on sales proceeds of goods which ever is
higher.
4. Societies dealing in goods except coir and consumer
societies.
=on sales proceeds(Rs. 50000)
[Link] cooperative societies
=On proceeds of coir sold as owners as well as on the
commission realized on goods sold as agent.
6. Primary consumer cooperative societies
=on sales proceeds of goods(Rs.10000)
7. District wholesale co-operative consumer stores and Apex
Consumer Co-operative society.
= On working capital or on sales proceeds of goods
whichever is higher. (Rs.100000)
8. Transport Societies = Hire charges(Rs.25000)
9. Farming societies which accept deposits and grant loans
= On working capital(Rs.50000)
10. Social welfare societies which accepts deposit and grant loans
= On working capital(Rs.50000)
11. Other societies = On Gross Income(Rs.50000)
Societies exempted from the payment of audit fees
1. All co-operative societies of which all or majority of the
members are belonging to scheduled caste or scheduled
tribes.
2. All farming societies which do not accept deposits and do
not grant loans and advances.
3. All social welfare societies which do not accept deposits
and do not grant loans.
4. Any Society for the first year of audit irrespective of the
date of commencement of business.
5. Any weavers society until it has completed the 6th Co-
operative year after its commencement of business
6. All primary fishermen co-operative societies.
7. All Khadi co-operative societies and other traditional co-
operative societies ( Bamboo co-operative societies, jaggery
co-operative society, watermen co-operative society, chethu
thozhilali co-operative society etc).
8. Any credit society the working capital of which does not
exceed Rs. 2,000 and any other society the sales of gross
income of which does not exceed Rs. 10,000
9. Coir co-operative societies(apex coir society shall pay half
of the audit fee)
10. Vanitha &Dairy co-operative societies need to pay only
half of the audit fee.
Rule 66- Procedure for the conduct of inquiry and
inspection
Rule 66 A - Inquiry and Investigation of Vigilance
Officer
Rule 69 – Procedure to be adopted by Liquidator
Rule 74 - Procedure for execution of decision,award
or order.
Rule 76 - Rules for seizure and sale of immovable
property
Rule 81 - Procedure in attachment and sale of
immovable property
Rule 93 – Attachment Before Judgement
Kerala Co-operative Societies Rules 1969
Rule 123 – Fee for appeal, revision and Review
➢ In appeals before the tribunal, the fees shall be:
A. An appeals under sec.82:
a) Monetary Disputes - 5% of the amount involved
(minimum-Rs.200, maximum Rs.2000)
b) Non-monetary Disputes :
Election disputes- Rs.2000
Other Disputes –Rs.500
B. An application for revision(sec.84),and review(sec.85)= Rs250
Rule 127 – Circle Co-operative Union
Rule 147- State Co-operative Union
Rule 148- Affiliation of co-operative societies
Rule 176 - Registrar’s power to rescind resolution.
It shall be competent for the registrar to rescind any
resolution of any meeting of society ,if it appears to him that
such resolution violates objects of the society or the
provisions of the act, rules, byelaws
Rule 178A – Opening of branches
Rule 182A - Powers and Functions of CSEB
Rule 182B - Terms of appointment of members of CSEB
➢ It shall consist of not more than 3 members
➢ They shall hold office for a term of 5 years or 68 years
which ever is earlier.
➢Head quarters of CSEB- Thiruvananthapuram
Rule 198 – Disciplinary Action
➢ Appeals under this rule shall be filed within 3 months from
the date of imposing such penalty.