---

1. Name, Address, and Area of Operation

Details	Description
Name of Society	Shivarth Elanza Residential Cooperative Society Ltd.
Registered Address	Khasra Number 40, Mouza Khatiyaghat, Maharani Laxmibai Ward, Tilhari, Jabalpur
Area of Operation	Jabalpur Division (M.P.)

2. Definitions

In these bylaws, unless the context otherwise requires:

• Act: Means the Madhya Pradesh Cooperative Societies Act, 1960.
• Cooperative Year: Means the year ending on March 31st.
• Registrar: Means the Registrar, Additional Registrar, Joint Registrar, Deputy Registrar, and Assistant Registrar described under Section 3 of the Act.
• Area of Operation: The area where members can obtain membership of the society.
• Byelaws: Means the byelaws prepared under the subjects specified in M.P. Cooperative Societies Rule 6, accepted by the members and approved by the Registrar, including amendments made from time to time.
• Board of Directors (Sanchalak Mandal): The governing body or management under Section 48 of the Act, which shall manage, operate, and control the activities of the society.
• Financing Institution: A national/state-level cooperative institution, central/state government, or district/state-level bank providing financial assistance, advances, or loans to the society or members.
• Member: A person who signed the registration application or who has been granted membership under the Act/Rules/Byelaws. Includes State/Central Government contributions to share capital.
• Nominal Member: A member under Section 20 of the Act who purchases shares but has no right to management or dividends and no liability (except for the share value) in case of liquidation.
• Officer: An elected or appointed officer of the society (President, Vice-President, Managing Director, etc.) authorized to give instructions or perform tasks for the society.
• Specified Post: Refers to the President and Vice-President.
• Service Rules: Rules governing the work of officers/employees appointed under Section 55(1) of the Act.
• Auditor: A person, Chartered Accountant, or CA firm appointed to audit the society’s accounts.
• Dividend: The prescribed amount from profits distributed to members in proportion to fully paid-up shares.
• Public Servant: Every officer/employee authorized to act under the Act/Rules/Byelaws is deemed a public servant under Section 21 of the IPC, 1860.

3. Objectives and Functions

The society shall have the following objectives and functions:

1. Cleanliness: Arrange for daily cleanliness of the premises (roads, washing, gardens, drains, etc.) and maintenance of the residential area.
2. Electricity/Lighting: Ensure provision of light (electricity) on all roads, parks, sports grounds, and community halls. Handle maintenance and related issues.
3. Sewage/Drainage: Maintain sewage lines and tanks, ensuring periodic cleaning and repair.
4. Water Supply: Ensure daily water supply for all needs. Maintain overhead tanks (cleaning/repair/medicine) and electric motors.
5. Security: Ensure security of units, residents, and property. Appoint security personnel to monitor entrances and verify visitors.
6. Social/Cultural Events: Organize cultural, social, and religious events for healthy entertainment and to foster family harmony and unity among members.
7. Health & Sports: Organize health camps and sports competitions for children to instill a competitive spirit. Conduct cultural programs and award prizes to children.
8. Beautification: Develop and maintain parks and beautification within the premises as needed.
9. Library: Establish and operate a reading room/library for educational and general knowledge enhancement of residents.
10. Medical Facility: Provide health facilities, including 24-hour primary medical aid via a nurse/compounder.
11. Lifts: Repair and maintain lifts to keep them operational.
12. CCTV: Install CCTV cameras and arrange for premises security.
13. Common Rights: Protect the common interest and rights of members regarding corridors, slopes, parking, terraces, lifts, motors, meter rooms, etc., preventing illegal possession or encroachment.
14. Prohibit Commercial Use: Prevent commercial/business and anti-social activities within residential units.
15. Alterations: Grant proper permission for unit alterations and prevent work that damages the unit or others.
16. Damages: Take legal action against members whose units cause damage (e.g., water leakage) to other units or the building.
17. Religious Programs: Organize religious and cultural programs in the premises.
18. Other Works: Any other work related to the above or fulfilling the society’s objectives.

4. Beneficiaries

• Unit holders and tenants living in the area of operation.
• Unorganized working laborers working in homes.
• Plumbers, sweepers, security guards, mechanics, etc., obtaining employment.
• Senior citizens residing in the colony.

5. Membership Eligibility

The following persons may become members:

1. An individual who is an Indian citizen.
2. An individual competent to contract under Section 11 of the Indian Contract Act, 1872.
3. Any other society.
4. A firm/company/corporate body registered/established under prevailing law.
5. State Government.

6. Types of Membership

1. Regular Member: An owner of a unit, plot, flat, or accommodation. The legal heir/successor takes their place.
2. Nominal Member: A person conducting business through the society may become a nominal member by purchasing a share to facilitate business.
3. Nominated Member: Persons nominated who wish to become members.
4. Re-entry: Persons punished for moral/criminal offenses may become members after 5 years, provided they are not legally prohibited. Dismissed government/public undertaking employees are ineligible.

7. Granting Membership

1. Application: Application in the prescribed form addressed to the President must be submitted. The Manager receives it and places it before the Board of Directors for decision.
2. Acceptance: If accepted, the applicant is informed of the share capital and admission fee. Upon payment, a share certificate is issued and entered in the membership register.
3. Rejection: If rejected, the applicant must be informed within 15 days with reasons recorded.
4. Verification: Signatures are taken in the register, and details of nominees/heirs (and proof) may be requested.

8. Termination of Membership

Membership may be terminated if a person, after being granted membership, is found not to possess the qualifications specified in the Act/Rules/Byelaws.

9. Withdrawal of Membership

1. Process: A member may withdraw membership by following the legal provisions of the Act/Rules.
2. Liability: The member remains liable for one year after withdrawal.
3. Transfer Restriction: Share capital/interest cannot be transferred to another until one year has passed (subject to Section 25 restrictions).
4. Valuation: Share valuation upon withdrawal is done under Rule 20 (lower of face value or current value).

10. Register of Members

The society shall maintain a register containing:

• Name, address, and occupation of each member.
• Shares held.
• Date of admission.
• Date of cessation of membership.
• Nominee/Heir details.

11. Share Capital

1. Authorized Capital: Divided into shares of ₹1,000 each.
2. Paid-up Capital: Every member must take at least one share.
3. Limit: No member (except State Govt) can hold more than 1/5th of the total share capital or shares exceeding ₹20,000.
4. Payment: The full amount for a share must be deposited at once.
5. Certificates: Share certificates will be issued, signed by the President and CEO.
6. Transfer: Transfer of shares is subject to Section 25 of the Act.
7. Refund: Share capital refund is subject to M.P. Cooperative Societies Rule 17 and valuation under Rule 20.

12. Liability of Members

• A member’s liability is limited to 10 times the value of their shares.
• Liability continues for two years regarding debts/loans after ceasing to be a member.

13. Capital and Funds

Capital and funds may be raised by:

• Shares.
• Deposits/Savings.
• Advances.
• Grants/Donations.
• Creating funds from net profit.
• Share capital from State/Central Government.

14. Board of Directors

1. Composition:
   • 11 Elected Members: Territories to be defined geographically.
   • Managing Director/CEO: Ex-officio Member Secretary.
   • Government Nominee: One representative of the Registrar/State Dept.
   • Financial Institution: One representative (if financed).
2. Term: 5 years from the first meeting.
3. Meetings: At least once every 3 months (4 times a year).
4. Quorum: More than 50% of the total members.
5. Voting: Each member has one vote; the President has a casting vote in case of a tie.
6. Conflict of Interest: A director cannot participate in discussions regarding matters personally related to them.
7. Circular Resolution: Urgent decisions can be made by circulation, deemed valid if signed by the majority, and ratified in the next meeting.
8. Minutes: Recorded in a register, signed by President and MD, and sent to members within 30 days.

15. Powers of the Board of Directors

The Board has all powers to manage the society, specifically:

1. Admit and terminate membership.
2. Elect the Chairman and other office bearers.
3. Decide on no-confidence motions against office bearers.
4. Accept resignations of directors.
5. Determine the number of staff (with Registrar’s approval).
6. Formulate Policies for:
   • (a) Services to members.
   • (b) Staff qualifications, recruitment, and service conditions (approved by Registrar).
   • (c) Custody and investment of funds.
   • (d) Accounting methods.
   • (e) Utilization of funds.
   • (f) Monitoring information systems and legal returns.
7. Present the annual report, financial plan, and budget to the General Body.
8. Consider audit/compliance reports and present them to the General Body.
9. Perform other acts specified in the bylaws.

16. Travel Allowance

Travel allowance and honorarium for attending Board meetings shall be paid as determined by the Registrar/Commissioner.

17. Eligibility of Directors

• Must meet criteria under Sections 44, 45 of the M.P. Cooperative Act.
• Must hold at least one share.
• Must not hold any office of profit in the society.
• Must not be a dismissed employee of the Govt or any cooperative.

18. Functions of the General Body

The General Body shall be convened within 6 months of the end of the year to:

1. Confirm proceedings of the last meeting.
2. Conduct elections for the Board if due.
3. Approve the Audit Report and Compliance Report.
4. Approve Net Profit distribution (if any).
5. Approve the budget for the next year.
6. Approve excess expenditure from the previous year.
7. Determine allowances for the Board/representatives.
8. Approve the activity plan for the coming year.
9. Amend bylaws.
10. Appoint internal auditors and fix their remuneration.
11. Set limits for deposits and loans.
12. Consider any other matter presented by the Board.

19. General Body Meetings

1. Supreme Body: The General Body is the supreme authority.
2. Timing: Convened annually within 6 months of the financial year-end.
3. Presiding Officer: The President, or in their absence the Vice-President, or a member elected by the assembly presides.
4. Administrator: If the Board is superseded, the Administrator presides.
5. Special Meeting: Can be called by the Registrar or on requisition by 1/10th of members (Section 50).

20. Quorum for General Body

• Quorum: 1/10th of total members or 50 members, whichever is less.
• Adjournment: If no quorum within 30 minutes, the meeting is adjourned to the same date/time/place declared by the Chairman.
• Adjourned Meeting: No quorum is required for the adjourned meeting, but it can only discuss the original agenda.
• Special Meetings: Special meetings called by member requisition cannot be adjourned (dissolved if no quorum).

21. Minutes of General Body

Minutes must be recorded in a register, signed by the Chairman, and sent to every member within 30 days.

22. Elections

Elections for the Board of Directors shall be conducted by the Election Officer authorized by the Election Authority under the Act/Rules. The CEO and Board members are bound to cooperate.

23. Chief Executive Officer (CEO) / Managing Director

The CEO is appointed under the Act or Service Rules and works under the Board’s control. Powers and duties include:

• Manage daily business, administration, and staff.
• Implement Board/Committee decisions and issue orders.
• Appoint/suspend/punish Class IV/contractual staff.
• Obtain security from employees.
• Prepare business plans and obtain loans with Board approval.
• Execute contracts, agreements, and legal documents.
• Handle legal/judicial proceedings (sue and be sued).
• Sign financial documents and loan applications.
• Maintain custody of society records and assets.
• Convene meetings and prepare minutes/agenda.
• Prepare annual reports, budgets, and financial statements.
• Ensure timely payment of taxes (Income Tax, Service Tax, etc.).
• Keep statutory documents (Bylaws, Registers) safe.

24. Audit

Annual audit of accounts shall be conducted by an auditor or Chartered Accountant appointed under Section 58 of the Act.

25. Sub-committees

The Society may form sub-committees (e.g., Staff, Stores, Business Operation, Purchase/Sale).

• Composition: 2 Elected Directors, 1 Registrar Nominee, CEO (Secretary), and relevant Senior Officer.
• Chairman: One of the two elected directors.
• Quorum: More than 50% of members.
• Notice: 7 days.

26. Accounting Year

The accounting year is from 1st April to 31st March.

27. Funds and Appropriation of Profits

Appropriation of net profit (Section 43/43-A):

1. Reserve Fund: 25%.
2. Cooperative Union Contribution: As per rules.
3. Other Funds: Provident fund, depreciation, etc., up to 2% or as required.

Funds must be invested in Cooperative/Nationalized banks or as directed by the Registrar.

28. Voting Rights

In the General Body, every member has one vote.

29. Employee Rules and Service Conditions

Service rules for employees shall be framed under Section 55(1) of the Act and approved by the Registrar/Government.

30. Returns

Annual returns must be filed under Section 56 of the M.P. Cooperative Societies Act. The CEO is responsible for this.

31. Liquidation

If the society fails to fulfill its objectives, it may be brought under liquidation by itself or the Registrar under the provisions of the Act.