CO-OPERATIVE SOCIETIES ACT 1948

The word 'limited' or its vernacular equivalent shall be the last word in the name of every society with limited liability registered under this Ordinance.

The word "co-operative" or its vernacular equivalent shall form part of the name of every society registered under this Ordinance.

When for the purposes of this section any question arises as to age, residence or occupation of land constituting the qualification of any person, that question shall be decided by the Registrar whose decision shall be final.

The application shall be signed—

The application shall be accompanied by copies of the proposed by-laws of the society, and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Registrar may require.

No amendment of the by-laws of a registered society shall be valid until that amendment has been registered under this Ordinance, for which purpose copies of the amendment shall be forwarded to the Registrar.

If the Registrar is satisfied that any amendment of the by-laws is not contrary to this Ordinance or to the rules, he may/if he-thinks-fit register the amendment. An appeal against the refusal of the Registrar to register any amendment of any by-law shall lie to the Chief Secretary within three months, from the date of such refusal.

An amendment which changes the name of a society shall not affect any right or obligation of the society or of any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name.

society has nance and s are not , he may, s by-laws. against the ety within ender it a which it is a common immovable contracts, al proceede purposes d by the the society less it is has been

IES.

ect to this including society.

amendment ordinance or register the issal of the any by-law three months registered it has been which purpose ded to the name of a ion of the members, and itinued by

When the Registrar registers an amendment of the by-laws of a registered society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence of the fact that the amendment has been duly registered.

In this section- "amendment" includes the making of a new by-law and the variation or recission of a by-law.

10A-10B...

that every such member who produces any such article shall dispose of the whole or any specified amount, proportion or description thereof to or through the society; and

that any member who is proved or adjudged, in such manner as may be prescribed by the rules, to be guilty of a breach of the by-laws or contract shall pay to the society as liquidated damages a sum ascertained or assessed in such manner as may be prescribed by the aforesaid rules.

No contract entered into under the provisions of this section shall be contested in any court on the ground only tbat it constitutes a contract in restraint of trade.

any debt or outstanding demand payable to a registered society by any member or past member shall be a first charge on all crops or other agricultural produce, felled timber or other forest produce, marine produce, fish (fresh water and salt water), live stock, fodder, agricultural, industrial and fishing implements, plant, machinery, boats, tackle and nets, raw materials, stock-in-trade and generally all produce of labour and things used in connection with production raised, purchased or produced in whole or in part from any loan whether in money or in goods given him by the society: Provided that nothing herein contained shall affect the claim of any bona fide purchaser or transferee without notice;

any outstanding demands or dues payable to a registered housing society by any member or past member in respect of rent, shares, loans, or purchase money or any other rights or amounts payable to such society shall be a first charge upon his interest in the immovable property of the society.

in the case of a society with unlimited liability such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid;

in the case of a society with limited liability, the society may transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and by-laws for membership of the society, or on his application within six months of the death of the deceased member to any person specified in the application who is so qualified.

A registered society may pay all other moneys due to the deceased member from the society to such nominee, heir, or legal representative, as the case may be.

All transfers and payments made by a registered society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.

The receipt of any minor or guardian for money paid to him under this section shall be a sufficient discharge of the liability of the society in respect of that money.

the date at which the name of any person was entered in such register or list as a member; (b) the date at which any particulars entered therein-

the date at which any such person ceased to be a member.

No officer of any such society shall, in any legal proceedings to which the society is not a party, be compelled to produce any of the society's books, the contents of which can be proved under sub-section (1) of this section or to appear as a witness to prove any matters, transactions or accounts therein recorded, unless the court for special reasons so directs.

have attained the age of 18 years; (b) be resident with

be resident within or in occupation of land within the society's area of operations as described by the by-laws.

In the case of a society registered with unlimited liability, a member shall not transfer or charge any share held by him or his interest in the capital of the society or any part thereof, unless—

The estate of a deceased member shall not be liable for the debts of the society as they existed on the date of his decease for a period of more than two years reckoned from the date of his decease.

The High Commissioner may, by general or special order, prohibit or restrict the lending of money on a mortgage or charge of any description of immovable property by any registered society or class of registered societies. 31. A registered society shall require

Provided that, with the consent of the Registrar, a registered society may make loans to another registered society. (2) Except with the permission of the Registrar

Except with the permission of the Registrar, a registered society shall not lend money on the security of any movable property other than produce or goods in which the society is authorised to deal. (3) The High Commissioner may

in the Post Office Savings Bank; or (b) in any of the securities

in any of the securities specified in section 4 of the Trustee Enactment of the Federated Malay States; or (c) in the shares or on the security

$ \therefore $设 $ A(3,3 ) $ $ (3,3) $

Any registered society may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to a reserve fund, contribute an amount not exceeding ten per centum of the remaining net profits to any charitable purpose or to a common-good fund.

The Registrar shall, on the application of a creditor of a registered society, inspect or direct some person authorised by him in writing in this behalf to inspect the books of the society, if the applicant—

The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs inquiry has been made.

Where an inquiry is held under sub-section (1) or an inspection is made under sub-section (2) of this section, the Registrar may by a certificate under his hand make an award apportioning the costs, or such part of the costs, as he may think right, between the registered society, the members demanding an inquiry, the officers or former officers of the society, and the creditor, if any, on whose application the inquiry was made.

Any sum awarded by way of costs against any society or person under this section may be recovered, on production of the certificate referred to in subsection (4) of this section to a District Court having jurisdiction in the place where the registered office of the society is situated or the person resides or carries on business for the time being, in like manner as a fine imposed by the Court.

Any member of a registered society may, within two months from the date of an order under subsection (1) of this section, appeal from such order to the Chief Secretary.

Where no appeal is presented within two months from the making of an order cancelling the registration of a society, the order shall take effect on the expiry of that period. Where an appeal is presented within two months, the order shall not take effect until it is confirmed by the Chief Secretary

Where the Registrar makes an order for the cancellation of the registration of a society under sub-section (1) of this section he may make such further order as he may think fit for the custody of the books and documents and the protection of the assets of the society until the order cancelling the registration of the society takes effect.

No registered society shall be wound up save by an order of the Registrar.

determine from time to time the contributions to be made by members and past members or by the estates of deceased members of the society to its assets;

appoint a day by notice before which creditors whose claims are not already recorded in the books of the society shall state their claims for admission or be excluded from any distribution made before they have proved them;

decide any question of priority which arises between claimants and draw up a scheme for the payment of their dues;

refer disputes to arbitration and institute and defend suits and other legal proceedings by and on behalf of the society by his name of office and to appear in Court as a litigant in person on behalf of the society;

empower any person to make collections and to grant valid receipts on his behalf;

decide by what persons and in what proportions the costs of liquidation are to be borne;

give such directions in regard to the collection and distribution of the assets of the society and the disposal of the books and documents of the society as may be necessary in the course of winding up the society;

cancelled ion 39 of exist as a der takes f dissolu-

1 on the 17 of this in any Registrar.

ction 41 of ance and s imposed 3 of this cancelled nance the on to be ributions members embers of creditors corded in tate their ded from they have ich arises a scheme titute and proceedings his name hurt as a e society; tions and half;

it propor are to be collection the society and docucessary inciety;

compromise any claim by or against the society provided the sanction of the Registrar has first been obtained;

call such general meetings of members as may be necessary for the proper conduct of the liquidation;

take possession of the books, documents and assets of the society;

sell the property of the society;

carry on the business of the society so far as may be necessary for winding it up beneficially: Provided that nothing herein contained shall entitle the liquidator of a credit society to issue any loan; and

arrange for the distribution of the assets of the society in a convenient manner when a scheme of distribution has been approved by the Registrar.

rescind or vary any order made by a liquidator and make whatever new order is required;

remove a liquidator from office;

call for all books, documents and assets of the society;

by order in writing limit the powers of a liquidator under section 42 of this Ordinance;

require accounts to be rendered to him by the liquidator;

procure the auditing of the liquidator's accounts and authorise the distribution of the assets of the society;

make an order for the remuneration of the liquidator, which remuneration shall be included in the costs of liquidation and shall be payable out of the assets in priority to all other claims.

refer any subject of dispute between a liquidator and any third party to arbitration if that party shall have consented in writing to be bound by the decision of the arbitrator.

An order made by the liquidator or by the Registrar under section 42 or section 43 of this Ordinance shall be enforced by any District Court having jurisdiction over the place where the registered office of the society is situated in like manner as a decree of that Court.

When the liquidation of a society has been closed and any/erediter of that society has not claimed or received what is due to him under the scheme of distribution notice of the closing of the liquidation

When the liquidation of a society has been closed and any/creditor of that society has not claimed or received what is due to him under the scheme of distribution, notice of the closing of the liquidation shall be published in the Gazette, and all claims against the funds of the society liquidated shall be proscribed when two years have elapsed from the date of the publication of the Gazette notice.

Any balance of the reserve fund which may remain after making the payments specified in subsection (1) of this section, including moneys remaining in respect of claims proscribed under sub-section (2) of this section, shall be applied to such local object or objects of public utility as may be selected by a majority of the votes of the members of the society (as they existed at the date of the dissolution) assembled in a special meeting and approved of by the Registrar. If within three months of the dissolution of the society the members fail to make a selection which is approved of by the Registrar, the latter shall credit the above-mentioned balance of the reserve fund to the reserve fund of the co-operative society, if any, to which the society was affiliated, or, if the society was not affiliated to any other society, shall place the said balance on deposit in some co-operative or other bank until a new co-operative society with a similar area of operations is registered, in which event it shall be credited to the reserve fund of such society.

This section shall apply the act is one for which the o responsible.

among members, past mem claiming through member and deceased members; or

between a member, past mer claiming through a membe or deceased member, and Committee, or any officer of

between the society or its Comm officer of the society; or

between the society and any other society, such dispute shall be referred to the Registrar for decision.

A claim by a registered society for any debt or demand due to it from a member, past member or the nominee, heir or legal representative of a deceased member, shall be deemed to be a dispute touching the business of the society within the meaning of this sub-section.

The Registrar may, on receipt of a reference under sub-section (1) of this section—

Any party aggrieved by the award of the arbitrator or arbitrators may appeal therefrom to the Registrar within such period and in such manner as may be prescribed.

x two months from the date of the award registrar for any debt or member or the a deceased touching the ning of this a reference rbitrator or ward of the refrom to the h manner as

A decision of the Registrar under sub-section (2) or in appeal under sub-section (3) of this section shall be final and shall not be called in question in any civil court.

The award of the arbitrator or arbitrators under sub-section (2) of this section shall, if no appeal is preferred to the Registrar under sub-section (3), or if any such appeal is abandoned or withdrawn, be final and shall not be called in question in any civil court and shall be enforced in the same manner as if the award had been a judgment of a District Court.

Any Judge, or Judges, of the High Court, as the Chief Justice may direct, may consider and determine any question of law so referred, and the opinion given on such question shall be final and conclusive.

In particular and without prejudice to the generality of the power conferred by sub-section (1) of this section, such rules may—

(aa) (a) prescribe the forms to be used and the conditions to be complied with in applying for the registration of a society and the procedure in the matter of such applications;

registered society or officer or member thereof wilfully neglecting or refusing to do any act or to furnish any information required for the purposes of this Ordinance by the Registrar or other person duly authorised by him in that behalf; or

person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Ordinance, or failing to furnish any information lawfully required from him by a person authorised to do so under the provisions of this Ordinance, shall be guilty of an offence against this Ordinance.

Any society or person guilty of an offence under this section shall be liable to a fine not exceeding fifty dollars.

neglects or refuses to do any act or refuses or fails to furnish any information required for the purposes of this Ordinance or any rules made thereunder;

gives false information or makes any false statement on any matter required under the provisions of this Ordinance or any rules made thereunder to be given or made;

fails to obey any summons, requisition or lawful written order issued under the provisions of this Ordinance or any rules made thereunder; and ov

violates or fails to comply with the requirements of this Ordinance and any rules made thereunder,

( a / A \cdot A \cdot 3 3 4 / 7 6 )

Act 17/66

Any person committing any offence against, or contravening the provisions of, this Ordinance or any rules made thereunder shall be liable to a fine not exceeding one thousand dollars and, in the case of a continuing offence, to a fine of fifty dollars for each day during which the offence continues." and shall /commit an offence against this Ordinance.

nance.

Kedah Enactment No. 22 ... The Cooperative Societies Enactment, 1345.

Save as in sub-section (3) of this section provided, any society

Kelstad Department Inc. 16 The Co-operative Societies Department, 1934.

Program. Co-operative Inc. 2 The Co-operative Societies Department.

S.58(3) Any society, one of whose objects is the carrying on of insurance business, or any office or agent thereof guilty of an offence under this section shall be liable to a fine of one thousand dollars or, in the case of a continuing default, to a fine of five hundred dollars for every day during which the default continues.

(including any person who was an officer). (Am. Act 17/46)

(Ord.No.54/55)