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Acts & Rules


Acts & Rules



Kerala Co-operative Societies Act 1969 (Act 21 of 1969) , is the Act relating to the Co-operative Societies in  the state.  This Act has come in to force on 15.5.1969.  This legislation specifically repeals section 110 of the Madras Co-operative Socieities Act 1951 (Act 10 of 1952).  The act has consolidated amended and unified the law relating to the co-operative Societies in the State.

1.Section 2.Definitions (a)”apex society”, (b) “bye-law”. (c) “circle, Co-operative” union”, (d) “central Society”. (e) “Committee”, (ea)”Co-operative Arbitrationcourt”(eb)”consortium lending scheme”, (ec) “Co-operative development and welfare Fund”, (f) “Co-operative Society”(g) “Co-operative Society with limited liability”, (h) “Co-operative Society with unlimited liability”, (ha) “Deposited gurantee scheme”, (hb) “director of co-operative audit”, (i)”dispute”, (“District Co-operative Bank”, (ib) “Federal Co-operative Society”(0) “Financial Bank”, (k) “General body meeting”, (l) “Member”, (m) “Normal to Associate member”, (n) “Officer”, (o)”Prescribed”, (oa)”Primary Agricultrual and Rural Development Bank”, (ob) “Primary credit society”, (oc)”Primary Co-operative Agricultural and Rural Development Bank”, (p)”Registrar’(q)”Rules”,  (qa)”Scheduled castes”, (qb)”Scheduled Tribes”, ( r ) “state”, (ra) “state co-operative Bank”, (rc)”State Co-op .election commission (t)”TYribubunal”, (ta) “Urban Co-operative Bank’, (tb) “Vigilance  Officer”, (U) “year”.

2.Section 2(p) It is specifically mentioned in the Registrar include any person on whom the powers of the Registrar under the section are conferred.

3.Section 7 (i) (c) Societies exempted from over lapping

(1)  Housing Co-operative Societies

(2)  General Marketing Co-operative Societies

(3)  Rubber Marketing Co-operative  Societies

(4) Hospital and dispensary co-operative Societies

(5)  Labour Contract Co-operative Societies

(6)  Tourist Developments Co-operative Societies

(7)  Printing Co-operative Societies

(8)  Motor Transport Co-operative Societies

(9)  Consumer Co-operative Societies

(10) Canteen Co-operative societies

(11) Vanitha Co-operative  societies

(12) Social Welfare Co-operative societies

4.Section 28


If the buy-laws of the society provide, Govt./Registrar may nominate all or any of the members of the first committee including  President or chairman for a period not exceeding 12 months.

5.Section 28A(1)

Provision for Reservation of a seat each for a woman member and a SC/ST member in the committee of every society included  in the Act.  The reservation Extended to DCB, KSCB and KSCARDB.

G.O(P) 22/93 Co-op. dt.12.2.93 : Sub Section (IA) of section 28 of KCS Act 1969 (21 od 1969) the maximum term of the administrator/Administrative committee appointed by the RCS shall not exceed one year.

Sub-section (1) of section 33. Act the term of the administrator/Administrative committee appointed to manage the affairs of the Societies shall not exceed one year.

6.Section 28B

Govt.shall by notification in the Gazette constitute a co-operative Election commission for the Superintendence, direction of the control of the conduct of election to the committee of al credit, central, apex and federal type of societies in the state.

7.Section 56(2) B

Maximum dividend enhanced to 29% of paid up share capital.

8.Section 61 (1)

Established provident fund for employees who opt for pension.

9.Section 63(1)

The responsibility of conducting Audit in the co-operative has been vested with the director of Co-operative Audit instead of Registrar of Co-operatives.

Section 69.  Amendment  Revised authorization are made to the Arbitration  cases. (Rule 67-68)

10.Section 70(4)

Transfer of arbitration reference under clause (b) and reference (b) (c) under clause (v) of the section shall not be made to person equal or superior to him in rank.

11.Section 74A

Sanction of RBI necessary for winding up, amalgamation etc. of the insured co-op.  Bank as defined in the deposits Insurance Co-operative Act, 1961 (central Act 47 of 1961)

12.Section 80(4)

Ten percent of the post of the employees of the every Society shall be reserved for appointment from persons belonging to the scheduled castes or Scheduled.  Tribes where method of appointment to such post is by direct recruitment.  RCS (Circular 46/89)

13.Section 88(3)

The terms of officers of the members of the circle Co-op. union  fixed as five years.

14.Section 89(6)

The terms of officers of the members of the general body and of the Managing Committee of the state Co.op. Union fixed to 5 years.

15.Section 89(8)

Secretary of the State Co-operative Union is the Ex-officio member of the managing committee.  He has all the powers of an elected member of the committee.

16.Section 1 09

Empowers Govt. to make rule either prospective or retrospectively. M (Act 7 of 1988 with effect from 15.2.1988)

RULE 9 (ii)

In the Societies having 2000 members notice for amendment need be published in two vernaculars dailies having wide circulation in the area of the operation of the societies at the head office and branches and also in the notice board of the Ass.  Registrar of the circle within  which the area of the operation of the society falls


Election notification publishing in two vemacular dailies vide G.O (M.S) 12/85 ad DT.12.8.1985.

RULE 43(A)

No confidence motion procedure to be followed.

A committee shall remove the president or the Vice-president or the treasurer or any other officer of the committee from his office by a no confidence in the following manner, namely.

(i)   A notice of intention to move a no-confidence motion signed by such number of members all shall constitute not les than one third of the total strength of the committee together with a copy of the motion which is proposed is to be moved shall be delivered to the Registrar in person, by any to members signing the notice.


(ii) Any officer duly authorized by the Registrar consumed inn this behalf, shall arrange for the consideration of the motion in a meeting of the committee to be held at the office of the society on a date appointed by him, which shall not be later than thirty days from the date on which the copy of the motion referred to in clause (i) was delivered to the Registrar the said officer shall given to the members not less than fifteen clear days of notice of such meeting and of the time appointed therefore.


(iii) The officer authorized under clause (ii) shall preside over the meeting convened under this rule.


(iv)A meeting convened for the purpose of considering a motionunder this rule shall not for any reason to adjourned.


(v) No meeting under this rule shall be held, if at the time appointed under the forgoing provisions, or within half an hour from such time, such number of members as shall  constitute one half of the total strength of the committee are not present.


(vi)  As soon as the meeting convened has commenced the officer presiding at the meeting shall read it to the motion for the consideration of which it has been convened are the declare the motion to be open for debate.


(vii)  No debate of any motion under this rules shall be adjourned.


(viii)The officer presiding of the meeting shall neither speak on the merits of the motion nor be entitled to veto their on but shall regulated the proceeding of the meeting


(ix)A copy of minutes of the meeting showing the results of the voting, together with a copy of motion shall, on termination of the meeting, be forwarded to the Registrar forthwith by the presiding officer of the meeting.


(x)If the motion is carried with the support of the majority of the members of the committee and if the president or  the Vice president or the treasurer or any officer of the committee, as the case may be. Does not resign his office with in ten days, after passing of the motion he shall cease to hold the office committee of  the society  forthwith.


(xi)  If no meeting could be held for want of quorum as required under the clause (x) no notice of any subsequent motion expressing meant of confidence on the same president.  Vice-president, the Treasurer for any officer of the committee shall be allowed with in a period of six months from the date of meeting.


(xii)No notice of motion under this rule shall be allowed within six months form the date of assumption of office by the president or the vice-president or the treasurer or any officer of the committee.

RULE 44. Disqualification under sub-section (1) of clause © Sub rule shall be deemed to accrued only after the expiry of the period of one month from the date of receipt from the member consumed of notice from the society demanding him to clear of the defaulted amount specified there in and fails to remit of cause to remit the amount within said period vide.

G.O.(M.S)No.31/89 Co-op. dt.13.6.1989

RULE 51 ( GEHAN €“After Rule 51 the following rule shall be inserted “51 procedure for creation of Gehan:

(1)  a declaration creating a Gehan shall be inform No.BA


(2) The state Co-op. Bank, District Co-op. Bank, Primary Agri. Credit Society/bank and  Primary housing Co-op.Society, shall maintain a register of such declaration in Form No.8B in the case of immovable property and in form.  No.8C in the case of movable property.


(3) A copy if the declaration or the instrument where by the Gehan is created or the mortgage or hypothecation is executed on favour of The Kerala State Co-op. Bank, Dist.Co-op.Bank.  Primary Agrl. Credit Society/Bank of the Primary housing Co-op. Society shall be forwarded by Regd. Post with acknowledge due, within a maximum period 30 days from the date of its creation or execution, to registering officer within  in the local limits of whose jurisdiction the whole or nay part of the propertyt o shich the Gehan or martgage or hypothecation related its situated.


(4) The loan may be sanctioned on the basis of declaration referred to in sub-section of Sec. 11 of The Kerala Co-op. Agrl. And Rural development Bank Act. 1984 (2 Of the 1984) as applicable under Sec.36 A of the Act of the declaration shall be in foprm No.88.


(5) The notice referred to in subsection of sec. 12 of the Kerala State Sgrl. And rural development banks Act. 1984 (2001 1984) as applicable under section.36 A of the said Act shall mutandis be inform No.8E and such notice shall be published in the Head Office of the bank society and in the branch office of the bank/societies and in the village office concern” (b) In appendix 2, , after from No.8 the following forms shall be inserted.  Chapter VIII Substituted by Det No. 1  of 2000 published in KG (Ext), dtd.1.1.2000 the provision will come with effect when the Govt. notified later.

During 2005-06 the following notifications/amendments in the KCS act and rules were issued by the Government as proposed by the Department.

22.1 Government Notification No.65/06/Co-op.dated 27-03-2006 (SRO No.262/2006, Dated   27-3-2006) .

This was issued to notify that S:66A of the Kerala Co-operative Societies Amendment Act 1969, shall be deemed to have come in to force on the 27th day of  September 2001

22.2 G.O.(P) No.243/2005/Co-op. dated 8th September 2005 (SRO No.898/2005 dated 20th September 2005) .

This was issued to postpone the process of election to the committees of the Co-operative, for the sake of conducting election to local bodies during September 2005,falling due during the period from the date of publication of this notification and up to 31st October 2005,for a further period of three months or up to the 30th November 2005, which ever is earlier.

22.3 G.O (P) No.275/2005/Co-op. dated 5th November 2005 (SRO No.985/2005, dated  5th November 2005 .

This was issued to postpone the process of election to the committees of co-operatives  for the state of conducting bye-election to  Thiruvananthapuram  Parliamentary Constituency (Lok sabha ) on 18-11-2005 , falling due up to 15/12/2005, for a further period of 3 months or up to 15/1/2006.

22.4 G.O.(P) No.302/2005/Co-op. dated 22nd December 2005 (SRO No.30/2006, dated 13th January 2006) .

This was issued to exempt all Primary Agricultural credit Societies and primary Co-operative Agricultural and Rural Development Banks from  the operation of sub rule (e) of rule 46 of KCS Rule 1969 for a further period of one year from 9/4/2005.

22.5  G.O.(Rt) No.31/ 2006/ Co-op. dated 20-01-2006 (co-operation (A) Department ).

This was issued to increase the remuneration, payable to Returning Officers conducting election to the committees of Co-operative Societies, to Rs.300/- (rupees Three Hundred only ) and to fix the remuneration  payable to the  Electoral officers performing duties in connection with election to Co-operatives.

22.6 G.O.(P) No.57/2005/Co-op. dated 21st March 2006. (SRO No.254/ 2006 dated 21st March 2006.

This was issued to postpone the process of election to the committees of Co-operatives, for the sake of conducting election to state Assembly during April and May 2006, falling due during the period from the date of publication of this notification and up to 20/5/2006, for a further period of four months or up to 15/7/2006





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