Section 40 of The Multi-State Co-operative Societies Act, 2002
- (1)The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws.
- (2)If a special general meeting of a multi-State co-operative society is not called in accordance with the requisition referred to in subsection (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
Summary
- The Chief Executive can call a special general meeting of the cooperative society at any time if directed by the board.
- The Chief Executive must call a special general meeting within one month of receiving a written requisition from the Central Registrar or from the required proportion of members.
- If the Chief Executive fails to call the meeting, the Central Registrar or an authorized person has the power to call it.
- A meeting called by the Central Registrar is legally treated as if it were called by the Chief Executive.
- The Central Registrar can order that the expenses of a requisitioned meeting be paid from society funds or recovered from the persons responsible for the failure to call it.
Practical examples
FAQ
1. Who can initiate a special general meeting under Section 40 of The Multi-State Co-operative Societies Act, 2002?
Under Section 40 of The Multi-State Co-operative Societies Act, 2002, the Chief Executive can call a special general meeting on the direction of the board of directors, or must call it on a written request from the Central Registrar or a specified proportion of members.
2. Within what time must a requisitioned special general meeting be called under Section 40 of the Multi-State Co-operative Societies Act?
Under Section 40 of the Multi-State Co-operative Societies Act, 2002, the Chief Executive must call the special general meeting within one month after receiving the written request from the Central Registrar or the members.
3. Who pays for a special general meeting called by the Central Registrar under the 2002 Act, Section 40?
Under Section 40 of the Multi-State Co-operative Societies Act, 2002, the Central Registrar can order that the expenses be paid out of the society's funds, or by the specific persons who failed or refused to call the meeting.
4. Is a special general meeting called by the Central Registrar legally valid under Section 40 of the Multi-State Co-operative Societies Act?
Yes, under Section 40 of the Multi-State Co-operative Societies Act, 2002, any such meeting called by the Central Registrar is legally deemed to be a meeting called by the Chief Executive.
Test yourself
Q1.Under Section 40 of The Multi-State Co-operative Societies Act, 2002, how quickly must the Chief Executive call a special general meeting after receiving a written requisition?
Q2.Under Section 40 of The Multi-State Co-operative Societies Act, 2002, if a special general meeting is not called after a proper requisition, who has the power to call it?
Q3.Under Section 40 of The Multi-State Co-operative Societies Act, 2002, from whom can the Central Registrar recover the expenses of a failed requisitioned meeting?
Q4.Cross-reference Question: Under Section 38 and Section 40 of The Multi-State Co-operative Societies Act, 2002, what constitutes the "general body" that is summoned for a special general meeting?