Crescent Cooperative Ltd. (CCL) is an autonomous financial institution, registered with the Govt. of Jammu and Kashmir state under “J&K Self Reliant Cooperatives Act of 1999”. The cooperative aims to provide its members a hassle free medium for interest free financial transactions. It is governed by a Board of Directors (BOD), in accordance to its duly registered Articles of Association(AOA). The BOD is periodically elected by the general body of the cooperative comprising of its general members. Thus a general member is actually the basic pillar of the cooperative. The general membership is granted by the BOD of the Cooperative to its prospective members in accordance to relevant articles of its AOA and other rules and regulations formed their under.
Following articles of AOA govern its membership.
Article 6
The admission, withdrawal and cessation of membership to CCL are governed by different sections of this article as explained below:
Grant of Membership: Membership can be granted by the BOD of the Cooperative, without any discrimination of sex, religion, region or profession1 to any permanent resident of Jammu & Kashmir who wishes and requests so, (on a prescribed form) pays the required membership fee and the value of at least one share, of its equity capital, provided he/ she:
a) Is not a minor.
b) Is not mentally retarded.
c) Is not engaged in any interest based money lending.
d) Is not involved in any anti social , unlawful activity.
Cessation of Membership: The BOD of the Cooperative can cease the membership of any of its members provided he/she:
a) Is involved in any activity which on enquiry is proved detrimental to the interests of the cooperative.
b) Makes a written request for withdrawal2.
Grant of Re-admission: The BOD can grant readmission to any person whose membership has been withdrawn/ ceased provided he/she makes a written request for the same.
In all the cases of admission, withdrawal or readmission the decision of the BOD shall be final3.
If a member expires, his membership will automatically be transferred to his nominee/ legal heir. In case these are not available his membership will cease.
Notes:
1) The general member of the cooperative who will be serving in state or central govt. on permanent basis cannot be elected to any of the portfolios of the cooperative, till he is in regular service of the govt.
- Any member whose membership is ceased by the BOD is bound to pay all the dues, due to the cooperative, including any advances granted to him by the cooperative and share of any deficit, in proportion to his share of equity capital.
- In case of any dispute between members of the cooperative and or between any member and the cooperative the matter will be referred to the ‘Arbitral Tribunal’ authorized under Article 19 of the AOA of the cooperative, whose decision will be binding on the concerned parties.
Article 7
(Member’s rights, obligations and liabilities)
A. Rights
i. A member has right to receive annual audited statements of accounts.
ii. A member has right to vote and elect members on Board of Directors of cooperative.
iii. A member has right to avail loan facilities for any lawful purposes subject to the terms and conditions for such loans.
iv. A member has right to receive dividend on equity/ surplus deposits out of profits earned during the period on such rates as are decided by the Board of Directors from time to time.
B. Obligations:
i. A member must need and use the services of the cooperative regularly.
ii. A member has to have at least one equity share (Capital) in the cooperative.
iii. A member has to attend General Body of the cooperative and take part in decision making and control process.
iv. A member should not default in repayment of any saving or loan installments (as prescribed at the time of agreement) for 3 Consecutive months; otherwise his voting right will get suspended in ensuing years.
C. Liability of Members:
i. In case of meeting external debt the liability of a member will be proportionate to his quantum of equality holding.
Other Conditions Regarding Membership
- The members are required to deposit their surplus with the cooperative under its different deposit schemes as per their aspirations.
- The members should avail the credit facility offered by the cooperative as and when needed by them.
- The members should take part in the decision making and control mechanism of the cooperative by regularly participating in the general body meetings
Procedure for grant of membership
1) The prospective member will make a request to the BOD
2) The request will be considered by the BOD, if found consistent the prospective member will be asked to sign ‘Certificate of Verification’ regarding the rights, obligations and liabilities of the member in presence of any existing member of the cooperative who personally knows the prospective member.
3) Such existing member of the cooperative will then recommend to BOD the grant of membership in favour of the prospective member on the grounds that he personally knows the prospective member and certifies his good conduct and behavior.
4) The prospective member will be then asked to deposit the requisite membership fee and value of at least one share of the equity capital. After all above formalities are completed by the prospective member, the chairman on behalf of BOD will sign
his request form and a unique membership code will be allotted to him. After the request form of a prospective member has been signed by the chairman on behalf of the BOD, the prospective member will be regarded as general member of the cooperative worthy to avail all the rights, share all obligations and bear all liabilities of a general member as envisaged in the articles of association of the cooperative.