How To. Register a Federation. November 2016

Transcription

1 How To November 2016 Register a Federation A Federation or a Village Level Society (VLS) is an autonomous association of individuals of a group. They unite themselves to meet their needs by forming into Federation. The needs, which may be economic, social, cultural and aspirational, are met through a jointly owned and democratically controlled Federation/VLS. The Federations are registered under Andhra Pradesh Mutually Aided Cooperative Society Act (APMACS), Act, Register a Federation ( 1 )

2 Introduction The Self Help Groups (SHGs) movement has created a great potential to alleviate poverty in India. The movement empowered and continues to empower the marginalized sections of the population, particularly the women in the country. The women SHGs model emerges from the Grameen Bank Model, Bangladesh, and has shown success in India too. Along with them, farmers groups and community based groups too have emerged in our country. These groups help the poor, who are vulnerable due to lack of resources, in overcoming their dismal conditions. A Federation or a Village Level Society (VLS) is an autonomous association of individuals of a group. They unite themselves to meet their needs by forming into Federation. The needs, which may be economic, social, cultural and aspirational, are met through a jointly owned and democratically controlled Federation/VLS. The Federations are registered under Andhra Pradesh Mutually Aided Cooperative Society Act (APMACS), Act, Values of Federation/VLS A Federation/VLS is based on values, such as self help, self responsibility, democracy, equality, equity and solidarity. In a Federation, Office Bearers (OB) and members believe in ethical values of honesty, openness, social responsibility and caring for others. Principles of Federation/VLS A Federation/VLS has seven principles, and these are guidelines by which they put their values into practice. They are as follows:, 1. Voluntary and open membership; 2. Democratic member control; 3. Member economic participation; 4. Autonomy and Independence; 5. Education, training and information; 6. Cooperation among Federation/VLS and 7. Concern for community. Why should we register a Federation/VLS Formation of Federations ensure that economies of scale exist, transactions costs and default rates are reduced; value added services like micro insurance and input supply are provided, while increasing the outreach and simultaneously reducing promotional costs. Federations increase the empowerment beyond that achieved by the SHGs, produce leaders and provide opportunities to deal with power and bureaucratic structures at a higher level where mainstream organizations and government offices exist. Federations help in ensuring that SHGs survive and function as vibrant entities, bringing about social and economic empowerment of women. SHG Federations are promoted for strengthening existing SHGs. And they promote new SHGs of the poor, and improve access of various services to the member SHGs. Federations play an important part in SHGs capacity building. Moreover, they provide a sense of solidarity among members of different SHGs in an area. It is important to create a sense of ownership since SHGs are generally not self-promoted organizations. Procedures for Registration of Federations One representative from each SHG should come forward to form CBO/VLS. The member representatives should discuss objectives of Federation/VLS and other issues. Two or three member representatives of the newly formed informal Federation, should visit the District Cooperative Registrar Office (DCRO) for registering Federation. All the formalities should be completed i.e., Fill in by-law application form and submit to the concerned officer at Registrar Office (RO). Federation is formally registered under Andhra Pradesh Mutually Aided Village level society (MACS) Act, Documents Required for Registration of Federations Register a Federation ( 2 )

3 Memorandum of Association (MOA), Rules and Regulation (RR). These two documents are written/printed/ typed on plain papers. Minimum five to nine people are required to form a Federation. There is an upper limit on numbers of members. These members have various designations that can be decided among themselves. Common designations are President, Vice-President, Secretary, Joint-Secretary and Treasurer etc.. These members are collectively called the Governing Body (office bearer). This body directs and controls the functioning of the Federation. All the members of VLS are elected for a specific period (which should be mentioned in the MOA). After expiry of this period; the post is filled through elections, in which members of the Governing Body (GB) take part. Because of the involvement of elections process Federations are more democratic than VLS and Trusts. But at the same time, power struggle and politics may also creep in as drawbacks. In case of Federation through elections politics, it is possible to remove the person who had initiated the village level society in the first place. Unlike Trusts, Societies and Federation function only within a specified geographical area. The Memorandum of Association (MoA) must mention 1. Name of the Federation. 2. Objectives of the Federation/VLS. 3. Address of the Registered Office (RO). 4. Names, designations, addresses and occupations of the members of first the Governing Body (GB). Application of Registration: The application for registration of Federation/VLS is to be made by at least 10 members belonging to different families in the prescribed form should be accompanied by: One original and one copy of the proposed by-laws. Minutes of the promoters meeting. Statement of sworn-in from each applicant. Procedure for Registering Federation/VLS 1. The first step is to get 10 Individuals together who are desirous of forming a Federation/village level society. 2. A Provisional Committee should be formed and a Chief Promoter should be elected from amongst them. 3. A name for the Federation/village level society has to be selected. 4. An application has to be made to the Registration Authority for reservation of name and a letter to that effect has to be obtained confirming the reservation of name. The name once reserved is valid for 3 Months. 5. Firstly, by-law should be filled up with objectives and governing body names, address proof and photos. The objectives of the Federation are dependent on its type; If it's a SHG Federation, objectives like financial and social activities would be there. If it's any charitable trust, objectives concerning it would be there. A government Federation s objectives depend upon the government programs, and NGO or CSO objectives would be respective to their areas. Register a Federation ( 3 )

4 6. The entrance fees and share capital has to be collected from the respective members. It is depend upon the members decision and their capacity such as between Rs. 100/- to 1000/- for month. And membership fee also depends upon the members decision like Rs. 50 to Rs A bank account has to be opened in the name of the proposed Federation/village level society as per the directions of the registration authority. The entrance fees and share money has to be deposited in the bank account and the certificate from the bank has to be obtained in that respect. 8. The registration fees have to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained. 9. The application for registration of the Federation/village level society should be submitted to the Registrar of Societies of the concerned municipal ward. The documents to be submitted for registration are as follows: a. Form No. A in quadruplicate signed by 90% of the promoter members. b. List of promoter members. c. Bank Certificate. d. Detailed explanation of working of the Federation/VLS. e. 4 copies of proposed by-laws of the Federation/VLS. f. Proof of payment of registration charges. g. Other documents like affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted. 10. The Registrar will enter the particulars in register of application maintained in Form B and give serial number and issue receipt in acknowledgment of the same. 11. On registration, the Registrar will notify the registration of the Federation/VLS in the Official Gazette and issue Registration Certificate. Requirement for the Federation For application, cost is Rs. 1000/- By-law requires objectives of Federation (what the Federation wants to reach, what types of services, convergence and other related issues) Original copy of the by-laws of the proposed Society as adopted by the individuals of a newly proposed Society / General Body of the existing Society under MACS Act. Names of individuals (promoters) with their addresses, occupations and their financial commitment. True copy of the minutes adopting the by-laws signed by majority of members and minutes intending conversion as the case may be. Share amount of the Federation details (how much amount is each SHG putting in the Federation and other details are required for the share amount) Elected board of directors for the Federation. Registrar should ask directors details and address proof (aadhar card) and time period of three years. Members selected as OB members in unanimous consensus (by hand lifting). Related people (i.e, belonging to the same family) cannot be part of the governing body. Register a Federation ( 4 )

5 Members of the governing body cannot draw any remuneration from the Federation funds. While executing their duties as members, expenses incurred by the members of the Governing Body can be reimbursed from the Federation funds. Rules and regulation of Federation/VLS Ensure one member from each SHG would be nominated to the Federation. The members become directors of the Federation. Ensure the Federation meeting should be conducted once a month. General Body Meetings (GBM) should be conducted half-yearly or yearly. Ensure that approval is taken by the GBM on Federation issues and transactions related works. Every Federation should have a linkage with recognized bank and transactions should be regularly with the bank. Ensure the Directors of Federation meeting should be conducted on fixed date of every month. Ensure in this meeting all Directors and Governing Body (GB) should discuss about Federation activities, savings, repayment and other transactions. Scope of By-laws The by-laws of a Federation/VLS should cover the following matters specifically: Objectives of the Federation/VLS and the services to be provided to all the members. Eligibility and ineligibility of members and eligibility to vote in elections. Minimum performance expected from members. Consequences in the event of default. The powers and functions of General Body. Board and the Chair Person (CP) and the manner and frequency of convening GBMs. Board meetings and the quorum required there for the term of office of Directors and size, composition, eligibility and ineligibility of the Board of Directors (BoD). The manner of conducting elections and of filling casual vacancies, penalties, for acting against the interests of the Society. And for non-fulfillment of duties and the nature, extent of liability of office bearers/directors for debts contracted, appointment of authorized signatory. Manner of choosing delegates, the nature and amount of capital, maximum capital a single member can hold, maximum interest payable to members on the share capital, raising of funds/resources and their utilization. Constitution and disposal of funds, appointment of auditors/internal auditors Manner of dissolution etc.. Action on the application for registration Registration of Federation/VLS takes 45 days if it is a primary society. In case of other Societies, it would be within 60 days from the date of receipt of application. Register a Federation ( 5 )

6 Registrar checks the by-law and other details and after scrutinizing, the Registrar will issue the registration certificate of the Federation. If the Registrar is not satisfied, then he/she shall communicate the order of the refusal within the same time frame. Federation/VLS becomes a body of corporate, once it is registered. Amendment to By-laws By-laws may be amend either by the Federation/village level society itself as per its requirement or on the suggestion of the Registrar or by the Registrar. To carry out an amendment to any of its by-laws already registered including change of name, change of liability etc., the same should be approved by the general body by majority of not less than 2/3 of the members present in voting and registered by the Registrar concerned within 30 days of the receipt of the amendment proposal. Where the Registrar feels that an amendment of the by-laws is necessary in the interest of such Federation or cooperative movement, she/he may issue specified time. If the society fails to adopt the amendment within the time stipulated, the Registrar may register such amendment after giving the society an opportunity of making representation. Resolution of Federation Whenever the Federation wants to change its objectives, the governing body and directors should conduct a meeting on the issue. In that, discussion about the present objectives together with the proposed objectives should be continued, and new objectives should be added as by-laws. Besides this, if the Federation wants to change the existing governing body members, they should discuss that in the meeting with existing governing body members and directors. After unanimously electing the governing body, by-law resolution should be changed with them, and submitted to Registrar office for resolution change. For that, the charge is Rs. 1000/. Same process as the creation of a Federation is followed. After Registrar scrutinizes and signs the resolution, the certificate is given. Membership of Federation 1. The number of members with which the Federation/village level society proposes to register, with so and so name. Thereafter, the membership may be increased or decreased in consonance with the decision of the Governing Body (GB). Subject to the approval of the GB of the Federation/village level society, the membership of the Federation/village level society is open to any person who has attained the age of majority and has the requisite academic qualification associated with the sector. For avoidance of doubt, the nominated members should not be subject to the approval of the GB. 2. If the membership is not approved by the GB of the Federation/village level society, the reason of refusal should be communicated to the person/applicant concerned. 3. The GB of the Federation/VLS should be composed of the following classes of members: Founder members Nominated members Honorary members Under no circumstance should the membership of the Federation/village level society fall below seven. Governing Body (GB) and Roles The strength of GB includes President, Vice President, General Secretary, Joint Secretary, Treasurer and the other office bearers (executive members) should not be less than seven and more than nine. The GB should govern the affairs of the Federation/VLS. Register a Federation ( 6 )

7 The GB should have supervision, management and control of the Federation/village level society. Minimum 15 days notice or any such period as decided by the GB should be required for calling the GB meeting, enclosing the agenda and specifying date, time and place of the meeting. The person elected in GB should not be entitled to any remuneration except reimbursement of out of pocket expenses. The GB elected by the members should be for about 2-3 years. A GB meeting should be held at least monthly once. Federation/VLS should be approved by GB for any activities and transactions. Register of Members 1. The Federation/village level society should maintain a register of members containing the following information: The names, address and other relevant particulars of all the members of the Federation/VLS form the date on which such persons have been accepted as members. All changes taking place in the membership from time to time. Such other information as is relevant and for which decision is taken by the governing body from time to time. 2. No person should be considered a member or entitled to exercise any rights and privileges of a member unless he/she signed the register of members. Termination of member A member can be terminated in any of the following events. In case of member s death. On his written resignation. If adjudged insolvent. If found to be involved in any anti-social activities. If adjudicated by any court of law to be a criminal offended/proclaimed offended or of unsound mind. If found guilty of negative propaganda in relation to the aims and objects of the Federation/VLS. If she/he fails to pay the subscription or contribution for three months from the due date. If she/he disregards the rules or disobeys the decision of governing body. Staff recruitment in Federation Depending upon the SHG groups size, they recruit a manager, coordinators and volunteers for Federation. The manager should be responsible for the entire transactions of the Federation. Coordinator should be responsible for the respective groups and villages. He/she looks into the SHGs functioning in the village and savings, internal lending and repayment and other activities. About five to six villages come under each Coordinator. He/she is the responsible to them. Volunteer should be responsible for the village and maintaining the SHGs books and transactions. He/she collects money from the village, it should be given to coordinator. Coordinator monitors the volunteer. Those who require loan from the Federation, should put a proposal to the Federation. After the directors and staff discuss the matter, the loan is sanctioned within their strength and other related positive Register a Federation ( 7 )

8 opportunities are provided. The response will be given within five days. The money from the SHG or member on the repayment that should be deposited in bank. Seal of the Federation/VLS Common seal should be in the custody of the Secretary. Seal should be used only under authority of the resolution of the GB. Every Deed or Instrument to which the seal is affixed should be attested for and on behalf of the VLS by two GB members and Secretary or any other person authorized by the Federation/VLS on behalf of chronological record of use of the seal, and should be maintained in a register kept for the purpose. Problems of Federation SHG members do not pay back loans promptly and regularly. Communities too do not pay back loans on regular basis. Internal conflict arises between SHG members and Leaders. Loan availed is used for other purposes, other than the purpose taken for. Accounts and Records Accounts and records should be maintained in forms prescribed or approved by the auditor. In this regard, the accountant of the Federation and office bearers roles are very important. They will maintain all bills and transactions in accounts. If the transactions are over Rs. 50,000/-, the auditing should be done by the Chartered Account (CA), and the books that are maintained (voucher, receipt, cash book, loan ledger and general ledger) should be submitted to the CA. Every year, returns should be submitted to the Income Tax (IT). Annual Report 1. The financial year of the Federation/village level society should be from April 1 to Mar 31. A copy of the last financial statement and the report of the Auditor, if any, should be kept in a conspicuous place in the office of the Federation/village level society. 2. The GB should submit a report on the working of the Federation/village level society annually to the appropriate government authority, if called for. Such report should contain particulars regarding the work of the Federation/ village level society during the previous year and should be accompanied by a balance sheet duty audited showing the income and expenditure of the Federation/village level society during the respective year. Offences & penalties Offences come within the purview of Co-operative Law. Covers various types of actions or omissions committed by the Governing Body (GB), staff or any member of the Federation/VLS. For misappropriation of fund prosecutions are launched after sanction of prosecution by Registrar and for the offences, action is taken under law. Penalties are based on the offence committed. The SHG Federations paved way for other vulnerable and marginalized groups to register themselves under Federations / VLS for empowerment and growth. Register a Federation ( 8 )