Adoption of by-laws; contents.
Section 17
SEC. 17. Adoption of by-laws; contents.— Each co-operative to be registered under this Act shall adopt for its management a code of by-laws not inconsistent with the powers granted by this Act. The by-laws shall be filed with the Administrator at the time of filing the articles of incorporation and shall take effect upon registration and issuance of a certificate of registration by the Administrator. The by-laws of each co-operative shall provide for— The qualifications for admission to membership and the payment to be made or interest to be acquired as a condition to the exercise of the right of membership; The rights and liabilities of membership; The circumstances under which the withdrawal and the expulsion of members shall be permitted; The procedure to be followed in cases of withdrawal, ineligibility and/or death of members; The conditions under which the transfer of a share or interest of the member shall be permitted; The time, place and manner of calling and conducting assemblies and meetings and the right of voting; The general conduct of the business of the co-operative, including the powers and duties of directors, officers and committee members; The manner in which the capital may be raised and the purposes for which it can be utilized; The mode of custody and of investment of surplus funds; The manner of keeping accounts; The method of distribution of net savings; The manner of adopting, amending, repealing and abrogating by-laws; In case of co-operatives loaning funds; the conditions governing the granting of loans, the determination of the maximum and normal credit of members and the maximum loan which may be granted to a member, the rate of interest on loans, the purposes for which the loans may be granted, the security for payment of loans, the period of repayment of loans, and the extension of the period of payment and renewal of loans, and Other matters incident to the purposes and activities of the co-operative.