### Co-operative Societies Rules 《合作社規則》

32. Chairman of committee
The committee shall elect its own chairman, who shall have an ordinary vote and on an equality of votes shall be entitled to a casting vote. In the temporary absence of the chairman, the committee shall elect one of its members to perform the duties of chairman.

33. Duties of committee
(1) The committee shall represent the registered society before all competent public authorities and in all dealings and transactions with third persons, with power to institute or defend suits brought in the name of or against the society, and in general it shall carry out such duties in the management of the affairs of the registered society as have not been specially assigned by the rules or the by-laws to general meetings or to any other officer of the society.
(2) The committee shall always keep a copy of the latest annual balance sheet of the registered society together with the report referred to in rule 23, hung in a conspicuous place at the registered office of the society.

34. Meetings of committee
The committee shall meet as often as the business of the registered society may require and in any case not less frequently than once a month. Meetings of the committee shall be summoned by the secretary in writing.

35. Procedure at meetings of committee
At each committee meeting the secretary shall—
(a) read the minutes of the preceding meeting;
(b) produce the cash book, detail the entries of receipts and payments made therein since the last meeting and with the treasurer produce the cash in their possession for verification by the committee with the cash book;
(c) produce a statement showing the loans due and unpaid, for determination by the committee as to the action to be taken in each case;
(d) produce applications for loans, if any, for determination by the committee in accordance with the priority of receipt; and
(e) submit any other business for consideration by the committee.

36. Minutes of meetings of committee
Minutes of committee meetings shall be recorded forthwith by the secretary in the minute book and shall be signed by the chairman or other presiding member and by the secretary and shall contain the following particulars—
(a) the names of the members present and the date of the meeting;
(b) the name of the chairman or other presiding member; and
(c) a short statement of all matter discussed and decisions made and a record as to whether each decision was made unanimously or by a majority.

37. Failure to attend meetings of committee
Any member of the committee who, without due excuse approved by the committee, fails to attend at three consecutive meetings of the committee shall be deemed to have vacated his office which shall thereupon be filled as provided by rule 38.

### Co-operative Societies Rules 《合作社規則》

38. Vacancies on committee
(1) Vacancies occurring on the committee shall be filled within eight days by the election of substitutes elected by the remaining members of the committee:
Provided that when such election does not take place the Registrar may appoint the required substitutes.
(2) Any substitutes elected or appointed under paragraph (1) of this rule shall hold office until the expiration of office of the committee.

39. Borrowing powers
The committee may borrow money on behalf of the registered society to an amount not exceeding such total amount as may have been fixed in accordance with rule 20.

40. Banking account
The committee may, subject to the approval of the Registrar, open a banking account. All cheques shall be signed by two members of the committee and the secretary:
Provided that with the authority in writing of the Registrar previously obtained cheques may be signed by one member of the committee and the secretary.

41. Employees
(1) The committee may—
(a) appoint such clerks or employees as it considers necessary; and
(b) fix the salary, wages or remuneration of every such clerk or employee.
(2) Every clerk or employee appointed under this rule shall hold office during the pleasure of the committee.

42. Application for a loan
Members who desire to obtain a loan shall submit an application to the committee stating the amount and the purpose for which the loan is required, the term for which it is asked, whether it is desired to repay it by instalments, and the names of the proposed sureties or any other security which is offered.

43. Sanction of loan
(1) The committee shall consider at a meeting every application for a loan, and if the committee is satisfied with the trustworthiness of the applicant, the sufficiency of the security offered and the prospects of advantage to the borrower, in the way of increased production or economy or otherwise, it may sanction the loan.
(2) No person other than members of the committee and the secretary and the Registrar and his staff shall be present at any meeting of the committee when an application for a loan is under consideration. A member of the committee who applies for a loan or who is proposed as surety for a loan shall withdraw while the relevant application is being discussed. If there is a difference of opinion concerning the granting of a loan, the voting shall be taken by ballot. The proceeding with regard to loans at committee meetings shall be kept secret, and any member of the committee or officer of the registered society infringing this rule shall be liable to immediate expulsion or dismissal.

44. Security for loans
Loans, when approved by the committee, shall be granted to members who are able to obtain two sureties approved by the committee. If the committee are of the unanimous opinion that the member’s personal character and industry are such that other security is not necessary then, on approval by the Registrar, such loan may be made to the member without sureties or other security.

### Co-operative Societies Rules 《合作社規則》

45. Purposes of loans
(1) No loan shall be made except for a purpose to be approved in each case by the committee.
(2) All loans made shall be applied by the borrowing members to such purpose as the committee has approved.

46. Documents relating to loans
When a loan is sanctioned by the committee a notice shall be sent to the borrower to that effect, and, before the amount is advanced, the borrower (and his sureties if any) shall execute an instrument in writing setting out the terms of repayment of the loan and containing such other terms and conditions as the committee may consider necessary.

47. Restrictions on loans to defaulters
Where a member—
(a) is in default in the payment of a loan or of an instalment of a loan; and
(b) does not satisfy the committee that such default is due to a good cause,
such member shall not be entitled to receive another loan from the registered society.

48. Extensions of loans
If, by reason of sickness or some other cause, a member finds that he will be unable to discharge his obligations to the registered society and notifies the secretary in writing before a loan is due, the committee may extend the time fixed for payment on such conditions as it thinks fit.

49. Misapplication of loan
Where the committee is satisfied that a member of the registered society who has obtained a loan has applied the proceeds thereof to a purpose other than the purpose which is stated in the application therefor under rule 42, the committee may, by notice in writing to the debtor, demand payment of the loan before the agreed date of payment.

50. Recovery of loans
Where—
(a) a loan or an instalment of a loan has not been paid on the date on which it became due; and
(b) no extension for the payment thereof has been given to the debtor by the committee under rule 48,
the committee shall take steps for the recovery of the same by referring the matter to the Registrar as prescribed in section 49 of the Ordinance.

51. Marketing
(1) Every member of the society shall deliver to the society at such place as the committee shall direct such amount of articles produced or obtained by him as may be prescribed in the by-laws or in the relevant contract to be disposed of by the society.
(2) Any member, who is approved or adjudged in accordance with section 49 of the Ordinance to be guilty of a breach of the by-laws or the relevant contract as the case may be, shall pay to the society as liquidated damages such sum as may be specifically assessed or ascertained in manner prescribed by the by-laws or by the relevant contract, and such sum shall be deemed to be a debt due to the society.