How to Amend MSCS Bye-Laws

As a society grows, its bye-laws have to move with it: a new state, a new activity, a different board size, a new name. The Act lays down a fixed route for this, and if you skip a step the change has no legal effect. Here is that route.

In this guide

• The route
• Common amendments
• Bigger structural changes
• Mistakes to avoid
• FAQs

The route

1. Board proposal. The board approves the proposed amendments and drafts the text.
2. Notice. Section 11 requires 15 days’ notice of the general meeting, with the proposed amendments attached.
3. Resolution. A two-thirds majority at the general meeting must pass the amendment.
4. Registration. The amendment goes to the Central Registrar for registration, and the Act says this should be done within three months.
5. Update records. Swap the old bye-laws for the new in your registers and tell the members.

Common amendments

Change	Notes
Name	Done by bye-law amendment under Section 13, with no effect on rights or obligations
Area of operation	Handled as a bye-law matter; for credit and thrift societies expect NOCs for new states
Board size or composition	Must match the Act, including reservation for women and Scheduled Castes or Tribes
Objects	New activities must serve members in more than one state
Address	The registered address, including an email address, is held under Section 14

Bigger structural changes

Transfer of assets and liabilities, division or amalgamation needs a two-thirds resolution at general meetings, with one month’s notice to members and creditors, who can withdraw (Section 17). These are projects in themselves, so speak to us before you start.

Mistakes to avoid

• Acting on an amendment before it is registered.
• Notice shorter than 15 days.
• Resolutions passed by a simple majority.
• Amendments that conflict with the Act, such as board composition rules.

Read our post on what bye-laws must include and the complete guide.

Related reading

• MSCS bye-laws
• Area of operation
• Complete guide to MSCS registration
• AGM of a Multi-State Co-operative Society: Notice, Agenda and Timing
• Multi-State Co-operative Societies Act, 2002 Explained
• MSCS Annual Compliance Checklist

Need help with your MSCS? See our Multistate Co-operative Society registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

What majority is needed to amend bye-laws?

A two-thirds majority at a general meeting, under Section 11.

How much notice is needed?

15 days, as per Section 11.

Does the amendment need registration?

Yes. The Central Registrar registers it.

Can I change the society’s name?

Yes, by amending the bye-laws under Section 13.

More in this MSCS series