Punjab Provincial Cooperative Bank Limited Bye-Laws, 2010
1.Short title, address and area of operation.- (1)
These bye-laws may be cited as the Punjab Provincial Cooperative Bank Limited
(2)The registered office of the Bank shall be at
(3)Address of the registered head office of the Bank
shall be the Punjab Provincial Cooperative Bank Limited, Shahrah-e-Quaid-e-Azam,
(4)The area of operation of the Bank shall extend to the
whole of the Province of the Punjab.
2.Definitions.- In these bye-laws:
(a)"Act" means the Cooperative Societies Act 1925 (VII
(b)"Bank" means the Punjab Provincial Cooperative Bank
Limited, a society registered under the Act;
(c)"Board of Directors" means the Board of Directors of
(d)"Chairman" means the Chairman of the Board of
Directors and the Registrar shall be the Chairman of the Board of Directors;
(e)"district delegate" means a representative of the
member societies of a district elected in accordance with the bye- laws and
shall be member of the General Body of the Bank;
(f)"Director" means a member of the Board of Directors;
(g)"Division" means an administrative area declared as
Division by the Government;
(h)"election rules" mean the Punjab Provincial
Cooperative Bank Limited (Board of Directors' Election) Rules 2010;
(i)"Government" means the Government of the
"member society" means a cooperative society admitted as member of the Bank ¡n
accordance with the bye-laws;
(k) "month" means a calendar month;
(l)"President" means the
President of the Bank, appointed by
the Board of Directors under the bye-laws;
(m) "region" means an area consisting of two or more Zones,
declared as region by the Board of Directors for the purpose of regional
meetings and election of members of the Board of Directors from amongst the
district delegates of the general body at the ratio of one Director from every
(n) "Registrar" means the Registrar, Cooperatives Societies,
appointed under the Act;
(o) "rules" means the Cooperative Societies Rules, 1927; and
(p) "Zone" means an administrative area declared as Zone by the Board of
Directors to manage, supervise and control branch operations.
(2) Until the Board of Directors declares otherwise, all
the member societies and their district delegates to general body elected in
district meetings are grouped in following three regions:
(a) Region-1 consisting of Lahore,
(b) Region-2 consisting of Sargodha,
Dera Ghazi Khan Zones; and
(c) Region-3 consisting of
Bahawalpur and Multan Zones.
(3) A word or expression used in these Bye-laws but not
defined shall have the same meaning as assigned to it in the Act or rules.
3.Objects of the Bank.- The Bank shall-
(a)facilitate the working of member societies;
(b)carry on banking and credit business;
(c) accept deposits of money and other funds from the
public, repayable on demand or otherwise, and withdrawal by cheque, drafts,
order or otherwise, for the purpose of lending or investment;
(d)borrow or raise money;
(e)lend or advance money either upon or without security
to member societies and any other person in such manner as may be necessary;
(f) serve as a balancing centre for cooperative
societies in its area of operations;
(g)take measures designed to improve the working and
thereby the usefulness of the member societies;
(h) inspect, supervise and estimate credit of member
societies and any other person;
(i)purchase, sell, transfer, endorse, pledge or
otherwise negotiate securities of the Government, Government of Pakistan,
promissory notes, bonds, municipal and port trusts bonds, debentures, shares and
other securities specified under section 37 of the Act for legitimate investment
of surplus funds of the Bank or for the members or depositors without incurring
any financial responsibility and to draw return thereon and to do other things
incidental to such business;
(j) act as agents for the Government or public bodies or
member societies and their members or any other bank with the previous sanction
of the Registrar;
(k) receive for safe custody securities, documents and
ornaments upon such terms as may be fixed by the Board of Directors or any
office-bears or officers authorized by the Board of Directors;
(l)establish, support, or aid in establishment funds,
conveniences calculated to benefit employees or exemployees of the Bank or the
dependents and grant pensions;
(m) advance loans and overdrafts to the members of the staff of the Bank,
against sufficient securities acceptable to the Bank, in accordance with the
rules framed in this behalf by the Bank and approved by the Registrar;
(n) grant loans and overdrafts to depositors of the Bank against their fixed
(o) acquire, sell, mortgage or lease lands and buildings, and build
structures, godowns and houses for its own use or for those of its member
(p) manage, sell and realize any property which may come into the possession of
the bank in satisfaction or part satisfaction of any of its claims;
(q) provide educational assistance and training to members of
the member societies or staff of the Bank or of the member societies;
(r) afford financial assistance including donations to co
operative societies and institutions engaged in promoting the cause of
co-operative movement and co-operative education and training;
(s) open branches, sub-branches, sales & service centers and
booths and to transact business, with the permission of the regulators, so as to
provide banking services to the public;
(t) grant and issue letters of credit and travellers' cheques;
(u) collect and transmit money and securities;
(v) negotiate loans and advances;
(w) carry on and transact every kind of guarantee and
(x) use computer or other electronic systems or delivery
channels for banking products and services;
(y) enter into participation arrangement(s) with any other bank
or banks or financial institutions with the object of making loans and advances;
(z) acquire, manage and undertake the whole or part of business of any other
(za) help the growth of the co-operative movement; and
(zb) do all such other things as may be incidental or conducive to the above
objects or any of them, and to the promotion or advancement of the business of
4.Share capital.- The authorized share capital of the
consist of an unlimited number of shares of the value of one hundred rupees,
each payable on application.
5.Working capital.- The working capital may be composed
(c)loans debentures, if any;
(b)grants or grants-in-aid.
6.Membership.- The following shall be members of the
(a) cooperative societies admitted as members in
accordance with these bye-laws;
(b)Registrar and two non-official
professionals nominated by
the Registrar without holding shares or incurring
(c) Government; on such terms and conditions as the
Board of Directors may accept for admitting it as member but it shall have
representatives as provided in clause (b) above; and
(d) President; without holding shares or incurring any
7. Admission of members.- (1)
Every member society shall purchase at least one share of the Bank, payable on
admission or when applying for admission, a cooperative society shall state the
number of shares it wishes to subscribe and pay the full value of shares so
Provided that no member society shall have the right to send its representative
to attend the meetings of the Bank until it has purchased required number of
shares as prescribed under these rules:
Provided further that no member society shall be entitled to send any
representative to attend the Regional Meeting (for the purpose of election) or
General Meeting if it defaulted in repayment of loan granted to it by the Bank.
(2) Members other than those referred to in the bye-law
6 (b) shall be admitted by the Board of Directors.
(3) Application for admission shall be made on the
prescribed form and such application
shall form part of register of members
of the Bank.
8.Termination of membership.- (1) A member society
to be a member of the Bank if-
(a)the Registrar has ordered its winding up
under the Act, or
(b)has transferred all the shares held by it; or
(c)it is expelled by atleast two third
majority in a General
Meeting at which not less than half district
representatives of member societies were present and
(d) it withdraws after six months' notice to the
management of the Bank, provided that the withdrawing member society is not
in debt to the Bank (notice of withdrawal must be
signed by atleast three members of the Committee of the
withdrawing member society and shall be accompanied by a certified copy of the
resolution, sanctioning the proposed withdrawal).
(2) A nominated professional member shall cease to be a
member of the Bank, if his nomination is revoked by the Registrar.
(3) The Board of Directors may expel a member society
(a)failure to pay its loan installment consecutively for
(a)any action which may be held by the Board of
Directors to be contrary to the stated objects of the Bank or to the interest of
the co-operative movement.
9. Liability.- The Liability of each member of the Bank
shall be limited to the value of the shares subscribed.
10. Deposits and borrowings.- (1) The Bank may receive
deposits, raise loans and carry on such banking business as the Board of
Directors may authorize.
(2) The Bank may arrange loans, overdrafts or cash
credits with any bank approved by the Registrar, with power to deposit bonds
possessed by member societies, if required as collateral security, or deposit
Government, trustee and other securities or shares belonging to the Bank or
(3) The Bank may borrow or raise money by issue of
debentures founded or based upon all or any of the property and assets of the
Bank and upon such other terms as the Bank thinks fit.
(4) The Bank may, for the purpose of securing the
payment of any debentures or for the payment with return of any money raised on
debentures, make or carry into effect any arrangement or agreement with the
Government on consideration of their guaranteeing the payment of principal and
return due under the debentures and on such terms and conditions as the Bank may
(5) Every agreement or deed of trust to be executed by
the Bank for issue of debentures and every debenture issued by the Bank for
raising money shall be under the seal of the Bank and signed by at least two
Directors and any officer of the Bank duly authorized in this behalf by the
Board of Directors.
(6) A register of debentures shall be kept by the Bank,
in which shall be entered the class of debentures, the number and date of every
such debenture and the names of the parties thereto and all other necessary
(7) The Bank may make rules and regulations for transfer
11. Share certificate.- (1) The Bank shall issue
certificates for the shares issued by it to its members.
(2) Such certificates shall be issued under the common
seal of the Bank specifying share or shares held by them.
(3) The share certificates shall be signed by the
President and any officer of the Bank authorized for the purpose by the Board of
(4) If such certificates are lost or worn out they may
be renewed on the applicant's executing an indemnity bond and on payment of a
fee of five rupees per share certificate.
12.Transfer of shares.- (1) Shares can be transferred
approval of the Board of Directors from one member to another or to a
member eligible for admission as member of the Bank and whom the Board of
Directors admits as a member of the Bank.
(2) Transfers of shares must be registered in the Bank's
books and transfers not so registered will not be recognized.
(3)A transfer fee of five rupees per share certificate
will be charged.
13.Return of share amount.- In the even of cessation of
membership of a member society, the amount of shares shall be refunded to the
society or the liquidator, after deduction of Bank's dues, if any.
14.General Body.- (1) Subject to the provisions of the
Act and rules,
the supreme authority of the Bank shall vest in the General Body.
(2)The General Body shall consist of-
(a) ex-officio members of the Bank;
(b) nominated professional members of the Bank; and
(c) district delegates elected in the district
meetings of member societies.
15. General Meeting.- (1) The General Meeting shall be
of two kinds, Annual General Meeting and Special General Meeting.
(2)The Annual General Meeting shall be held within the
period of three months after the date fixed by the rules for making up the
accounts of the Bank for the year. Annual General Meeting may be called by the
Board of Directors.
(3) A Special General Meeting may be called at any time
by the majority of the Board of Directors or on a written requisition made to
the Chairman by one-fifth of member societies or at the instance of the
Registrar and shall be called within one month.
(4) The functions of General Meeting shall be those as
prescribed under bye-law 16 and the business of a Special General Meeting shall
be that as stated in the notice of requisition.
16.Functions of General Meeting.- The functions of the
General Meeting shall be-
(a) to receive and consider the audit report, annual
report and the statements of accounts prepared by the Board of Directors, to
review the work of the Bank during the past year, and to approve the annual
budget subject to final sanction of the Registrar, provided that the approval of
the General Meeting shall be considered final if the Registrar does not accord
sanction within fifteen days of the date of receipt of budget;
(b)to declare dividends and allocate
(c)to elect, suspend and
remove the Directors except the ex
officio and nominated Directors;
(d)to fix subject to the
approval of the Registrar, the maximum
amount of liability which may be incurred by the Bank during the next year;
(e)to take notice
of all subjects which affect the financial
position of the Bank and to pass resolutions with regard to them;
(f)to amend, abrogate and
revise bye-laws according to the
provisions of the Act and rules; and
rates of traveling allowances and daily
allowances to be paid to the Chairman, Directors and members of the
Sub-Committees residing outside the place of meetings or conferences.
17. Notice of General Meetings.- (1) Notices of a
General Meeting mentioning the place, date and hour of the meeting and the
business to be transacted thereat, shall be, in accordance with the decision of
the Board of Directors or the President or the Registrar, issued by post at the
last registered address of each member; or published in three local newspapers
atleast thirty days before the date of the meeting.
(2) Thirty days shall count from the date on which the notice appears in the
press and in case of notice issued by post exclusive of the date of posting.
18. Agenda.- Proposals touching the business of the
General Meeting, received from members of the Bank in the Bank's Office at least
twenty five days before the date of the meeting, shall be included in the agenda
of the meeting. Any matter not on agenda may be considered at the meeting with
the permission of the person presiding excepting those relating to amendment of
bye-laws or expulsion of members.
19. Quorum for General Meeting.- The quorum for the
General Meeting shall be atleast one fifth of the total persons eligible to
attend the General Meeting.
20. Absence of quorum of an Annual General Meeting and
dissolution of a Special General Meeting.- (1) In the absence of quorum within
one and half hour after the time fixed for holding of a General Meeting, the
eligible persons present and entitled to vote shall form the quorum.
(2) If, within one and half hour after the time fixed for holding a Special
General Meeting, convened on requisition by member societies, a quorum is not
present, the meeting shall be dissolved.
21. Presiding the General Meeting.- The Chairman shall
preside over the General Meeting and, in his absence, the Director duly
nominated by the Chairman or the senior (in age) non-executive Director shall
chair the meeting.
22. Voting.- (1) Each person eligible to attend the
General Meeting shall be entitled to one vote only.
(2) When the votes are equal, the person presiding the
meeting shall have a casting vote.
(3) On all questions the decision of the majority shall
be final unless otherwise provided for in the bye-laws, Act and rules.
23. Minutes.- Proceedings of the Annual or Special
General Meeting shall be recorded in a book kept for the purpose and signed by
the person who presided the meeting and confirmed at the subsequent meeting
under the signatures of the Chairman.
24. Tenure of General Body.- The district delegates
shall form General Body of the Bank for three years and shall attend Regional
Meetings and General Meetings held during that period.
25. District Meeting.- (1) To elect district delegates
to the General Meeting of the Bank, District Meeting of member societies shall
be held as and when necessary.
(2) Every member society of the district shall be
eligible to attend such meetings through a duly elected representative, who
shall be its member.
(3) Every member society shall have one vote,
irrespective of number of shares held by it.
(4) At these meetings district delegates for the General
Meeting of the Bank shall be elected at the rate of one for every fifty member
societies or a part thereof.
26. Election of district delegates.- The election of
district delegates in the district meetings shall be held under rules and
regulations to be framed by the Board of Directors and approved by the
27. Convening the District Meeting.- Every District
Convener shall convene the District Meeting and preside over the same.
28. Notice of District Meeting.- The election of
district delegates for the purpose of these bye-laws shall be undertaken in the
District Meeting of member societies held on the date, times and place to be
notified atleast one week before the holding of the District Meeting by the
29. Agenda of District Meetings.- The District Meeting
shall discuss the agenda and conduct the business in accordance with these
30. Quorum.- (1) The quorum for the District Meeting
shall be one fifth of the member societies belonging to that district.
(2) In the absence of quorum within one and half hour after the time fixed for
holding of a District Meeting, the eligible persons present and entitled to vote
shall form the quorum.
31. Minutes of District Meetings.- The Convener of the
District Meeting shall be responsible for the custody and maintenance of the
proceedings book of the District Meetings.
32. Board of Directors.- (1) The Board of Directors
shall consist of-
(a) Registrar, who shall be its Chairman;
(c) two non-official professionals nominated by the
Registrar under bye-law 6(b); and
(d) three elected members, who is qualified to be
elected as Director under the election rules.
(2) Nothing shall invalidate the constitution of the Board of Directors if as a
result of operation of the bye-law 7(1) or any other reason, a member society is
not represented at the District Meeting or a region is not represented on the
Board of Directors.
33. Term of Board of Directors.- (1) The terms of the
Board of Directors shall be three years and on the expiry of the period, all the
elected Directors shall automatically stand retired subject to the extension, if
any, of the period under bye-law 34.
(2) A retiring or retired Director may be re-elected but no Director shall hold
office for more than two consecutive terms.
34. Extension of tenure and Administrator.- (1) If
election is not held within the prescribed period the entire Board of Directors
shall automatically stand dissolved, unless the Registrar for reasons to be
recorded in writing extends the period of all the Directors and election shall
be made afresh irrespective of their tenure.
(2) In case whole Board ceases to exist the Registrar shall have the powers to
appoint an administrator who shall have all the powers and duties of the Board
of Directors and shall arrange to hold the General Meeting and election of new
Board of Directors within ninety days of taking over, unless the
period is extended by Registrar, for specific
reasons to be recorded in the
order itself, and shall cease to hold his office when
the new Board of Directors
35. Co-opted Director.- The Board of Directors may
co-opt a Director to fill a vacancy occurring during the year till the next
General Meeting, provided that such Director was a district delegate for the
last General Meeting of the Bank.
36. Eligibility criteria and disqualifications.- (1)
Eligibility criteria: A
person shall not be eligible to become the Director, unless he-
(a) is a district delegate in case of elected Director
under bye- law 32(d);
(b) has attained the age of twenty five years; and
(c) fulfils the fit and proper test prescribed for
Directors by the State Bank of
through BPD Circular No.13 of 2004
dated 17 March 2004 or any other subsequent circular on
the subject issued by the State Bank of
(2) Disqualifications: A person shall be disqualified to be a validly nominated
candidate or to remain as an elected Director, if he suffers from any of the
(a)he is declared as
un-discharged insolvent by the competent
forum or court;
declared as a person of unsound mind by the
(c)he fails to attend
three consecutive meetings of the Board
of Directors without reasonable excuse and without approval of the Board of
(d)he ceases to be
representative of a member society or the
society he represents ceases to be a member of the Bank;
(e)he is relative
of any employee of the Bank within the
meanings of rule 55 of the Cooperative Societies Rules, 1927;
(f) he is interested directly or indirectly in any
contract or employment with or under or by or on behalf of the Bank;
(g) he has been convicted of an offence involving moral
turpitude or dishonesty;
(h)the society he represents is a defaulter to the Bank;
(i)the cooperative society he represents is classified
as class C
or class D society;
he is a borrower or defaulter of the member society he represents;
(k) he is a defaulter regarding his personal loans or loans due from any of his
dependents to the Bank or the society he represents;
(l)he or any of his dependents owe any loan to the
society above the maximum limits duly sanctioned by the society;
(m) he is a surety or a guarantor of any defaulter to the Bank;
(n) he has remained a member of the Board of Directors for
more than two consecutive terms;
(o) the society, he represents, does not hold shares of the Bank of the
paid up value of at least five thousand rupees;
(p) he represents the society which stands superseded under rule
48 of the Cooperative Societies Rules, 127و;
(q) he is a salaried employee of any Government or any body or authority owned
or controlled by any Government unless permitted in writing by the Government.
The word "defaulter" for the purpose of this bye- law shall mean a person who
has failed to pay the debt or installment on the date specified in the bond or
any other instrument evidencing the loan but if a person who clears the debt on
or before the submission of his nomination papers shall not be treated as
37.Powers and duties of the Board of Directors.- (1) The
general superintendence and direction of the affairs and business of the Bank
overall policy making in respect of its operations sha)) vest in the Board of
Directors which may exercise all such powers and do all such acts, deeds and
things which are in the interest, welfare and promotion of the Bank.
(2) The powers and duties of the Board of Directors shall be-
(a) to approve and monitor the objectives, strategies
and overall business plans and to oversee that the affairs of the Bank are
carried out prudently within the framework of Act, rules, these bye-laws and
other relevant applicable laws;
(b) to supervise the maintenance of accounts of all
received and paid;
(c) to allow opening of accounts in the name of the Bank
with the State Bank of Pakistan or such other banks or financial institutions
subject to the approval of the Registrar;
(d) to supervise the maintenance of account of the
assets and liabilities of the Bank;
(e) to approve and ensure implementation of policies,
including but not limited to, in areas of risk management, credit, treasury &
investment, internal control system and audit, information technology security,
human resource, expenditure, accounting & disclosure, and any other operational
area which the Board of Directors may deem appropriate;
(f) to supervise the maintenance of up to date record of
(g) to consider applications for membership, allotment
and transfer of shares;
(h) to fix limits for advances and guarantees to various
member societies and individuals with the general permission of the Registrar;
(i) to prepare annual budget of the Bank for approval of
(j) to decide the terms, periods and the rates of mark-up at which loans and
guarantees are to be given and to arrange for the recovery of loans and
guarantees and mark-up;
(k) to allow acceptance of deposit of all kinds and types, and to
decide the terms, period and the rates of mark-up at which deposits are to be
received and to arrange for their payment or return of deposits;
(l)to enter into arrangements for the raising of loans,
enhance other capital as resolved in General Meeting and to pledge the Bank's
assets for such purposes;
(m) to institute, conduct, defend, compromise, refer to
arbitration or abandon legal proceedings by or against the Bank or its committee
or officers or employees, concerning the affairs of the Bank, through any member
or officer or employee of the Bank;
(n) to examine the accounts and
to sanction requisite
(o) to summon General Meeting under bye-law 15;
(p) to facilitate annual audit and to prepare and submit to the General
Meeting the annual report and audited balance sheet;
(q) to appoint, subject to the recommendation of the President,
management executives and other staff as may be considered necessary for the
conduct of Bank's business;
(r) to fix the salaries, total strength and terms of service of the staff
of the Bank;
(s) to form committees with well-defined objectives, authorities and
tenure on its behalf;
(t) to ensure existence of an effective Management Information System to
remain fully conversant of the activities, operating performance and financial
condition of the Bank, the environment in which it operates, the various risks
it is exposed to and to evaluate performance of the management of the Bank at
(u) to purchase, sell, transfer, endorse, pledge or otherwise
negotiate securities of the Government, Government of Pakistan, promissory
notes, bonds, securities, debentures, shares and other securities specified
under section 37 of the Act for legitimate investment of surplus funds of the
Bank and to draw return thereon and to do other things incidental to such
(v)to fix terms and conditions, to receive for safe
custody and to re-pledge securities and other valuable and to authorize any
office bearers or officers of the Bank in this behalf;
(w) to lay the procedure and manner in which the capital of the Bank may
be increased or reduced;
(x) to decide the terms, period and the rates of mark-up at which loans
and advances to staff are to be made and recovered and to frame rules in this
behalf subject to the approval of the Registrar;
(y) to grant loans and overdrafts to depositors of the Bank against their
(z) to sanction financial assistance including
donation to Cooperative Societies and Institutions engaged in promoting cause of
Cooperative Movement and Cooperative Training and Education;
(za) to draw, accept, endorse, discount, buy,
sell bills of exchange and other instruments;
(zb) to buy, acquire, hire, lease or sell lands
and buildings to build structures, godowns and houses for its own use or those
of its member societies;
(zc) to ensure that the work of the Bank is
carried out in accordance with its objects and to exercise such powers or take appropriate
(zd) to hear appeals against the orders and decision of the management of the
Bank or the authorities or committees;
(ze) to grant power-of-attorney to any responsible officer of the Bank;
(zf) to appoint the President for efficient conduct of Bank's business, who
meets all the qualifications prescribed for a Director under the election rules,
for a term not less than two years on such terms and conditions specifically
prescribed for the post on the recommendation of the Registrar and to approve
service contract of the person so appointed;
(zg) to approve powers and duties of the President and to periodically
review the performance of the Bank;
(zh) to frame subsidiary rules or policies relating to the affairs of the
(zi) the Board of Directors shall prudently conduct affairs of the Bank and
shall be responsible for any loss caused by negligence or any willful act;
(zj) to decide the terms of purchase and sale of agricultural and
industrial requirements and produce;
(zk) to arrange for internal audit, external audit and to facilitate State
Bank of Pakistan
in inspection of the Bank;
(zl) to arrange compliance of internal audit, external audit or State Bank
(zm) to frame and amend service rules of the employees of the Bank to
govern, administer and regulate their services, subject to the approval of the
(zn) to approve and decide matters of urgent importance in the absence of
the General Meeting;
(zo) to allow opening of branches, sub-branches, sales & service centers and
booths; (zp) to enter into participation arrangement(s) with any other bank or
banks or financial institutions with the object of making loans and advances;
(zq) to acquire, manage and undertake the whole or part of business of any other
(zr) to consider payment of compensation, advance rent or long-term advance with
or without security for the purpose of securing premises of the Bank's offices
on lease or tenancy basis;
(zs) to approve agency arrangements and to decide terms and conditions thereof;
(zt) to establish and support the provident fund scheme for the benefit of
38. Delegation of powers.- For proper and efficient
conduct of the Bank's business and affairs, the Board of Directors may delegate,
without delegating its policy-making powers, all or any of its powers to the
Chairman, President, an executive officer, other officer or official of the Bank
singly or jointly or a Sub-Committee appointed by the Board of Directors.
39. Indemnity.- (1) Every Director shall be indemnified
by the Bank against all losses and expense incurred by him in the discharge of
his duties except such as are caused by his own willful act or default.
(2) A Director shall not be personally responsible for the acts of any officer
or official of the Bank for any loss or expense resulting to the Bank by reason
of the insufficiency or deficiency in the value of any asset or property, or
security acquired or taken on behalf of the Bank or by wrongful act of any
person under a liability to the Bank, or by anything done by him in good faith
in the execution of the duties of his office.
40. Meeting of the Board of Directors.- (1) A meeting of
the Board of Directors shall be convened by the Chairman, by giving seven clear
days notice to the Directors, except in case of an emergent meeting.
(2)An emergent meeting of the
Board of Director may be convened by its Chairman on three days notice.
(3) On receipt of requisition by atleast three members
of the Board, the Chairman shall convene a meeting of the Board of Directors
within fifteen days from the date of receipt of such requisition.
(4) Three Directors shall constitute quorum for a
meeting of the Board of Directors.
(5) The Chairman shall preside the meeting of the Board
of Directors and, in his absence, the Director nominated by the Chairman or the
senior (in age) non-executive Director shall chair the meeting.
(6) In the event of equality of votes, the person
presiding the meeting shall have the casting vote.
41. Minutes of the Board meetings.- (1) All business
discussed or decided at a meeting of Board of Directors shall be recorded in the
proceedings book which shall be signed by the person presiding the meeting and
shall contain the names of those present.
(2) Where these bye-laws invest the Board of Directors with any powers and these
powers have not been delegated under bye-law 38, the signatures of any two
Directors and the President shall be sufficient on any document which may has to
be signed in pursuance of any resolution of the Board of Directors.
42. Management of the Bank.- Under the overall
supervision, control and administration of the President, the management of the
Bank shall run day-to-day affairs and operations of the Bank strictly in
accordance with the objectives, strategies, plans, rules, policies and
regulations approved by the General Body or the Board of Directors, the Act,
rules and regulations or instructions of the State Bank of Pakistan.
43. Regional Committee.- (1) There shall be a Regional
Committee consisting of district delegates from the region who shall hold
regional meetings to elect Directors on regional basis, as and when required.
(2)Subject to the election rules, the district delegates
from the region shall be eligible to contest election of Directors.
44. Election rules to apply.- The regional meeting for
the election of the Directors shall be held in the manner and in accordance with
the election rules or any rules and regulations framed by the Board of Directors
and approved by the Registrar.
45. Inspection of member societies.- (1) Inspection of
member societies may be made whenever the Board of Directors think fit, for
guidance and advice.
(2) The inspection and examination of the member
societies may be made in accordance with the rules framed by the Board of
(3) If the Board of Directors is of the opinion that the
working of a member society is unsound or unsatisfactory and requires remedial
measures, it may instruct the member society to take such steps or measures for
the removal of the defects as pointed out in the instructions.
46. Duties of member societies.- Every member society
(a) submit to the Bank such statements and reports as
may be prescribed; and
(b)send representatives for the District Meetings of the
Bank, when required.
47. Loans and advances.- The Bank may grant loans and
advances to a member society or any other person.
48. Advances to member societies.- (1) Advances may be
allowed by the Bank to member societies or any other person in the following
(a)loans and overdrafts;
(b)bills purchased; and
(c)cash credits, against—
(i)pledge and re-pledge of gold or silver;
(ii)pledge and re-pledge of gilt-edged
postal, defence saving certificates and bonds;
(iii)pledge of fixed deposits;
(iv)pledge and re-pledge of shares and
companies or corporations or debentures of local bodies specially approved by
(v)pledge and re-pledge of
life insurance policies duly
assigned in favour of the Bank;
(vi)pledge and re-pledge of
securities specified in section
20 of the Trust Act, 1882 and section 37 of the Act;
re-pledge of agricultural product,
agricultural land and other immovable property; and
(viii)pledge and re-pledge of raw
goods, finished goods and machinery.
(2)The Board of Directors shall frame detailed rules for
various kinds of loans with the approval of the Registrar.
49. Conditions for obtaining loans.- (1) Member
societies may get loans or obtain cash credits from the Bank at the discretion
of the Board of Directors.
(2)Applications for loans or cash credits shall be made
in such form as may be prescribed by the Board of Directors.
50. Rate of mark-up.- The Board of Directors shall
determine the rate of mark-up on loans, overdrafts and cash credits.
51. Repayment of loans etc.- (1) The Board of Directors
may fix time for repayment of loans, overdrafts and cash credits as it may deems
appropriate considering the nature of loans and advances.
(2) The Board of Directors may grant extension of time
in repayment period of loans and advances not exceeding three years in deserving
(3) If a borrower fails to repay mark-up or any
installment of principal on the due date and if the Board of Directors does not
grant an extension of time, the whole loan shall become immediately payable
irrespective of any condition on which the loan was made.
(4) The Board of Directors may consider any proposal for
restructuring, rescheduling, and may write off or remit any bad or doubtful loan
or advance, and approve policy for settlement of such loans and advances.
52. Effect of cessation of membership.- Any sum
outstanding against a member-society which has as ceased to be a member of the
Bank, shall become immediately repayable irrespective of any conditions on which
loan or cash credit was granted.
53. Adjustment of repayments.- (1) All repayments made
by the borrowers shall be appropriated by the Bank towards charges, if any,
interest/ mark-up and the balance towards the principal, respectively.
(2)However, in case of over due loan, the Board of
Directors may waive the condition of recovery of interest/ mark-up before the
54. Security by staff.- Every person holding any office
and specially touching the receipt or charge of moneys and property of the Bank
shall, before entering on the execution of his office, furnish such security as
the Board of Directors may require and is approved by the Registrar, for
rendering a full and true account of all moneys received or paid by him on
account of the Bank.
55. Deposits rules.- The Board of Directors may frame
rules regarding conditions for opening, maintaining and managing deposits;
current, savings, fixed and other similar accounts, and rates of return on which
deposits may be accepted or withdrawn.
56. Auditors.- The accounts of the Bank shall be audited
by an auditor appointed by the Board of Directors with the concurrence of
Registrar and the Bank shall pay audit fee and allied charges.
57. Appropriation of profits.- (1) The business of the
Bank shall close every year on the 30th day of June.
(2) The net profit for a financial year shall be
appropriated towards reserves and funds subject to provisions of the Act, rules
and other relevant applicable laws, and at least one-quarter of the net profit
shall be carried to the reserve fund.
(3) The reminder of such profits, and of any profits of
past years available for distribution, may be applied as follows-
(a) to the payment of a dividend as permissible under
(b) to the formation of a depreciation fund, bad and
doubtful debts fund, building fund or fund for the equalization of the
(c) not more than ten percent to any purpose referred to
in Section 42 of the Act, and approved by the Registrar, namely, relief of the
poor, education, medical relief and the advancement for any other object of
general public utility except one relating exclusively to religious teachings or
worship, or to a common good fund to be devoted to any of these purposes; and
(d) to create, support or aid employees' Pension Fund
Trust which shall arrange payment of monthly pension and commutation of pension
to the retired employees of the Bank.
58. General.- (1) One copy of the annual audited balance
sheet shall be supplied free of cost to all member societies.
(2)Copies of bye-laws shall be supplied free of cost to
the district delegates, if it is so desired by them.
59. Amendments.- Amendments of the bye-laws shall be
carried out in accordance with the provisions of the Act and rules.
60. Liquidation.- (1) The Bank shall be liquidated only
by order of the Registrar in accordance with the provisions of the Act.
(2)Such portion of the surplus assets of the Bank, as
may remain after payment of all liabilities, shall be applied to such local
object of public utility as may be selected by the Board of Directors and
approved by the Registrar.
61. Powers and duties of Chairman.- The powers and
duties of the Chairman shall be-
(a) to preside over the meetings of the General Body,
Board of Directors and any Committee or Sub-Committee if so appointed by the
Board of Directors;
(b) to supervise the general working of the Bank; and
(c) to exercise such powers specifically delegated upon
him by the Board of Directors in connection with supervision of general working
of the Bank.
Be a part of Pakistan Legal Awareness team to spread legal awareness, if you are a Pakistani citizen register your self as our “Member” or if you are lawyer then register as a “Lawyer” and help us spread awareness.Join