Membership 

1. Must be rural women - 18-65 years age.

2. She must be member of SHG/DWCRA group practicing thrift of atleast Rs.10/- per month in the area of operation of the society.

3. Should not be member of any other co-operative society except the co-operative

societies floated by YCO network.

4. Must be permanent resident of the area of operation mentioned in the byelaws of the society.

5. In insolvent petitioner, person imprisoned against criminal charges and any other person of dubious character can't become member of the society.

6. The admission to membership is reserved and the Board has right to accept or reject the membership application without assigning reason.

7. The aspirant will make a written prescribed application recommended by the group leader of the recognised group, which is placed before the Board meeting.

8. The Board will then place it before the latest Board meeting and pass resolution admitting the member or otherwise.

9. Each member is assigned membership no.

10. Admission fee have Rs.10/- and minimum share capital 100/- consisting of 10 shares of Rs.10/- each are collected at the time of admission.

11. Any member for any reason is not in possession of atleast 10 shares automatically forfeits membership.

12. The Board has right to reserve membership without assigning reason even if the aspirant is otherwise eligible.

Admission:

1. Any eligible woman desirous of becoming member should apply for membership by way of prescribed format meant for it.

1. Admission fee of Rs.10/- is collected which is non refundable.

2. The Ten Action Group (TAG)/Women sangam in which she is member must recommend for admission.

3. The completely filled admission form with due recommendation from the concerned TAG is placed before the Board for grant of membership.

4. Under any circumstances individual person who is not member of any TAG can't be eligible for membership.

5. If the application for membership is rejected for any reason the rejection shall be informed to the concerned applicant within 30 days of application. No reason need be assigned in such intimation. 

6. Once the member is admitted, a membership number is assigned to her and the number is unique to her. In the event of her unfortunate death or forfeiture of membership for any other reason, the number can't be given to any other person.

7. In future developments, if district federation and state level confederation are constituted, only such of their members who are having membership at Mandal level MACS are only eligible to represent in such District and State level confederations.

8. Any number of eligible women from the same family can become members of MACS, if they are otherwise eligible for membership.

9. District confederation has every right to reject membership of any aspirant for mandal level MACS without assigning any reason ever if it were to be approved by Mandal level MACS.

10. If the MACS feel that particular member is under aged to admit as member, it has right to seek authentic certificate for proof of age.

11. Persons in Government services, salaried persons in private and public undertakings, persons living in towns and cities with roots in that particular village cannot be come members of MACS ever if they are otherwise eligible.

12. Person with criminal records, imprisoned persons and insolvent petitioners are ineligible for membership.

13. Employees of the voluntary agencies working in the area of operation of MACS can become members of MACS only with prior specific approval of District level confederation.

Share Capital:

1. Each year during the General Body Meeting Authorised Share capital and Paid up share capital are fixed.

2. Each share consists of Rs.10/- and no member possesses less than 10 shares. Any member, who has not got 10 or more shares, instantly gets disqualified from membership of the MACS.

3. In addition to minimum of 10 shares of Rs. 10/- each, 5% of the loan amount is deducted at the time of advancing loan. At any point of time-share capital not less than 5% of loan amount should be in the credit of particular borrower.

4. Group has to take responsibility to deduct share capital at the time of advancing loan to individual group member.

5. Share capital can't be refunded under any circumstances before 3 years of its issue.  However with special Board resolution it can be appropriated towards loan amount only when the appropriation results in closure of the loan or in the event of unfortunate death of the member.

6. Any share capital transaction should be by delivery of equal share certificate with share capital and shares clearly mentioned. Similarly any closure or appropriation should be by way of share certificate surrender.

7. Share certificates may accumulate in multiples with individual member as it is in correspondence with the share capital and no. of shares held.

8. Any share issued in the corresponding half year only attracts dividend.

9. There is no place for institutions holding shares and only individuals who are 'A' class members can hold shares.

10. Share capital amount is always rounded off to the nearest Rs.10/- to make it divisible by Rs.10/- the value of each share.

11. Any member desirous to buy shares in addition to the statutory requirement may do so subject to sanction of the same by the Board.

12. Any share capital transaction, whether it is allotment, refund, or appropriation to loan is done only with prior Board resolution or ratification in the Board meeting in the subsequent meet.

13. Authorized share capital is increased in every half/yearly general body meeting in order to raise the authorized share capital with the corresponding growth in paid up share capital.

14. Every transaction in share capital is transacted though share capital register.

15. Share capital is never transferable from member to member.

Book Keeping And Accounts:

1. MACS should invariably have the following books of accounts as a statutory requirement:

1. Cash book

2. General Ledger.

3. S.B. Ledger

4. Other Deposit Register.

5. Stock Register.

6. Individual S.B. Pass Books

7. Share Capital Register.

8. S.B. Withdrawal vouchers.

9. S.B. Credit Vouchers.

10. Stock Register.

11. Furniture Register.

2. General Charges Register including establishment charges.

3. Loans Ledger.

4. Loan Pass Books.

5. Membership admission Register.

6. Minutes Book and any other records as may be required for day-to-day business transactions.

7. Entire book keeping should be amenable for computerisation.

8. A MAC CEO is required to enter daily transactions in the respective books of accounts, the same day.

9. No daily transaction should be carried over to the next day.

10. Clear, transparent and regular bookkeeping is the most important responsibility of the CEO.

Monthly returns:

Each CEO is required to submit the following monthly financial returns.

1. Membership and share capital statement.

2. Deposits statement.

3. Loans statement.

4. Trading Account.

5. P & L Account.

6. Receipt and payments.

7. Balance Sheet.

8. General Charges.

9. Monthly Board Meeting Minutes.

10. Group wise savings and loans statements.

11. Any other statement required from time to time.

12. Concerned CEO is responsible for the security of all books of accounts.

 

LOANS:

1. MACS have important function to discharge called "Loan portfolio".

2. MACS entertain loan applications of TAGs and not individuals.

3. The TAGs inturn pays the individual SHG member in its own predetermined interest rate.

4. Under no circumstances MACS disburses loan directly to the member bypassing the TAG route.

5. Pronote and loan agreement papers are executed by the group leader of the TAG and President/Secretary of Women Sangam (joint signatory of the group).

6. In turn while disbursing the loan amount the TAG executes promote and other loan agreement papers with the individual TAG member deducting 5% of the total loan amount of share capital amount.

7. The SHG applies for group loan along with its resolution copy to the MACS.

8. After examining the application along with copy of the minutes, MACS sanctions loan and credits the loan proceeds to the SB AC of the SHG, after deducting share capital and insurance amounts which are kept in suspense payable account of MACS mentioning clearly the payment particulars. This way share capital particulars are mentioned and loans are detailed in groups name.

9. No group is eligible for 3 loans and any enhancement in loan limit is subject to closure of earlier loan.

10. However group can have cash credit limit/kisan card limit etc., which may amount to two or three loans.

11. MACs can give no loan without debiting minimum of 5% share capital.  However if share capital is already in particular individual's credit, corresponding incremental share capital amount need be collected.

12. Loan portfolio should be diligently handled so that maximum distributive justice is achieved.

13. There should not be scope for one group getting loans repeatedly while some other groups are deprived of it.

14. Normally loan applications are built up at SHG level based on individual family development plans, which are prioritised by the SHG.

15. SHG is totally held responsible for proper identification of the activity, prioritisation, grounding, follow up and recovery.

16. In normal course MACS is expected to meet only production need of the member vis-à-vis SHG and consumption needs of members are met by the SHG out of its own savings.

17. However if there is consumption need requirement due to natural calamities like drought floods, cyclone, etc, the MACS may meet such loan requirement, promptly ensuring recovery.

18. Loan amount at MACS level is derived based on group portfolio which inturn is based on family development plan. It may be more or less than 3 times to total savings of the group.

19. No individual member of MACS seeks bigger individual loans from other financial institutions without prior permission from the MACS.

20. MACS should promote more and more 'B component loans (Input / kind portion loans) and reduce cash loans.

21. 'B' class members are not eligible for any loan. However to clear off buffers or meet rotation of funds, MACS may think of loans to 'B' class members.

22. The Board bared on advice from the district federation decides interest rates. MACS and SHG keep some interest margin, which is decided by the district federation from time to time.

23. Service charge of 0.5% or Rs.50/- is charged per loan by the MACS whichever is higher.

24. Under any circumstances all the SHG members in a SHG can't take loan through SHG and there must be credit gap at group level to ensure peer pressure.  However during peak sowing seasons this may be exempted. so that all or maximum no. of members get loans to meet sowings expenditure.

Deposits:

1. MACS can accept deposits in the form of savings bank account, fixed deposits, recurring deposits, pigmy (Nitya Nidhi) deposits etc.

2. If any non-member wishes to deposit money, first he or she should become 'B' class nominal member with an admission fee of Rs.1/-.

3. MACS can introduce any new product in deposit front for the benefit of its members or to augment its resource.

4. All deposit remittances are acknowledged with signed receipts.

5. Interest rates are decided from time to time by the district confederation and the same is communicated to MACS.

6. Refund of deposits before maturity is carried out as per guidelines received from district federation from time to time.

7. Deposit mobilisation should be encouraged with a policy to have wide clientele base and to augment financial resources for the MACS.

8. The CEO of MACS as per the authority delegated to him by the Board signs all the deposit receipts.

9. MACS apart from obligatory compulsive savings should also encourage optional savings and the SHG and MACS credit interest to such deposits to individual SB Ac., and SHG, S.B. account respectively.

CONDUCT OF BOARD MEETINGS:

1. It is obligatory on the part of Board of Directors to meet once in a month and transact business of the MACS by way of sanctions, approvals and ratifications. 

2. The CEO will fix date of such meeting for the months and intimate all the members of the Board in writing atleast one week before such meeting.

3. The agenda in addition to any other item should contain the following normal courses of business.

1. Admission of members.

2. Sanction of loans.

3. Borrowing loans from bulk lenders.

4. Approval of expenditure for the month.

5. Legal action for recovery of loans.

6. Adoption of concurrent audit report.

7. Share capital refund if any.

8. Approval of non-credit services.

4. Any Board member who absents herself for three consecutive Board Meetings automatically forfeits directorship in the Board.

5. Also any Board member who is defaulter of loan in the SHG consecutively for 3 instalments becomes automatically in eligible for directorship.

6. The Board nominates new director immediately in the vacant post in the latest Board meeting.  However such nomination is to be approved by the General Body.

7. All the Board Meetings should be minuted in the 'Minutes Book; with signatures of all the Board of Directors at the end.

8. Simple majority decides quorum.

9. No. of Board of Directors may be minimum 9 and can increase in the order of 11, 13, 15 etc.  At no point of time Board of directors will be less than 9.

10. If there is split in the decision between two equal groups, President can exercise the deciding vote.

11. There can be permanent special invitees to the Board. They attend the Board Meeting by virtue of their role as advisor/financier etc. But they will not have any right to vote or make proposals for the meeting. There can be any no. of permanent special invitees to the Board.

12. Any Board member has right to propose any issue even if it is not mentioned in the agenda. It is up to the Board to accept or reject the proposal.

13. It is duty of the every Board member to maintain decorum and play active role for the welfare of the institution.

14. The Vice-President invariably chairs by the President and in the absence of President all the Board Meetings. When both are absent, the Board elects person in charge till such time the President and Vice-President become fully functional or new representatives in their place elected.

15. Board meetings are held in such a way chat the society really works D towards its goals.

16. Board has right to form sub-committees or working committees on each subject.

17. Board is held responsible for the implementation of policies initiated by the District level confederation and is responsible and answerable to the District Federation on all aspects covering the MACS and District federation.

18. The success of MACS depends on the commitment of the Board and it should discharge its duties without fear or favour diligently seeking long term and short-term objectives of the organisation.

CONDUCT OF GENERAL BODY:

1. General Body is the Supremes authority of the MACS.

2. Every eligible member who has joined in the corresponding half year is eligible to attend and vote in the General Body.

3. The quorum in the General Body is 250.

4. The General Body transacts the following business during the half year in addition to any other policy or other issues.

1. Approval of audited statement of accounts for the half year.

2. Approval of projected/estimate budget for the half year.

3. Appointment of auditors for the half year.

4. Approval of expenditure over and above the sanctioned budget.

5. Election of 1/3rd Board members on rotation basis.

6. Disposal of profits and declaration of dividend.

7. Dismissal of Member.

5. Any other issue with the approval of Board.

6. The President of the MACS should chair General Body.

7. In the absence of President, Vice-President will function as chairperson of the General Body.

8. In the absence of chairperson also, the forum decides as to who should chair the General Body.

9. Al the members in the membership rolls of corresponding half / year are eligible for participation and to vote.

10. It is the bounden duty of all the members to actively participate and decide the course of the MACS in future.

11. The attendance of members is recorded by way of signature of the member against name and membership. no.,

12. Any transaction of business is decided by rise of hands. If the forum or chair so desires it may go in for poll to decide about the issue.

13. Wide publicity at least 1 week prior to G.B. is to be given by beat of tom tom and distribution of pamphlets etc in all the villages of areas of operation.

14. The forum/Board may appoint arbitrator/witness for fair and free transaction of business.

15. General Body Meeting with less than the prescribed quorum becomes, null and void. In such event, the General Body should be reconvened with in 30 days after the G.B. is over. If 3 consecutive G.B.s don't have the quorum. the third General Body May adopt resolutions by simple majority of the attendance of that particular G.B.

16. By statutory requirement the G.B. has to be convened within 3 months after financial year is over and the Broad automatically gets dissolved if it fails to convene the general body within the stipulated time.

17. No Board resolution is allowed for postponement of General Body beyond the stipulated statutory period.

18. The General Body has authority to take any decision deemed fit in its opinion in the interest of the institution.

19. The G.B. can be called for by written request of atleast 250 members to discuss matters of urgency.

DISPOSAL OF PROFITS:

1. The General Body is the authority to decide about the disposal of profits whether or not the Board in its preceding meeting before the General Body approves it.

2. The audited profit can only be distributed and under no circumstances non-audited profit is distributed.

3. All the members standing in the rolls of membership for the corresponding half year are eligible for the dividend equally irrespective of their date of joining in the corresponding half year.

4. No upper ceiling is fixed for per member eligibility and it is purely reckoned by the no. of shares held.

5. The General Body may if it so desires be able to adapt for devoting disposable profit for any General Good purpose with the majority resolution of the General Body.

6. The profits must find its place of entries within 1 month after the G.B. resolution in the respective books of accounts.

7. Only audited half yearly returns are eligible for profit distribution and under no circumstances unaudited financial statements can give rise to profit distribution even with a clause that they would be audited in a future date. Un audited statements can never find place in the G.B.

8. Maximum bonus eligible out of net profits is 10% and the Board has no power to increase it. Only the General Body has such powers.

9. Every member should be individually intimated about the payment of dividend by way of written letter within 30 days after the disposal of profit.

AUDIT:

1. Every transaction should be audited by the authorised 'Auditor' appointed by the Board with the approval of the General Body.

2. There will be the following kind of audits.

1. Statutory half yearly audit.

2. Concurrent Internal audit.

3. Community audit / member audit/social audit.

3. Every aspect of the MACS comes under the purview of audit. There is no such issue/matter/business, which is outside the purview of audit.

4. The audit report should basically cover.

1. Procedural Aspects.

2. Financial aspects.

3. Member services aspect half yearly.

5. The Audit should be over within 3 months after closure of financial year to be ready for placement before the G.B. and the Board Meeting.

6. The person or firm of credibility does by the qualified "Chartered Accountant" and half Yearly Audit.

7. The payment terms for the  "Auditor" are decided in percentage of business turnover and business turnover for this purpose means.

                                                               i.      Loans _+ Deposits / Savings + Services

8. The Board is competent to fix the payment terms to the Auditor.

9. Rectification of audit remarks should be placed before the Board within 3 months of audit.

10. Any person trained and experienced in the MACS and its functions can carry out concurrent audit.

11. The Board fixes the terms of reference for both half yearly statutory audit and concurrent yearly audit and the Board appoints both.

12. The concurrent audit report is placed before the Board every month and it will also contain the rectification status of preceding month.

13. Copies of concurrent and half yearly audit reports are submitted to the district confederation for its observations and action.

14. Audit remarks are to be classified into (1) Serious Remarks 2) Medium type remarks, 3) Routine Remarks.

15. All the Serious type Remarks should be attended immediately on priority.

16. No Board member or other member have direct jurisdiction over audit portfolio.

17. The auditors are expected to work freely and fairly without fear or favour.

18. Any member has right to bring its observation/complaint about any discrepancy to the notice of the Auditor for recording the same.

19. The payment to the audit team is made by the district confederation duly debiting the expenses to the respective MACS.

20. If auditor insists on advance to the tune of 50% of the prescribed fee can be made subject to sanction by the district confederation.

21. Any staff member interrupting audit work or not co-operating with auditors is deemed as Gross Indiscipline' attracting major penalty.

ARBITRATIONS AND DISPUTES COMMITTEE:

1. The Arbitrations and Disputes Committee is mainly meant for resolving conflicts between members to members, SHGS to SHGS and to MACS.

2. The Arbitration Committee works under direct control of the District Federation.

3. It comprises of members, SHG leaders, CEOs of MACS and nominees of the district federation.

4. Its decisions are binding on the parts of all the constituents of the MACS.

5. The Arbitration Committee can interfere at the invitation of the Board/CEO/Dist. Fed. Or on its own.

6. It is bounden duty of the constituent member to abide by its decision.

7. The Arbitrations Committee is expected to consult the MACS ACT 1995 and should amicably settle the disputes without fear or favour.

RECOVERIES:

1. 'Recovery' means recoveries both at SHG level and MACS level.

2. The MACS is expected to operate at more than 95% recovery level and this can be possible only if group level recovery and MACS level recovery are constantly followed.

3. Any SHG, which is operating at less than 75% recovery levels for whatever reason, will automatically disqualify from getting any loan.

4. MACS will form "Recovery Teams" and despatch them to any SHG wherever there are serious recovery problems. The recovery team will adopt measures like squatting, dharna, attachment of movables etc.

5. All the recovery measures applicable in the MACS Act and various GOs issued by Government will automatically apply for recovery.

6. The Steps for recovery are (1) ordinary notice (2) Registered Notice (3) Notice by the recovery committee, (4) Legal notice (5) Filing Arbitration (6) Decreeing the Arbitration (7) Execution Petition (8) Execution.

7. The Board is authorized to frame rules from time to time with regards all the dimensions of recovery.

8. Since peer pressure is the best mode of recovery the SHG is not permitted to cover all the members with loans at any point of time.

9. However during common operation like agri-season sowings etc., all the members of the group may be extended finance.

10. No Board of Directors shall be a defaulter continuously and in the event of continuous default for 3 months, she automatically forfeits her Director Post. However the General Body is having power to ratify and rephrase her loan.

11. The Board, as a policy should formulate 'Staff performance indicators' where maximum weight age is given to 'Recovery Performance'.

12. The District Federation is competent to suspend the operations of particular MACS where it feels overdue are very high and recovery performance is not up to the mark.

GENERAL EXPENSES:

1. 'General Expenses' are the money spent on maintenance of the MACS.

2. The major items of General Expenditure are (1) Stationary (2) Travelling 3.Conduct of Meetings (4) Post (5) Building rents etc.

3. Each item of expenditure is budgeted and placed before the General Body in the 'Estimate Budget' for the ensuing financial year.

4. Any 'general expense' over and above the budget has to be sanctioned by the District Federation in addition to ratification in the Board and G.B. meetings.

5. No expenditure more than Rs.100/- shall be given in the shape of cash and should be only though cheque.

6. The district federation should approve any expenditure that is not in the budget list first and subsequently by the Board.

7. The concerned persons like CEO, Board of Directors, Dt. Federation should be highly prudent and apply all rationale to minimise expenditure.

8. Wherever the District Federation meets expenditure, the same is debatable to the concerned MACS by the District Federation.

9. Whenever the members or their family members can prepare expendable items, preference must be given to such member suppliers.

10. Whenever the CEO incurs expenditure without proper sanction of the competent authority it is treated as major offence.

NON CREDIT SERVICES:

1. Non Credit Services means any service lent by the MACS to its members other than loans and the members can buy technically even non-credit services as loans.

2. Major non-credit services are (1) agriculture inputs like seed, fertilizers and pesticides (2) Agri. Implements, (3) Consumption goods (4) Daily essentials etc.

3. Non-Credit services may be technical managerial, infrastructural etc.

4. The twin objective of non-credit services should be good services to the members and profit to he MACS.

5. Even 'B' class members can avail the non-credit services without availing it in the shape of cash loans.

6. If there is compulsion to off-set the old stock it may be sold to 'B' class members also on loan basis but in that event if should be on commercial rate of interest.

7. The non-credit services are meant preferably for the 'A' class members and at the denial to 'A' class members they should not be rendered to 'B' class members.

8. There should be purchase committee for purchasing any material beyond Rs.500/-.

9. Normally minimum quotations are to be obtained from the suppliers and the following weight age is to be given.

1. 60% to price.

2. 10% to firm reputation.

3. 20% quality

4. Promptness/Experience.

10. There must be minim expenditure on entertainment, publicity, meetings and functions.

11. Non-credit services are meant to sustain the organisation and also to serve the members effectively.

12. Non-Credit Services are again divided into two items.

1. Sale of Goods.

2. Sale of Services.

13. Sale of goods are again divided into

1. Consumption goods.

2. Production goods.

14. Non-Credit services can be extended to both 'A' class and 'B' class members. But always preference is given to 'A' class members.

15. Care must be taken that working capital is not locked up unnecessarily in the goods and services.

16. The non-credit services may be extended to non-service area of operation of the MACS in the interests of promoting business or sustaining profits.

17. The MACS may constitute price fixation committee, which decides price, allots quota to the members and draws plans for inter arrangements with other MACS or federations.

18. The MACS and Dt. Federation should strive hard to exploit opportunities from the Government as captive buyer.

19. Any non-credit service, which has opportunity to create jobs for its members, should be entrusted only to the members if it is otherwise technically feasible.

20. A separate register should be maintained to prepare the details of free gifts, discounts etc. that accrue in the non-credit service business.

21. Each MACS is expected to fulfill statutory requirements like licence, APGST, CST etc., and any lapse in fulfilling the statutory requirements, the Board and the CEO are held personally responsible.

22. To liquidate stock the MACS may extend 'B' component loans to the members/non members and the same has to be substantiated with authentic documentary evidence like shelf life of the product, market forces etc.

23. If there is stock and the loan is for the purpose of purchasing such kind of material outside, there the MACS may resolve making 'B' component compulsory. In such event percentage of loan component that may be borrowed as material may also be fixed by the purchase committee.

24. If large-scale economics help in reducing the costs and expenditure, all the MACS put together or some of the MACS together may make sale, process or purchase.

25. No individual Board member or CEO can make independent deals with the suppliers of goods or services without the knowledge of the Board.

26. Large Scale 'B' component purchases exceeding Rs.500/- worth single purchase should be purchased by way of following methodology.

1. 60% price competitiveness.

2. 10% to firm reputation.

3. 20% to quality.

4. 10% to promptness / experience.

27. There must be minimal expenditure on publicity, which may not exceed more than 5% in exceptional case it may be exceeded with prior approval by the competent authority.

MEMBER WELFARE MEASURES:

1. To meet the objective of the MACS, membership welfare measures to members are of paramount importance. Each MAC should frame their own 'Member Welfare Measures'.

2. Member welfare measures include HRD, common assets and welfare measures like old age pension etc.

3. Any of the proposed membership welfare measures should be proportionate to the (1) Capital base of the Institution (2) Profitability of the MACS (3) Sustainability of the Welfare Measure.

4. Membership Welfare Measure does not mean charity and there must be balance between institutional sustainability and its member's welfare measures.

5. Membership welfare must be long drawn plan rather than adhoc measures.

6. General Common good with wide range coverage is more important and individual beneficial measures should not be encouraged.

7. If District Federation plans common welfare measures keeping in mind particular sector ex. Old age pension or area, ex. dry land farmers, it is obligatory on the part of MACS to obey it.

8. If there is lead programme to help a member who has outstanding abilities and such help to the member results in spread effect, such individual help age project can also come under 'members' welfare measure. In such case MACS should take written   commitment from the individual member to give spread effect to other members.

9. The 'Member Welfare' measures should always be merged into the 'Strategic Business' plan of the MACS/Dt. Federation.

10. 'Member Welfare' measures should be key scoring point while determining the performance of the MACS.

XV.    BOARD OF DIRECTORS:

1. Board of Directors are elected by the G.B. for tenure of 3 years, during the G.B. meeting held every year within 3 months after closure of financial year i.e. 31st of March.

2. No Board of Director can continue for more than 3 years from the date of election but the G.B. can re-elect the same Director for any no. of times.

3. The non-elected Director May become permanent special invitee to the Board but the Board nominates by the G.B. and the 'permanent special invitee' never.

BOARD OF DIRECTORS AND THE PRESIDENT :

1. One who is in the membership register in the corresponding financial year can only be elected as the Board of Director. For ex. Member who has sought membership on 1st of April cannot become Director for the preceding financial years General Body.

2. Board of Director may or may not be SHG leader.

3. If the Board Director absents herself consecutively for 3 Board Meetings including special Board meetings she automatically forfeits her post the day after the 3rd consecutive meeting. It is to be noted that she can't be removed from the Board if there is absenteeism for one or two consecutive Board meetings.

4. The Director who lost her post due to above-mentioned default in attendance may however be eligible for the re-election.

5. Nobody can become Director in the Board by nomination either by the Board or G.B. and she qualifies to be Board Director only through the process of the Election.

6. If majority of Board of Director get disqualified for whatever reason, then the Board automatically gets liquidated. The individual director is responsible for the Board. She can sign on behalf of the Board, if the Board specifically authorises to do so.

7. The Board Director can give personal guarantee to the loan/borrowings and the liability in such event arises in her capacity as Board Director and not in personal capacity. The next person in her place carries on such liability in her capacity as new Director.

8. Each Board of Director should be given specific serial no. For convenience.

9. No SHG can send two directors to the Board.

10. The area of operation must be divided into 6 clusters and the cluster should represent uniform no. of SHGs and also geographical area or habitations.

11. Care should be taken to have representation of all the clusters to prevent regional disparities or domination by particular group.

12. It is the bounden duty of the Directors to take up responsibility or specific assignments in the various working groups constituted by the Board or G.B. from time to time.

13. No Board Director shall get preferential treatment/privilege in loans/services and she is on par with other members to get such benefits.

PRESIDENT:

1. The G. B. elects the President directly for a period of 3 years.

2.    She can get re-elected for any no. of times.

3.     Only the G.B. can remove her from the office by 2/3rd majority vote in the  no-confidence motion.

4.   The no confidence motion has to be put in agenda of the GB with 1/10th of the total eligible members signing, seeking no confidence motion against the Board of Director or entire Board or the president.

5.   The President signs all kinds of documents in her capacity as President, which has character of succession.

6.   The President chairs all the meetings either the Board Meeting or G.B. Meeting or Other Working Committee Meetings.

7.    The President need not be a SHG leader but must be invariably a SHG member.

8.    She has to be in the membership roles of that particular financial half-year to be eligible for the election.

9.   The President has to exercise her vote in the Board Meetings only when there is equal division of opinion in the Board.

10.  If she absents herself for 3 consecutive Board Meetings for whatever reason immediately after the 3rd Board Meeting she loses her post.

11.  Responsible for organising various 'working groups'

12.    Responsible for running the MACS as per the bylaws and business rules.

13.    Prepares and executes strategic business plan in close liaison with the CEO.

14.    Acts as Bridge between ultimate grass roots member and the MACS representing the community by letter and spirit.

BORROWINGS:

1. Borrowing is defined as external financial resources mobilised by the MACS to meet credit and non-credit needs of the members.

2. Borrowings are mobilised from external local, national and international agencies and may be with or without interest, repayable or non-repayable credit lines.

3. MACS can borrow up to 10 times to there paid up share capital.

4. Interest rate and repayment schedule are arrived at by mutual agreement with the financial agency and there is no upper limit or prefixed rate or repayment terms for this purpose.

5. Borrowings may be:

1. Term loan

2. Cash credit limit

3. Working capital short or medium term loan for the purpose of 'non credit services'

6. MACS cannot borrow for the purpose of consumption credit to its members. External borrowings are purely for the purpose of production credit to the members.

7. The MACS is allowed to mobilise borrowings from more than one source simultaneously.

8. The MACS should have atleast 2% interest spread for itself and upper ceiling is not fixed in this regard.

9. The borrowings can be dovetailed to Government subsidy programmes, insurance etc.

10. The MACS can share its borrowings with other network members MACS under predetermined conditions.

GOVERNMENT SUBSIDIES AND GRANTS:

1. Since MACS is for the betterment of lives of the most downtrodden, it should strive hard to access maximum amount of subsidies/grants from the Government and external Donors.

2. Mostly grants/subsidies are linked to the conditions of the originator the MACS is given freedom to negotiate the terms and conditions.

3. MACS are not allowed to divert funds from the purpose for which they are mobilised.

4. Grant amount is fungible but shown in the Head of Accounts separately.

5. Grants are not income and hence can't be counted as income in the P in L Accounts.

6. Grants and subsidies may also be in the shape of material / services etc.

AMENDMENT TO BYLAWS/BUSINESS RULES:

1. The bylaw or business rule can be scrapped, amended, modified or redefined only by the General Body.

2. The proposed amendment has to be mentioned in the agenda, discussed in the Board and recommended to the GB for proposed modification.

3. The General Body has to pass it or otherwise by simple majority.

4. The MACS Act 1995 guides further in this regard.

5. The Board has no power to amend byelaws or business rules already existing.

6. The Board can make business rules for the convenience of the operations. However such arrangement must come to the notice of the G.B. in its latest meeting by way of suitable amendments, additions and deletions to the bye laws/business rules.

7. The logical order in bye law amendment could be

1. Proposal of amendment.

2. Board resolution.

3. Agenda circulation in the G.B.

4. G.B. Resolution.

5. Noting the resolution in the by law book.

ELECTIONS:

1. The Board is permanent and never gets dissolved / liquidated unless majority of Board Directors become disqualified.

2. Every year Elections are held during the Annual GB for electing 1/3rd of the New Directors in place of the oldest 1/3 of Directors whose term is over.

3. The names of the Directors where term has expired are circulated in the agenda /GB notice.

4. From the second year onwards to initiate rotation, 1/3rd of the Directors come forward to step down, though their 3-year term is not over.

5. In case there is no conscious decision in the Board as to who should step down, draw of lottery could decide the names of the Directors who should step down.

6. Draw of lots is mandatory in case there is no conscious decision.  It is binding on all the Directors except the President who is directly elected by the GB for 3-year term.

7. The newly elected 1/3 director immediately resumes duties.

8. The sitting Director/s may also get re elected any no. of times for 3 year term.

9. The election to the Directors posts can be by way of rise of hands or through ballet paper, which is decided by the Board.

10. The Board has to accept the Verdict of the election observer who is appointed for this purpose by the District Federation.

11. Defaulters both direct and indirect consecutively for 3 months cannot contest the elections.

12. In addition to 1/3 members rotation elections should also be held for the vacancies arising out of dis qualifications to the Board.

13. No elections can be held on political party basis and of there is evidence on record that the contestants are having particular political party, the Board can disallow such elections.

CASH LIMITS AND CASH REQUIREMENTS:

1. The CEO of MACS is authorised to hold cash upto Rs.25, 000/-

2. All the cash is comprehensively insured.

3. The CEO is the competent authority to sign the cheques upto Rs.50,000/- and beyond Rs.50,000/- it should also be counter signed by the President.

4. No CASH payment should be made to any party for any reason beyond Rs. 500/-.

5. The CEO should act diligently and try to keep minimum balance in the S.B. Account converting rest of the balance into fixed deposits.

6. The President in principle is not expected to handle cash. So are the other directors.

7. Any expenditure should be budgeted in the G.B. and expenditure beyond budget should be with the permission of the district federation and on Board authorisation.

8. Petty cash, coins, cut notes, should be neatly sorted, denominated and kept in the cash box.

9. Any disclaim of insurance due to lapse on the part of the CEO, makes him/her personally responsible and the loss has to be made good from her/his salary.

10. Any CEO while getting recruited should execute Rs.10,000/- bond for fidelity guarantee and under taking to remit cash losses on his/her own.

11. Any lapse in handling cash should be classified    (1) Serious lapse (2) Medium lapse (3) Minor lapse. Serious lapse should be punishable by major punishment and medium and minor lapses are punished with warnings etc.

12. The MACS can remit surplus cash to the other needy MACS, vice versa and the District Federation directs such arrangements.

13. There must be reconciliation of such transactions every month end without fail.

PREMISES AND SECURITIES:

1. The MACS is allowed to hire modest looking good and functional premises and the monthly rent has offer ceiling of Rs.5000/- per month.

2. Only 3 months advance rent is permitted.

3. No premises should be taken without written agreement for atleast 3 years period with 10% increase in rent every month.

4. MACS should follow all rules and regulations of the village Panchayat with regards to rent and billing to the landlord.

5. The land lord is expected to open S.B. account in the MACS and every first working day of the month rent charges are credited to his account after obtaining stamped receipt.

6. The premises should be located in the prime locality at Mandal Head Quarters and should enable the MACS to promote attached sales counter.

7. The safe custody of the rent agreement is the responsibility of the CEO.

8. The premises should be comprehensively insured.

9. Every MAC is expected to draw long-term strategy to own premises.

10. The premises should exhibit bilingual board with, Registration No., D.No. and Village.

11. The Premises is expected to have the following information in the main hall.

1. Names of Directors.

2. Area of operation by names of villages if possible clusters wise.

3. MIS on key indicators.

4. Strategic Business Plan.

12. No loan should be allowed to the landlord for getting the premises ready or against rent etc.

BANK ACCOUNT AND DEALINGS WITH THE BANK:

1. Bank Account means the S.B. Account opened with the nearest Bank in the name of the MACS.

2. The CEO will be the signatory upto Rs.5,0000/- and beyond Rs.50000/- the cheque should be counter signed by the President also.  In the absence of President any two directors can counter sign it.

3. The safe custody of the chequebook is the responsibility of the CEO.

4. Every month end the Bank Account is reconciled and updated.

5. Whenever there is surplus deposit it should be converted into Fixed deposits even for short term.

6. In any eventuality the change in signatory is only with the approval of the District Federation.

7. If the CEO is absent due to leave or for any other reason, the same should be informed   to the Bank Manager in writing   and then President can sign the cheques in the place of CEO. However the change should be authorised by the District Federation.  Immediately after the CEO resumes to duties or new CEO joins the old arrangement has to continue.

8. The MACS should run Bank Account Register simultaneously and the Bank Pass Book should reconcile with the Bank Account of MACS.

DOCUMENTATION AND EXECUTION OF DOCUMENTS FOR EXTERNAL BORROWINGS:

1. While executing legal documents for the purpose of borrowings etc., the signatory will be CEO along with the President.

2. However for second and subsequent release of instalments the Board may give a separate letter of authorisation in the name of the CEO.

3. Every legal transaction, be it borrowing or legal suit or rent agreement etc., are signed by both the CEO and the President.

4. In the absence of President, two Board of Directors empowered by the Board can sign the document.

5. It is obligatory on the part of the President to sign documents if the Board has resolved to enter into that particular agreement/transaction.

6. The Board or G.B can issue no GPA to the President or CEO for any reason.

7. The legal obligation for having signed the legal document remains till she is the office bearer or in other words it is perpetual and not personal.

8. The MACS is expected to take legal opinion from the panel lower if need be.

TERMINATION OF MEMBERSHIP:

In the following circumstances a member is terminated from the MACS.

1. If the G.B. proposes and resolves with a majority vote to remove the member.

2. When the member's age exceeds 65.

3. In the member is imprisoned on criminal charges for more than 48 hours.

4. When the member is not having minimum 10 shares or 5% of her loan amount (original advance) as share capital.

5. Whenever the member permanently moves away from the area of operation to the area out of jurisdiction of the MACS.

6. The Board has no power to remove a member for whatever reason and it is the only GB which can decide whether a person should continue as member or not.

LIQUIDATION:

1. Only the General Body can liquidate the society.

2.   Whenever the liabilities are par below the assets and there is general opinion that the society has no survivability, the GB may be called for its liquidation.

3.   The District Federation appoints an official liquidator for the purpose that oversees the liquidation arrangements.

RELATION WITH DISTRICT AND STATE LEVEL:

1.    District and state level federations are formed out of MACS representatives to guide, control and look after the MACS.

2.   Whenever there are written business rules confirming the power of confederation it is bounden responsibility of the MACS to obey it.

3.   It is always interconnected, interdependent and symbiotic and they are part and parcel of the scheme of things.

4.   District Federation is not extraneous but integral part of MACS and is extension of the MACS.

5.      It draws collective strength of the MACS in the District and retransmits it to the MACS.

6.      The functions of District Federation are:

a.       Guides, controls and directs MACS functions.

b.       Negotiates with bulk lenders for bulk loans.

c.       Helps in MACS in appointing permanent special invitees to the Board.

d.       Helps in MACS in getting strong government linkages.

e.       Identifies weak MACS and reasons for the weakness and tries of redress it.

f.       Appoints and controls audit team.

g.       Controls the CEOs job chart, pay allowances etc.,

h.       Controls fungibles of funds of each MAC. 

i.         Interconnects different MACS for the purpose of business and growth.

j.        Oversees conduct of GBs, Elections and Board meeting.

k.       Acts as arbitrator to member MACS, MACS to MACS and member to SHG

l.         Conflicts.

m.      Helps MACS with technical know how, business planning   and   managerial

n.       Strategies.

o.       District Federation protects independence of MACS and also guides it to

p.       stick to norms.

q.       The collective strength of MACS in the District is drawn purely out of

r.        District Federation.

s.        The District Federation ultimately is conduit for MACS at guess roots and

t.        State Federation at State level.

u.       The MIS of MACS is monitored on monthly basis and guidance is transmitted

v.        back.

w.      Guides the MACS in setting up community assets.

x.       Gives legal immunity to the MACS in case of disputes.

y.       Works out modalities for old age pension, death relief, crop insurance etc.,

z.       Lobbies, pressurises and advocates government on the causes of the MACS.

STATE LEVEL FEDERATION:

1.       The District Federations are integrated into state level federation, which plays the role of District Federation similarly at state level.

2.      Relationship with the promoting voluntary agencies

3.      Voluntary Agencies, which have promoted the SHGS, work in tandem with District Federation for all purposes.

4.      They become friend, philosopher and guide to the MACS.

5.      Since MACS is the strategy for the withdrawal of NGO over a period of time and make the SHG self-dependent, it is the bounden duty of the NGO/VA to protect the autonomy of the MACS and respect its byelaws and business rules.

6.      The role model of the NGO/VA gets changed accordingly from the originator to that of facilitator.

7.      VA/NGO can offer its workers / representatives as permanent special invitees to the MACS.

8.      The internal fund transfer between VA/NGO and MACS can be done only with the approval of District Federation.

9.      The activities of the VA/NGO are the Welfare of the SHG members, which is complimentary and not competitive with the MACS objective.

10.   The NGO/VA is expected to be away from day to day functioning of the MACS and are expected to concentrate on IGA, HRD and other capacity building exercise etc.,

TRAININGS:

1.       Training is the rock bottom of the MACS and it is the responsibility of the MACS to build capacities of the cadre to run the MACS on sound lines.

2.      The following Training Programmes are expected.

a.       Members Training about MACS.

b.       SHG leaders training about MACS.

c.       Directors training about MACS.

d.       CEOs training about MACS

e.       Presidents training about MACS

f.     Book keepers training

g.       Training on IGAS.

h.       Training on Book Keeping

i.         Training on Social Causes.

j.      Training on Govt. sponsored Programmers, and Bank Linkages.

3.      The MACS has to prepare half yearly training planner with budget and sent it for approval in the GB and Dt. Fed at least 1 month before the half yearly GB.

4.      The MACS should prepare half yearly training budget and get it approved by the DT.fed and the GB.

5.      The Board and the CEO are responsible or smooth implementation of the MACS. Training programmes.

6.      The MACS is authorised to spend over and above ' Education Fund' for the purpose of trainings.

7.      The MACS at the same time is expected to avoid wasteful expenditure on Training and they should be strictly professional and objective.

8.      A professional ' Training Team' at DT. Level under the control of DT Fed is desirable.

PERMANENT SPL. INVITES TO THE BOARD:

1.       MACS provide for such invitees to the Board purely for the purpose of guidance and give strength to the Board in directing the MACS towards its objectives.

2.      It is honorary in nature.

3.      No tenure / time is fixed and the Board / the GB can keep them in this honorary post as long as they wish.

4.      Whenever permanent spl. Invitee is withdrawing or the GB/Board feels he/she is no more received, it should be by written mutually agreeable way.

5.      No permanent spl. Invitee can be by payment but is only by honorary arrangement.

6.      The presence of 'PSI' should be such that it enhances the image of the MACS.

7.      With the permission of the 'PSI'. , their names can be mentioned in all the written documents of the MACS.

8.      They play the role of advisor, share their experiences and shall be friend, philosopher, and guide in letter and sprit.

9.      PSI need not attend to every Board meeting but can be by mutually arranged visits.

10.   The MACS can meet their travel and other expenditure but otherwise they are net paid services.

PUBLIC FUNCTIONS

1.       MACS can arrange as many public functions as possible to meet the objectives of the MACS.

2.      Public functions must be non-political, regular and purely meant for promoting awareness amongst members about the various activities of the MACS.

3.      The expenditure should be minimal for such meetings. 

4.      There should be 'distributive justice'.

5.      Normally political leaders must be avoided.

6.      The members should be encouraged to participate and give vent to their feelings.

INSURANCE AND OLD AGE PENSION SCHEMES

1.       Each MACS is expected to design Insurance Coverage and old age pension and the different products may be

a.       Old age pension

b.       Death Relief.

c.       Insurance of various products financed to the members/SHGS.

d.       Accident Relief.

e.       Any other scheme

2.      The Insurance schemes should be in addition to what Govt. provides and can never be substitute for them.

NOMINAL 'B' CLASS MEMBERS

1.       Nominal 'B' class member is defined as one who is nominal member to avail specific facility for a price.

2.      They can be male or female.

3.      Each nominal member pays Rs.1/- admission fee.

4.      They can't be given any share in their name.  Consequently no dividend.

5.      A Register is maintained and simply no, is given for the 'B' class member.

6.      They can't contest any election for the reason that they are 'B' class members.

7.      'B' class member can become 'A' class member by fulfilling all the formalities that are required to become 'A' class member.

SERVICE CHARGES

1.       Each member is expected to pay Rs.1/- p.m. to the MACS for its services to the member.

2.      The service charge is compulsory and each SHG has to resolve in their meeting and attach minute copy along with the membership admission form while enrolling members to the MACS.

3.      The SHG takes responsibility to remit the service charge every month to the MACS and any SHG failing to do so are barred from availing any services from the MACS.

4.      THERE SHOULD BE SEPARATE HEAD OF ACCOUNT called      "Members" service charges and credit the proceeds to the account.

5.      The service charge is not refundable.

6.      The District and the state federation shall decide from time to time, how to use the money accumulated.

7.      It is basically meant to sustain the MACS over a period of time.

8.      MACS should invest the money in high rate of interest and see to it chat the corpus grows first.

9.      No individual should be lent the service charge corpus as loan.

10.   The GB cannot resolve to part this corpus in any kind of use.  The specific purpose is that in future course the corpus becomes sufficient enough to run its expenses on its own.

HANDLING CASH:

1.       The CEO or President of the Society is not empowered to handle cash for any reason unless and otherwise they are assigned with particular task, which involves handling cash.

2.      Whenever there is excess cash, more than Rs.5, 00/- it has to be credited in the SB Account of the MACS at the end of the business hour.

3.      Whenever it was not possible the same should be kept in the cash box and under no circumstances it is to be personally held by the CEO or President.

4.      The CEO should be personally held responsible for any cash loss. In addition to recovery, disciplinary action should be initiated immediately for its lapse.

5.      Cash should be compulsorily insured against infidelity and theft.

6.      All the cut notes should be neatly stacked and the same should be informed to the District Federation.

PURCHASE COMMITTEE:

1.       MACS should constitute a purchase committee, which will be either for a definite tenure or for specific purpose.

2.      The committee has the following responsibilities.

a.       To call for quotations for purchases above Rs.500/-

b.       Value decisions about the purchases.

c.       Ensure quality of material.

3.      The committee will have the following members.

a.       Board Directors.

b.       Representative from District Federation.

c.       The CEO.

d.       Any two selected members.

4.      The purchase committee should give written authorisation for any purchase to be made.

5.      The District Federation should permit the MACS to purchase material whenever it is worth Rs.500/- or above.

6.      All payments above Rs.500/- should be effected by way of cheque or D.D. only.

INTEREST RATES:

1.       The MACS should charge interest on loans or deposits at the rates fixed by the District Federation from time to time.

2.      The District Federation shall inform any change in interest rate.

3.      Share capital will attract 3% simple interest p.a.

4.      All the MACS are required change uniform interest rates.

 

 

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