RULES AND REGULATIONS

OF
SAHULAT MICROFINANCE SOCIETY

ExistingProposedRemarks1.NAME:
The name of the Society shall be �SAHULAT MICROFINANCE SOCIETY�.1.NAME:
The name of the Society shall be �SAHULAT MICROFINANCE SOCIETY�.No
change2.DEFINITION:
In these presents unless there be something in the subject or context inconsistent
therewith:
(i) Act �means the Societies Registration Act, 1860�.
(ii) �Chief Executive Officer� means the chief executive officer who shall be a
whole time paid employee of the Society.
(iii) �Committee� means any committee including sub-committee formed by the
governing body.
(iv) �General Body� means the body of all members.
(v) �In Writing� or �Written� means and includes words, printed, typed,
lithographed represented and reproduced in any mode in a visible form.
(vi) �Member� means member of the Society and includes office bearers.
(vii) �Month� means calendar month.
(viii) �Office� means the registered office for the time being of the Society.
(ix) �Office bearers� mean office bearers of the Governing Body.
(x) �Society� means the SAHULAT MICROFINANCE SOCIETY.
(xi) �Microfinance� means micro-deposit, micro-credit, micro-insurance and micro-
enterprises including marketing of micro enterprise products.
(xii) �Year� means the financial year ending on 31st March.
2.DEFINITION:
In these presents unless there be something in the subject or context inconsistent
therewith:
Act �means the Societies Registration Act, 1860�.
�Chief Executive Officer� means the chief executive officer who shall be a whole
time paid employee of the Society.
�Committee� means any committee including sub-committee formed by the governing
body.
�General Body� means the body of all members.
�In Writing� or �Written� means and includes words, printed, typed, lithographed
represented and reproduced in any mode in a visible form.
�Member� means member of the Society and includes office bearers.
�Month� means calendar month.
�Office� means the registered office for the time being of the Society.
�Office bearers� mean office bearers of the Governing Body.
�Society� means the SAHULAT MICROFINANCE SOCIETY.
�Microfinance� means micro-deposit, micro-credit, micro-insurance and micro-
enterprises including marketing of micro enterprise products.
�Year� means the financial year ending on 31st March.
No change3. MEMBERSHIP:
The initial sponsors shall be the members of the Society. The sponsors may co-opt
other persons as members subject to the maximum number not exceeding
40.3.MEMBERSHIP:
i. The initial sponsors shall be the members of the Society. The sponsors may co-
opt other persons as members subject to the maximum number not exceeding 40.

ii. In case of any Vacancy arising among the members, new members shall be
appointed by the sponsors.

iii. The sponsor will induct members if there is a vacancy in sponsor members.
iii. The General Body by a majority of the existing members attending the meeting
convened for the purpose shall fill up the vacancies arising in the General Body.

iv. The General Body may add one or more members to the existing number subject to
maximum of 40 by resolution adopted in a meeting especially convened for the
purpose, by 2/3rd majority of the members present.
Added new sub-clause ii, iii and iv.

A note on that is being prepared

It is general body, then then governing body4.TERMINATION OF THE MEMBERSHIP:
Cessation of membership of General Body or governing Body shall occur on account
of:
Resignation or death or on becoming of unsound mind;
On being sentenced by a competent court to imprisonment for any offence involving
moral turpitude: or
On not attending three consecutive meetings continuously without any information to
the General Body or Governing Body, as the case may be.
On activities being in conflict or harmful to the society.4.TERMINATION OF THE
MEMBERSHIP:
Cessation of membership of General Body or Governing Body shall occur on account
of:

Resignation or death or on becoming of unsound mind;

On being expelled or dismissed
On being sentenced by a competent court to imprisonment for any offence involving
moral turpitude: or
Is by a competent court, declared as insolvent or of unsound mind.
On not attending three consecutive meetings continuously without any information to
the General Body or Governing Body, as the case may be: or
Is, found by the General Body to be engaged in the activities which are detrimental
to the interest of the society and expelled from membership.
On activities being in conflict or harmful to the society.New Sub-clause b, d, f
added

Old sub-clause b will become c, c will become e and d will become g. 5.GOVERNING
BODY:
Subject to such policy directions as the General Body may like to give from time to
time, the management of the Society shall be vested in and rest with the Governing
Body.
The members of the Governing Body shall be elected by the General Body in its
annual general meeting.
The members of Governing Body shall hold office for a period of three years and
after the expiry of their term, they shall continue to hold office till their duly
elected successors are in position.
The members of the General Body may fill up any casual vacancy of the body for the
remaining period of the office so held.
The outgoing members of the Governing Body shall be eligible for re-election.
Chief Executive of the Society shall be an ex-officio member of the Governing
Body.5.GOVERNING BODY:
Subject to such policy directions as the General Body may like to give from time to
time, the management of the Society shall be vested in and rest with the Governing
Body.
The members of the Governing Body shall be elected by the General Body in its
annual general meeting.
The members of Governing Body shall hold office for a period of three years and
after the expiry of their term, they shall continue to hold office till their duly
elected successors are in position.
The members of the General Body may fill up any casual vacancy of the body for the
remaining period of the office so held.
The outgoing members of the Governing Body shall be eligible for re-election.
Chief Executive of the Society shall be an ex-officio member of the Governing Body.

No Change

COMPOSITION:
THE Governing Body shall consist of the following members:-
President,
Vice President
Chief Executive Officer � ex-officio Member Secretary
Eleven other members elected by General Body of the Society.(A) COMPOSITION:
THE Governing Body shall consist of the following members:-
President,
Vice Presidents
Chief Executive Officer � ex-officio Member Secretary
Eleven other members elected by General Body of the Society.

In the sub clause (A) ii) of clause 5 �s� is added. in Vice President for
accommodating more than one vp for ease of functioning.

QUORUM AND NOTICE OF MEETINGS

The Governing Body shall meet at least twice in a year. The quorum of the meeting
shall be fifty percent of the members of Governing Body. Ordinarily seven days
notice shall be given for the meeting. In case of an emergency, the Chief Executive
Officer may, with the approval of the president, call a meeting of the Governing
Body at two days� notice. In case the quorum is not complete the meeting shall be
adjourned and fixed for any day after the said meeting. No quorum shall be required
in the case of the adjourned meeting.QUORUM AND NOTICE OF MEETINGS
The Governing Body shall meet at least twice in a year. The quorum of the meeting
shall be fifty percent of the members of Governing Body. Ordinarily seven days�
notice shall be given for the meeting. In case of an emergency, the Chief Executive
Officer may, with the approval of the president, call a meeting of the Governing
Body at two days� notice. . In case the quorum is not complete the meeting shall be
adjourned and fixed for any day after the said meeting. No quorum shall be required
in the case of the adjourned meeting.

No Change(C) COMMITTEE/SUB-COMMITTEE
The Governing Body may appoint such committees or sub-committees as it may deem
necessary for effective functioning of the Society from amongst the members of the
Society and also co-opt experts and specialists thereon.
(C ) COMMITTEE/SUB-COMMITTEE
The Governing Body may appoint such committees or sub-committees as it may deem
necessary for effective functioning of the Society from amongst the members of the
Society and also co-opt experts and specialists thereon.

No Change

(D) OFFICE BEARERS

PRESIDENT
He shall guide, direct and supervise all the activities of the society. He shall
preside over all the meetings of the Governing body and the General Body of the
Society. He shall have a casting vote, which he shall exercise only when there is a
tie of votes in a meeting.
(D)OFFICE BEARERS
(i) PRESIDENT

He shall guide, direct and supervise all the activities of the society. He shall
preside over all the meetings of the Governing body, the general Body and the
Executive Committee of the Society. He shall have a casting vote, which he shall
exercise only when there is a tie of votes in a meeting.
When Governing Body and General Body are not in session and in case of emergency
the President may take decisions in respect of any matter and may place in
appropriate meeting for ratification.

New sub-clause (D) (i) (a) added in clause 5 and �and the Executive Committee�
added in it.

New sub-clause (D) (i) (b) added in clause 5.

VICE PRESIDENT
In the absence of the President, the Vice-president shall preside over the meetings
of the Governing Body or the General body. He will further do all kinds of work,
which are delegated by the president. (ii)VICE PRESIDENT/S
In the absence of the President, nominated Vice-president/s shall preside over the
meetings of the Governing Body or the General Body or Executive Committee. He will
further do all kinds of work, which are delegated by the president.
�nominated� and �or Executive Committee� added in sub-clause (D) (ii) of clause 5.

CHIEF EXECUTIVE OFFICER

He will look after day-to-day management of office of the Society. He will look
after any work, specially delegated to him by the Governing Body or the General
Body and shall be accountable for that work. He will convene, whenever necessary,
meetings of the Society including that of any committee. He shall keep proper
minutes of the proceedings of the meetings of the Society. He will be responsible
for the proper upkeep of the accounts of the society.(iii)CHIEF EXECUTIVE OFFICER
He will look after day-to-day management of the office of the Society. He will look
after any work, specially delegated to him by the Governing Body or the General
Body or Executive Committee and shall be accountable for that work. He will
convene, whenever necessary, meetings of the Society including that of any
committee. He shall keep proper minutes of the proceedings of the meetings of the
Society. He will be responsible for the proper upkeep of the accounts of the
society.
However administratively he will report to the President.

�However administratively he will report to the President� added in the sub-clause

(D) (iii) of clause 5. (E) POWERS AND FUNCTIONS OF THE GOVERNING BODY:
The governing body shall be solely responsible for the management of all the
affairs of the society and it shall have necessary power for executing decisions of
the General Body and managing the affairs of the society in all respects that
include:
To appoint, transfer, retire and terminate, if needed, and fix terms and benefits
of the personnel or the employees, including the Chief Executive. However,
discussion and decision about the Chief Executive shall be taken in his absentia.

To alienate, sale, take lease mortgage, pledge, hypothecate, and donate the
property whether movable or immovable.

To implement programs for the execution of the objectives and allied activities of
the Society and to invest the fund of the Society for the purpose.

To do all such lawful acts and things as are identical and conducive to the
attainment of the objects of the society.

(E)POWERS AND FUNCTIONS OF THE GOVERNING BODY:

The governing body shall be solely responsible for the management of all the
affairs of the society and it shall have necessary power for executing decisions of
the General Body and managing the affairs of the society in all respects that
include:

To approve the proposal submitted by the Executive Committee from time to time and
to submit to the General Body with its recommendations, wherever it is necessary.

To approve the budget for the next year, received from Executive committee.

To appoint, transfer, retire and terminate, if needed, and fix terms and benefits
of the personnel or the employees, including the Chief Executive. However,
discussion and decision about the Chief Executive shall be taken in his absentia.

To alienate, sale, take lease mortgage, pledge, hypothecate, and donate the
property whether movable or immovable.

To implement programs for the execution of the objectives and allied activities of
the Society and to invest the fund of the Society for the purpose
To do all such lawful acts and things as are identical and conducive to the
attainment of the objects of the society.

New sub-clause b and c added.

Old sub-clause b will become d, c will become e, d will become f and e will become
g.
 I. EXECUTIVE COMMITTEE
Subject to the directions of the Governing Body may like to give from time to time,
the implementation of the programs of the society shall be vested in and rest with
the Executive Committee.
The General Body shall nominate the members of the Executive Committee.
The members of the Executive Committee shall hold office for a period of three
years and after the expiry of their term they shall continue to hold office till
their duly nominated successors are in position.
The members of the General Body may fill up any vacancy of executive committee for
the remaining period of the office held
The outgoing members of the Executive Committee shall be eligible for re-
nomination.
Chief Executive of the society shall be an ex officio member of the Executive
Committee.
New sub-clause (F) I. added in clause 5.II: COMPOSITION of Executive Committee
The Executive committee shall consist of maximum 8 (eight) members including the
following;
President
Vice Presidents
Chief Executive Officer � ex-officio Member Secretary
Members
Note: Experts and specialists in the field of Interest Free Microfinance,
cooperative and microfinance may be invited if found necessary.
New sub-clause (F) II added in clause 5.
III: QUORUM AND NOTICE OF MEETING OF EXECUTIVE COMMITTEE:
The Executive Committee shall hold meeting at least once in a quarter. The Quorum
of the meeting shall be 50% of the members of the executive committee. Ordinarily 5
days notice shall be given for the meeting. In case of emergency the CEO may with
the approval of the president can call a meeting of the Executive Committee at 2
day�s notice. In case the Quorum is not complete the meeting shall be adjourned at
least for half an hour and fixed on the same day or any other day after the said
meeting. No quorum shall be required in the case of the adjourned meeting.
New sub-clause (F) III added in clause 5.

IV. POWERS AND FUNCTIONS OF THE EXECUTIVE COMMITTEE:

Executive Committee shall be solely responsible for the implementation of all the
programs in annual plan within the approved budget of the Governing Body. Empowered
to spend up to 10% more than the approved budget on any item. However if
expenditure exceeds 10% of the approved budget it has to be get approved by the
Governing Body by circulation, item wise.
To conduct assessment of existing staff for their present work.
To take up all the matters of emergency nature related to the Society.
To review the annual plan and budget estimates and recommend for approval to the
Governing body, with changes if any.
To do periodical review, assessment of all activities, take necessary and
appropriate action.

New sub-clause (F) IV added in clause 5.6.GENERAL BODY

(A) COMPOSITION AND FUNCTIONS
All members shall comprise the general Body of the Society which shall meet
annually to transact following businesses:
To elect President, Vice-President and members of the governing Body.
To receive/renew and approve report on activities during the preceding year and
approve the minutes of the last General Body meeting.
To approve the audited accounts and balance sheet of the preceding year and budget
for the next year
To appoint auditors.
Any other business recommended by the Governing Body or by any member with the
permission of the chair.
6.GENERAL BODY
(A) COMPOSITION AND FUNCTIONS
All members shall comprise the general Body of the Society which shall meet
annually to transact following businesses:
To elect President, Vice-Presidents and members of the governing Body.
To nominate the members of the executive committee.
To receive/renew and approve report on activities during the preceding year and
approve the minutes of the last General Body meeting.
To approve the audited accounts and balance sheet of the preceding year.
To receive the budget for the next year
To accept the resignation of, to expel or dismiss any member from the membership
To appoint auditors.
To take decision on all policy matters.
To pass the amendments proposed to the memorandum of association and rules and
regulations.
Any other business recommended by the Governing Body or by any member with the
permission of the chair.
New sub-clauses b, e, f, h and i added into clause 6 (A).

Old sub-clause b will become c, c will become d, d will become g and e will become
j. (B) QUORUM:
The quorum for holding a meeting of the General Body of the Society shall be 1/3rd
of the total
members. No quorum shall be required in the case of an adjourned meeting.

(B) QUORUM:
The quorum for holding a meeting of the General Body of the Society shall be 1/3rd
of the total
members. No quorum shall be required in the case of an adjourned meeting.

No Change(C) VOTING:
Each member of the Society present at the meeting shall have one vote and the
majority vote shall prevail. In case of equality of votes, the President shall have
a casting vote.(C) VOTING:
Each member of the Society present at the meeting shall have one vote and the
majority vote shall prevail. In case of equality of votes, the President shall have
a casting vote.No Change7. BOARD OF ADVISORS:
A Board of Advisors shall be constituted by the Governing Body by nominating
scholars of eminence and repute in the field of interest-free finance,
jurisprudence and development economics. The Governing Body shall refer issues
relating to vision, mission and strategy of the Society to the Board of Advisors
for seeking advice and expert opinion on such issues. However, the advices of the
Board of Advisors shall not be binding on the Society.7. BOARD OF ADVISORS:
A Board of Advisors shall be constituted by the Governing Body by nominating
scholars of eminence and repute in the field of interest-free finance,
jurisprudence and development economics. The Governing Body shall refer issues
relating to vision, mission and strategy of the Society to the Board of Advisors
for seeking advice and expert opinion on such issues. However, the advices of the
Board of Advisors shall not be binding on the Society.No Change8. LEGAL
PROCEEDINGS:
The Society may sue or be sued in the name of the Chief Executive and/or such
person/persons as shall be appointed by the Governing Body for the occasion.8.
LEGAL PROCEEDINGS:
The Society may sue or be sued in the name of the Chief Executive and/or such
person/persons as shall be appointed by the Governing Body for the occasion.No
Change9. MOVABLE AND IMMOVABLE PROPERTY
All deeds of transfer, lease and other documents relating to the movable and
immovable property of the Society shall be signed by the Chief executive of the
Society. All documents and records of the Society shall be maintained at the
premises of the Society and or at such other places for safe custody as the Society
may determine by separate resolution.9. MOVABLE AND IMMOVABLE PROPERTY
All deeds of transfer, lease and other documents relating to the movable and
immovable property of the Society shall be signed by the Chief executive of the
Society. All documents and records of the Society shall be maintained at the
premises of the Society and or at such other places for safe custody as the Society
may determine by separate resolution.No Change10. AUDIT OF ACCOUNTS
The accounts of the Society shall be kept in the form and on the lines laid down by
the Governing Body and shall be audited regularly/annually by a firm of chartered
accountants appointed by the general Body of the Society. The financial year of the
Society shall be 1st April to 31st March.10. AUDIT OF ACCOUNTS
The accounts of the Society shall be kept in the form and on the lines laid down by
the Governing Body and shall be audited regularly/annually by a firm of chartered
accountants appointed by the general Body of the Society. The financial year of the
Society shall be 1st April to 31st March.No Change11. OPERATION OF BANK ACCOUNTS:
All funds of the Society shall be kept in a scheduled bank and cooperative credit
societies in the name of the Society and all operations with the bank including
withdrawals by cheque shall be done by the signatures of any two persons out of
three authorized by the Governing Body through its resolution. Out of three
authorized signatories one shall be the Chief Executive Officer.
11. Operations of bank All funds of the Society shall be kept in a nationalized
bank in the name of the Society and all operations with the bank including
withdrawals by cheque shall be done by the signatures of any two persons out of
four authorized by the Governing Body through its resolution. Out of four
signatories one shall be the Chief Executive Officer.

No change12. SOURCES OF FUNDS

The Society shall have funds mainly from the sources mentioned hereinafter:
Donation, Subscription, periodical collection, grants, foreign contributions,
emergency collections, special drives, public donations, other sources etc.12.
SOURCES OF FUNDS
The Society shall have funds mainly from the sources mentioned hereinafter:
Donation, Subscription, periodical collection, grants, foreign contributions,
emergency collections, special drives, public donations, other sources etc.No
Change13. DISSOLUTION:
In case three-fifths of the members of the Society in a General Body meeting
specially convened for this purpose determine that it shall be dissolved, then all
necessary steps shall be taken for the disposal and settlement of the property of
the society and its claims and liabilities. Any property remaining after these
settlements shall be given or transferred to some other Society, Trust or
Institution having objects similar to the objects of the Society. 13. DISSOLUTION:
In case three-fifths of the members of the Society in a General Body meeting
specially convened for this purpose determine that it shall be dissolved, then all
necessary steps shall be taken for the disposal and settlement of the property of
the society and its claims and liabilities. Any property remaining after these
settlements shall be given or transferr
d to some other Society, Trust or Institution having objects similar to the objects
of the Society. No Change14. AMENDMENT
The proposal for any amendment/ alteration/ addition in the memorandum or the rules
and regulations shall emanate from the Governing Body and it shall be operative
after it is passed by two-thirds of the members present in any meeting of the
General Body.14. AMENDMENT
The proposal for any amendment/ alteration/ addition in the memorandum or the rules
and regulations shall emanate from the Governing Body and it shall be operative
after it is passed by two-thirds of the members present in any meeting of the
General Body.No Change15. INTERPRETATION:
In any matter of dispute over the interpretation of any of the provisions of these
Rules and regulations the decision of the President/Vice President in a meeting of
the General Body shall be final.
15. INTERPRETATION:
In any matter of dispute over the interpretation of any of the provisions of these
Rules and regulations the decision of the President/Vice President in a meeting of
the General Body shall be final.
No Change16. JURISDICTION:
The Society may sue or be sued in the name of the Chief Executive Officer as per
rovisions laid down under section 6 of the Societies Registration Act, 1860 as
applicable to the NCT of Delhi.16. JURISDICTION:
The Society may sue or be sued in the name of the Chief Executive Officer/person
nominated or appointed by the Governing Body as per provisions laid down under
section 6 of the Societies Registration Act, 1860 as applicable to the NCT of
Delhi.No change17. APPLICABILITY OF THE ACT
All the provisions under sections of the Societies registration Act, 1860, as
applicable to N.C.T of Delhi shall apply to the Society.
17. APPLICABILITY OF THE ACT
All the provisions under sections of the Societies registration Act, 1860, as
applicable to N.C.T of Delhi shall apply to the Society.
No Change18. ESSENTIAL CERTIFICA
E:
Certified that this is the correct copy of the Rules and Regulations of the
�Sahulat Microfinance Society�.

18. ESSENTIAL CERTIFICATE:

Certifie
th
e correct cop1 of the Rules and 12gul