Short Answer

For approving expenses above a certain limit, such as over ₹10,000, the procedure involves obtaining approval from the appropriate authority as per the Gujarat Cooperative Societies Act, 1961 and Rules, 1965.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the committee of a cooperative society to manage the society's funds and approve expenses. If the expenses exceed a certain limit, typically set by the society's by-laws or general body resolution, the committee needs to seek approval from the general body or any higher authority as specified in the by-laws. This ensures transparency and accountability in financial matters.

Rule 87 of the Gujarat Cooperative Societies Rules, 1965 provides detailed guidelines on the procedure for approving expenses exceeding a certain limit. It mandates that any expenditure above the prescribed limit must be approved by the general body in a meeting convened for this specific purpose. The proposal for such expenses, along with relevant details, should be presented to the general body for discussion and approval. This process ensures that significant expenses are scrutinized and approved democratically by the members.

In practice, if a cooperative society needs to incur expenses exceeding ₹10,000, the committee must prepare a detailed proposal outlining the nature of expenses, reasons for exceeding the limit, and the benefits to the society. This proposal is then presented to the general body in a meeting where members discuss and vote on approving the expenses. Once approved, the expenses can be incurred as per the decision of the general body.

Real-world Scenarios

• XYZ Cooperative Housing Society needs to undertake repair work costing ₹15,000. The committee prepares a proposal with estimates, reasons for the cost, and benefits to the members. This proposal is presented at a general body meeting for approval as per Section 73 and Rule 87.

• ABC Credit Cooperative Society plans to invest ₹20,000 in a new software system for better member services. The committee drafts a proposal highlighting the necessity and advantages of the investment, which is then discussed and approved by the general body.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961

• Rule 87 of the Gujarat Cooperative Societies Rules, 1965