CO-OPERATIVE SOCIETIES (REFORMS) ORDINANCE, 1980

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THE CO-OPERATIVE SOCIETIES (REFORMS) ORDINANCE, 
1980 
(XVII of 1980) 
CONTENTS 
1. Short title, extent and commencement. 
2. Definitions. 
3. Ordinance to override other laws, etc. 
4. Act to continue to remain applicable to apex societies. 
5. Cessation of certain persons and members of an apex society. 
6. Members of Managing Committee. 
7. Filling up of vacancies in the Managing Committee and appointment of 
an Administrator in certain cases. 
8. Declaration as a defaulter and its consequences. 
9. No compensation on termination of office. 
10. Jurisdiction of courts barred. 
11. Indemnity. 
12. Power to make rules. 
13. Removal of Difficulties. 
 
TEXT 
1
THE CO-OPERATIVE SOCIETIES (REFORMS) ORDINANCE, 1980 
(XVII of 1980) 
[3rd January, 1981] 
An 
Ordinance 
to provide for the improvement of the constitution and working of certain co-operative 
societies in the Punjab. 
Preamble.– WHEREAS it is expedient to provide for the improvement of the 
constitution and working of certain co-operative societies in the Punjab in the manner 
hereinafter appearing; 
 NOW, THEREFORE , in pursuance of the Proclamation of fifth day of July, 
1977, read with the Laws (Continuanc e in Force) Order, 1977 (CMLA’s Order No. 1 
of 1977), the Governor of the Punjab is pleased to make and promu lgate the 
following Ordinance:– 
1. Short title, extent and commencement .– (1) This Ordinance may be called 
the Co-operative Societies (Reforms) Ordinance, 1980. 
 (2) It extends to the whole of the Province of the Punjab. 
 (3) It shall come into force at once. 
2. Definitions.– (1) In this Ordinance, unless there is anything repugnant in the 
subject or context,– 
(a) “Act” means the Co -operative Societies Act, 1925 (Bombay Act VII of 
1925); 
(b) “apex society” means any one of the following, namely:–  
(i) the Co-operative Insurance Society of Pakistan Limited, Lahore; 
(ii) the Khanewal Co-operative Textile Mills Ltd., Khanewal; 
(iii) the Punjab Co-operative Union, Lahore; 
(iv) the Rural Supply Co-operative Corporation Limited, Lahore; and 
 any other co -operative society which the Government may, by 
notification in the official gazette, declare to be an apex society 
for the purposes of this Ordinance; 
(c) “Government” means Government of the Punjab; and 
(d) “Ordinance” means the Co -operative Societies (Reforms) Ordinance, 
1980. 
                                                 
1This Ordinance was promulgated by the Governor of the Punjab on 31st December, 1980; and, published in the Punjab Gazette, 
(Extraordinary), dated 3rd January, 1981; pages 7-B to 7-G. 
 (2) The words and expressions used but not defined in this Ordinance 
shall have the same meanings as are respectively assigned to them in the Act. 
3. Ordinance to override other laws, etc .– The provisions of this Ordinance 
shall have effect notwithstanding anything to the contrary contained in any other law 
for the time being in force or in the constitution or bye -laws of an apex soci ety or in 
any agreement, award, decree, injunction, judgment or order of any court. 
4. Act to continue to remain applicable to apex societies .– (1) An apex 
society shall continue to be regarded as a society and remain subject to the 
provisions of the Act i n so far as they are not inconsistent with the provisions of this 
Ordinance. 
 (2) The Registrar shall have power to carry into effect the provisions of this 
Ordinance in relation to an apex society. 
5. Cessation of certain persons and members of an apex so ciety.– (1) No 
person other than a co-operative society shall be a member of an apex society. 
 (2) Any person other than a co -operative society who, immediately before 
the commencement of this Ordinance, was a member of such society, shall forthwith 
cease to be a member of such society. 
 (3) When, by virtue of a notification issued under clause (b) of sub -section 
(1) of section 2, any society is declared as an apex society, the provisions of sub -
sections (1) and (2), shall become applicable thereto from the  date of such 
notification. 
 (4) Notwithstanding the cessation of membership under sub -section (2), a 
person ceasing to be a member of an apex society shall not be absolved of any 
liability incurred by him as a member of the society before such cessation. 
 (5) Where a person has ceased to be a member of an apex society under 
sub-section (2) or (3), the price paid by him for the shares held by him in the society 
shall be refunded to him. 
6. Members of Managing Committee .– (1) No person shall be elected to or  
hold the office of a member of the Managing Committee of an apex society unless he 
has been duly elected or nominated by the society, represented by him, in 
accordance with the bye -laws of the society, and any person who is at the 
commencement of this Ordinance, a member of the Managing Committee of an apex 
society without having been elected or nominated as such, shall cease to be a 
member of the Managing Committee forthwith. 
 (2) A member of the Managing Committee of an apex society shall not 
hold office  for more than two consecutive terms or parts thereof and shall not be 
eligible for membership of that committee except after the expiration of a period of 
thirty-six months immediately following the two consecutive terms. 
 (3) A person who has been a memb er of the Managing Committee of an 
apex society for a continuous period of six years or more immediately preceding the 
commencement of this Ordinance shall forthwith cease to be a member of such 
committee. 
 (4) No person ceasing to hold office of a member of the Managing 
Committee of an apex society in pursuance of sub -section (3) shall be eligible for 
membership of the Managing Committee of that society except after the expiration of 
a period of thirty-six months from the commencement of this Ordinance. 
 (5) No person shall, at the same time, be on the Managing Committee of 
more than one apex society. 
 (6) Where a person was a member of the Managing Committee of more 
than one apex society at the time of the commencement of this Ordinance, he shall 
forthwith resign from the membership of the Managing Committee of all such 
societies other than the one in which he wishes to retain such office and if he does 
not so resign within a period of fifteen days from such commencement he shall be 
deemed to have resigned the office in the apex society in which he was elected last 
and shall cease to be a member of the Managing Committee of the other apex 
society forthwith. 
 (7) When, by virtue of a notification issued under clause (b) of sub -section 
(1) of section 2, any so ciety is declared as an apex society, the provisions of sub -
sections (1), (3), (4) and (6) shall become applicable thereto from the date of such 
notification. 
 (8) Where a person is a member of the Managing Committee of an apex 
society, he shall not seek e lection to the membership of the Managing Committee of 
another apex society unless he first resigns his office in the Managing Committee of the 
apex society of which he is a member. 
 (9) Nothing contained in this section shall apply to any person who is a 
member of the Managing Committee of an apex society by virtue of his holding an 
office in the service of Pakistan or who has been appointed as such by Government 
or the Registrar. 
7. Filling up of vacancies in the Managing Committee and appointment of 
an Administrator in certain cases.– (1) If the vacancies caused by the members of 
the Managing Committee of an apex society ceasing to hold office in pursuance of 
sub-sections (1), (3) and (6), of section 6, do not exceed one -third of the total 
number of membe rs of the Managing Committee, the vacancies shall be filled in 
accordance with the bye-laws of the society. 
 (2) If the vacancies caused by the members of the Managing Committee of 
an apex society ceasing to hold office in pursuance of sub-sections (1), (3) and (6) of 
section 6 exceeds one -third of the total number of members of the Managing 
Committee, it shall stand superseded forthwith and the affairs of the society shall be 
managed, and all powers and functions of the Managing Committee shall be 
exercised and performed by an Administrator who shall be appointed by the 
Registrar and hold office until the persons elected as members of the Managing 
Committee at the elections held in pursuance of sub -section (3) have assumed 
office. 
 (3) Where the Managing Committee of an apex society stands superseded 
in pursuance of sub-section (2), another committee shall be constituted by election in 
a general meeting of the society to be called by the Registrar which shall be fixed by 
him and which shall not be later than  the date of expiry of a period of six months 
from the date of such supersession: 
 Provided that the aforesaid period of six months may be extended by 
Government for another period not exceeding six months. 
8. Declaration as a defaulter and its consequences.– (1) Any person who– 
(a) has taken a loan from any society which has been outstanding against 
him for six months or more after it has become payable; or 
(b) has taken a loan from any society which is repayable by installments 
and the amount of three or more instalments has been outstanding for 
six months or more from the date on which the amount of the last 
instalment becomes payable; 
  may be declared to be a defaulter by the Registrar. 
 (2) Any persons aggrieved by an order of the Registrar under sub -section 
(1) may, within thirty days of the date of the order, prefer an appeal to the 
Government and the decision of the Government on such an appeal shall be final:
2
[Provided that no order under sub -section (2) shall be passed without giving 
the appellant an opportunity of being heard.] 
 (3) Any person who is a member of the Managing Committee of an apex 
society and is declared to be a defaulter under sub -section (1), shall forthwith cease 
to hold such office. 
9. No compensation on termination of office .– No compensation shall be 
payable for the removal from or cessation of membership or termination of any office 
or supercession of any committee by virtue of operation of any of the provisions of 
this Ordinance. 
10. Jurisdiction of courts barred .– (1) No cou rt, including the High Court, shall 
call in question, or permit to be called in question, any provision of this Ordinance, or 
any rule or order made or anything done or action taken or purporting to be made, 
done or taken thereunder. 
 (2) No court, includi ng the High Court, shall grant an injunction or make 
any order or entertain any proceedings in relation to anything done or intended or 
purporting to be done under this Ordinance.  
11. Indemnity.– No suit, prosecution or other legal proceedings shall lie a gainst 
Government or the Registrar or any other person for anything done in good faith under 
this Ordinance or any rule made thereunder. 
12. Power to make rules .– Government may, by notification in the official 
gazette, make such rules as appear to it to b e necessary or expedient for carrying 
out the purposes of this Ordinance. 
13. Removal of Difficulties .– If any difficulty arises in giving effect to any of the 
provisions of this Ordinance, Government may make such order not inconsistent with 
the provision s of this Ordinance, as may appear to it to be necessary for the 
purposes of removing the difficulty: 
 Provided that no such order shall be made after the expiration of one year 
from the commencement of this Ordinance. 
                                                 
2Added by the Cooperative Societies (Reforms) (Amendment) Ordinance, 1984 (XIV of 1984); and published in the Punjab Gazette 
(Extraordinary), dated 16.12.1984, s.2