Amended Constitution and Instructions for Divisional Federations of Village Rehabilitation Societies and Women's Rural Development Societies

Ref No: NP/19/FED/By Law
Effective Date: January 1, 2008

This amended by-law is issued by the Director, Department of Rural Development, Northern Province, to revise and restructure the previous by-law and related circulars established on January 2, 2001, for the formation of Divisional Federations based on societies constituted under the Village Rehabilitation Societies and Women's Rural Development Societies by-law dated January 1, 2007, under the 1989 reorganization. This amended version comes into effect from January 1, 2008.

Therefore, all existing registered Village Rehabilitation Societies and Women's Rural Development Societies shall establish their Divisional Federations according to the following instructions effective from January 1, 2008. Federations so established shall be entitled to receive government assistance and other facilities.

Instructions for Establishing a New Divisional Federation of Rural Development Societies

1. Formation

(a) In accordance with the new organizational structure related to rural development, steps shall be taken to establish a Divisional Federation of Rural Development Societies by integrating Village Rehabilitation Societies and Women's Rural Development Societies in all Divisional Secretariat divisions. The term of office for Federations is 02 years. Upon completion of 2 years, an extension of 03 months may be granted.

(b) All Village Rehabilitation Societies and Women's Rural Development Societies located in the village(s) within the Divisional Secretariat division must join the Divisional Federation.

2. Initial Steps

To establish a Divisional Federation of Rural Development Societies, discussions shall be held with the District Rural Development Officer, Rural Development Officer, and Divisional Secretary. At least 14 days prior to the scheduled date of the inaugural meeting for the proposed Divisional Federation, all Executive Committees of Village Rehabilitation Societies and Women's Rural Development Societies must be clearly informed. The purpose of the meeting, election of office bearers, venue, date, and time shall be clearly notified. It shall be the official duty of the Rural Development Officer, with the support of the Divisional Secretary, to make arrangements through the Village Rehabilitation Societies and Women's Rural Development Societies to publicize the formation and conduct the inaugural meeting at least 14 days before the specified date.

3. Inaugural Meeting

The District Rural Development Officer, Rural Development Officer, Divisional Secretary, and prominent persons of the area must compulsorily participate in the inaugural meeting. However, the participation of the Director of Rural Development and the District Secretary is considered advantageous.

4. Membership Threshold

A minimum of 51% of the registered societies must obtain membership in the Federation. Furthermore, it is essential that more than 51% of Women's Rural Development Societies obtain membership.

5. Attendance Register

Before the commencement of the inaugural meeting or annual general meeting, an attendance register shall be prepared with the names of those present, along with their signatures or thumb impressions.

6. Adoption of By-laws

The by-laws shall be read and approved by the General Body at the inaugural meeting.

7. Term of Office

The term of office for members is two years. After the completion of two years from the formation of the Federation, the next Board of Directors members shall be elected within the subsequent three-month period.

8. Executive Committee Size

Along with the President, Vice President, Secretary, Assistant Secretary, and Treasurer, 11 to 15 Executive Committee members shall be elected to the Executive Committee.

Model By-law for Divisional Federations of Village Rehabilitation Societies and Women's Rural Development Societies

Chapter One

1. Name

The name of this organization shall be the …………………………… Divisional Federation of Rural Development Societies. In the following procedural rules, this organization will be referred to as "the Federation".

2. Address

The address of the Federation shall be the place determined by the General Body. If changes occur in the address, notification must be given within 07 days to the Director, Department of Rural Development, the bank, members, and all institutions implementing programs in association with the Federation.

3. Jurisdiction

The jurisdiction shall be the administrative area of all active Village Rehabilitation Societies and Women's Rural Development Societies that hold membership in this Federation, located in ………………….. District, ………………….. Divisional Secretariat Division.

4. Objectives

The objectives of the Federation are: to facilitate the activities of member societies and provide necessary assistance to achieve their goals; to establish means for expressing their collective views; to provide necessary support for their production, trade, enterprise, and livelihood initiative projects; and to represent member societies in various development activities of the area.

5. Powers

To achieve the above objectives, the Federation shall have the authority to:

5.1 Establish means for member societies to express their views.
5.2 Provide necessary advice to member societies.
5.3 Create financial schemes to assist member societies.
5.4 Develop savings-related projects.
5.5 Make arrangements to provide necessary training programs for the functioning of member societies and their members.
5.6 Undertake bank transactions.
5.7 Receive donations, purchase, or otherwise acquire land, buildings, machinery, and equipment, and maintain and safeguard them.
5.8 Act as a representative of the Divisional member societies.
5.9 Supervise and evaluate the livelihood revolving credit scheme procedures of member societies and take necessary action.
5.10 Engage in other activities that may assist member societies.
5.11 Make full efforts to enthusiastically engage all Village Rehabilitation Societies and Women's Rural Development Societies in all villages within the jurisdiction in the development activities of the village. Take remedial action regarding inactive societies and provide encouragement for their rehabilitation.

6. Membership Eligibility

All Village Rehabilitation Societies and Women's Rural Development Societies registered with the Department of Rural Development within the jurisdiction shall be eligible to become members.

6.1 Admission to Membership

(a) Village Rehabilitation Societies and Women's Rural Development Societies seeking membership shall submit an application signed by their President and Secretary, bearing the society's seal, with the recommendation of the Rural Development Officer, to the Federation Secretary. A certified copy of the resolution passed by the society's General Body regarding the request for membership must also be attached. It is the responsibility of the Federation Secretary to submit all received membership applications to the Federation's Executive Committee.

(b) Village Rehabilitation Societies and Women's Rural Development Societies whose applications are accepted after consideration by the Board of Directors shall be granted membership. It is the duty of the Federation Secretary to submit the names and details of all accepted member societies to the next General Body of the Federation.

(c) From each member society, the President along with two persons selected by the Executive Committee shall obtain membership in the Federation.

(d) Societies that fail to hold General Body meetings for over six months, or Executive Committee meetings for over 03 months, or the Annual General Meeting, shall be considered inactive societies.

(e) If the General Body decides to deem such societies as inactive, those societies shall not be eligible to attend the subsequent General Meeting or vote on any resolution. However, the concerned Village Rehabilitation Society or Women's Rural Development Society shall have the right to vote in the resolution to be taken by the General Body regarding their status.

6.2 Membership Subscription

All societies joining the Federation as members must pay a membership fee of Rs. 1000.00. This amount shall be paid in full by the end of March each year. Member societies that do not pay this membership fee shall be considered ineligible to participate in the General Body.

6.3 Membership Register

The Federation Secretary shall maintain a membership register containing the following details of all admitted member societies:

1. Name of the member society
2. Registration number of the member society
3. Membership number of the member society
4. Date of admission to membership
5. Date of removal or resignation from membership

6.4 Member Duties and Rights

No society whose membership is not accepted shall have any right to member privileges or powers. Societies that do not pay the full membership subscription fee shall not have the right to attend the general meeting or vote. Village Rehabilitation Societies and Women's Rural Development Societies must elect their representative to the Federation from among their Executive Committee. It is the responsibility of the Village Rehabilitation Society or Women's Rural Development Society to provide the elected representative with an authorization certified by the President and Secretary to participate in the Federation's general meetings.

The representation of the Federation representative ceases when they lose their membership in their society's Executive Committee. However, if the concerned Village Rehabilitation Society or Women's Rural Development Society desires, a person who served as a member of the Federation's Board of Directors may be permitted to continue serving as a member of the Board of Directors until the end of the Board's term.

Liability

If any loss occurs to the Federation, it shall be apportioned according to the number of member societies.

Termination of Membership

Membership of a member society shall terminate due to one or more of the following reasons:

1. The member society becoming non-functional.
2. The member society being expelled from Federation membership.
3. The member society's registration being canceled.

Expulsion from Membership

A member society causing disruption to the functioning of the Federation may be expelled from membership with the approval of the General Body. However, the following procedure must be followed:

The Board of Directors must request in writing from the society proposed for expulsion to state, within 14 days, any reasons why it should not be expelled. If the reasons provided are not acceptable, the matter shall be submitted by the Board of Directors to the General Body for a final decision. This resolution shall be valid only if more than half of the members present at a valid General Body meeting vote in favor. When the matter of expulsion is submitted to the General Body, the concerned society has the right to express its views and participate in the voting through its representative.

7. General Body

The President, along with two members elected by the Executive Committee from each society, may participate in meetings conducted by the General Body. The names of participants must be communicated in writing through the member society to the Federation and the Rural Development Officer at least 04 days prior to the meeting date. A maximum of three persons from each member society may participate in the General Body meeting.

8. Board of Directors

At the General Body comprising representatives of member societies, a Board of Directors shall be elected for a term of two years, consisting of not less than 11 representatives and not exceeding 15 members, including the President, Vice President, Secretary, Assistant Secretary, and Treasurer, proportionate to the number of represented societies. This Board shall meet monthly to deliberate on necessary development activities of the Federation.

9. Federation Meetings

(a) Federation General Meetings

Federation general meetings shall be held at least once every two months. The Secretary shall notify all representatives of member societies at least 07 days prior to the meeting date to attend the meeting. This notification shall be given in writing. Notification for the election of the Board of Directors shall be ensured to be given 14 days in advance (including the Rural Development Officer and Grama Niladhari Officer).

(b) Annual General Meeting

After the completion of two years from the formation of the Federation, a General Body meeting shall be conducted within the subsequent three months to elect a new Board of Directors. If the General Body meeting is not convened within such 03 months, the General Body meeting shall be convened under the discretionary authority of the Divisional Secretary, District Rural Development Officer, and Rural Development Officer to safeguard the interests of the Federation and member societies.

Nominations shall be received 10 days prior to this meeting, and the nominations along with the agenda shall be made available to members 07 days in advance. Opportunity shall be given to the Divisional Secretary and Rural Development Officer to attend these meetings, express views, and provide advice.

Matters taken up for consideration at a valid General Body shall be implemented with the consent of more than 51% of those present.

(c) Board of Directors Meetings

The Board of Directors shall be convened whenever necessary, or at least once a month. The Federation Secretary shall notify all Board of Directors members about the convening of the Board meeting at least 07 days prior through individual written notice.

(d) Special General Meetings

Special general meetings shall be convened by the Secretary upon a decision of the Board of Directors, a request by the President, a written request signed by more than 25% of member societies, or upon a written notice sent by the Divisional Secretary, District Rural Development Officer, or Rural Development Officer of the area. The Secretary shall notify members about the meeting at least five days in advance through written notices or individual notices.

(e) Special Board of Directors Meetings

A special Board of Directors meeting shall be convened by the Secretary upon a written request from the President or upon written notices from the Divisional Secretary, District Rural Development Officer, or Rural Development Officer of the area. The Secretary shall give notice about the meeting at least five days in advance.

(f) Quorum

(a) 51% of members must be present at the Federation's General Body meetings, Special General Body meetings, and Annual General Meetings.
(b) For Board of Directors meetings, more than 1/2 of the Executive Committee members must be present.

10. Office Bearers

(a) The following office bearers shall be elected at the inaugural meeting or the Annual General Meeting:

1. President
2. Vice President
3. Secretary
4. Assistant Secretary
5. Treasurer
6. 06 – 10 Board Members

The above office bearers shall be elected unanimously or by vote.

Federation Board of Directors

1. The Board of Directors shall be elected ensuring representation from all divisions of the jurisdiction.
2. From each Village Rehabilitation Society or Women's Rural Development Society, the President or Secretary, along with another member holding membership in their Executive Committee, shall be sent to serve on the Board of Directors.
3. Ensure that women members (51%) have majority representation in the Board of Directors.
4. An Executive Committee member who fails to attend Federation Board of Directors meetings three times without valid reason shall automatically lose their position.
5. The Board of Directors is authorized to fill vacancies with the prior approval of the General Body.

(a) Auditor

An Auditor shall be selected and appointed by the Federation to examine and certify the income and expenditure account submitted to the Annual General Meeting. A person who is a member of the Board of Directors shall not be selected as Auditor.

(b) Patron

Persons suitable according to the wishes of the Federation's member societies shall be selected as Patron to perform duties such as maintaining peace and unity among member societies, providing advice and guidance for the Federation's progress, and bringing any chaos in the Federation under control.

(c) Advisor

1. The Rural Development Officer of the area shall be the ex-officio Advisor to the Federation.
2. He/she shall have full authority to examine the Federation's documents and all activities.

(d) Main Duties of Office Bearers

1. President: To preside over and conduct meetings and to lead the development activities of the area.

2. Vice President: To assist the President and to perform the President's duties in his/her absence.

3. Secretary: To properly and systematically maintain the following records of the Federation:

• Register containing names of member societies including registration numbers.
• List and index of member societies' names.
• Minutes book of General Body meetings.
• Minutes book of Board of Directors meetings.
• Correspondence register related to General Body and Board of Directors meetings.
• Stock register.
• Incident register.
• Other files, documents, and property register.
• Ledgers of the Federation and signatures of the Federation President, Secretary, Treasurer.
• Systematically maintaining activity reports, progress reports prepared by the Federation, and reports from societies, and implementing resolutions.
• Safekeeping the Federation's registration certificate, etc.

(b) To submit the Federation's progress reports to the General Body members and Rural Development Officers once a month.

(c) To submit the Federation's records, documents, etc., to the Rural Development Officer, District Rural Development Officer, and Divisional Secretary when they inspect.

(d) To submit the minutes of the Annual General Body meeting along with a copy of the income and expenditure account approved by the General Body to the District Rural Development Officer and Divisional Secretary through the Rural Development Officer within one week of the meeting.

(e) If the Secretary resigns, informing the Board of Directors and the Rural Development Officer in writing of the reason, and after a new Secretary is elected with the approval of the General Body, handing over all documents.

4. Assistant Secretary: To assist the Secretary and to perform the Secretary's duties jointly with him/her.

5. Treasurer: To safeguard the Federation's funds and be responsible for transactions. To properly and securely maintain the registers, bank book, vouchers, etc., pertaining to the Treasurer. Furthermore, it is the Treasurer's responsibility to systematically record all financial activities of the Federation, prepare the income and expenditure account once every three months, submit it to the Auditor and Rural Development Officer for scrutiny, and confirm its correctness.

If the Treasurer resigns, informing the Executive Committee and the Rural Development Officer in writing with two weeks' notice, and after handing over the funds and all documents in his/her possession to the newly elected Treasurer, the resignation shall be accepted by the Board of Directors.

6. Board of Directors Members: Executive Committee members shall assist the Federation in undertaking development activities in the jurisdictions of the societies they represent. They shall also promptly inform the office bearers of development activities in their respective divisions.

If a Board of Directors member resigns, they must submit a written resignation acceptance from the President and Secretary of the society they represent to the Board of Directors and the Rural Development Officer. Furthermore, another person shall be nominated from that specific member society and obtain approval from the General Body.

11. Board of Trustees

The President, Secretary, and Treasurer of the Federation are the members of the Board of Trustees. It is the duty of the Board of Trustees to be responsible for the Federation's properties, funds, etc., and to administer them properly.

All properties belonging to the Federation shall be under the protection of the Board of Trustees. Properties given to the Federation by Government, Provincial institutions, programs, or the Department of Rural Development, or provided at the request of the Director of Rural Development, shall not be sold, alienated, or removed without the permission of the Director of Rural Development.

The Board of Trustees may sign agreements and other transaction-related documents on behalf of the Federation. If the Federation's registration is canceled due to fraud in transactions, all documents, equipment, properties, etc., held by the Board of Trustees will be taken over by the Department of Rural Development.

If any member of the Board of Trustees other than the Treasurer resigns, is removed, or dies while in office, the Board of Directors shall temporarily elect a suitable person to fill the vacancy, and subsequently obtain ratification at the next General Body meeting. However, if a vacancy occurs for the Treasurer, a Special General Body meeting must be convened within one week to definitely elect a Treasurer. If this vacancy is not filled, the remaining members shall all act as Trustees. If any fraud related to the Federation's properties is discovered, the Trustees shall be held liable.

12. Finances

The Federation's finances shall consist of annual subscriptions from member societies, donations, and surpluses from contracts undertaken and completed directly in rural development.

1. Financial Assistance (Donations, Government, NGO aid)

(a) Donations and Government, NGO aid: If assistance is received in cash or kind to carry out some work under an aid project, an income and expenditure account shall be prepared upon completion of that work. It must be accepted by the General Body. After certification by the Rural Development Officer, this income and expenditure account shall be submitted through the Divisional Secretary to the District Rural Development Officer.

(b) Progress reports related to financial assistance projects received through Government and NGO aid schemes shall be sent periodically through the Rural Development Officer and District Rural Development Officer to the Department.

2. Special Funds

With the permission of the Director of Rural Development, necessary funds for special purposes may be collected from member societies in necessary circumstances. If such special funds are collected, the relevant income and expenditure account shall be prepared each year and submitted through the Rural Development Officer to the District Rural Development Officer.

3. Financial Management

All Divisional Federations of Rural Development Societies must have a savings account in a bank. A savings account may be opened in a government bank for this purpose. The Treasurer may retain a maximum of Rs. 1500.00 from the Federation's funds for urgent expenses. It is essential to deposit all funds exceeding this amount in the bank. When withdrawing money from the bank, on behalf of the Federation, along with the Treasurer, the President or Secretary shall sign, and for government purposes, the Divisional Secretary and the Rural Development Officer shall also sign. The signature card of the Rural Development Officer shall be certified by the District Rural Development Officer, and the signature card of the Divisional Secretary shall be certified by the District Secretary and sent to the banks.

In circumstances where the Divisional Secretary or Rural Development Officer is continuously absent from the Divisional Secretariat for a long period due to leave, or refuses to sign payment/receipt transactions for personal reasons, if the matter is brought to the attention of the District Rural Development Officer by the concerned Federation, the District Rural Development Officer may report to the District Secretary and, subject to the decision given by him/her, sign for withdrawing money from the bank. If such situations arise, the District Rural Development Officer shall submit a report to the Department.

If donations are to be given from the funds of the Rural Development Society, amounts up to Rs. 500.00 may be given with the permission of the Rural Development Officer. Amounts exceeding Rs. 500.00 up to Rs. 1000.00 with the permission of the District Rural Development Officer, and amounts exceeding Rs. 1000.00 must obtain permission from the Director of Rural Development.

1. Financial Year

The financial year of the Federation shall be the period commencing from January 1st to December 31st. At the end of each financial year, all income and expenditure accounts shall be audited, and the audit report must be submitted to the Department within the subsequent one-month period.

2. Contract Work

Rural Development Federations may engage in contract work. If undertaking work for a Government Department/Corporation on contract, they must act in accordance with circulars and instructions issued periodically by the Central and Provincial Governments. Only after the income and expenditure accounts pertaining to the specific contract work are maintained and submitted to the Rural Development Officer for scrutiny, shall the Rural Development Officer and Divisional Secretary authorize the encashment of the cheque for the contract work payment. 5% of the approved estimated amount of the contract work shall be allocated for the Federation's administrative expenses. It is essential to deposit this in the savings account.

Regarding contract works, efforts shall be made to implement the contract works in the respective villages through the Village Rehabilitation Societies and Women's Rural Development Societies located in those villages. If it is informed in writing to the Federation that the area societies are unable to implement them, the Federation may undertake and do those works. Subcontracting contract works to subcontractors is completely prohibited for any reason. Therefore, the societies or the Federation undertaking the specific contract work must complete that work satisfactorily.

3. Subcommittees

To facilitate the achievement of its objectives and to effectively implement, make arrangements for, and monitor the projects implemented by member societies, subcommittees comprising five persons may be formed by the Board of Directors.

4. Amendment of By-laws

This by-law issued by the Department shall not be amended. Certain decisions consistent with the by-law may be taken with the approval of the General Body and implemented with the permission of the Director.

The Divisional Secretary, Rural Development Officer, District Rural Development Officer, District Secretary, and Assistant Director of Rural Development have the authority to advise on matters necessary for the Federation's progress and on matters contrary to the rights or wishes of members.

This by-law shall remain in force until the Federation is registered.

We confirm that the above by-law was adopted at the General Body meeting held on ………………………..

Chapter Two

1. Registration of Federation

After a Federation is formed, a completed application for its registration shall be submitted with relevant documents to the Rural Development Officer. The Federation must function continuously and effectively for 6 months, which the Rural Development Officer must be satisfied with. The following documents shall be submitted for registration:

1. Application form for registration of the Federation of Rural Development Societies – 3 copies
2. Table containing name, member names, and signatures of member societies – 3 copies
3. Inaugural meeting reports – 3 copies
4. Names and addresses of Board members (including Executive Committee members) of the Federation – 3 copies
5. An amount equivalent to 51% or a sufficient number of member societies' numbers to ensure the payment of the registration fee, along with the recommendation of the Divisional Secretary, and a document certified by the District Rural Development Officer confirming more than 51% membership – 3 copies
6. A map showing the Federation's area of authority (must be certified by the Rural Development Officer) – 3 copies
7. A copy of this by-law containing the names and signatures of Board members – 3 copies

2. Refusal of Registration

Even if the application for registration and all relevant documents have been submitted, if the progress or activities of the Federation are found unsatisfactory, the Rural Development Officer has the authority to abandon it without registration. If the Rural Development Officer refuses to register the said Federation, all properties of that society shall vest in the Department of Rural Development. A person shall be appointed by the Rural Development Officer to take custody of such properties.

3. Cancellation of Registration of Federation

The Rural Development Officer has the authority to cancel the registration of a Federation of Rural Development Societies for one or more of the following reasons:

1. Failure to hold the Annual General Meeting as per the by-law and elect a new Executive Committee.
2. Inability to convene annual meetings of member societies and collect due fees from individual members, leading to the lapse of memberships.
3. Proof of acting against the policies of the government in power, based on a prima facie decision after inquiry.
4. Proven non-compliance with the legal directives of the Director of Rural Development, District Rural Development Officer, District Secretary, or Rural Development Officer.
5. Failure to make arrangements necessary for improving the economy, society, and morality of the people residing in the area under the Federation's authority, and failure to implement such arrangements.
6. Non-adherence to the by-law adopted by the Federation.
7. Failure to act according to instructions issued by the Director of Rural Development regarding assistance provided through the Department of Rural Development or other organizations, and upon proof of any irregularities.

Sample Application Form for Registration

1. District: -
2. Divisional Secretary Division: -
3. Name of Federation: -
4. Number of societies registered in the Divisional Secretary's division:
   a. Village Rehabilitation Societies: -
   b. Women's Rural Development Societies: -
5. Number of societies that have obtained membership in the Federation:
   a. Village Rehabilitation Societies: -
   b. Women's Rural Development Societies: -
6. Number of members: -
7. Date of General Meeting held to form the Federation: -
8. a. Name of President: -
   Address: -
   b. Name of Secretary: -
   Address: -
   c. Name of Treasurer: -
   Address: -
9. Assets of the Society:
   a. Cash in hand with Treasurer: -
   b. Balance in bank: -
   c. Value of land, buildings: -
   d. Value of furniture: -

President
Treasurer

Form - 2

Information Form for Registration of Divisional Federation of Rural Development Societies

(This form shall be filled by the Rural Development Officer)

1. District: -
2. Divisional Secretary Division: -
3. Name of Federation seeking registration: -
4. Office address of Federation: -
5. Reasons motivating the formation of the Divisional Federation of Rural Development Societies:
   ………………………………………………………………………………………………
   ………………………………………………………………………………………………
6. Expected benefits by the Village Rehabilitation Societies through forming the Federation:
   ………………………………………………………………………………………………
7. Your field inspection results and recommendations for forming the Federation:
   ………………………………………………………………………………………………
8. What are your views on the representation and people's participation in rural development in the Federation's jurisdiction?
   ………………………………………………………………………………………………
9. What types of activities are undertaken by the society?
   ………………………………………………………………………………………………
10. Have the documents submitted for registering the Federation been scrutinized by you?
11. Do you recommend registering the Federation based on the scrutinized documents?
12. Declaration of the Rural Development Officer:
    I certify that the proper application and all documents submitted by the Federation of Rural Development Societies for registration have been carefully scrutinized by me, and all the above information has been correctly provided according to my direct observation.

Rural Development Officer
(Official seal and date)

13. Declaration of the District Rural Development Officer:
    Having scrutinized the documents sent by the Rural Development Officer regarding the registration of the above-mentioned Divisional Federation of Rural Development Societies, I find them satisfactory and correct and recommend registration.

District Rural Development Officer
(Official seal and date)

14. For Official Use Only
    The Federation of Rural Development Societies is permitted to be registered under No. ………………….. from date …………………..

Director, Department of Rural Development, Northern Province.
(Official seal and date)