Section 11: Power of society to make bye-laws.

(1) A registered society may make bye-laws for such things as are necessary or desirable for the purpose for which the society is established and the bye-laws of the society shall be presented with its application for registration as required under section 4 of this Act.
(2) Without prejudice to the generality of subsection (1) of this section, a registered society shall make bye-laws in respect of the following matters, that is-
(a) the name and registered address of the society;
(b) the objects for which the society is established;
(c) the area of its operation;
(d) the qualifications for membership, the terms of admission of members, the admission fees, if any, and the mode of election;
(e) the purposes to which its funds may be applied and the mode of custody and investment of its funds;
(f) the nature and extent of the liability of members;
(g) the withdrawal and expulsion of members and the payment, if any, to be made to those members;
(h) the transfer of shares or interests of members;
(i) the manner of raising the share capital, if any, and other funds;
(j) the general meetings, and the procedure for and power of those meetings;
(k) the appointment, suspension and removal of members of any committee appointed by the society and the powers and duties of the committee;
(l) the authorisation of an officer to sign documents and to use the seal on behalf of the society; and
(m) the disposal of annual surplus.
(3) If the objects of the registered society include the creation of funds to be lent to the members, additional bye-laws shall be made in respect of conditions on which loans may be granted to members, including-
(a) the rate of interests;
(b) the maximum amount which may be lent to a member;
(c) the maximum period which can be granted for the repayment of a loan;
(d) the extension of the term for repayment of loans;
(e) the purpose for which a loan can be granted; and
(f) the consequences of default in payment or repayment of any sum due on account of shares or loans and the consequences of failure to use a loan for the purpose for which it is granted.
(4) A bye-law made under this section may empower a registered society to impose a fine upon a member of the society for breach of a bye-law, and the fine shall be recoverable by the society as a civil debt due to the society.