The Co-Operative Movement Advanced Rapidly Till 1931 In Bihar. a Committee Under the Chairmanship of Mr. Lyall Was Set Up In 1932. the Committee Took an Optimistic View of the Cooperative Movement. In 1920-21 the Number of Co-Operative Societies Was 2,603 and That of Members Was 89,339 and Working Capital Amounted to Rs. 2,20,89 Lakhs. the Government Desired to Strengthen the Co-Operative Movement In Bihar By Legislation and the Aforesaid Bihar and Orissa Ct. Vi of 1935 Was Enacted. the Registrar Was Empowered to the Bye-Laws of a Registered Co-Operative Society. He Was Also Organization of Management of a Co-Operative Society, or any Past or Present Officer of a Society. Section 40 of the Bihar and Orissa Co-Operative Societies Act of 1935 Laid Down That Registrar of Co-Operative Societies Could Pass Order Requiring Such Person or Officer to Contribute to the Assets of the Society For Having Made any Payment, Which Was Contrary to Law or Rules or Byelaws of the Society Due to His Culpable Negligence or Misconduct, For Having Failed to Bring into Account and Having Misappropriated or Fraudulently Retained any Property of the Society.