First of all you will have to introduce your students to the world of books. Make them realise how important books are in understanding the world around them. Tell them how books affect their personality and help them to elevate their skills.
Conduct an in-house survey and try to find out what kind of books your students want to read. This is very important to persuade them for the literature club otherwise they won’t be able to develop interest. Do not try to impose your likes and dislikes as they will not be able to help themselves.
Explain the rules of the game. Tell them that they will be reading these books individually and then arrange a group discussion to share their views on these pieces of literature.
The best way to regulate them is to formulate a governing body of this literature club. Assign responsibilities to all of them for example there must be someone to lead the discussion, someone providing new topics of discussion, few students to read these pieces of literature for others etc.
Give everyone a chance to lead the club otherwise they may fall prey to jealousy or clashes of interests. Tell them it is just a temporary thing so they should follow the instructions and cooperate with the moderator to maintain some discipline.
You may help them in making a reading schedule. Do notify every member about the programme and direct them to come fully prepared. You can make a list of books and relevant dates to ease their burden.
Encourage them to present their thoughts in written form as it will entice them to express their views creatively. Provide them forms or notebooks to write down everything during the reading practice and ask them to share with the group.
Be consistent in scheduling the meetings otherwise your students will lose interest in your literature circle.