Multi- State Cooperative Society registration and regulation in India
In this article, we will discuss Step by Step Analysis of Multi- State Cooperative Society registration and regulation in India.
The Multi-state Cooperative Societies Act, 2002 facilitates the incorporation of cooperative societies. The main object and functions of Multi-State Cooperative Society is to spread over to several states. The Act provides for formation of both the types of Cooperative Societies i.e.
• Primary (with both individual and institutional members) and
• Federal cooperatives (with only institutional membership).
Rules regarding Multi-State Cooperative Society registration:
The application for the registration of a multi-state cooperative society, in which all the members are individuals, should be signed by at least fifty persons from each of the states concerned.
In the case of a society of which the members are cooperative societies, it should be signed by duly authorized representations of at least five such societies registered in different states.
The main objects of the Society should be to serve the interests of its members in more than one state.
And the Bye-laws of the Society should provide for social and economic betterment of their members through self-help and mutual aid in accordance with co-operative principles. And if they do not provide for such object they shall be ineligible for registration.
A multi-state co-operative society is a body corporate with limited liability.
In order to ensure financial discipline, extensive provisions have been enacted. No part of the fund other than net profit shall be distributed among members.
Multi-State Cooperative Society can make investment in recognized securities.
In case of Multi-Cooperative Society contribution to political parties or loans to non-members or borrowing from external sources are prohibited.
Annual auditing by recognized auditors is mandatory. In some cases Central Government may direct for special audit if they are of the opinion that the society’s affairs are not being conducted/managed in accordance with the co-operative principles or prudent commercial practices.
Objects of Multi-State Cooperative Society:
Anybody to be registered as Multi-state cooperative societies should have the following objects:
(1) No multi-state cooperative society shall be registered under this Act, unless:
(a) Its main objects are to serve the interests of members in more than one state;
(b) The bye-laws of the Society should provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles.
Procedure for Registration of multi state credit co-operative society registration:
(1) For registering any multi-state cooperative society under this Act, an application shall be made to the Central Registrar.
(2) The application shall be signed by:
(a) In the case where all the members are individuals - by at least fifty persons from each of the state concerned;
(b) In the case where all the members are cooperative societies - by duly authorised representatives on behalf of at least five such societies as are not registered in the same state; and
(c) In case where all the members are another multi-state cooperative society and other cooperative societies - by duly authorised representatives of each of such societies but atleast 2 members i.e. the cooperative societies referred to in this clause among them shall be such as are not registered in the same state;
(d) In the case where all the members are cooperative societies or multi-state cooperative societies and individuals - by at least (i) fifty persons and such persons shall be individuals and they should be from each of the two states or more; and (ii) one cooperative society each from two states or more or one multi-state cooperative society.
(3) The application for registration should be accompanied by four copies of the proposed bye-laws of the multi-state cooperative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require. If the Central Registrar is satisfied
(a) That the application for registration complies with the provisions of this Act and the rules;
(b) That the proposed multi-state cooperative society for which the application of registration has been filed satisfies the basic criterion that its objects are to serve the interests of members in more than one state;
(c) That its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles;
(d) That the proposed bye-laws are not contradictory to the provision of this Act and the rules, he may register the multi-state cooperative society and its bye-laws.
(4) The application for registration of the Multi- State Cooperative Society shall be disposed of by the Central Registrar within a period of four months from the date of receipt thereof by him.
(5) And in case where the Central Registrar refuses to register a multi-state cooperative society, he shall communicate the same refusal within a period of four month from the date of receipt of the application for registration and the reasons of such refusal should also be given to the applicant or applicants, as the case may be: Provided that no order or refusal shall be made unless the applicants have been given a reasonable opportunity of being heard;
(6) Provided further that if the application for registration is not disposed of within a period of four months and in case the Central Registrar fails to communicate the order of refusal to the applicant within the period prescribed the application shall be deemed to have been accepted for registration and the Central Registrar shall issue the registration certificate in accordance with the rules made thereunder.
(7) Where the Central Registrar is satisfied with the application he shall issue a certificate of registration signed by him, which shall proof to be a conclusive evidence that the society is registered under this Act.
Documents required for the registration of multi-state cooperative society
The list of documents required for registering the Multi-State Cooperative Society is:
• Four copies of the proposed Bye-laws of the multistate cooperative society duly signed by each of the persons who sign the application.
• Name of the proposed multi-state cooperative society.
• Head Quarters and address to be registered.
• a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the admission fee paid by them.
• Area of operation.
• Main objectives
• A certificate from the Bank or banks stating the credit balance in favour of the proposed multistate cooperative society.
• A scheme showing the details explaining how the working of the multi-State co-operative society will be economically sound and the registration of such multi-State co-operative society will be beneficial for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles.
• Certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.
• List of at least 50 members from each state.