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Multi State Co-Operative Society - A Complete Consultancy, Guideline And Help For Registration:
Multi State Co-Operative Society
Since ‘Cooperative Societies’ is a State Subject (Entry 32 of List II of Seventh Schedule to Constitution, i.e. State List), the cooperative societies formed under State Acts have to restrict their activities to only one State. This hinders growth of cooperative societies. Hence, Multi State Cooperative Societies Act was passed in 1942. It was later replaced by 1984 Act. This 1984 Act is now being replaced by 2002 Act. The 2002 Act has already been passed but has not yet been made effective. The 2002 Act makes special provision for registration and functions of Federal Cooperative Societies.
Object of the Act – As per preamble to the Act, the Act is consolidate and amend the law relating to cooperative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of cooperatives as people’s institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide financial autonomy and for matters connected therewith and incidental thereto.
Multi-State Cooperative Society can be formed under Multi State Cooperative Societies Act. Multi-State Cooperative Societies Act, 2002 has received President’s assent. The Act will supersede 1984 Act when brought into force. Under the Act, there will be a Central Registrar overseeing and regulating multi-state cooperative societies. Under the Act, a quasi-judicial authority titled the Cooperative Disputes Settlement Authority will be set up to replace existing system of such settlement by Central Registrar. This is intended to ensure quicker and more judicious settlement of disputes.
The Act applies to all cooperative societies with objects not confined to one State. It includes societies which were incorporated under Cooperative Societies Act 1912 & earlier Muti-Cooperative Societies formed under 1942 or 1984 Act.
Which society can be registered - No multi-state cooperative society can be registered under the Act unless - (a) its main objects are to serve interests of members in more than one State and (b) Its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles. [section 5(1)]. The word ‘limited’ or its equivalent in any Indian language shall be affixed to the name of every multi-State cooperative society registered under the Act with limited liability. [section 5(2)].
Cooperative Principles - Cooperatives work on basic concept of ‘mutual assistance’ and ‘one man one vote’. - - The bye-laws of multi-state cooperative society should provide for cooperative principles, as given in First Schedule to the Act.
Society is a body corporate - Every multi-state cooperative society is a body corporate with name under which it is registered. It will have common seal and perpetual succession. It can acquire and dispose of property (movable as well as immovable), enter into contracts, institute and defend suits by the name it which it is registered. [section 9(1)].
Federal Cooperative - ‘Federal Cooperative’ means a federation of cooperative societies registered under this Act and whose membership is available only to a cooperative society or a multi-state cooperative society. [section 3(k)].