Credit Co-operative Society

Requirements For Forming a State Co-Operative Society

State Co-operative Society

A state Co-operative Society is defined as an association of persons who united voluntarily to meet their common economic needs and aspirations as specified from time to time depends upon the nature of society, through a jointly owned and democratically legal identity registered under the Co-operative Societies Act.

What are the Kinds of Societies in India?

  1. Credit Co-operative Societies.
  2. Consumer Co-operative Societies
  3. Urban Co-operative Societies
  4. Marketing Co-operative Societies
  5. Industrial Co-operative Societies
  6. Labour Co-operative Societies
  7. Transport Co-operative Societies
  8. Security Services Co-operative Societies
  9. Group Housing Societies
  10. Co-operative Societies formed by professionals in the areas of Art, Education, Insurance etc.

What Are the Requirements For Forming a Co-Operative Society?

  1. A minimum number of members required depending upon nature of the Societies.
  2. Minimum Share Capital required depends upon nature of the Societies.
  3. The object of the society must be the promotion of the economic interest of its members in accordance with the principals of Co-operative Society.
  4. A society which is proposed to be registered must be economically capable of being run by own.
  5. Proposed society must not have any adverse effect on Co-operative movement.
  6. Subscription of the minimum amount in the form of capital is required for prospective members depend upon the nature of society and as per bye-laws.

What are the Documents Required for Registration?

  1. Proposed name of co-operative society.
  2. Names, Address, Profession, the Monthly income of promoter members.
  3. A Bank certificate to the effect that from the share capital raised by the promoters has been deposited in a suspense account in the name of the proposed cooperative society
  4. Proposed bye-laws of the co-operative society which must be duly signed by each of the promoter members (4 copies is required)
  5. An affidavit of the chief promoter for proposal for approval of the Registrar on the prescribed form
  6. Promoter members list who have subscribed capital together with the amount contributed by them
  7. A declaration of each of the member that he is not a family member of any other promoter
  8. Proposed Co-operative society scheme including working which reflects economical soundness of the proposed co-operative society
  9. A statement of each member reflecting his financial position
  10. A Residence proof of members in the area of operation of State Co-operative Society.
  11. A Certified copy of the resolution of the members adopting the bylaws and authorizing officer who can make modification in proposed bye-laws, if suggested by Registrar in process of co-operative society registration and member’s resolution will also specify the name and address of the person for any correspondence in process of registration and deliver Incorporation Certificate.
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What will be the Procedure of Registration?

Persons who want to register a State Co-operative Society will make an application to the Registrar of the area on a prescribed preformed i.e. Form I

Along with the form type of the society they want to register, proposed bylaws of that society, number of members, chief promoters name and address.

The application must be signed by not less than 10 persons or by a number of members depends upon nature of the Societies.

If Registrar is satisfied will register Co-operative Society and issue Certificate of Incorporation

Where registrar refuses then from the date of receipt of an application for co-operative society registration within a period of the one-month registrar is required to communicate for refusal with valid reasons for such refusal

The application shall be deemed to have been accepted for co-operative society registration if the application for registration is not disposed of in a manner prescribed within a period of one month.

Procedure for Alteration in bylaws

Approval of General Body Meeting with the 2/3rd majority of its members are required

Within two months of the General Body Meeting below mentioned documents are required to submit to the department

  1. A copy of the minutes of the General Body Meeting
  2. Four copies of existing and proposed bye-laws
  3. Justification/Reason for modification
  4. A certificate from the Secretary, president of the society which reflects that provision of State Co-operative Society Act and Rules complied with.

Zonal Assistance Registrars of various zones will receive and will examine the same then on merits of that proposal it will be approved or rejected.

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In case of rejection, Specific reason will be given for not approving the alteration in proposed bylaws

Further, an appeal may lie with the Cooperative Tribunal.

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