Multi State Cooperative Societies

In a simple sense, Societies under which several states’ stake is involved known as Multi State Cooperative Societies.

In another words, Co-operative 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 co-operatives as people’s institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment.

Minimum members required –At least 50 persons from each state (Minimum 2 States).

An application for the registration of a multi-state cooperative society should be signed by:

If all the members are individuals – At least fifty persons from each of the states concerned.

  • In the case of a society of which the members are cooperative societies – By duly authorized representations of at least five such societies registered in different states.

A multi-state co-operative society is a body corporate with limited liability.

Documents required for its registration

An application for registration shall be made in Form I and shall be signed by the applicants and be accompanied by:

  • Four copies of the proposed bye-laws of the multi-state cooperative society, duly signed by each of the persons;
  • 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;
  • A certificate from the bank or banks stating the credit balance in favour of the proposed multi-state cooperative society;
  • A scheme  explaining how  society’s  registration will be beneficial for social and economic betterment of its members ;
  • 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.
  • Area of Operation.

Time Limit

The application for registration shall be disposed of by the Central Registrar within a period of four months from the date of receipt thereof by him and shall issue a certificate of registration signed by him, which shall be conclusive evidence.

Compliances

Every multi-state cooperative society shall:

  • Within such period as may be prescribed, and not later than six months after the close of the corresponding year, call the annual general meeting.
  • At each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed.
  • Prepare and keep at the registered office of the multi-state cooperative society:
  1. Register of members commencing from the date of the registration of multi-state cooperative society,
  2. Index of members,
  3. Register of debenture holders,
  4. Copies of all annual returns prepared together with the copies of certificates and documents,
  • At every annual general meeting, the board shall lay before the multi-state cooperative society

Balance-sheet and Profit &Loss Account for that year.

  • Prepare & Keep within thirty days of the conclusion of every such meeting concerned:

Minutes of all proceedings of every general meeting and of all proceedings of every meeting of its board or of every committee of the board,

  • File within six months the following returns with the Central Registrar, namely-
  1. Annual report of the activities
  2. Audited statements of accounts;
  3. Plan for surplus disposal as approved by the general body;
  4. List of amendments to the bye-laws of the multi-state cooperative society;
  5. Declaration regarding date of holding of general body meeting and conduct of elections where due;
  6. Any other information required by the Central Registrar in pursuance of any of the provisions of this Act.

Penalties

A multi-state cooperative society or an officer or member wilfully making a false return or furnishing false information, or disobeying any summons, requisition or lawful written order issued, or wilfully not furnishing any information required from him by a person authorised in this behalf, shall be punishable with fine which shall not be less than Rs. 2000/- (May extend to Rs. 10,000/-).

Restrictions

No multi-state cooperative society shall make a contribution, either in money or in kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party.

A multi-state cooperative society, other than a cooperative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.

A multi-state cooperative society may receive deposits, raise loans and receive grants from external sources as may be specified in the bye-laws:

The transaction of a multi-state cooperative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be specified in the bye-laws.

Registration Fees

A fee to be paid to along with the prescribed forms with the Registrar of Cooperative Society is Rs. 1250/-(General).

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