In past the Co-Operative Society Registration has experienced many drawbacks in their working and administration still, they have positively contributed to the growth and development of the national economy. Promotion of thrift, self-help and mutual aid are the fundamental principles of co-operative societies.
The main aim/motive in a commercial organization is earning and maximizing the profits; whereas in case of a co-operative organization profit cannot be the sole motive. The prime objectivesof such organization is to make available the goods and services in required quantity, of better quality and at a reasonable price to its members. It does not mean that a Co-operative Society is a charitable organization. It should, therefore, conduct itself in a business-like manner in attaining its objectives efficiently.
CO-OPERATIVE SECTOR which is beautifully blended in between a public sector and the private sector. It has benefits of both the sectors and disadvantages of neither of them.
PRINCIPLES OF CO-OPERATIVE SECTOR:
- LEGAL STATUS: A Co-Operative Society Registration is a body corporate registered under the applicable state Act with perpetual succession having a common seal. It can acquire, hold and dispose of properties, enter into contracts and it can sue and it can be sued.
- VOLUNTARY ASSOCIATION: Co-operative Society is essentially an organization or an association of persons who have come together for the common purpose of economic development or for mutual help.
- OPEN MEMBERSHIP: Any person can apply for the membership of the Society without any discrimination. The membership is open for all.
- SOCIAL APPROACH / NO PROFIT MOTIVE: As the Society is working on democratic principle and the office bearers of the Society will be functioning like a trustees for the better management of the society and there is no separate benefits to the executive committee members. Providing its service is the main motto and the profit making is not the main concern of co-operative societies.
- PERSONAL PARTICIPATION: The shareholders have to personally attend the meeting or for voting. They are not allowed to appoint proxies for attending the general body or for voting in the resolution to be passed.
ACT & RULES APPLICABLE:
A Co-operative Society functions as per the provisions of:
- Co-operative Societies Act under which the same is registered.
- Co-operative Societies rules made there under
- Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar.
- Notification and Orders
TYPES OF SOCIETIES:
A Society is categorized on the basis of its objects. There are various types of societies that can be formed under the act, as per the Maharashtra Co-Operative Societies Act, 1960, following types of societies can be registered:
- Agricultural Marketing Society:“Agricultural marketing Society” means a society
- (a) The object of which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, and
- (b) At least 3/4th of its members are agriculturist or societies formed by agriculturist.
- Consumer Society:”Consumer’s Society “means a society, the object of which is –
- (a) The procurement, production or processing, and distribution of goods to, or the performance of other services for, its members as also other customers, and
- (b) The distribution among its members and customers, in the proportion, prescribed by rules or by the bye-laws of the society, of the profits accruing from such procurement, production or processing, and distribution.
- Co-operative Bank: “Co-operative bank ” can be defined as a society which is doing business of banking as defined in the Banking Companies Act, 1949 and also includes any society which is functioning as an Agriculture and Rural Development Bank.
- Central Bank: “Central Bank “means a co-operative bank, the main objective of which include the creation of funds that is to be loaned to other societies; but does not include the urban co-operative bank.
- Housing Society: “Housing society” means a society, the object of which is to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services.
- Federal Society: “Federal society”, means a society-
- (a)Not less than five members of which are themselves societies, and
- (b) In which the members who are societies do not have less than 4/5th of total number of votes in general meeting of the society.
- Producers Society: “Producers Society” means a society, the main object of its incorporation is production and disposal of goods or the collective disposal of labour of the members thereof.
CONDITIONS OF REGISTRATION:
No society except the federal society can be registered under this Act, unless it consists of at least ten persons or such higher number of persons as the Registrar may, having regard to the objects, economic viability, development determine from time to time for a class of societies.Each of members of the society should be such persons being a member of a different family, and who reside in the area of operation of society.
Every society shall add the word limited or unlimited liability at the end of its name, as the case may be which is registered or deemed to be registered under this Act.
The State Government on its discretion may, by general or special order, exempt any society or class of societies from any of the requirements of registration or any other requirement under this Act subject to such conditions as it may impose.
For the purpose of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by four copies of the proposed bye-laws of the society and such registration fee as may prescribed in this behalf.
PROCEDURE FOR REGISTRATION OF CO-OPERATIVE SOCIETIES:
The procedure for registration of society can be explained as the following steps:
- APPOINTMENT OF CHIEF PROMOTER:
The first step to register a Society is that minimum 10 adult individuals from independent families desiring to form a Society should gather and hold a meeting to:
(a) select a provisional committee and elect a Chief Promoter for formation of a society and;
(b) select a name for such Society with three alternatives and to pass appropriate resolutions in that behalf.
(c) To authorize chief promoter to submit the proposal for registration and to do any other thing to get the society registered.
- NAME RESERVATION:
The second step would be to apply to the registration authority for reservation of name for the society and obtain letter from the RA in that connection. The allotted name shall be reserved for 3 months. The validity of the name can be extended by making an application, this period can be extended for 1 or 2 further terms of 3 months each.
- BANK ACCOUNT AND DEPOSITS:
The third step would be to open a bank account in the name of the proposed Society as per the RA’s directions and deposit therein the entrance fee, share money and the amount recovered for preliminary expenses from the promoters and obtain the certificate from such bank in respect of such deposits.
- REGISTRATION FEE:
The fourth step is to deposit the registration fee with the Reserve Bank of India and to obtain the receipted challan in that behalf.
- REGISTRATION PROPOSAL:
The final step is to prepare and to submit to RA the proposal for registration of the society. The chief promoter should submit the following documents for registration:
- a) Application for registration – Form A: An application for registration of a society should be made in form. The specimen of Form A. The application for registration in quadruplicate should be signed by at least 60% of the promoter’s members and Chief Promoter should attest their signatures;
- b) Proposed bye-laws of the society- 4 copies;
- c) A list of promoter’s members, such as the name age occupation current residential address of the promoter member the cost of share amount etc.
- d) A certificate from the Bank or Banks stating the credit balance therein in favour of the proposed society;
- e) Detailed explanation regarding how the working of the society will be economically sound;
(f) Other documents like affidavit, indemnity bonds, copy of ration cards, public notice in newspaper etc., as may applicable for different types of society as per the notification issued from time to time.
- REGISTRATION PROCEDURE:
On receipt of an application the Registrar shall enter particulars of the application in the register of application to be maintained in Form ‘B’ give a serial number to the application and issue a receipt in acknowledgement thereof.