About:
A co-operative society is an independent association of persons formed voluntarily in order to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.
For example – co-operative society formed by Weavers, Farmers, Tribal these are urban and rural societies that provide loans to its member at a low rate of interest, protecting its members from massive debts.
A co-operative society must be formed under the Co-operative Societies Act, 1912 or under the relevant state co-operative society’s law. A Co-operative society can be formed by at least 10 adult members.
The members who are willing to form a society must have a common bond among them. They may be the residents of the same locality, employees of some organization, belonging to some group, etc. The basic idea is that all the persons intending to form a society should have some common goal to achieve.
But, No society shall be registered if in the opinion of the Registrar, its objective is unlikely to be achieved or if it is likely to be economically unsound or if it may have an adverse effect upon any registered society or the co-operative movement as a whole.
A Co-operative society formed by the division of existing registered society or amalgamation of existing two or more societies which may be registered under this Act with or without any initial liability of its members.
The application for forming a society must have the following information:-
- Name and Address of society
- Aims and objective of the society
- Name and addresses of members of the society
- Share capital and its division
- Mode of admitting new members to the society
The required documents are filed with the Registrar* of Societies.
The State Government may appoint a person to be a Registrar of Co-operative Societies for the registration supervision, assistance, counsel, and control of registered societies and for the development of the co-operative movement and control over all co-operative education and with such other powers and responsibilities as may be provided under the Act or rules of co-operative Societies Act 1912.
The Registrar scrutinizes the documents and if documents are as per requirements then the name of the society is entered in the register.
A certificate of registration is also issued to the society.
The society will become a corporate body from the date on which certificate of registration is issued.
All disputes regarding membership for the purpose of the formation, registration, or continuance of a society under this Act shall be decided by the Registrar.
