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Multi State Cooperative Society License
Multi State
Cooperative Society
License
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ABOUT
• An Act to consolidate and amend the law
relating to 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 and to
provide functional autonomy ,was being felt
necessary by the various cooperative
societies, and federation of various
cooperative societies as well as by the
Government
Types of a Multi-State Co-
operative Society
Credit co-operative society.
Housing co-operative
society.
Agriculture co-operative
society.
Marketing co-operative
society.
Characteristics of Multi-State Co-
operative Society Registration
• Open Membership
• Co-operative Society Membership is open to all those who have a common interest. Minimum 10
members are required to form a Society. Maximum number of members is not specified under
Co-operative Societies Act. However member may specify the maximum number of members
after the formation of the Society.
• State control
• Co-operative Societies are placed under state control for Registration to protect the interest of
the members. Society has to submit the details of the members while getting registered. Books of
accounts are required to be maintained which are required to be audited by Government
Auditors.
• Democratic management
• Co-operative Societies are managed by a group known as "Board of Directors". Board of
Directors are the elected representatives of the Society. Irrespective of the number of shares
held, each member has a single vote.
• Voluntary association
• Members can voluntarily join Co-operative Society. A member can leave the Society at will.
• Service motive
• Like other forms of business organization, Co-operatives are not formed to maximise profit. Its
main objective is to provide service to its members.
• Separate legal entity
• After Registration under Co-operative Societies Act, a Co-operative Society becomes a separate
legal entity, with limited liability of its members. Death, insolvency or lunacy of a member will not
affect the existence of a Society. The members can enter into Agreements with others and can
purchase or sell properties under its own name.
• Distribution of surplus
• Co-operative Society also generates some profit while conducting business in addition to
providing services to its members. Profits are not earned at the cost of its members. Unlike
Companies, profit generated is not distributed to its members on the basis of the shares held by
them but on the basis of their participation in the business.
• Self-help through mutual cooperation
• The main principle of Co-operative Societies is mutual help. They are formed for the financially
weaker sections of Society. By adopting the principle of self-help through mutual co-operation,
Co-operative Societies convert the weakness of members into strength.
Multi-State Cooperative Society a body
corporate
• Section 9 lays down that registration of Multi-State Cooperative Society
render it a body corporate which shall be/have-
Documents required for Co-operative
Society registration
• Form A must be accompanied with
statement A in addition to Registration
Application in quadruplicate and must be
signed by 90% of the Promoter members.
• List of Promoter members.
• Bank Certificate.
• A detailed explanation of working of the
Society.
• 4 copies of proposed bye-laws of the
Society.
• Proof of payment of Registration charges.
• Other documents such as Affidavits,
Indemnity Bonds, any documents specified
by Registrar are also required to be
submitted.
• Registrar will enter the particulars in
register of Application maintained in Form
“B”, give serial number and issue receipt in
acknowledgment of the same.
• On Registration, Registrar will notify the
Registration of the Society in the Official
Gazette and issue Registration Certificate.
Required additional documents
• No objection Certificate from the
Registrar of Cooperative
Societies of the States/U.T.
where the area of operation of
the society is proposed to be
confined.
• A certificate to the effect that the
credentials of the Chief
Promoter/Promoters have been
verified by the Registrar of Co-
operative Societies of the state
where the head office is
proposed to be located.
Register a Multi State Credit
Co-operative Society
• Model Bye-Laws (four copies).
• Intensive inquiry letters for NOC.
• List of Promoter members.
• Min 7 board members and maximum 21
board members.
• Minimum 50 members from each state at
least two states.
• Copy of pre-registration meetings
resolution (about board, Capital, members,
operations, i.e.).
• Proposed name of your multi-state cooperative society.
• Head office address to be registered.
• A certificate from the Bank stating the credit balance in
favor of the proposed multi-state credit co-operative
society.
• A detailed plan that how credit co-operative
society will be beneficial for the social and economic
betterment of its members and community as a whole.
Fund in a Multi-State Credit
Co-operative Society
• A Multi-sate co-operative society can accept
deposits not more than the ten times of the
paid up share capital and net reserves in a
financial year.
• A multi-State co-operative society can issue
non-convertible debentures to the extent of
twenty-five per cent of its paid-up share
capital.
• A raise fund thru allotment of equity shares.
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Annual Compliance
NOTICE
RESOLUTION
MINUTES BOOK
QUORUMS
BALANCE SHEET
ELECTION
MSCS WEBSITE
THANK YOU
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