Multi-State Cooperative Society is a society registered or deemed to be registered under the Multi-State Cooperative Societies Act 2002, and this includes a national cooperative society and a Federal cooperative. Multi-State Cooperative Society with Limited Liability is one in which each member’s liability is limited by its bye-laws to the amount they pledge to contribute to the society’s assets in the event that it is wound up or to any unpaid dividends on their shares.
Multi-State Cooperative Societies which may be registered
No multi-state cooperative society shall be registered under the Multi-State Cooperative Societies Act,2002,unless,
(a) its primary goals are to advance the interests of members from multiple states;
(b) in accordance with cooperative principles, its bylaws provide for the members’ social and economic advancement through self-help and mutual aid
Application for Registration
- For the purposes of registration of a multi-state cooperative society under the Multi-State Cooperative Societies Act,2002, an application in Form I shall be made to the Central Registrar in such form and with such particulars as may be prescribed.
- The application shall be signed
(a) in the case of a multi-state cooperative society of which all the members are individuals, by at least fifty persons from each of the state concerned;
(b) in the case of a multi-state cooperative society of which the members are cooperative societies, by duly authorized representatives on behalf of at least five such societies as are not registered in the same state; and
(c) in the case of a multi-state cooperative society of which another multi-state cooperative society and other cooperative societies are members, by duly authorized representatives of each of such societies:
Provided that not less than two of the cooperative societies referred to in this clause, shall be such as are not registered in the same state;
(d) in the case of a multi-state cooperative society of which the members are cooperative societies or multi-state cooperative societies and individuals, by at least
(i) fifty persons, being individuals, from each of the two states or more; and
(ii) one cooperative society each from two states or more or one multi-state cooperative society.
- The Application shall be accompanied by the following;
- four copies of the proposed bye-laws of the multi-state cooperative society, duly signed by each of the persons who sign the application for registration;
- 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 showing the details explaining how the working of the multi-state cooperative society will be economically sound and the registration of such multi-state cooperative society will be beneficial for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles;
- 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.
- On receipt of an application in Form I, the Central Registrar shall enter the particulars of the application in the register of applications to be maintained in Form II, give a serial number to the application and issue a receipt in acknowledgement thereof.
- If the Central Registrar is satisfied
(a) that the application complies with the provisions of the Act and the rules;
(b) that the proposed multi-state cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one state;
(c) that its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles;
(d) that the proposed bye-laws are not contrary to the provision of this Act and the rules, he may register the multi-state cooperative society and its bye-laws.
- 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.
Where a multi-state cooperative society is registered under the Multi-State Cooperative Societies Act,2002, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been canceled.
Bye-laws of multi-state cooperative societies
- Every multi-state cooperative society may make its bye-laws consistent with the provisions of the act and the rules made thereunder.
- In particular, and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:
(a) the name, address and area of operation of the society;
(b) the objects of the society;
(c) the services to be provided to its members;
(d) the eligibility for obtaining membership;
(e) the procedure for obtaining membership;
(f) the conditions for continuing as member;
(g) the procedure for withdrawal of membership;
(h) the transfer of membership;
(i) the procedure for expulsion from membership;
(j) the rights and duties of the members;
(k) the nature and amount of capital of the society;
(l) the manner in which the maximum capital to which a single member can subscribe;
(m) the sources from which the funds may be raised by the multistate cooperative society;
(n) the purpose for which the funds may be applied;
(o) the manner of allocation or disbursement of net profits of the multi-state cooperative society;
(p) the constitution of various reserves;
(q) the manner of convening general meetings and quorum thereof other than those provided under this Act;
(r) the procedure for notice and manner of voting, in general and other meetings;
(s) the procedure for amending the bye-laws;
(t) the number of members of the board not exceeding twenty one;
(u) the tenure of, directors, chairperson and other office bearers of the society, not exceeding five years;
(v) the procedure for removal of members of the board and for filling up of vacancies;
(w) the manner of convening board meetings, its quorum, number of meetings in a year and venue of such meetings;
(x) the frequency of board meetings;
(y) the powers and functions of the Chief Executive in addition to those provided under section 52;
(z) the manner of imposing the penalty;
(za) the appointment, rights and duties of auditors and procedure for conduct of audit;
(zb) the authorisation of officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society;
(zc) the terms on which a multi-state cooperative society may deal with persons other than members;
(zd) the terms on which a multi-state cooperative society may associate with other cooperative societies;
(ze) the terms on which a multi-state cooperative society may deal with organization other than cooperative societies;
(zf) the rights, if any, which the multi-state cooperative society may confer on any other multi-state cooperative society or federal cooperative and the circumstances under which such rights may be exercised by the federal cooperative;
(zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case of death of a member;
(zh) the educational and training programmes to be conducted by the multi-state cooperative society;
(zi) the principal place and other places of business of multi-state cooperative society;
(zj) the minimum level of services, to be used by its members;
(zk) any other matter which may be prescribed.
Amendment of bye-laws of a multi-state cooperative society
- No amendment of any bye-law of a multi-state cooperative society shall be valid, unless such amendment has been registered under the Act.
- A resolution approved by a two-thirds majority of the society’s members at the general meeting must be used to amend the bylaws of a multi-state cooperative society.
- A minimum of fifteen clear days’ notice of the proposed amendment to the members is required before a resolution of this kind is considered valid.
Cancellation of registration certificate of multi-state cooperative societies in certain cases
- Where the entire of the resources and liabilities of a multi-state helpful society are moved to another multi-state helpful society or to a helpful society as per the arrangements of segment 17, the enrollment of the first referenced multi-state helpful society will stand dropped and the general public will be considered to have been disintegrated and will quit existing as a corporate body.
- Each multi-state cooperative society is considered to have been dissolved and ceases to exist as a corporate body when two or more multi-state cooperative societies are merged into a new multi-state cooperative society in accordance with section 17’s provisions. The registration of each amalgamating society is cancelled on the registration of the new society.
- Where a multi-state cooperative society divides itself into two or more multi-state cooperative societies or two or more cooperative societies in accordance with the provisions of section 17, the registration of that society shall stand canceled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
- The amalgamation or division of multi-state cooperative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-state cooperative society or societies or render defective any legal proceedings by or against the multi-state cooperative society or societies, and any legal proceedings that might have been continued or commenced by or against the multistate cooperative society or societies, as the case may be, before the amalgamation or division, may be continued or commenced by or against the resulting multi-state cooperative society or societies.
Advantages of Multi-State Cooperative Society
The advantage of registering under the MSCS Act is similar to the benefits acquired by registering a company. A registered multi-state cooperative society has the privileges of limited liability, separate legal identity, and the ability of members to transfer their membership.
- Form I : Application for registration of a Multi-State Cooperative Society under the Multi-State Cooperative Societies Act, 2002
- Form II : Register of applications for registration of multi-state co-operative societies received by the Central Registrar
- Form III : Nomination form for elections of Board of Directors
- Form IV : Application for appointing election agent
- Form V : Nomination form for election of office bearers
Persons who may become members
No person shall be admitted as a member of a multi-state cooperative society except the following, namely-
(a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);
(b) any multi-state cooperative society or any cooperative society;
(c) the Central Government;
(d) a State Government;
(e) the National Cooperative Development Corporation established under the National Cooperative Development Corporation Act, 1962 (26 of 1962);
(f) any other corporation owned or controlled by the Government;
(g) any Government company as defined in the Companies Act,2013
(h) such class or classes or persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-state cooperative society.
- What is a Multi State Cooperative Society?
The Cooperative Societies ,with objects not confined to one state and serving the interests of members in more than one state for social and economic betterment of its members through self help and mutual aid in accordance with the cooperative principles are considered Multi-State Cooperative Society.
- How much do we take for a multi-state cooperative society to be registered?
Generally it takes 4-6 months for a multi state cooperative society to be registered after the submission of documents in the ministry.
- What are the requirements for registration of a Multi-State Cooperative Society?
In Form I, we need the details of a minimum 50 members from 2 states each with their signatures. Please keep the documents sets of different states separate. You can keep more number of states but each additional state requires details of a minimum of 50 members. In Form II, we need the names of all members with their signatures.
- Is it possible to convert a cooperative society into a multi-state cooperative society?
Yes, a cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-state cooperative society.