A Comprehensive Guide: Cooperative Society Registration in Maharashtra

A cooperative credit society is defined as a cooperative society & the primary object of which is to provide financial accommodation to its members & includes a cooperative l& mortgage bank. A cooperative business which is jointly owned enterprise engaging in the production or distribution of goods or the supplying of services, operated by its members for their mutual benefit, typically organized by consumers or farmers. Corporate Society is a type of society in which various large-scale corporate organizations with powerful vested interests are involved in the economic, social & political decision-making process.

Conditions of Cooperative Society Registration in Maharashtra

• No society, other than a federal society, shall be registered under this Act, unless it consists of at least 10 persons or such higher number of persons as the Registrar may, having regard to the objects & economic viability of society & development of the Co-operative movement, determine from time to time for a class of societies (each of such persons being a member of a different family), who are qualified to be members under this Act, & who reside in the area of operation of the society:

Provided that, a lift irrigation society consisting of less than 10 but of 5 or more such persons may be registered under this Act.

• No society with unlimited liability shall be registered unless all persons forming the society reside in the same town or village, or in the same group of villages.
• None of the federal society will be registered unless it has at least 5 societies as its members.
• Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.
• Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.
• The word “limited” or “unlimited” shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act.

Application for Cooperative Society Registration in Maharashtra

• Every application for registration of a cooperative society in Maharashtra shall be made in Form ‘A’ in Marathi, Hindi or English & the same shall be signed by the applicants & shall, in addition to four copies of the proposed bye-laws of the society registration, be accompanied by:
  1. A list of persons who have contributed to the share capital, together with the amount contributed by each of them, & the entrance fee paid by them;
  2. A certificate from the Bank or Banks stating the credit balance therein in favor of the proposed society.
  3. A scheme presenting the particulars elucidating how the working of the society will be economically sound &, where the scheme envisages the holding of immovable property by the society, the full description in details of such property proposed to be purchased, acquired or transferred to the society.
  4. Such other documents as may be specified in the model bye-laws, if any, framed by the Registrar.
• If any of the member of a society to be registered is a registered society, a member of the committee of such registered society will be authorized by that committee by a resolution to sign the application for registration & the bye-laws on its behalf, & a copy of such resolution shall be appended to the application.
• If any of the members of a society to be registered is a firm, company, another corporate body, a society registered under the Societies Registration Act 1860, or local authority or public trust registered under any law for the time being in force for the registration of such trusts, then such firm, company, corporate body, society, local authority or public trust, as the case may be, shall duly authorise any person to sign the application for registration & the bye-laws on its behalf, & a copy of the resolution giving such authority shall be appended to the application.
• The application shall be sent to the Registrar by registered post or delivery by hand.
• 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 & issue a receipt in acknowledgement
• The Registrar might give an opportunity to the promoters to modify the proposed bye-laws before finally registering the society or rejecting the application for registration of the society.
• On registering a society & its bye-laws the Registrar shall as soon as may be, notify the registration of the society in the Official Gazette & grant to the society, a certificate of registration signed by him & bearing his official seal & containing the registration number of the society, & the date of its registration. The Registrar shall also furnish the society with a certified copy of the bye-laws approved & registered by him.
• If the Registrar is satisfied that a proposed society has complied with the provisions of this Act & the rules, or any other law for the time being in force, or policy directives issued by the State Government & that its proposed bye-laws are not contrary to this Act or to the rules, then the registrar shall within 2 months from the date of receipt of the application register the society & its bye-laws.
• Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within a period of 15 days from the date of expiration of that period refer the application to the next higher officer & where the Registrar himself is the registering officer, to the State Government, who are which, as the case may be, shall dispose of the application within 2 months from the date of its receipt & on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the society & its bye-laws shall be deemed to have been registered & thereafter the Registrar shall issue a certificate of registration under his seal & signature within a period of 15 days.
• Where the Registrar refuses to register a proposed society, he shall forthwith communicate his decision, with the reasons, therefore, to the person making the application & if there be more than one to the person who has signed first therein.

Matters Required to be mentioned under bye-laws

The Registrar may require society to make bye-laws in respect of all or any of the following matters:

• The name of the society & address of the society & its branches;
• The area of operation;
• The objects of the society;
• The manner in which & the limit up to which the funds of the society may be raised, the maximum share capital which any one member may hold & the purpose to which the funds would be made applicable;
• The terms & qualifications for admission to membership;
• The privileges, rights, duties & liabilities of members including nominal, associate & sympathizer members;
• The consequences of default in the payment of any sum due by a member;
• Conditions regarding sale or disposal of the produce of members, wherever applicable;
• In the case of credit societies:
  • The maximum loan admissible to a member;
  • The maximum rates of interest on loans to members;
  • The conditions on which loans may be granted to members & penalties for misapplication of loans so advanced;
  • the consequences of default in the payment of any sum due;
  • the circumstances under which a loan may be recalled;
• In the case of non-credit societies, the mode of conducting business such as manufacture, purchase, sale, stock taking & other like matters;
• in the case of a composite society, that is to say, society having both credit & non-credit functions
• the mode of holding meetings, of the general body & of the committee;
• the procedure for expulsion of members
• the manner of making, altering & abrogating bye-laws
• the mode of appointment either by election or otherwise & removal of members of the committee & another officer, if any, their duties & powers
• the Chairman’s powers, duties & functions & his removal on his losing support of the majority
• the method of recruitment, the conditions of service & the authority competent to fix, revise or regulate the scale of pay & allowances of salaried officers & servants of the society & the procedure to be followed in the disposal of disciplinary cases against them
• the mode of custody & investment of funds & mode of keeping the accounts & records;
• the disposal of net profits
• the manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws
• appointment of a provisional committee, where necessary
• the mode of appointment & removal of the committee & its powers & duties
• the mode of convening annual & special general meetings, issue of notices, & the business which may be transacted thereat
• in the event of winding up of the society, the purpose of which surplus assets, if any, shall be utilized;
• the conduct of elections to the committee & other bodies of the society as provided in the bye-laws, including the number of members to be elected by different constituencies & appointment of Returning Officer;
• any other matters incidental to the management of its business.

Evidence of Cooperative Society Registration in Maharashtra

A certificate of registration signed by the Registrar shall be conclusive evidence that dies society there in mentioned, is duly registered, unless it is proved that the the Society Registration in Maharashtra has been cancelled. If you want to register your NGO, then you can contact us.