Multistate Society Registration
What is a Multistate Society?
Protecting the interests of the economically poorer segments of society is the Co-operative Society’s primary goal. Every type of organization’s main motive whether a sole proprietorship, partnership, or joint stock company, is to boost earnings. This kind of group is seen as a democratic structure run for the benefit of its members. The underlying principle is “All for each and each for all.” Both self-help and mutual aid are involved.
Although cooperatives fall under the purview of the state, there are other societies with members and operational territories that span multiple states, including those for milk and sugar, banks, milk unions, and others. To regulate these cooperatives, the Act was passed. For instance, the majority of sugar mills in the areas near the border between Karnataka and Maharashtra get their cane from both states.
The various cooperative societies felt the need for an Act to codify and amend the law relating to cooperative societies, with objects not limited to one State and serving the interests of members in more than one State, to facilitate the democratic formation and functioning of co-operatives as people’s institutions based on self-help and mutual aid, to enable them to promote their economic and social betterment, and to provide functional autonomy. The Multi-State Cooperative Society Bill was introduced in Parliament in order to accomplish the goal.
After being approved by both Houses of Parliament, the bill was signed into law by the President on July 3, 2002, and it became the Multi-State Cooperative Societies Act 2002. (39 of 2002). They are registered under the MSCS Act and draw their membership from both states. All the states in which they do business are represented on their board of directors. The law clearly states that no state government official can have any authority over these societies, and that the central registrar has administrative and financial control over them.
Documents required for Multistate Society Registration From Directors:-
- Form A, signed by 90% of the Promoter members, must be submitted with statement A and the Registration Application in quadruplicate.
- Members of the Promoter list.
- Bank Statement.
- a thorough explanation of how society operates.
- 4 copies of the Society’s proposed bylaws.
- Proof of registration fee payment.
- Affidavits, indemnity bonds, and any other documentation requested by the Registrar must also be supplied.
- The details will be entered by the registrar, who will also assign a serial number and provide a receipt as an acknowledgment of the application in Form “B” register.
- Following registration, the registrar will issue a Registration Certificate and announce the Society’s registration in the Official Gazette.
Procedure for Multistate Society Registration:-
The steps to registering a multistate cooperative society are as follows:
- A minimum of ten people must be interested in starting a society.
- A temporary committee must be formed, and a chief promoter must be chosen from among them.
- The Society’s name must be chosen.
- To reserve a name, a request must be made to the registration authority, and to confirm the reservation, a letter to that effect must be acquired. 3 months are allowed for a reserved name.
- It is necessary to collect share capital and entrance fees from potential members.
- According to the Registration Authority’s instructions, a bank account must be opened in the proposed Society’s name. Following this, the bank account must be funded with admission fees and share money, and a certificate from the bank must be produced in this regard.
- After that, you must deposit your registration fees with the Reserve Bank of India and acquire a 1 Challan receipt.
- To register a society, an application must be made to the appropriate Municipal Ward’s Registrar of Societies.
FAQ's
The multi-State Cooperative Societies Bill was introduced in the Parliament in order to accomplish the goal of creating co-operatives in more than one State. The bill sought to codify and amend the law relating to cooperative societies, with objects not limited to one State and serving the interests of members from multiple states.
The multi-State Cooperative Societies Bill was introduced in the Parliament in order to accomplish the goal of creating co-operatives in more than one State. The bill sought to codify and amend the law relating to cooperative societies, with objects not limited to one State and serving the interests of members from multiple states.
Yes, It is safe if it meets all the requirements with RBI.
1 The Jackson Co-operative Credit Society of the Employees of the Western Railway Ltd.
2 Karur Vysya Bank Staff Coop Thrift & Credit Society Ltd
3 South India Multi-State Agriculture Cooperative Society Ltd.
4 Adarsh Cooperative Bank Ltd./Madhav nagrik Sahakari Bank Ltd.
5 LDC Multi-State Cooperative Credit Society Ltd.
6 The Sutex Cooperative Bank Ltd
7 Malankara Multi-State Cooperative Credit Society Ltd
8 Dhanmudra Urban Multi-state Co-operative Credit Society Ltd
9 The Vishweshwar Sahakari Bank Ltd
10 Krishi sansaar multi-state cooperative society ltd.
3rd July 2002
There are many different kinds of multistate cooperative societies, including multistate solar cooperative society, farming cooperative society, credit cooperative society, agriculture cooperative society, real estate cooperative society, firm cooperative society, dairy firm cooperative society, transport cooperative society, and many more.
The team of highly qualified professionals at Onickexperts will prepare your bylaws in accordance with your demands and the particular goals of your multistate cooperative society.
Credit, Housing, Agriculture, Transport, Hospital, Sugar, Stores, Fishery, Handloom, Labor, Consumer, and Multi-Purpose cooperative societies are some of the several types of multi-state cooperative societies. There might be more than 50 members, but each additional state needs to have at least 50 members.
Shri Vijay Kumar, IAS.
Shri Vijay Kumar, IAS
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There are following types of Multi-Cooperative societies:
Credit Co-operative Societies.
Housing Co-operative Society.
Farming- Cooperative Society.
Dairy Firm Multi-State Cooperative Society.
Solar Credit Cooperative Society.
Multi State Multi-Purpose Cooperative Society.
Transport Cooperative Society.
You can do all financial tasks in a credit cooperative society, which also has the ability to take member deposits and lend to members at a set interest rate.
You can establish, advertise, and register a Limited Company, Housing Cooperative Society, or any other incorporated entity or association. The company’s cash might be used to cover the costs associated with the creation and promotion of these societies or body corporates.
According to the rules and guidelines of the Multi-State Cooperative Society, it is registered. It is a totally democratic organisation run by a BOD elected by members at an annual general meeting, not a private institution owned by a single person. Finance Company, on the other hand, is owned by an Individual.
A Co-operative Society’s quorum for any sort of general meeting is one-fifth of the total number of ordinary members in the organisation. And out of this 1/5th, at least 1/2 should vote in favour of a resolution that is adopted.
The central government has the authority to resolve issues with Nidhi Companies. If two years have passed from the date of the order, no amendments may be made.
No portion of the money, other than the society’s net profit, may be distributed to its members in the form of a bonus, dividend, or in any other manner.
A Multi-State Cooperative Society is prohibited from lending money to its members using either stock or non-member collateral as security. However, a Multi-State Cooperative Society may lend money to a depositor in exchange for a deposit as security.
