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Some other pertinent
and relevant information.
is Cooperation ?
According to Charles Guide, an economic historian, "Cooperation is self-help and each for all (mutual-aid)". Self-help here means the pride of supplying one's own needs by one's own resources, of being one's own merchant banker, money lender and employer. "Each for all" means to seek liberation, not only for oneself but for and through others".
What is Cooperatives ?
According to International Cooperative Alliance (
What is a Cooperative Society ?
autonomous open and voluntary association of
persons of the weaker section of the society, to meet their common
socio-economic and cultural needs and aspiration through a jointly owned and
democratic control enterprise in accordance with the cooperative values and
Q.4 Requirement for forming a Cooperative Society
awareness of the socio-economic development potentiality of the
Cooperative sector/Cooperative Movement.
of Cooperative values and principles.
initial open and voluntary association of 15 individual (promoters) to
promote and intended Cooperative society.
Qualification for Membership
adult = 18 years of age.
resident within the intended Area of Operation.
a defaulter of another registered cooperative society (to be certified).
convicted for mis-appropriation or moral turpitude.
The fifteen members known as Promoters will submit their application in plain paper or in the form available in the office of the Assistant Registrar of Cooperative Societies of the respective district for registration of the proposed Coop. Society.
Q.5 What are Cooperative Values ?
Cooperative Values are based on : Self-help, Self-responsibility, Democracy, Equality, Equity and solidarity
Q.6 What are the principles of cooperation?
Cooperative Principles are set of basic guidelines by which cooperatives put their values into practice.
The seven basic corner stone of Cooperative principles are :
Voluntary and open membership
Democratic member Control
Member economic participation
Autonomy and Independence
Education, Training and Information
Cooperation among Cooperatives
Concern for community
Q.7 What is the procedure for Registration of cooperative Society ?
receiving such applications the Asstt. Registrar through his subordinate
will conduct an inquiry to find out the feasibility and economic viability
of the proposed Cooperative Society and whether its proposed bye laws
conforms to the Meghalaya Coop. Acts and Rules. In case a proposed
Cooperative Society is either a, Fishery,/ Dairy/, Poultry/, Piggery/or Handloom
etc., views and comments from concerned department has to be obtained
before registration of such society.
inquiry report with views and comments from concerned Department are found
favorable, Permission is given to complete the necessary formalities for
date will be fixed for holding the inaugural general meeting of the promoter
in which members will finally decide on adoption of the Bye-Laws and matters
concerning with day-to-day functioning of the Society including constitution
of Managing Committee, operation of Bank Account etc.
the inaugural General Meeting, one of the Promoters presided over the
meeting. An officer from the Department is deputed to attend the meeting and
help the promoters in organizational matters. In this meeting they will
decide what type of a Society they want to form, how many persons would join
as members of the Society ,l elect the office bearers of the society and
decide the authorized share capital and the share capital to be contributed
by each members.
the papers duly signed by the Promoters are to be submitted to Asstt.
Registrar of Coop. Societies who after satisfying himself on all points,
register the society and its Bye-laws.
The certificate of Registration in the form set forth and the schedule is issued by Asstt. Registrar of Coop. Societies after registration of the society. A copy of registration with Bye-laws are sent to the applicant and also to concerned Departments.
What are the origins of
cooperative movement in
Due to the misuse and abuse of agency system
for rural credit by landlords, money lenders, zamindars during British Rule in
Nicholson, a British
Officer, heading a commission suggested `Find Raiffersen in
In 1942, the Multi-Unit Cooperative Societies Act, 1942 was enacted by the Government of India with an object to cover societies whose operations are extended to more than one state. Later, in 1984, the Government of India enacted a comprehensive Act known as Multi State Cooperative Societies Act, 1984, which also repealed the Act of 1942. On the recommendation of the Mirdha Committee and the "Model Cooperative Societies Act" the Government of India enacted the Multi State Cooperative Societies Act, 2002 which provided for democratic and autonomous working of the Cooperatives. The Multi State Cooperative Societies Act, 2002 came into force with effect from
Which are the institutions
working for the development of cooperative movement in
National Cooperative Development Corporation (NCDC), National Cooperative Union of India (NCUI), National Agricultural Co-operative Marketing Federation of India (NAFED), Tribal Co-operative marketing development federation of India Ltd., Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati Co-operative Limited (KRIBHCO), National Bank for Agriculture and Rural Development (NABARD), National Federation of State Co-operative Banks Limited (NAFSCOB), Gujarat Cooperatives Milk Marketing Federation Ltd. (AMUL), National Dairy Development Board (NDDB) and Vaikunth Mehta National Institute of Co-operative Management are some of the important agencies working for promotion of cooperative movement in India.
Who can become members of a
cooperative society in
Persons who may become members of a Cooperative society at State level is as per the State Act. Generally
an individual competent to Contract, attained majority and is of sound mind and belongs to a class of persons if any for whom the society is formed as per its bye-laws;
a society registered or deemed to be registered under the Cooperative Societies Act;
No individual shall be eligible for admission as a member of a federal
Persons who may become members of a Multi-State Cooperative Society: (As per Multi-State /cooperative Societies Act, 2002).
an individual, competent to contract under section 11 of the Indian contract Act, 1972.
any multi-state Cooperative society or any Cooperative society.
the Central Government
a State Government
National Cooperative Development Corporation (NCDC)
any other Corporation armed or controlled by the Government.
No individual person shall be eligible for admission as a member of a national Cooperative society or a federal Cooperative.
Q.11 What are the steps / check list for forming a cooperative society?
Important steps involved for forming a Cooperative Society :
Prescribed application duly filled in shall be made to the Registrar of Cooperative societies;
the application shall be accompanied by four copies of the proposed Bye-laws of the society;
Where all the applicants are individuals, the number of applicants shall not be less than ten;
the application shall be signed by every one of such applicants if the applicants are individuals;
if the applicant is a society, by a member duly authorised by such society;
For a Multi-State Cooperative society,
An application for registration of a Multi-State Cooperative society shall be made in the prescribed form;
the application shall be signed by;
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 states concerned.
In case the members are Cooperative Societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same state;
In case the members are other Multi-State Cooperative Societies and other Cooperative Societies, by duly authorised representatives of each of such societies;
If 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 four copies of the proposed Bye-laws.
Name of the proposed multi-state cooperative society;
Head Quarters and address to be registered;
Area of operation;
a certificate from the Bank
Stating credit balance there in favour of the proposed Multi-State Cooperative Society.
The relevant application forms can be obtained from the Office of Registrar of Cooperatives nearest to you.
Which are the laws that
regulate cooperative societies in
Laws regulating Cooperative Societies in
State Cooperative Societies Acts of individual states e.g. Meghalaya
Multi-State Cooperative Societies Act, 2002 for the multi-state Cooperative societies with Area of operation in more than one State.
Q.13 What is Multi-state Cooperative Act ?
A multi-state Cooperative Society means a society registered or deemed to be registered under the Multi-State Cooperative Societies Act, 2002 and includes a national Cooperative society or a Federal Cooperative.
Q.14 Who will be responsible for the Executive Management of the Society ?
As per provision in the Meghalaya Coop. Societies Acts and Bye-laws of the Society, the members of the Managing Committee elected by the General Body Meeting are responsible managing the affairs of the Society. The Managing Committee members are elected annually from among the members of the Society in the annual general assembly / General Meeting.
Financial Resources for running the Society ?
Capital Contributed by members.
Contribution deposited by members.
Borrowing from State Coop. Banks and other financing agencies.
Financial Assistance provided by the State Govt. and in some cases by the Central Government.
Q.16 How to amend a Registered Bye-law : Act. Sec.13.
time to time a Society may amend its Bye-law by altering/rescinding/canceling or
by inserting a new clause as a new Bye-law.
9 (I) : Meghalaya Cooperative Societies Rules says, No amendment of the Bye-laws
(of the Registered Cooperative Society) shall be valid until such amendment has
been registered under the Act [Sec. 13(3)].
Why and what to amend :
of existing provisions.
of existing provisions.
of new provisions.
Complete amendment/constituting a new Bye-law.
Amendment can be made :
the instance of the Society :- By a resolution passed by a majority of the
members of the General Meeting where not less than two third members are
the direction of the Registrar
At the suggestion of affiliating Society.
Q.17 How to amend a Registered Bye-Laws ?
every case of amendment of Bye-laws the approval of the General Body Meeting
is needed. The application in the form set forth in the schedule for
Registration of a new or altered bye-law as for the abrogation of an
existing bye-law shall be submitted to Registrar of Cooperative Societies or
Asstt. Registrar of Cooperative Societies. It should be signed by the
members of the Managing Committee.
The date of the meeting of the General Assembly at which the amendment was passed.
The number of members on the role of the society on the date of issue of the General Meeting.
Number of members present in the meeting.
The number of members who voted in support of the amendment.
If the Assistant Registrar of Cooperative Societies refuses to Register an amendment of Bye-laws he should record in writing the reason for his refusal and communicate his decision to the Society.
application for Registration of amendment of Bye-laws should be submitted
alongwith a copy of Resolutions passed by the Annual General Meeting along
with four copies of the existing Bye-law. A fifth copy is required in case
of an officiating society, to the Assistant Registrar of Cooperative
When the Assistant Registrar of Cooperative Societies register an amendment of Bye-laws, he return the old Bye-laws to the Society after duly corrected and attested by him alongwith a certificate for registration of amendment of Bye-laws set forth in the schedule.
Q.18 Details of Financial Assistance provided to Cooperative Societies by the Government
order to promote and develop the Coop. Societies in the State, the State
Government provide financial assistance to Cooperative Societies in the form and
nature given below :-
Capital Contribution for strengthening the Share Capital base of the
Subsidy for meeting the managerial expenses of Societies.
to Coop. Societies to utilize as margin money for borrowing from financial
and Subsidy for construction of Godown/Workshed of Primary Weavers Society.
for purchase of Plant and Machineries.
for purchase of furniture and fixtures.
and subsidy for repair/renovation of Cooperative Godowns.
Subsidy for publicity and motivational programmes.
Organisation of the Cooperative Department in Meghalaya
Meghalaya Department of Cooperation has been set up with a separate
administrative department for promotion of the Cooperative Movement which is headed by
a Cabinet Minister. In the Secretariat, the department is headed by the
Commissioner & Secreatry and is supported by officers and staff. At the Directorate Level,
the Office of the Registrar of Cooperative
Societies is headed by the Registrar of Cooperative
Societies at the top. He is assisted by JRCS, ARCS, SRCS and other officials and
staff. At the District Level, at the present we have 7
Nos. of Districts headed by Assistant Registrar of Cooperative Societies and
3(three) Civil Sub-Division headed by Sub-Registrar of Cooperative Societies.
There is 1(one Zonal Officer in the rank of DRCS) who is to look after the
3(three) Districts at Garo Hills. Then comes the Senior Cooperative Officers and
Junior Cooperative Officer who will
look after the welfare of the Cooperative Societies. For the smooth and speedy
progress of the Cooperative Movement in the State, a separate Organizational
structure in details as per Item No. 17 has been enclosed.
Q.20 Laws of Cooperatives in the State
"Meghalaya Cooperative Societies Acts"
(Assam Act. 1 of 1950, as adopted by Meghalaya).
"The Meghalaya Cooperative Societies Act" is supported by "The Meghalaya Cooperative Societies Rules" (The Assam Rules, 1953 as adopted by Meghalaya).
Rules : Rules are framed to support the Act. Rules are procedures to implement the Act
Bye-Laws : Framed as sub-laws to suit the various types of Society within the purview of the Act and Rules. (The Bye-law cannot over ride/over rule and provisions within the State Cooperative societies Act & Rules).
Q.21 Cooperative Societies that can be form in Meghalaya
type of Cooperative Society which has as its chief objective, the promotion of
the economic interest and general welfare of the members in accordance with
Cooperative Principles, or a Society established with the object of facilitating
the operation of such a Society including a Society formed by the
division of an existing registered Cooperative Society or amalgamation of
existing two or more Societies may be registered under the “Meghalaya
Cooperative Societies Act” (Assam Act. 1 of 1950, as adopted by Meghalaya)
with or without limited liabilities.
Categorisation By Status And Operation Cooperative Societies
Primary/Grass Root Level.
Meghalaya Cooperative Apex Bank Ltd. (M.C.A.B.)
Meghalaya State Housing Financing Cooperative Society Ltd.
Meghalaya Apex Handloom Weaving & Handicrafts
Cooperative Federation Ltd.
Meghalaya State Cooperative & Consumers Federation Ltd.
Meghalaya State Cooperative Union Ltd. (M.S.C.U.)
Primary / Grass Root Level
A. Credit Societies :
Primary Agricultural Credit Societies : P.A.C.S. Employees
Credit/Thrift Cooperatives (E.C.S.).
B. Non-Credit Societies :
Poultry & Piggery.
Audit Classification of Cooperative Societies. (Cooperative
Audit, Financial & Administrative Audit).
Avail no external Finance/Supervision.
Uphold Cooperative Principles adequately.
No over dues.
Require external financial assistance & Supervision.
Overdues = 25% of Total Outstanding.
Require external financial assistance & Supervision.
Overdues = 25% 50% of Total Outstanding.
Management has collapse.
Overdues = 50%.
Q.24 How does a multi-state cooperative society differ from a company?
Following broad differences can be enlisted between a cooperative and a company
|Sl No||Item||Co-operative Society||Company|
|Object||Interest of members and community paramount. Basic principle of cooperation||Self interest either of management or the share holders; profit as motive|
|1||Management||Chairperson is elected by the Board of Directors from among members. The Managing Director / Chief executive is appointed by the Board of Directors||Usually, Chairperson / Managing Director are persons with maximum number of shares in the company|
|2||Number of members||In case societies
are members of a Multi State Cooperative Society, two societies from different states should sign the application of registration of the society. If a Multi State Cooperative Society is a member then the multi state cooperative and a society should sign the application of registration. Minimum number of members should be 50 for a multi state cooperative society from each state in case of individual membership.
|In a public limited company, minimum number of members should be 7 and in a private limited company minimum number of members should be 2|
|3||Share Capital||The shares of cooperative society are not issued to general public by advertisement and can be issued any time. Shares can be withdrawn member / society as prescribed by rules in their byelaws.||Shares are issued to general public or by invitation. In a company shares cannot be withdrawn by a share holder.|
|4||Share Types||Only equity shares are available||Equity and preferential shares may be issued|
|5||Voting Rights||Member of a cooperative society have right of only one vote, irrespective of the number of shares held of any denomination.||Voting rights depend directly on the holding of shares|
|The Central registrar of Cooperatives advises in the affairs of a multi state society||Companies are governed by the Company Registrar of the states where its registered office is located|
|7||Profit Distribution||Minimum 25% of net profits should be transferred to the General reserve and the maximum dividend cannot exceed 20%||No restrictions on a company|
|8||MRTP Act||Not applicable to Multi State Societies||Applicable|
|9||Participation of Workers||Provision for workers participation in the management through a representative exists.||No such provision for workers|
|Cooperatives are exempt from few taxes in some states like stamp duty. Tax rates also vary||No exemptions provided|