Multi State Credit Co-operative Society Registration
- Preparation and filing of State Level Application for NOC
- Obtaining NOC
- Drafting of Bye Laws
- Application for Multi State Credit Co-operative Society in Delhi
- Liasoning with the Department and replying to Objections
- Obtaing Certificate of Registration
Registered under Multi State Cooperative Society Act 2002, multi-society cooperative societies are formed with the objective to serve interest of members in more than one state. It is essentially formed to promote the social and economic development of the society and work on the betterment of the whole. But it could have branch limited to just one state as long as it serves interests of more than one state. The act permits the formation of two types of society: primary (which consists of both individual and federal members) and federal (which has only federal memberships).
There are many types of cooperative societies:
- Multi-State Solar Cooperative Society
- Farming Cooperative Society
- Credit Cooperative Society
- Agriculture Cooperative Society.
- Real Estate Cooperative Society
- Dairy Firm Cooperative Society
- Transport Cooperative Society and much more.
Rules and Regulations concerned with Multi-Society Co-operative Society:
- Application needs to signed by at-least 50 persons from each state (in case members are individuals) and by five societies in different societies (in case members are co-operative society)
- Bye-Laws should mention overall betterment of the society and in case any society fails to do that, it should not be registered.
- Is a body cooperate with limited liability.
- Only net profit should be distributed among the members of the society.
- Can make investment in recognized securities.
- Cannot extend loans to political parties or non-members of the society.
- Cannot borrow from external sources.
- Annual auditing by recognized auditors is mandatory.
- Four copies of the proposed Bye-laws duly signed by everyone who signs the application.
- Name of the proposed society.
- Registration Address.
- List of persons who have given the share capital, along with the amount contributed by every individual, and the admission fee paid by each Area of operation.
- Main objectives.
- A certificate from the bank/ banks stating the credit balance.
- Certified copy of the resolution of the promoters.
- List of at least 50 members from each state.
Role of Administration for Society:
- Interim management of the society should have minimum 7 and can go up to 21 members.
- Necessary to have 2 ladies and 1 extra members belonging to ST/SC Tribe in the main governing list.
- Members need to participate in yearly conferences, notifications, quorums etc.
- 15 days after the notice, a general meeting is conducted for any unique scheme.
- Quorum needs to be at-least 1/5th of the total members to conduct a meeting.
- Special body conference can be carried out even with 7 days notice.
- In every financial year, the society needs to employ CA to pass a resolution and to take care of accounts.
- For societies other than credit and multipurpose, members can gather cash from other members on the basis of shared allocation and advance.
- As per MSCS 02 Act, no person can be member of two societies of same kind.
Generally, it takes 5 to 6 months after submission to form a multi-state credit co-operative society but sometimes it can be registered early if all required documents are submitted in proper format.
In case of Nidhi Companies, Central Government has the authority to remove the difficulties. No changes can be made in any order if two years have been passed from the date of order.
Yes, there is a facility of multi-state society to borrow funds, it may receive deposits, raise loans, receive grants from any external sources as specified by the Bye-Laws of the Society. But the total amount deposit of raised funds cannot exceed 10 times the subscribed share capital and accumulated reserves sum However, society can issue non-convertible debentures or other instruments which can extend up to 25% of the paid-up share capital.
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