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We did registration of Bhavishya Credit Cooperative Society which made a turnover of 16.5 crores in less than a year.
Multi State Cooperative Society
Definition of a multi state cooperative society: -
A multi state cooperative society is registered from the center i.e. Delhi. The cooperative societies with missions not kept to one state and serving the interest of members in more than one state for social and budgetary enhancement of its members through self improvement and common aid as per the cooperative standards are recognized as Multi State Cooperative Societies.
Kinds of multi state cooperative societies and requirements: -
A Multi state cooperative society is of various types - Credit, Housing, Agriculture, Transport, Hospital, Sugar, Stores, Fishery, Handloom, Labor, Customer and Multi Function Co-operative Society. The basic formalities for forming this society are to arrange at least 50 members from two states each along with address proofs.
Role of Administrative Members of Multi State:-
As far the interim management committee list is concerned who are accountable for the management and handling of the society, the society should have minimum 7 members and this list can go upto 21 members. After the 97th Constitutional Modification Act 2011 from February 2013, it is compulsory to keep 2 ladies and 1 extra member who belongs to Scheduled Caste or to Scheduled Tribe in the main governing body list. Till today, there are 900-950 Multi State Cooperative Societies out of which optimum are credit. The governing body members participate in yearly general body conferences, unique general body meetings, resolutions, notification, quorums etc Just for example in a credit cooperative society, if the society wishes to make any scheme like gold loan, car loan, taken care of deposit loan, double deposit strategy, triple deposit plan or any unique scheme, the society has to provide a prior 15 days discover to all its members by speed post, newspaper publication etc. After 15 days, the general body meeting is conducted. If the quorum is one-fifth of the total members present and ballot during the resolution, the meeting can just occur. The signatures of the governing body members in addition to ordinary members present and ballot are taken in the minutes book and preserved for future records. The special general body conference can be carried out by providing a notice of at least 7 days. A society must carry out a minimum of 4 general body conferences in every financial year. Furthermore, in every financial year, the society needs to employ a chartered accountant in a basic body conference by passing a resolution. This CA cares for the accounts of the society and submits the account and tax return. The societies other than Credit, Housing and Multi Purpose can gather cash from its members on the basis of shared allocation and advance. They can give dividends to their members on shares and net profits on advance. As per the policies of MSCS Act 2002, a person currently being a member of a society can not be a member of a multi state cooperative society of the exact same kind.
Management of a Multi State Cooperative Society: -
No part of the funds, various other than net profits of a multi state cooperative society should be divided by method of bonus offer or dividend or otherwise dispersed amongst its members. In case of multi state cooperative societies which do not have share capital, the surplus of income over expense shall not be treated as net earnings and such surplus will be dealt with in accordance with the bye-laws. A multi state cooperative society shall, out of its net earnings in any year move an amount not less than twenty-five percent to the reserve fund, credit one percent to cooperative education fund preserved by the National Co-operative Union of India Limited, New Delhi or transfer a quantity not less than 10 percent to a reserve fund for meeting unforeseen losses.
Time Taken for registration: -
Usually, the optimal time period for a multi state cooperative society registration is 4 months. In case, the application gets an objection, because case, the application can be submitted again and in specific conditions, the society registration can be done previously likewise on the basis of earlier rejections or on political pressures. Besides registration, the modification proposition is also submitted in the Ministry of Agriculture. It takes generally 3 to 4 months. It is really unusual that amendment proposition is declined. If we desire to enhance our location of operation i.e. number of states or enhance our authorized share capital or change our name or change our office address, we can submit modification. The papers submitted along with change proposition are bank statement, audited account showing net revenue and turnover. The ministry demands justification and correct reasons why a society proposition should be amended.
Perks of a multi state cooperative society: -
Generally, a multi state cooperative society is a helpful option for all real estate companies, public limited, personal limited and chit fund business where nearly saturation has actually reached. This Centre Act has actually been gone by the parliament in the year 2002. The mission of the multi state society is to facilitate the voluntary formation and democratic performance of cooperatives as peoples institutions based upon self assistance and shared help and allow them to promote their social and economic betterment and to provide practical autonomy. Please feel free to visit our facebook page of multi state cooperative societies.
Documents filed in the ministry: -
An application for registration shall be accompanied by :
- Four copies of the proposed Bye-laws of the Multi state cooperative society duly signed by each of the persons who sign the application.
- Name of the proposed cooperative society.
- Head Quarters and address to be registered.
- 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.
- Area of operation.
- Main objectives
- 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 cooperative society will be economically sound and the registration of such multi State co-operative society will be beneficial for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative 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.
The application shall be signed by in the Form 1 :
- In the case of a 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; However, not less than two of the co-operative societies referred to in this clause, shall be such as are not registered in the same State.
- 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.
- Click here to download form 1 for registration under multi state cooperative society Act 2002.
- Click here to download form 2 for member list under multi state cooperative society Act 2002.