Cooperative Society

Cooperative Society

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                         Cooperative Society

Cooperative Societies in India are governed by The co-operative societies act, 1912. Management of the affairs of a registered society is entrusted with a governing body, which is called “committee”.


What all societies can be registered

Promotion of the economic interests of its members which are in alignment with co-operative principles, orA society having the following as its objectives can be registered:-

  • Facilitating the operations of the society itself


Conditions of registration


A society which is to be registered under this Act and object of which is creation of funds to be lent to its members should have at least 10 persons above the age of 18 years. Such condition does not apply if the society has a registered society as its member. However, further relaxation is provided in the following cases:-

  • If the persons reside in the same village or town.
  • Or where the members belong to the same tribe/class/caste or occupation on the basis of direction of Registrar.


Application for registration


Application for registration is made to registrar. Where a society has no member as a registered society, Application is required to be signed by at least 10 persons (subject to section 6(1)).

On the other hand, Application shall be signed by a duly authorised person on behalf of every registered society (In the case of a society of which a member is a registered society), and where all the members of the society are not registered societies, by 10 other members.  In case such society has less than 10 other members, then in that case application shall be signed by all of them.

A copy of the proposed by-laws of the society shall also be submitted along with application for registration, and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Registrar may require.


Rights of members


  • Members of a registered society can exercise rights of member only when they have paid their membership dues to the society.
  • Where the liability of the members of a registered society is not limited by shares, each member has only one vote when it comes to making decisions in the society. However, there is no such restriction where liability of members is limited by shares. In such case voting pattern will depend on bye-laws of the society.


Society’s right to lien on members’ shares or interest


In case of any debt due from a member or past member to a registered society, the society shall have a charge upon the share or interest in the capital and on the deposits of a member or past member. In any other case, the share or interest of a member in the capital of a registered society shall not be liable to attachment or sale under any decree or order of a Court of Justice in respect of any debt or liability incurred by such member.


Liability of Society


A society satisfying the prescribed objective (by the act) may be registered under the Act with or without limited liability.

However the state government may order otherwise in the following cases:-

  • In case member of a society itself is a registered society, the government may order that the liability of the society shall be limited.
  • In case of a society having its object as the creation of funds to be lent to its members and in  which case majority of its members are agriculturists and none of them is a registered society. In that case the government may order the liability to be unlimited.

Note: The name of every society registered under the Act with limited liability should have “limited” as its last word.