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CO-OPERATIVE SOCIETIES ACT

Ministry of Law and Justice

Act nº 2 of 1912


  • Act nº 2 of 1912

Preamble

THE CO-OPERATIVE SOCIETIES ACT, 1912

[Act, No. 2 of 1912 ]1

[ 1 st March, 1912 ]

PREAMBLE

An Act to amend the law relating to Co-operative Societies

Whereas it is expedient further to facilitate the formation of Co-operative Societies for the promotion of thrift and self-help among agriculturists, artisans and persons of limited me ans, and for that purpose to amend the law relating to Co-operative Societies. It is hereby enacted as follows:

1 . For Statement of Objects and Reasons, see Gazette of India, 1911, Pt. V, p. 96 ; for Report of Select Committee, see, 1912, Pt. V, p. 7 ; and for Proceedings in Council, see, 1911, Pt. VI, pp. 186, 679, and, 1951, Pt. VI, pp. 3, 31 and 256 .

The Act has been declared to be in force in the Santhal Parganas by notification under Sec. 3 of the Santhal Parganas Settlement Regulation, 1872 ( 3 of 1872 ), see B. & O. Gazette, 1913, Pt II, p. 105 . The Act has been repealed in its application to--

( 1 ) the Bombay Presidency by Bombay Co-operative Societies Act ( Bom. 7 of 1925 );

( 2 ) the Madras Presidency by Madras Co-operative Societies Act (Mad. 6 of 1932 );

( 3 ) Bihar and Orissa by B. & O. Co-operative Societies Act ( B. & O. 6 of 1935 );

( 4 ) Orissa, separately by Orissa Laws Regulation, 1936 ( 1 of 1936 );

( 5 ) Coorg by Coorg Co-operative Societies Act, 1936 (Coorg 2 of 1936 ) ; and

( 6 ) Bengal with certain exceptions by Bengal Co-operative Societies Act, 1940 ( Ben. 21 of 1940 ) ;

( 7 ) Assam with certain exceptions by Assam Act 1 of 1940 .

The Act has been amended in U.P . b y U.P. Act 3 of 1919 and U.P. Act 1 of 1944 as continued in force by U.P. Act 13 of 1948 .

The Act has been amended in C.P . a nd Berarby C.P . a nd Berar Acts 5 of 1940, 6 of 1941, 10 of 1945, 39 of 1948 and 56 of 1949 ; in Madhya Pradesh by M.P. Act 8 of 1954 ; and in U.P . b y U.P. Acts 3 of 1919, 1 of 1944, 13 of 1948 and 3 of 1950 .

Punjab by the Punjab Co-operative Act 1 of 1954 ;

Himachal Pradesh by Hi machal Pradesh Co-operative Societies Act, 1956

( 1 ) the U.P . b y the Co-operative Societies (Amendment) Act, 1919 (U.P. 3 of 1919 ) and the Co-operative Societies (U.P. Amendment) Act, 1944 (U.P. 1 of 1944 ) as continued in force by the U.P. Expiring Laws Continuance Act, 1948 (U.P. 13 of 1948 ) :

( 2 ) the C.P . b y the Co-operative Societies (Central Provinces Amendment) Act, 1930 (C.P. 7 of 1930 ) and in C.P . a nd Berar by the following Acts as continued in force by the C.P . a nd Berar Expirating Laws Continuance and Amending Act, 1947 (C.P. & B. 48 of 1947 ):--

(i) the C.P . a nd Berar Co- operative Societies (Amendment) Act, 1940 (C.P. & B. 5 of 1940 );

(ii) the C.P . a nd Berar Co-operative Societies (Amendment) Act, 1941 (C.P. &B; . 6 of 1941 );

(iii) the C.P . a nd Berar Co-operative Societies Amendment and Liquidators' Ord er Validation Act, 1945 (C.P. & B. 10 of 1945 ) ; and

(iv) Madhya Pradesh by M.P. Act, 8 of 1954 .


Section 1. Short title and extent

(1) This Act may be called the Co-operative SocietiesAct, 1912; and

(2) It extends to 1 [the whole of Indiaexcept 2 [the territories which, immediately before the 1st November, 1956, were comprised in Part BStates].]

1.Substituted by the A.O. 1950, for "all the Provinces of India".

2.Substituted by the A.O. 1956 for "PartB States".


Section 2. Definitions

In this Act, unless there is anything repugnant in the subject or context,--

(a)"by-laws" means the registered by-laws for the time being in force, and includes a registered amendment of the by-laws;

(b) "committee" means the governing body of a registered society to whom the management of its affairs is entrusted;

(c) "member" includes a person joining in the application for the registration of a society and a person admitted to membership after registration in accordance with the by-laws and any rules;

(d) "officer" includes a chairman, secretary, treasurer, member of committee, or other person empowered under the rules or the by-laws to give directions in regard to the business of the society;

(e) "registered" society means a society registered or deemed to be registered under this Act;

(f) "Registrar" means a person appointed to perform the duties of a Registrar of Co-operative Societies under this Act; or

(g) "rules" means rules made under this Act.

Section 3. The Registrar

The 1 [State Government] mayappoint a person to be Registrar of Co-operative Societies for the 2 [State], or any portionof it and may appoint persons to assist such Registrar, and may, by general orspecial order, confer on any such person all or any of thepowers of a Registrar under this Act.

1.Substituted by the A.O. 1950, for "Provincial Government".

2.Substituted by the A.O. 1950, for"Province".


Section 4. Societies which may be registered

Subject to the provisions hereinafter contained, a society whichhas its object the promotion of the economic interests of itsmembers inaccordance with co-operative principles, or a society established with theobject of facilitating the operation of such a society, may be registered underthis Act with or without limited liability :

Provided that unless the 1 [State Government] bygeneral or special order otherwise directs--

(1) the liability of asociety of which a member is a registered societyshall belimited ;

(2) the liability of asociety of which the object is the creation of funds to be lent to itsmembers, andof which the majority of the members are agriculturists,and of which no member is a registered society,shall beunlimited.

1. Substituted by A.O. 1950, for "ProvincialGovernment".


Section 5. Restrictions on interest of member of society with limited liability and a share capital

Where the liability of the members of a society is limited by shares, no member other than a registered society shall--

(a) hold more than such portion of the share capital of the society subject to a maximum of one-fifth, as may be prescribed by the rules; or

(b) have or claim any interest in the shares of the society exceeding one thousand rupees.

Section 6. Conditions of registration

(1) No society, other than a society of which a member is a registered society, shall be registered under this Act which does not consist of at least ten persons above the age of eighteen years and where the object of the society is the creation of funds to be lent to its members, unless such persons--

(a) reside in the same town or village or in the same group of villages; or

(b) save where the Registrar otherwise directs, are members of the same tribe, class, caste or occupation.

(2) The word "limited" shall be the last word in the name of every society with limited liability registered under this Act.

Section 7. Power of Registrar to decide certain questions

When any question arises whether for the purposes of this Act a person is an agriculturist or a non-agriculturist, or whether any person is a resident in a town or village or group of villages, or whether two or more villages shall be considered to form a group, or whether any person belongs to any particular tribe, class, caste, or occupation, the question shall be decided by the Registrar whose decision shall be final.

Section 8. Application for registration

(1) For purposes of registration an application to register shall be made to the Registrar.

(2) The application shall be signed--

(a) in the case of a society of which no member is a registered society, by at least ten persons qualified in accordance with requirements of Sec 6, sub-section (1) ; and

(b) in the case of a society of which a member is a registered society, by a duly authorised person on behalf of every such registered society, and where all the members of the society are not registered societies, by ten other members or, when there are less than ten other members, by all of them.

(3) The application shall be accompanied by a copy of the proposed by-laws of the society, 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.

Section 9. Registration

If the Registrar is satisfied that a society has com-plied with the provisions of this Act and the rules and that its proposed by-laws are not contrary to the Act or to the rules, he may, if he thinks fit, register the society and its by-laws.

Section 10. Evidence of registration

A certificate of registration signed by the Registrar shall be conclusive evidence that the society therein mentioned is duly registered unless it is proved that the registration of the society has been cancelled.

Section 11. Amendment of the by-laws of a registered society

(1) No amendment of the by-laws of a registered society shall be valid until the same has been registered under this Act, for which purpose a copy of the amendment shall be forwarded to the Registrar.

(2) If the Registrar is satisfied that any amendment of the by-laws is hot contrary to this Act or to the rules, he may, if he thinks fit, register the amendment.

(3) When the Registrar registers an amendment of the by-laws of a registered society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence that the same is duly registered.

Section 12. Member not to exercise rights till due payment made

No member of registered society shall exercise the rights of member unless or until he has made such payment to the society in respect of membership or acquired such interest in the society, as may be prescribed by the rules of by-laws.

Section 13. Votes of members

(1) Where the liability of the members of a registered society is not limited by shares, each member shall, notwithstanding the amount of his interest in the capital, have one vote only as a member in the affairs of the society.

(2) Where the liability of the members of a registered society is limited by shares, each member shall have as many votes as may be prescribed by the by-laws.

(3) A registered society which has invested any part of its funds in the shares of any other registered society may appoint as its proxy, for the purpose of voting in the affairs of such other registered society, and one of its members.

Section 14. Restrictions on transfer of share or interest

(1) The transfer or charge of the share or interest of a member in the capital of a registered society shall be subject to such conditions as to maximum holding as may be prescribed by this Act or by the rules.

(2) In case of a society registered with unlimited liability a member shall not transfer any share held by him or his interest in the capital of the society or any part thereof unless,--

(a) he has held such share or interest for not less than one year, and

(b) the transfer or charge is made to the society or to a member of the society.