ABC Group is a combination of dairy farmers operating in two States, Maharashtra and Gujarat. They have been operating successfully under separate state cooperative societies for several years. However, due to growing de
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2024
ABC Group is a combination of dairy farmers operating in two States, Maharashtra and Gujarat. They have been operating successfully under separate state cooperative societies for several years. However, due to growing demand for their products and the need to streamline operations across state boundaries, the group is considering the formation of a Multi-State Cooperative Society (MSCS) under the Multi-State Cooperative Societies Act, 2002. What are the legal and procedural steps involved in registering a Multi-State Cooperative Society under the Multi-State Cooperative Societies Act, 2002 ?
Answer & Explanation:
The following are legal and procedural steps involved in registering a Multi-State Cooperative Society under the Multi-State Cooperative Societies Act, 2002. Registration Procedure: For the purposes of registration of a multi-state cooperative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed. The application shall be signed 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 state concerned; in the case of a multi-state cooperative society of which 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; and in the case of a multi-state cooperative society of which another multi-state cooperative society and other cooperative societies are members, by duly authorized representatives of each of such societies: Provided that not less than two of the cooperative societies referred to in this clause, shall be such as are not registered in the same state; in the case of a multi-state cooperative society of which the members are cooperative societies or multi-state cooperative societies and individuals, by at least fifty persons, being individuals, from each of the two states or more; and 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 of the multi-state cooperative 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 Central Registrar may require. If the Central Registrar is satisfied that the application complies with the provisions of this Act and the rules; that the proposed multi-state cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one state; that its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the cooperative principles; that the proposed bye-laws are not contrary to the provision of this Act and the rules, he may register the multi-state cooperative society and its bye-laws. The application for registration shall be disposed of by the Central Registrar within a period of four months from the date of receipt thereof by him. Where the Central Registrar refuses to register a multistate cooperative society, he shall communicate, within a period of four months from the date of receipt of the application for registration, the order of refusal together with the reasons thereof to the applicant or applicants, as the case may be. Provided that no order or refusal shall be made unless the applicants have been given a reasonable opportunity of being heard. The application for registration of the Multi- State Cooperative Society shall be disposed of by the Central Registrar within a period of four months from the date of receipt thereof by him and if the application for registration is not disposed of within a period of four months specified above or the Central Registrar fails to communicate the order of refusal within that period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue the registration certificate in accordance with the provisions of the MSCS Act, 2002 and the rules made thereunder.
Topics: Multi-State Cooperative Societies Act, 2002
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