Constitutional Provisions Types Characteristics functions of registrar Multiple choice questions

1. Co-operative Societies
GUIDED BY: Dr. U. J. KAHALEKAR
PRADUMN BALAJI SURYAKAR
BE17F01F049
TE CIVIL

2. Introduction
 A cooperative is defined as an autonomous association of persons united
voluntarily to meet their common economic, social, and cultural needs
and aspirations through a jointly-owned and democratically-controlled
enterprise.
 A cooperative society may also be defined as a business owned and
controlled equally by the people who use its services or who work atit.
 Made significant contribution to various sectors of national economy
ex. farming, weaving, consuming, etc.

3. Examples
• Maharashtra state sugar factories co-operative soc
• Maharashtra state housing co-op soc
• Maharashtra co-operative agricultural and rural devl bank
rural co-op credit institutions
district co-op banks
urban co-op banks- PMC bank.

4. Constitutional Provisions (97th CAA)
Article 243ZH-243ZT. Part 9-B
Incorporation of Co-operative societies
State legislature- incorporation, regulation, winding up of co-op soc.
principles
• voluntary formation
• Democratic member control
• Member economic participating
• Autonomous functioning

5. Member of boards-
No = as prescribed by state legislature.(Max = 21)
Tenure = 5 years from date of election.
Reservation= 1 seat for SC/ST, 2 seat for women
Co-opted members = experience in the field of banking, mgmt, finance or any
other as prescribed (at most 2 )
Election of member of boards
By Body provided by State Legislature

6. Supersession and Suspension (not more than 6 month)
Reasons
1. Persistent default
2. Negligence in performance
3. Prejudicial to the interests
4. Stalement
5. Failure to conduct elections.
Audit of accounts
By auditor appointed by General body of co-op.soc. Authorised by state govt.
Within 6 mnths of close of financial year

7. Returns
Annual report of activities
Audited statement of accounts
Plan for surplus disposal
List of amendments to byelaws co-op soc.
General body meetings
Any other info reqd by registrar

8. Reasons for 97th Amendment
1. Elections postponed indefinitely –
Tenure of office bearers/administrators remained in-charged for a long time
(reduced accountability in mgmt)
2. Performance in qualitative terms has not been upto desired level
3. To ensure the function of co-op soc in a
democratic (regular elections)
professional (good mgmt. practices)
autonomous (No external influence)
economically sound manner

9. Bye-laws of Co-operative Society
 Co-operative Societies Act, 1912.
 THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960
 A joint application along with the bye-laws of the society containing the details
about the society and itsmembers, has to be submitted to the Registrar of Co-
operative Societies of the concerned state.
 After scrutiny of the application and the bye–laws, the registrar issues a
Certificate of Registration.

10. Types of Co-operative Societies
1.Consumers’ Co-operative Society: to protect the interest of general
consumers by making consumer goods available at a reasonable price.
2.Producers’Co-operative Society: to protect the interest of small producers by
making available items of their need for production like raw materials, tools and
equipments , machinery, etc. Bayanika , Haryana Handloom, is example of
producers’ co-operative society.
3.Co-operative Marketing Society: These societies are formed by small
producers and manufacturers who find it difficult to sell their products
individually.

11. Types of Co-operative Societies
4.Co-operative Credit Society: to provide financial support to the members. The
society accepts deposits from members and grants them loans at reasonable rate
of interest in times of need.
Examples: Village Co-operative Society, Urban Cooperative Banks
5.Co-operative Farming Society: These societies are formed by small farmers to
work jointly and thereby enjoy the benefits of large-scale farming. Examples:
Ex: Pani-panchayats
6.Housing Co-operative Society: to provide residential houses to members
they purchase land, and construct houses or flats and allot the same to
members. Some societies also provide loans at low rate of interest to
members to construct their own houses.
Examples: The Employees’ Housing Societies , Metropolitan

13. Characteristics of Co-operative Society
 Open membership: A minimum of ten members are required to form a co- operative
society. The Co–operative societies Act does not specify the maximum number of members
for any co-operative society.
Voluntary Association: Members join as well as leave theco-operative society
voluntarily, that is by choice.
 Sources of Finance: In a co-operative society capital is contributed by all the members.
However, it can easily raise loans and secure grants from government after its registration.
 State control: To protect the interestof members, co-operative societies are placed under
state control throughregistration.

14.  Service motive: Co-operatives are not formed to maximize profit like other forms of
business organization.
 Separate Legal Entity: A Co-operative Society is registered under the Co-operative
Societies Act. After registration a society becomes a separate legal entity, with limited
liability of its members.
 Distribution of Surplus: Every co-operative society in addition to providing
services to its members, also generates some profit while conducting business.
Democratic Management: The society is managed by a group known as “Board of
Directors”. The members of the board of directors are the elected representatives of the
society.
Self-help through mutual cooperation: Co-operative Societies thrive on the
principle of mutual help. They are the organizations of financially weaker sections of
society.

15. Advantages
1) Easy formation
2) Open membership
3) Democratic control
4) Limited liability
5) Elimination of middleman’s
profits
6) State assistance
7) Stable life
Limitations
1) Limited capital
2) Problems in management
3) Lack of motivation
4) Lack of cooperation
5) Dependence on government

16. ROLE OF REGISTRAR OF CO-OPERATIVE SOCIETIES
Right from the Registration of a Cooperative Society till the cancellation
of its registration, the Registrar acts as a friend, philosopher and guide to
the cooperatives and ensures that Cooperative Societies function in
accordance with the CooperativeAct.

17. The main functions of the Registrar
 Conduct audit, order inspection, andenquiry.
 Settle disputes of Cooperative Societies through the process of
arbitration.
 Order winding up and cancellation of registrationof defunct/non-
functional societies.
 Issue Instructions for the promotion of business of different types
 To approve proposals for enrolment, resignation and cessation of
membership in Housing Cooperative; and

18. Multi-state Cooperative societies: Objective of the Act
Serving the interests of members in more than one State, to facilitate the
voluntary formation and democratic functioning of cooperatives .
 Multi-State Cooperative Society can be formed under Multi State
Cooperative SocietiesAct.
 Multi-State Cooperative Societies Act, 2002has received President’s
assent.
 The Act will supersede 1984Act when brought into force.
 Under the Act, there will be a Central Registrar overseeing and regulating
multi-state cooperative societies.

19. 1)Which of the following is not a function of registrar
a. Conducting audit
b. Order inspection
c. Enquiry
d. None of these
2) Co-operative banks are regulated by the Reserve Bank of India under which act?
a. Banking Regulation Act, 1949
b. Banking Laws (Application to Co-operative Societies) Act, 1965
c. Negotiable Instrument Act–1881
d. Both (A) and (B)
3) Co-operative banks which work at a metropolitan level are called as?
a. District Central Co-operative Bank
b. State Co-operative Bank
c. Primary Urban Co-operative Bank
d. Primary Agricultural Credit Societies
4) All banks registered under the ___________ are considered co-operative banks.
a. Banking Regulation Act 1949
b. The Bankers’ Books Evidence Act–1891
c. Cooperative Societies Act, 1912
d. Both (A) and (C)

20. 5) In India cooperative legislation started in _______
a.1904
b.1912
c.1901
d.1897
6) The maximum number of directors of a cooperative society shall not exceed ___
a. 12
b. 21
c. 15
d. 24
7) The annual general body meeting of every co-operative society shall be convened within
a. Three months of the close of the financial year
b. Three months of the close of the tropical year
c. Six months of the close of the financial year
d. One month of the close of the financial year
8) The superitendace, direction, control of the preparation, conduct of elections to CS may be
provided by
a. State legislature
b. Union legislature
c. Both of them
d. co-operative society itself

21. 9. No board shall be superseded or kept under suspension for a period exceeding ____
a. Two months
b. Six months
c. one year
d. no restriction
10) The 97th Constitutional amendment act of 2011 gave a constitutional status and
protection to co-operative societies, __ changes are made in the constitution
a. 1
b. 2
c. 3
d. 4

22. Reference
Indian Polity by M Laxmikanth
https://sahakarayukta.maharashtra.gov.in/
1.d 2.d 3.c 4.c 5.a 6.b 7.c 8.a 9.b 10.c

23. THANK YOU