Societies which may be registered

(1) Subject to the provisions hereinafter contained, a society which has as its object the promotion of the economic interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Regulation with or without limited liability:

Provided that, unless the Chief Commissioner by general or special order otherwise directs, the liability of the society of which a co-operative society is a member shall be limited.

(2) Whether the liability of the members of any co-operative society is limited or unlimited by shares, the liability of the Government or of a credit agency which has taken shares in such co-operative society, shall be limited to the share capital subscribed by the Government or such credit agency as the case may be.

(3) The word “limited” or its equivalent in any Indian language shall be suffixed to the name of every society registered under this Regulation with limited liability. An application for registration shall be accompanied by three copies of the bye-laws which the Co-operative Society proposes to adopt. Such copies of bye-laws shall bear the signature of not less than two of the applicants, duly authorised by the members of the proposed co-operative society. A special general meeting called by the Registrar or any person authorised by him in writing shall be held in such manner and at such time and place as may be directed by him.