Chapter II REGISTRATION OF CO-OPERATIVE SOCIETIES

(1) The Government may appoint a person to be the Registrar of Co-operative Societies for the State and may appoint other persons to assist him. (2) The Government may by general or special order, confer on any person appointed to assist the Registrar any of the powers of the Registrar under this Act and the Rules. (3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2), subject to the general superintendence and control of the Registrar. For carrying out the purposes of this Act, the Registrar may issue directions to the persons appointed to assist the Registrar under sub-section (1) which shall be binding upon them. (4) Notwithstanding anything contained in this Act, wherein power of the Registrar is exercised by any person by virtue of the order issued by the Government under sub-section (2), the order passed or decision made by such persons for the purpose of appeal shall be deemed to be the order or decision of that person and not of the Registrar.

(1) Subject to the provisions hereinafter contained a society which has its object the promotion of the economic interests of its members in accordance with cooperative principles as prescribed or a society established with the object of facilitating the operations of such society, may be registered under this Act with or without limited liability: Provided that, unless the Government by general or special order otherwise directs, the liability of the society of which a member is a co-operative society shall be limited. (2) The word "limited" or its equivalent in any Indian language shall be the last word in the name of every society registered under this Act with limited liability.

No society, other than a society of which a member is a co-operative society, shall be registered under this Act, unless it consists of at least ten individuals above the age of eighteen years or such other higher number of individuals, as may be determined by the Registrar, in each case, from time to time, belonging to such number of families as prescribed: Provided that for any employment scheme made by the Government, the Registrar may register a society consisting of five individuals above the age of eighteen years.

No member other than the Government or a co-operative society shall hold more than such portion of the share capital of a co-operative society, subject to a maximum of one-fifth, as may be prescribed or have or claim any interest in the shares of such society exceeding five lacs rupees, whichever is less.

(1) For purposes of registration, an application in prescribed form along with proposed bye-laws 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 co-operative society, by at least ten persons qualified in accordance with the requirements of section 5; and (b) in the case of society of which a member is a co-operative society, by a duly authorized person on behalf of every such society and where all the members of the society are not co-operative societies by ten other members, or when there are less than ten other members, by all of them.

(1) If the Registrar is satisfied – (a) that the application complies with the provisions of this Act and the Rules; (b) that the objects of the proposed society are in accordance with section 4; (c) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and (d) that the proposed society has reasonable chances of success; the Registrar may register the society and its bye-laws. (2) Where the Registrar refuses to register a society, he shall communicate within a period of one month from the date of receipt of the application for registration, the order of refusal together with the reasons thereof to such of the applicants as may be prescribed: Provided that no order of refusal shall be made unless the applicant has been given a reasonable opportunity of being heard: Provided further that if the application for registration is not disposed of within a period of one month specified in sub-section (2) or the Registrar fails to communicate the order of refusal within the said period, the application shall be deemed to have been accepted for registration and the Registrar shall issue the registration certificate in accordance with the provision of this Act and the rules made there under.

Where a society is registered under this Act, the Registrar shall issue a certificate of registration signed by him which shall be conclusive evidence that the co-operative society therein mentioned is duly registered under this Act.

(1) A co-operative society, may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the society or any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name. (2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of a co-operative societies in place of the former name and shall amend the certificate of registration accordingly.

(1) Subject to the provisions of the Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability. (2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-laws or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or repay loans, as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented, to the change. (4) An amendment of the bye-laws of a co-operative society changing the form or extent of its liability shall not be registered or take effect until all claims of members and creditors who exercise the option, referred to in sub-section (2) within the period specified therein, have been met in full.

(1) A co-operative society may by a resolution passed by a two-third majority of the members present and voting at a general meeting of the society, – (a) transfer its assets and liabilities in whole or in part to any other co-operative society; (b) divide itself into two or more co-operative societies : Provided that where the Government has assisted the society by way of share capital contribution, the society shall take the prior approval of the Registrar. (2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-third majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society. (3) The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be. (4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-laws or contract to the contrary, any member or creditor shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or repay loans, as the case may be. (5) Any member or creditor who does not exercise his option within the period specified in sub-section (4), shall be deemed to have assented to the proposals contained in the resolution. (6) A resolution passed by a co-operative society under this section shall not take effect until,– (a) the assent thereto of all the members and creditors has been obtained, or (b) all claims of members and creditors who exercise the option referred to in sub-section (4) within the period specified therein, have been met in full. (7) Where a resolution passed by a co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.

(1) Where the Registrar is satisfied that it is essential or desirable in the interest of the co-operative society or co-operative societies that (i) one or more co-operative societies, be amalgamated with any other co-operative society; or (ii) two or more co-operative societies be amalgamated to form a new cooperative society, then notwithstanding anything contained in section 13, the Registrar, may, by order, after consulting the financing institution, if any, provide for the amalgamation of the said society or societies,– (a) with any other co-operative society, or (b) to form new co-operative society, with such constitution, property, rights, interests, liabilities, duties and obligations, as may be specified in the order. (2) No order shall be made under this section, unless –

(1) Where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with the provisions of sections 13 and 14, the registration of the former co-operative society shall stand cancelled and the society shall be deemed to have been dissolved. (2) Where one or more co-operative societies are amalgamated with any other co-operative society in accordance with the provisions of clause(i) of sub-section (1) of section 14, the registration of the co-operative society or cooperative societies, as the case may be, so amalgamated shall stand cancelled and the same shall be deemed to have been dissolved on the date of the order of amalgamation and the members thereof shall become the members of other co-operative society. (3) Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with provisions of section 13 and 14, the registration of each of the amalgamating societies, shall stand cancelled on the registration of the new society and each society shall be deemed to have been dissolved. (4) Where a co-operative society divides itself into two or more co-operative societies in accordance with the provisions of section 13, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved. (5) The amalgamation and splitting of co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting co-operative society or societies or render defective any legal proceedings by or against the co-operative society or societies and any legal proceedings that might have been continued or commenced by or against the co-operative society or societies, as the case may be, before the amalgamation or splitting, may be continued or commenced by or against the resulting co-operative society or societies.