Chapter II INCORPORATION

It shall be the policy of the Government to encourage and promote the co-operative moment in the State and to take such steps in this direction, as may be necessary or desirable.

1. (1) The Government may appoint a person to be the Registrar of Cooperative Societies for the State and may appoint other persons to assist him.
2. (2) The Government may, by general or special order, and subject to such conditions as it may think fit to impose, confer on any person appointed to assist the Registrar, or may delegate to any officer of any society, all or any of the powers of the Registrar under this Act. The Government may also, by notification, direct that all or any of the powers exercisable by it under this Act or the rules may be exercised by the Registrar or such other officer, and subject to such conditions, if any, as may be specified in the notification. Every person, conferred on or delegated with the powers of the Registrar shall exercise such powers, subject to the general superintendence and control of the Registrar.

1. (1) Where,-
   • (a) atleast fifteen number of persons, each of them being a member of a different family, intend to form a co-operative society having objects to undertake certain co-operative activities, for promotion of the economic interests of its members in accordance with the co-operative principles as specified in Schedule A; or
   • (b) atleast five members of co-operative societies, intend to form another co-operative society, with the object of facilitating the objects of such societies. they shall, appending the bye-laws they wish to adopt, apply to the Registrar in the manner as may be prescribed : Provided that the minimum share capital shall not be less than the prescribed minimum share capital, if any, for the respective class of society as classified under the rules and that it shall be necessary for every member of the society to hold atleast one share.
2. (2) The bye-laws, so appended with, shall be specific on the matters specified in the Schedule 'B' and shall, in general, conform the broad parameters of the class or sub-class of societies, as prescribed in the rules, in which the society is intended to be registered according to its objects, area of operation, membership or any other criterion, as may be prescribed.
3. (3) A co-operative society may be registered with limited or unlimited liability and where society is registered with limited liability, the word 'limited' or its synonym in Hindi language shall form the last word in its name : Provided that the liability of a co-operative society, which has a cooperative society as its member, shall be limited. 9(4) No primary agricultural credit society or its federation or association (except those which are permitted to act as a bank under the Banking Regulation Act, 1949 (Central Act No.10 of 1949) shall be registered with the word 'bank' or any other derivative of the word 'bank' in its registered name or shall use the same as a part of its name: Provided that where any primary agricultural credit society or its federation or association (except those which are permitted to act as a bank under Banking Regulation Act, 1949 (Central Act No.10 of 1949)) has been registered before the commencement of the Rajasthan Cooperative Societies (Amendment) Ordinance, 2009 (Ordinance No. 7 of 2009) with the word 'bank' or any of its derivatives in its registered name, it shall within three months from the date of such commencement, change its name so as to remove the word 'bank' or its derivative, if any, from its name in accordance with the provisions of section 9: Provided further that where any society referred to in the preceding proviso fails to comply with the provisions of the said proviso within the period specified therein, the Registrar shall order the winding up of such society.

1. (1) If the Registrar is satisfied -
   • (a) that the proposed society complies with the requirements of sound business in its proposed area of operation;
   • (b) that the application complies with the provisions of this Act and the rules;
   • (c) that the proposed bye-laws are not contrary to the provision of this Act and the rules; and
   • (d) that the aims of the proposed society are not inconsistent with the principles of social justice, co-operation and public morality and are not in derogation to the laws of the land, he shall, within sixty days from the submission of the application, register the co-operative society together with its bye-laws under the class or subclass, as prescribed, and issue a certificate thereof under his hand and seal, which shall be the conclusive evidence of the fact that the society is duly registered under this Act unless proved that such registration has been cancelled by the Registrar under the provisions of this Act.
2. (2) If the Registrar finds that any one of the conditions laid down in sub-section (1) is not satisfied, he shall, after giving such of the applicants, as may be prescribed, an opportunity of being heard, communicate the order of refusal together with the reasons thereof, within sixty days from the submission of the application.
3. (3) If no refusal is communicated within the period specified under sub-section (2), the applicants may, within thirty days from the expiry of such period, move, the Registrar, Co-operative Societies, Rajasthan, where the registering authority is subordinate to him, and the Government, where the Registrar, Cooperative Societies, Rajasthan is himself the registering authority, for decision on their application and the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall within thirty days of receipt of the application, decide it and issue necessary and decisive directions to the registering authority, failing which the society shall be deemed to be registered.

The registration of a co-operative society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal, and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.

1. (1) Subject to the provisions of this Act and the rules, functions of every co-operative society shall be regulated by a set of bye-laws registered under this Act, the subject matter of which is enclosed as Schedule B; and no amendment therein shall be valid unless such amendment has been registered by the Registrar under the provisions of this Act.
2. (2) An amendment of the by-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day, on which it is registered

1. (1) Where a co-operative society after having decided to change its name, by a special resolution passed in its general body meeting, applies to the Registrar, the Registrar shall cause published a public notice to this effect and after considering the objections, if any received within one month of such publication enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
2. (2) The change of name of a co-operative society shall not affect any rights or obligations of the co-operative society, or render defective any legal proceedings by or against it; and any legal proceedings which may have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.

1. (1) Every proposal for an amendment of the bye-laws of a society, after it has been passed by the society in its general body meeting by a special resolution, shall be forwarded to the Registrar in the manner as may be prescribed and if the Registrar is satisfied that the proposed amendment fulfils the requirements, as are essential for the registration of bye-laws under section 6, he shall register the amendment and issue a certificate thereof within sixty days from the date of submission. The certificate so issued, signed and sealed by the Registrar shall be the conclusive evidence of the fact that the amendment has been duly registered: 10Provided that no society shall pass any such amendment in its bye-laws, which is not in consonance with the bye-laws of the class or sub-class of societies under which the society was originally registered.
2. (2) If the Registrar feels that the proposed amendment does not fulfil the requirements, as are essential for the registration of bye-laws, he shall, alongwith his comments thereon, send it back to the society, for reconsidering it, within sixty days of its submission.
3. (3) Where the society, after reconsideration as required under sub-section (2), submits the proposal again, the Registrar shall, within sixty days, register the proposed amendment, if he is satisfied with the fulfilment of the requirements essential for the registration of bye-laws or else communicate his order of refusal to the society.
4. (4) If no refusal is communicated within the period specified under subsection (3), the society may, within thirty days from the expiry of such period, move, the Registrar, Co-operative Societies, Rajasthan, where the registering authority is subordinate to him, and the Government, where the Registrar, Cooperative Societies, Rajasthan is himself the registering authority, for decision on the proposed amendment and the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall, within thirty days of receipt of such amendment, take a decision thereon and issue necessary and decisive directions to the registering authority, failing which the proposed amendment shall be deemed to be registered.

1. (1) If at any time, it appears to the Registrar that an amendment of the bye-laws of a cooperative society or, any class of societies is necessary or desirable in the interest of such society, or class of societies or its members at large or in the public interest, he may send the proposals of such amendment to the Chairperson and the Chief Executive Officer of the society, requiring that the proposal be considered in the general body meeting of the society within a period of three months.
2. (2) Where the society communicates its consent to the proposed amendment, the Registrar may register the amendment and issue a certificate thereof, which shall form part of the bye-laws of the society.
3. (3) Where the society refuses to accept the proposal of the Registrar and the Registrar is satisfied that it is necessary in the public interest to make such an amendment, he may, within a period of thirty days from the date of communication of such refusal, send the proposal, with reason therefor, to the State Government for its consideration. The State Government may, after giving the society, an opportunity of being heard, direct the Registrar to register the amendment with such modifications, if any, as it may deem fit and such amendment shall be binding on the society and its members.
4. (4) Where the society, within the period specified under subsection (1), fails to take a decision on the proposals of the Registrar, on the expiry of such period the proposed amendment shall be deemed to have been duly passed by the society and the Registrar shall register the amendments and issue a certificate to this effect.

1. (1) Where a co-operative society, after having informed the Registrar atleast fifteen days beforehand, by a special resolution passed in its general body meeting, proposes -
   • (a) to transfer its assets and liabilities in whole or in part to any other cooperative society, if the other society also, by a special resolution passed in its general body meeting approves such decision; or
   • (b) to divide itself into tw or more co-operative societies; or
   • (c) to amalgamate with another society to form a new cooperative society, if the other society also, by a special resolution passed in its general body meeting approves such decision, such proposal shall be forwarded to the Registrar in the manner as may be prescribed and if the Registrar is satisfied that such proposal is in the interest of the co-operative movement and the public, he shall approve the proposal within sixty days of its submission or else send it back to the society for reconsideration alongwith his observations.
2. (2) Where the society, after reconsideration as required under sub-section (1), submits the proposal again, the Registrar shall, if in his opinion such modified proposal meets the requirements as expressed in his observations, approve it within sixty days of submission or else communicate his order of rejection to the society.
3. (3) If no action is taken on the proposal of the society within the period specified under sub-section (2), the society may, within thirty days from the expiry of such period, move, the Registrar, Co-operative Societies, Rajasthan, where the registering authority is subordinate to him, and the Government, where the Registrar, Co-operative Societies, Rajasthan is himself the registering authority, for decision on their application and the Registrar, Co-operative Societies, Rajasthan or the Government, as the case may be, shall, within thirty days of receipt of the application, decide it and issue necessary and decisive directions to the registering authority, failing which the proposal shall be deemed to have been approved.
4. (4) Where the proposal of the society has been approved by the Registrar or is deemed to have been approved, the society shall give notice containing all the particulars thereof in writing to all its members and creditors and, notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of one month, from the date of service of such notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
5. (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. (6) A resolution passed by a Co-operative Society under this section shall not take effect until, either -
   • (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. (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.
8. (8) The amalgamation, division or transfer made under this section shall not affect any rights or obligations of the societies so amalgamated, or of the society so divided or of the transferee, or render defective any legal proceedings which might have been continued or commenced by or against the societies which have been amalgamated or divided, or the transferee; and accordingly such legal proceedings may be continued or commenced by or against the amalgamated society, the divided societies or the transferee, as the case may be.

1. (1) Where the Registrar is satisfied that it is essential in the public interest or in the interest of the co-operative movement or for the purpose of securing the proper management of any co-operative society that two or more co-operative societies should be amalgamated or any cooperative society should be reorganised or should be divided to form two or more societies then, notwithstanding anything contained in section 12, but subject to the provisions of this section, he shall propose the amalgamation, division or reorganisation, of these societies into a single society, or into societies with such constitution, property rights, interests and authorities and such liabilities, debts and obligations, as may be specified by him. The Registrar shall send the proposals to the Chairperson and the Chief Executive Officer of the society, requiring the proposals to be considered and decided in the general body meeting of the society within a period of three months.
2. (2) If the society communicates its consent to the proposal made under subsection (1), the Registrar shall pass the orders of the amalgamation, division or reorganisation as the case may be.
3. (3) If, within the period specified under sub-section (1), the society fails to take any decision on the proposal of the Registrar, the proposed amalgamation, reorganisation or division shall, on the completion of such period, be deemed to have been consented to by the society and accordingly the Registrar shall pass the necessary orders.
4. (4) Notwithstanding anything contained in this section, the powers of dividing or reconstituting a co-operative society, after affording it an opportunity of being heard and with the prior approval of the Government, for the purpose of constituting a news co-operative society in the State shall vest in the Registrar.
5. (5) No order under this section shall be made unless -
   • (a) a copy of the draft of the proposed order has been sent to the society or each of the societies concerned,
   • (b) the Registrar has considered and made such modifications in the draft as may seem to him desirable in the light of any suggestions and objections, which may be received by him within such period as the Registrar may fix in that behalf either from the society or from any member or class of members thereof or from any creditor or class of creditors.
6. (6) The order referred to in sub-section (2) or (3) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, division or reorganisation.
7. (7) Every member or creditor of each of the societies to be amalgamated, divided or reorganised, who has objected to the scheme of amalgamation, division or reorganisation, within the period specified, shall be entitled to receive, on the issue of order of amalgamation, division or reorganisation, his share or interest if he is a member and the amount in satisfaction of his debts if he is a creditor.
8. (8) On the issue of an order under sub-section (2) or (3), the provisions contained in sub-sections (7) and (8) of section 12 shall apply to the society so amalgamated, divided or reorganised as if they were amalgamated, divided or reorganised under that section, and to the society amalgamated, divided or reorganised

1. (1) Where the whole of the assets and liabilities of a cooperative society are transferred to another co-operative society in accordance with the provisions of section 12 or 13, the registration of the first mentioned cooperative society shall be cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
2. (2) Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of section 12 or 13, the registration of each of the amalgamated societies shall stand cancelled on the registration of the new society and each society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
3. (3) Where a co-operative society divides itself-into two or more co-operative societies in accordance with the provisions of section 12 or is to be divided by the Registrar in accordance with the provisions of section 13, the registration of the society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
4. (4) Where the affairs .of a co-operative society, in respect of which a Liquidator has, been appointed under section 63, have been wound up, the Registrar shall make an order cancelling the registration of the society and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body from the date of such order of cancellation.
5. (5) Where it comes to the knowledge of the Government that a Cooperative Society, which has been deemed to be registered under the provisions of sub-section 3 of section 6 does not fulfil the requirements of registration as described in sub-section (1) of section 6, it may, after giving the society an opportunity of being heard, direct the Registrar to cancel the registration of the society in the manner prescribed and after such cancellation, the society shall cease to exist as a corporate body.