FORMATION OF A CO-OPERATIVE SOCIETY

A Co-operative Society can be formed as per the provisions of the Co-operative Societies Act, 1912. At least ten persons having the capacity to enter into a contract with common economic objectives, like farming, weaving, consuming, etc. can form a Co-operative Society.

A joint application along with the bye-laws of the society containing the details about the society and its members, has to be submitted to the Registrar of Co-operative Societies of the concerned state. After scrutiny of the appliation and the bye–laws, the registrar issues a Certificate of Registration.

Requirements for Registration:

1.     Application with the signature of all members

2.     Bye-laws of the society containing:

(a)  Name, address and aims and objectives of the society;

(b) Names, addresses and occupations of members;

(c)  Mode of admitting new members;

(d) Share capital and its division.

Advantages

1.     Easy formation

2.     Open membership

3.     Democratic Control

4.     Limited Liability

5.     Elimination of Middleman’s Profit

6.     State Assistance

7.     Stable Life

Disadvantages

1.     Limited Capital

2.     Problems in Management

3.     Lack of Motivation

4.     Lack of Cooperation and Dependence on Government

MANAGING COMMITTEE

Members of Managing Committee are appointed as per byelaws of the society and comprises of Chairman, Vice Chairman, President, Vice President, MD, Secretary and Treasurer.

Powers of Managing Committee

1. Manage the business of the society.
2. Scrutinize the membership applications.
3. Check the books of accounts and register of the secretary and treasurer.
4. Sanction working expenses and any emergency expenses.
5. Appoint, suspend, and remove all officers except auditors.
6. Deposit the funds of society to any bank
7. Enter into any contract of the society
8. Borrow, raise or secure the payment of money
9. Refuse transfer of share if transferee is not qualified to be a member.
10. Settle or contest any suit or claim by or against the society in a court of law.

Duties of Managing Committee

1. To observe the provision of the act, rules and bye-laws
2. To get the account of society audited and placed before the General Body Meeting.
3. To hold elections of the committee before expiry of terms.
4. To maintain particulars of assets and liabilities of the society.
5. To maintain prescribed books of accounts

Functions of BOD

1. Elect chairman of society from amongst its members
2. Register new members and allot of shares to them
3. Authorize transfer of shares
4. Allow investment of funds
5. Lay down policies, guidelines, and procedures as per act, rules and byelaws

Duties of Secretary

1.To prepare and enforce office rules and procedures
2. To maintain record book of business transactions and annual budget of the society.

3. To execute the decisions of managing committee as regards borrowings & investment of surplus funds.To fix date of AGM and Managing Committee Meetings  in consultation of chairman.To issue notice, agenda etc. for meetings.

4. To maintain register of members, share ledger, capital register minutes book.

5. To file statements of accounts with the registrar.

6. To issue circulars, notifications and booklets to the members.

7. To receive loan applications from members and placed before managing committee.

8. To keep contact with the press and to inform about publicity of activities of  society.