Act 39 of 2002

The Multi-State Co-operative Societies Act, 2002

An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operative s as peoples institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto.

  • Ministry of Cooperation
  • Enacted 2002-07-03
  • 148 sections
SectionTitle
1 Short title, extent and commencement. Read
2 Application. Read
3 Definitions. Read
4 Central Registrar. Read
5 Multi-State co-operative societies which may be registered. Read
6 Application for registration. Read
7 Registration. Read
8 Registration certificate. Read
9 Multi-State co-operative society to be body corporate. Read
10 Bye-laws of multi-State co-operative societies. Read
11 Amendment of bye-laws of a multi-State co-operative society. Read
12 When amendment of bye-laws comes into force. Read
13 Change of name. Read
14 Address.Read
15 Publication of name by multi-State co-operative society. Read
16 Liability. Read
17 Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative societies. Read
18 Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in certain cases. Read
19 Promotion of subsidiary institution. Read
20 Liability of a co-operative bank to Deposit Insurance and Credit Guarantee Corporation. Read
21 Cancellation of registration certificate of multi-State co-operative societies in certain cases. Read
22 Conversion of a co-operative society into a multi-State co-operative society. Read
23 Registration of federal co-operative. Read
24 Functions of federal co-operative. Read
25 Persons who may become members. Read
26 Nominal or associate member of society. Read
27 Educational course for members. Read
28 Members not to exercise rights till due payment made. Read
29 Disqualification for member of a multi-State co-operative society. Read
30 Expulsion of members. Read
31 Vote of members. Read
32 Manner of exercising vote. Read
33 Restriction on holding of shares. Read
34 Restriction on transfer of shares or interest. Read
35 Redemption of shares. Read
36 Transfer of interest on death of members. Read
37 Liabilities of past member and estate of deceased member. Read
38 Constitution, powers and functions of general body. Read
39 Annual general meeting of general body. Read
40 Special general meeting of general body. Read
41 Board of directors. Read
42 Association of employees in management decision making process. Read
43 Disqualifications for being a member of board. Read
44 Prohibition to hold office of chairperson or president or vice-chairperson or vice-president in certain cases. Read
45 Establishment of Co-operative Election Authority.Read
45A Power of Chairperson.Read
45B Removal and suspension of Chairperson, Vice Chairperson and Members.Read
45C Disclosure and declaration of interest.Read
45D Resignation of Members.Read
45E Filling of casual vacancy.Read
45F Restriction of reemployment.Read
45G Vacancies, etc., not to invalidate proceedings of Authority.Read
45H Meetings of Authority.Read
45-I Functions of Authority.Read
45J Elections of members of board.Read
45K Appointment of Returning Officer and other officers.Read
45L Power to issue directions.Read
46 Holding of office in co-operative society. Read
47 Removal of elected members by general body. Read
48 Nominee of Central Government or State Government on board. Read
49 Powers and functions of board. Read
50 Meeting of board. Read
51 Chief Executive. Read
52 Powers and functions of Chief Executive. Read
53 Committees of board. Read
54 Securing possession of records, etc. Read
55 Charge and set-off in respect of share or contribution or interest of members. Read
56 Share or contribution or interest not liable to attachment. Read
57 Register of members.Read
58 Admissibility of copy of entry as evidence. Read
59 Exemption from compulsory registration of instruments. Read
60 Deduction from salary to meet multi-State co-operative society’s claim in certain cases. Read
61 Government aid to multi-State co-operative societies. Read
62 Funds not to be divided by way of profit. Read
63 Disposal of net profits. Read
63A Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund.Read
63B Rehabilitation and reconstruction of sick societies.Read
63C Financial assistance to multi-State co-operative societies for development.Read
64 Investment of funds. Read
65 Restriction on contribution. Read
66 Restriction on loans.Read
67 Restrictions on borrowings.Read
68 Restriction on other transactions with non-members.Read
69 Contributory provident fund. Read
70 Appointment and remuneration of auditors. Read
70A Concurrent Audit.Read
71 Provision as to resolutions for appointing or removing auditors. Read
72 Qualifications disqualifications of auditors. Read
73 Powers and duties of auditors. Read
74 Signature of audit report, etc. Read
75 Reading and inspection of auditor’s report. Read
76 Right of auditor to attend general meeting. Read
77 Power of Central Government to direct special audit in certain cases. Read
78 Inquiry by Central Registrar. Read
79 Inspection of multi-State co-operative societies. Read
80 Inspection of books of indebted multi-State co-operative societies. Read
81 Costs of inquiry and inspection. Read
82 Recovery of costs. Read
83 Repayment, etc. Read
84 Reference of disputes. Read
85 Limitation. Read
85A Co-operative Ombudsman.Read
86 Winding up of multi-State co-operative societies. Read
87 Winding up of co-operative bank at the direction of Reserve Bank. Read
88 Reimbursement to the Deposit Insurance Corporation by liquidator. Read
89 Liquidator. Read
90 Powers of liquidator. Read
91 Disposal of surplus assets. Read
92 Priority of contributions assessed by liquidator. Read
93 Power of Central Registrar to cancel registration of a multi-State co-operative society. Read
94 Execution of decisions, etc. Read
95 Execution of orders of liquidators.Read
96 Attachment before award. Read
97 Central Registrar or arbitrator or person authorised to be civil court for certain purposes. Read
98 Recovery of sums due to Government. Read
98A Review of decision.Read
99 Appeals. Read
100 No appeal in certain cases. Read
101 Review. Read
102 Interlocutory orders. Read
103 Co-operative societies functioning immediately before reorganisation of States.Read
104 Offences and penalties. Read
105 Cognizance of offences. Read
105A Provisions of this Act not in derogation of any other law.Read
106 Appointment of Co-operative Information Officer.Read
106A Copy of rules and bye-laws, etc., for inspection.Read
107 Place of keeping and inspection of, registers and returns. Read
108 Inspection of books of account, etc., of multi-State co-operative society. Read
109 Annual accounts and balance-sheet. Read
110 Minutes of proceedings of general meetings and of board and other meetings. Read
111 Minutes to be evidence. Read
112 Presumptions to be drawn where minutes duly drawn and signed. Read
113 Inspection of minutes book of general meetings. Read
114 Liquidator to be public servant. Read
115 Notice necessary in suits. Read
116 Power to amend Schedule.Read
117 Bar of jurisdiction of courts. Read
118 Indemnity. Read
119 Opening of branches. Read
120 Filing of returns. Read
120A Filing of applications, documents, inspections, etc., in electronic form.Read
120B Application of Banking Regulation Act, 1949.Read
121 Certain Acts not to apply. Read
122 Central Government’s power to give directions to specified multi-State co-operative societies in public interest. Read
123 Supersession of board of specified multi-State co-operative society. Read
124 Power to make rules. Read
125 Power to remove difficulties. Read
126 Repeal and saving. Read
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