Types of Multi State Cooperative Societies and Requirements:
Agriculture, Credit, Transport, Housing, Sugar, Fishery,Hospital, Store, Handloom, Customer,Labor and multi functional cooperatives society are the various kinds of multi state cooperatives societies. The procedure for registration requires an application made to the central registrar with prescribed form and specified particulars. It is also required to arrange at least fifty members from the two states with proper name and address proofs to form this society.
Role of Administrative Members of Multi State:
The interim management committee is responsible for the management and handling of the society. As far the list is concerned, the society to be formed should have at least 7 member and at the most 21 members. As per the modification made after the 97th Constitutional Modification act on February 2013, it is mandatory to have minimum 2 ladies and 1 extra member who are from Scheduled caste or Scheduled tribe. Until now there are 90950 Multi state cooperative society in which the credit type multi state cooperative society is most favorable. The governing body members get involves in yearly unique general body meetings,resolutions,general body conferences, quorums, notifications, etc similarly like in a credit or agriculture cooperative society.
The central registrar has the power to cancel the registration of the multi state cooperative society even after considering the report made to him. If the cooperative society wants to make any scheme like car loan, gold loan, double deposit strategy, property loan,triple deposit scheme, or any scheme which is unique, it is necessary for the society to inform and provide 1 prior 15 days discover all its members by mail, newspaper publication,or speed post, etc. After the 15 days, a general body meeting is to be conducted. . If the minimum number of members required for the meeting is one fifth of the total members present and support for the scheme, the meeting can occur. The members present in the meeting and their votes along with the signature of the governing body members are preserved in a minutes book for future use and records.
The general body special conference can be held by informing its members by a notice at least 15 days prior to it. This special general body conference should be carried out a minimum of 4 times every financial year. It is also mandatory for the society to recruit a chartered accountant every financial year to be present in the special general body conference. The Chartred account plays the role of handling the accounts of the society and submiting it with the tax return.The multi state cooperative society other than the credit, multipurpose and housing can collect cash from the members in the form of advance and shared allocation. The society can even give the net profits in advance and the dividends to their members on shares.
Management of a Multi State Cooperative Society:
The multi state cooperative societies are not allowed to divide any funds in the form of bonus or dividend amongst the members other than the net profits. If the multi-state cooperative societies doesn’t share their capital or surplus of income other than the expensesthen it will not be considered into the net profits and such surplus income will be dealt according to the bye laws. A multi state cooperative society is expected to move at least twenty five percent of its net earnings to the reserve fund and to credit its one percent to the national cooperative education fund specified by the national cooperative union of India in New Delhi. They even have to transfer a quantity of minimum ten percent to the reserve fund to overcome the losses.
Time Taken for Registration:
The time taken for the complete process of registration starting with the form filling to the authorization by the central registrar takes generally around 4 months. If the application gets an objection or if it is cancelled it can be submitted again. Though in some specified condition, the society registration can be done on the basis of the rejections or even on political pressures. The modification proposition leaving the registration is to be submitted to the ministry of agriculture. As mentioned earlier, it again takes around 3 to 4 months. It is quite unusual that the modified proposition is declined. If we wish to change our name or the location of our office or improve our certified share capital we need to submit modification. The formalities required to be submitted along with the modification proposition are bank statement and accounts showing net earnings and turnover. This is basically because the ministry of agriculture demands proper justification and reasons for the society proposal to be amended.