If you want to help the willing people who want funds for some start-ups or a loan on some property, gold, etc. and the bank don’t approve it or they are taking loans from the financiers at a very high interest rate than the multi state cooperative society is the best option to help them. If you have a perfect capital management you can start with the society. Through this you can start any number of branches in any districts and states without having to seek permission at local level. The government has made the registration process easier and has appointed bodies and consultants to help the clients in their registration process of multi state cooperative society.However, the registration is done after the complete research on the client’s range of activities.
A multi stat cooperative society is the best way to execute public collection and providing returns without the interference of SEBI, MCA or RBI.A multi state cooperative society has to transfer at least twenty five percent of its net profits to the reserve fund, one percent to the national cooperative education fund and a minimum of ten percent to the reserve fund to overcome the unforeseen losses. The quorum should be one fifth of the total numbers of ordinary members for the conduction of any meeting. For the effect to be applicable it is required to get at least two third votes of the total members present in favor.For conducting a general body meeting or annual body meeting, at least 15 days prior notice should be given to all of its members. In case of special conference meeting it is expected that at least 7 days prior notice should be given.
It is compulsory to conduct 4 special general body meeting in every financial year. It is recommended to conduct the meetings quarterly.Within six months after the end of every financial year, the society is expected to submit the annual compliance including the election records, appointment of chartered accountant,amendment of byelaws etc. The department of Agriculture and Cooperation, Ministry of agriculture and farmers are responsible to make sure for this submission. If the Ministry of Agriculture permits the state registrar to examine the compliance of a multi state cooperative society, the state registrar can work on it. The best advantage of a multi state cooperative society over a state cooperative society is that an empanelment of returning officer from the side of Ministry of Agriculture and farmer welfare is not necessary. This helps the multi state societies to work without any difficulties.
Perks of a Multistate Co-Operative Society:
Basically, Multi state cooperative society has many advantages in various fields. It acts as an extremely useful option for all public limited, private limited, real estate companies and chit fund business where there is hardly any scope in today’s world. This Act has proved to be helpful since the year 2002 when it was passed. The main objective of this Act is to promote the intentional formation and democratic ideas of the cooperatives through self-help and common assistance to enhance the social and financial conditions and provide practical independence or autonomy.