The Co-operative Societies Act, 1912

Status and purpose

The Co-operative Societies Act, 1912, Act No. 2 of 1912, dated 1st March 1912, provided a legal framework for forming and regulating co-operative societies. Its stated purpose was to promote thrift and self-help among agriculturists, artisans and persons of limited means.

The source records that the Act was repealed in its application to the Madras Presidency by the Madras Co-operative Societies Act, 1932. Its provisions therefore have historical relevance for that area rather than serving as the current basis for a property transaction.

Who and what it governed

The Co-operative Societies Act, 1912 allowed registration of societies formed to promote their members’ economic interests according to co-operative principles. It also covered societies established to facilitate the operations of such societies.

The State Government could appoint a Registrar of Co-operative Societies and assistants, and confer Registrar powers on them. The Registrar considered registration applications, registered qualifying societies and by-laws, and decided specified questions about applicants and membership qualifications.

Key provisions

The Co-operative Societies Act, 1912 provided that:

• A qualifying society generally required at least ten persons over eighteen years of age, unless a registered society was itself a member.
• An application had to be made to the Registrar with the proposed by-laws and any information required by the Registrar.
• A registration certificate signed by the Registrar was conclusive evidence of registration unless cancellation was proved.
• An amendment to registered by-laws was not valid until registered.
• Members could not exercise membership rights until required payments were made or the required interest was acquired.
• Transfers or charges over a member’s share or interest were subject to statutory and rule-based limits.
• Every registered society had to maintain a registered address and report changes to the Registrar.
• The Act, applicable rules and by-laws had to be available for free inspection at reasonable times at that address.
• Every registered society’s accounts had to be audited at least once each year.

Property and legal capacity

Registration under the Co-operative Societies Act, 1912 made a society a body corporate with perpetual succession and a common seal. A registered society could hold property, enter contracts, and bring or defend legal proceedings in its registered name.

The listed subjects also include claims over members’ interests, attachment protection, transfer on death, investment of funds, loans, borrowing, dissolution, cancellation and winding up.