The Multi-State Co-operative Societies Act, 2002 (Act No. 39 of 2002)

What the Act governs

The Multi-State Co-operative Societies Act, 2002 extends throughout India. Its commencement was appointed by the Central Government through an Official Gazette notification, with 19 August 2002 identified in the supplied text.

The law consolidates and amends the framework for co-operative societies whose objects extend beyond one State. It aims to support voluntary formation, democratic functioning, self-help, mutual aid, economic and social betterment, and functional autonomy.

Who is covered

The Multi-State Co-operative Societies Act, 2002 applies to:

• All multi-State co-operative societies.
• Co-operative societies with objects not confined to one State that were incorporated before commencement under the Co-operative Societies Act, 1912, another State co-operative law, the Multi-unit Co-operative Societies Act, 1942, or the Multi-State Co-operative Societies Act, 1984, where registration had not already been cancelled.

The area of operation of a society means the area from which people are admitted as members.

Registration, membership and management

The Multi-State Co-operative Societies Act, 2002 provides for:

• Appointment and powers of the Central Registrar of Co-operative Societies.
• Registration, registration certificates, names, addresses and registered bye-laws.
• Conversion of a co-operative society into a multi-State co-operative society.
• Amalgamation, reorganisation, division, and transfer of assets and liabilities.
• Membership eligibility, voting, expulsion, shareholding and transfer of interests after a member's death.
• General body meetings, boards of directors, chief executives and board committees.
• Establishment and functions of the Co-operative Election Authority.

Property, funds and financial oversight

The Multi-State Co-operative Societies Act, 2002 regulates society property and finances through provisions dealing with:

• Disposal of net profits and restrictions on dividing funds as profit.
• Investment, loans, borrowing and transactions with non-members.
• Transfer of assets and liabilities during amalgamation or division.
• Charges and set-off against a member's share, contribution or interest.
• An exemption from compulsory registration of instruments, although the supplied extract does not state its scope or conditions.
• Audit, concurrent audit, inquiry, inspection and recovery of costs.

Disputes and closure

The Multi-State Co-operative Societies Act, 2002 also covers dispute reference, complaints to a Co-operative Ombudsman, appeals, review, enforcement of decisions, winding up, liquidation, disposal of surplus assets, offences, penalties and cancellation of registration.