Souharda Cooperative Registration
Souradha Cooperative Registration
The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows:
- There should be at least ten persons.
- These persons should be from different families.
- These persons should be competent to enter into a contract under the Indian contracts Act 1872.
- He should reside in the area of operation of the Cooperative.
- He should be eligible as per the bye-laws of the proposed Cooperative.
- Any individual, firm, company or any other body corporate can become member of the Cooperative.
- Any Cooperative registered under this Act (For Union cooperative) or Societies registration Act 1860.
- The object of the Cooperative should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles.
- It should be economically sound, its registration should not affect adversely on the development of the co-operative movement.
- Its registration should not be contrary to the policy directives of the State government.
Procedure of Formation of a Co-operative Cooperative:
The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows:
- Promoters meeting: Willing, eligible persons should come together and conduct a meeting, which is called as promoters’ meeting. This meeting will decide the name of the proposed Cooperative, its object and bye-laws and then elect a Chief Promoter authorizing him to sign the necessary documents on behalf of the promoter members.
- Collecting initial share capital: The Chief Promoter will apply to the Registrar of the concerned area for requesting to authorize to collect share-capital. The application shall consist of:
- Prescribed application
- Resolution of promoters’ meeting
- Proposed byelaw
- Details of promoters
Registrar will authorize the Chief promoter to collect the share and direct him to deposit the collected share capital in a particular Bank.
- Registration : After collection of the necessary share capital, the chief promoter shall apply for registration of the cooperative along with:
- Prescribed application
- 5 copies of proposed byelaws
- List of persons who have contributed to the share-capital and the entrance fee of the proposed Cooperative
- Bank documents having been deposited share capital
- Registration fees : 1% of the authorized share capital, subject to minimum of Rs.500/- and maximum of Rs. 5000/-
- After scrutinizing the documents Registrar will register the cooperative
- Election to first Board: After Registration the chief promoter shall call first General Body of the newly formed cooperative to elect its first board.
- Beginning of activities: After election of first board, the President and Secretary can open the Bank account and may start activities of the cooperative.
