Ministry of Cooperation
The Co-operative Societies Act, 1912, is a foundational piece of legislation that facilitates the formation of co-operative societies in India, particularly for the promotion of thrift and self-help among agriculturists, artisans, and persons of limited means. This Act provides a legal framework for the registration, management, and operation of co-operative societies, outlining their rights, liabilities, and privileges. It is designed to encourage collective action and mutual assistance among members, fostering economic development and social welfare. The Act is a key instrument in India’s cooperative movement.
Act Background and Ministry:
The Co-operative Societies Act, 1912, was enacted during the British colonial rule in India. It aimed to provide a legal framework for the formation and operation of co-operative societies. The Act falls under the purview of the then-existing legislative council of India, which was under the British administration. Currently, the subject matter of the Act would fall under the domain of the Ministry of Cooperation or the equivalent ministry dealing with cooperative societies in the respective state governments of India.
Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on March 1, 1912. It is structured into 50 sections, and has no formal chapters, but sections are logically grouped by subject matter.
Act Governed By:
The Act is primarily governed by the Registrar of Co-operative Societies, who has the power to register societies, oversee their operations, and resolve disputes. The Act also involves the roles of the State Governments, which have the power to make rules and issue directions. The Act also impacts the members of the co-operative societies.
On Whom it is Applicable:
The Act is applicable to all co-operative societies registered or deemed to be registered under the Act. It applies to the members of these societies, as well as to the Registrar and other officials involved in the administration of the Act.
Penalties/Punishments:
The Act specifies penalties for non-compliance. These include:
-
Fines: For contravening the provisions of the Act, such as using the word “co-operative” without proper sanction.
Important Pointers:
-
Registration of Societies: The Act outlines the requirements and procedures for the registration of co-operative societies.
-
Membership: The Act defines who can be a member of a co-operative society and outlines their rights and liabilities.
-
Management of Societies: The Act provides for the management of societies through a committee and specifies the powers and duties of officers.
-
Privileges of Registered Societies: The Act grants various privileges to registered societies, including the status of a body corporate, prior claim over certain debts, and exemption from certain taxes and duties.
-
Restrictions on Loans and Borrowing: The Act imposes restrictions on loans and borrowing by co-operative societies.
-
Investment of Funds: The Act specifies how funds of co-operative societies may be invested.
-
Inspection of Affairs: The Act provides for the inspection of the affairs of co-operative societies by the Registrar.
-
Dissolution of Societies: The Act outlines the procedures for the dissolution and winding-up of co-operative societies.
Act Copy: