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UPMSP Co-operative Studies study materials
UPMSP Co-operative Studies study resources

UPMSP Co-operative Studies: Co-operative Legislation and Legal Framework

UPMSP Co-operative Studies · Work through your exam, one topic at a time.

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Co-operative Legislation and Legal Framework

Co-operative Legislation and Legal Framework

This domain tests how a society is created, regulated and wound up, and which law applies.

Co-operation is mainly a State subject; single-State societies are registered under the State Co-operative Societies Act-in Uttar Pradesh, the U.P. Co-operative Societies Act, 1965. Societies with members or objects in more than one State fall under the Multi-State Co-operative Societies Act, 2002 and the Central Registrar. The 97th Constitutional Amendment (2011) inserted Article 19(1)(c) (right to form co-operative societies), Article 43B (promotion of co-operatives) and Part IXB (Articles 243ZH–243ZT) for multi-state co-operatives.

Core rules

  • Registration creates a body corporate with perpetual succession, a common seal and limited liability.
  • Membership, shares, management committee, elections, audit, disputes and winding up are regulated by the Act, rules and by-laws.
  • The Registrar supervises registration, amendment of by-laws, audit and liquidation; the Co-operative Tribunal or arbitration handles disputes.

Worked example

A society wants to register with objects in Uttar Pradesh and Bihar. Reasoning: its objects are not confined to one State, so it is a multi-State society. It must apply to the Central Registrar under the MSCS Act, 2002-not to the U.P. Registrar-although its actual operations must still comply with local laws.

Traps

A co-operative is not registered under the Companies Act. The Registrar is not a day-to-day manager; the managing committee runs the society. Part IXB does not apply to every single-State society. Do not assume the 97th Amendment abolished State Acts.