The Maharashtra Co-operative Societies Act 1960
Maharashtra Co-operative Societies Act, 1960 provides order and laws for development of co-operative societies in the state of Maharashtra. This Act was passed as a law by the Maharashtra legislative assembly in 1960 enacted in the eleventh year of the Indian republic. It extends to the whole state of Maharashtra giving detailed laws for registration to membership and liability of members and incorporation of duties and privileges of the co-operative societies across the state.
Understanding the Terms used in the Act:
Here is a list of some important and commonly used terms and their official definitions as per the Maharashtra Co-operative Societies Act, 1960.
Bonus: Any payment made in cash or kind from the profits of the society to a member or non member comes under the definition of bonus. This however does not include any sum paid to any employee of the society under the payment of Bonus Act of 1965.
Bye-Laws: All laws of the society registered under the Maharashtra cooperative societies Act of 1960 including registered amendments therein come under the umbrella of bye-laws.
Central Bank: Central Bank is defined as any cooperative bank which has been constituted with the objective to create funds to be loaned to other societies.
Committee: Committee is defined as any management committee or board of directors managing the day to day affairs of the society as per the laws drafted in section 73 of the Act.
Cooperative Bank: A Cooperative bank is defined as a society which is doing the business of banking as per the guidelines of the Banking Regulation Act of 1949.
Cooperative Appellate Court: Cooperative Appellate Court is defined as the Maharashtra cooperative appellate court constituted under the Maharashtra Cooperative Societies Act, 1960.
Dividend: Dividend means any amount paid out of profits of a society to its member(s) in proportion to the shares held by him or her.
Member: Any person joining the cooperative society as per the bye-laws and by submitting an application for registration is known as a member once accepted.
Officer: An officer is a person elected or appointed by any society to an office as per the society bye-laws. Chairman, vice chairman, president and secretary of the society all come under the umbrella of officers.
Working Capital: The funds at the disposal of any society including its paid up share capital, profits as well as other raised or borrowed money all come under the definition of working capital.
Key Features of the Act:
Registration of Society: Any society formed with the objective to offer general welfare and promotion of economic interest of its members or public at large can register as a society under the Maharashtra Co-Operative Societies Act, 1960
Conditions of registration: A society must have on penal a minimum of ten persons who are qualified to become members. Each family must be from a different family and residing within the area of operation of the society in question.
Application for registration: The application of society registration must be signed by minimum ten persons, all of whom should be members of the society committee. The signatories must be authorized by the committee resolution to sign on its behalf. Four copies of the proposed bye-laws must be attached with the application and the prescribed fee.
Amendment to bye-laws: If the registrar finds the application duly filled with all details, it would be forwarded to the concerned registering authority. If the registrar is not satisfied with the bye-laws, he or she may suggest amendments for the same. No society can amend any bye-laws or initiate any bye-law amendment unless the society is registered under the Maharashtra Co-Operative Societies Act, 1960. Any amendment must be passed with a resolution of over 2/3rd of its members voting only.
Change of name of society: Any society registered under the Act needs an approval from the registrar before changing the name of the society. Once the approval is granted after notification in the official gazette, the society can change its name by passing a resolution at its general body meeting. The bye-laws must be amended accordingly as per the new name of the society. Any change in name does not change the rights and liabilities of the society and its members.
Rights of Member: Every society member has the right to inspect the society office during office hours free of coast. The copy of act and rules along with society bye-laws and registration certificate must be available in the head office of the society at all times. Each member must be given access to the latest audit reports, balance sheets and all profit and loss accounts of the society. List of members of the society as well as the list of committee members must be displayed in the society office or made public for any member on request.
Dispute Management: As per the section 91 of the Act, any dispute regarding the business activities of the society can be forwarded to any society member of surety of the member for resolution. In case one or both of the applicants are members of the society, the complaint needs to be filed with the cooperative court for dispute resolution.
