COOPERATIVE SOCIETIES ACT

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COOPERATIVE SOCIETIES ACT

Meaning of Cooperative: A Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Co-operatives are joined together locally, regionally, nationally and internationally in federations, alliances and other joint undertakings so that they can meet member needs most effectively.

Cooperative Societies Act is a Central Act.

Every State has a separate Co-operative Act. Though the Act is still in force, it has been specifically repealed in almost all the States and those States have their own Cooperative Societies Act

The Act is to facilitate formation of cooperative societies for the promotion of thrift and self-help among agriculturists, artisans and persons of limited means

FEATURES
1) 2) 3) 4) 5) 6)

Voluntary & Open Membership Democratic Member Control Mutual Help Self Help EACH FOR ALL, ALL FOR EACH Achievement of desired goals Deals with goods & services (credit society, consumer cooperative, industrial co-operative, marketing co-operatives, dairy co-operatives)

INSTITUTIONAL SUPPORT TO CO-OPERATIVES

ICA (International Co-operative Alliance) International Level NCDC National Level KVIC (Khadi & Village Industries Commission) Village industries NABARD Banks MHADA , HUDCO, NCHF Housing NAFED (National Agricultural Co-operative Marketing Federation) Marketing NDDB Dairy NCCF Consumer Co-operative NFCSF Sugar Co-operative NFIC Industrial Co-operative

GROWTH OF COOPERATIVES IN INDIA



National Cooperative Development Corporation (NCDC) was established in 1963 under NCDC Act 1962 to promote production, marketing and export of agricultural produce. Functions of NCDC : planning, promoting & financing programmes for production, processing, marketing, storage, export & import of agricultural products, food stuffs, certain other notifies commodities e.g. fertilizers, insecticides, agricultural machinery, soap, kerosene oil, textile, rubber, etc. Role of Cooperatives in Indian Economy During the year 2002-03, Cooperatives accounted for:
 46% of Agriculture Credit disbursement.  36% of fertilizer distribution.  59% of Sugar production.  32% of Wheat procurement.  65% of Storage facility.

GOVERNMENT POLICIES
The Union Cabinet first time approved the National Cooperative Policy, aiming at:
 Minimizing the say of the Government in Cooperatives.  Redefining the role of Registrar of Coop. Societies as a facilitator for Coop. Societies.  Repatriation of the Governments equity in the Cooperatives by infusion of equivalent

cooperative shares. Cooperative Law

 Multi-State Cooperative Societies Act- 2002 ensures functioning of Cooperatives as

autonomous Institutions on sound Cooperative Principles.

 The new legislation reduces the role of Government and provides professionalism in

Cooperatives to withstand competition.

 Government participation in the equity is allowed only when requested by the Society.

THE STATEMENT OF OBJECTS AND REASONS STATES AS (a) Cooperative Society can be established for purpose of credit, production or distribution (b) Agricultural credit societies must be with unlimited liability (c) Unlimited society is not best form of cooperation for agricultural commodities

REGISTRATION OF SOCIETY

State Government will appoint Registrar of Cooperative Societies Function of Registrar starts with registration of a society He has powers of general supervision over society Returns of Society are to be filed with Registrar He can order inquiry or inspection against society. He can order dissolution of society

SOCIETIES WHICH MAY BE REGISTERED

Society which has as its object the promotion of economic interests of its members in accordance with cooperative principles can be registered as a Society

A society established with the object of facilitating operation of such a society can also be registered under the Act

Can be registered with limited or unlimited liability

RIGHTS AND LIABILITIES OF MEMBERS

If liability of members is not limited by shares, each member shall have one vote irrespective of amount of his interest in the capital. [section 13(1)]

If liability of members of a registered society is limited by shares, each member will have as many votes as may be prescribed in bye-laws. [section 13(2)]

If a registered society has invested in shares of other registered society, it can vote by appointing a proxy. [section 13(3)]

A member of registered society shall not exercise his rights as member, unless he has made payment to society in respect of membership or has acquired interest in society, as may be prescribed by rules or bye-laws. [section 12].

MANAGEMENT OF SOCIETY

Each society will be managed by Committee Committee means the governing body of a registered society to whom the management of its affairs is entrusted. [section 2(b)]

Officer of society includes a Chairman, Secretary, treasurer, member of Committee or other person empowered under rules or bye-laws to give directions in regard to business of society. [section 2(e)]

REGISTERED SOCIETY IS BODY CORPORATE

A registered cooperative society is a body corporate with perpetual succession and common sea. (just like a company)

It can hold property, enter into contracts, institute and defend suit and other legal proceedings and to do all things necessary for the purposes of its constitution. [section 18]

INSPECTION OF AFFAIRS OF SOCIETY

Registrar can hold an enquiry or direct some person authorised by him to hold enquiry in following circumstances

(a) Of his own motion (b) Request of Collector (c) Application by majority of committee members of society or (d) At least one-third of members of society. [section 35(1)]

All officers and members of society shall furnish necessary information to registrar or person authorised by him. [section 35(2)]

DISSOLUTION OF SOCIETY

Registrar, after inspection or inquiry, or on application received from 75% of members of society, may cancel the registration of society, if in his opinion, the Society should be dissolved

Any member can appeal against the order of Registrar within two months to State Government or other Revenue Authority authorized by State Government

If no appeal is filed within two months, the order of dissolution shall become effective. If appeal is filed, the order will become effective only after it is confirmed by appellate authority. [section 39]

THE AMUL MODEL

Founded in 1946 to stop the exploitation by middlemen Amul is based in Anand, Gujarat The Kaira District Co-operative Milk Producers' Union was registered on December 14, 1946

Established brand name Amul Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF)- largest food product marketing organization.

Dr Verghese Kurien, former chairman of the GCMMF, is recognized as a key person behind the success of Amul.

In 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model.

Amul

spurred the White Revolution of India, made

India the largest producer of milk and milk products in the world.
More

than 13 million milk producers - 1,28,799 VDC -

milk is processed in 176 DCU and marketed by 22 State Marketing Federation, ensuring a better life for millions.
Revenue

- $2.15 billion (2010-11) of a direct linkage between milk

Establishment

producers and consumers by eliminating middlemen

Milk

Producers

(farmers)

control

procurement,

processing and marketing

Professional management

INDIA COFFEE BOARD WORKER'S COCO-OPERATIVE SOCIETY

Completely owned and managed by a series of worker co-operative societies.

400 coffee houses all over India Started by the Coffee Board in early 1940s Board closed workers were thrown out They together under leadership of communist leader A.K. Gopalan formed ICWCS in Bangalore on 19th August 1957.

There are 13 co-operative societies in the country to run the coffee houses These societies are governed by managing committees elected from the employees.

The biggest restaurant chain in Kerala.

LIJJAT

CORE VALUES
 Shri Mahila Griha Udyog Lijjat Papad is synthesis

of three different concepts : (1) The concept of Business (2) The concept of family (3) The concept of Devotion
Family Business

Devotion

Lijjat

ABOUT THE ORGANIZATION

 Shri Mahila Griha Udyog Lijjat Papad is a Women's organization manufacturing

various products from Papad, Appalam, Masala, Gehu Atta, Chapati, SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Liquid Detergent.
 The objective of the Institution is to provide employment to the ladies to enable

them to earn decent and dignified livelihood.

 Its a women's organisation of the women, by the women and for the women. It

was started on 15th March 1959 with 7 lady members with a borrowed sum of Rs. 80/- at Girgaum in Mumbai.
 The turning point of Institution was in 1966 when it was registered under the

Bombay Public Trust Act 1950 and also registered under Societies Registration Act, 1860 and got recognition from Khadi & Village Industries Commission as a village industry.

CONTDu
 Any women who can render physical work in this Institution without

distinction of caste, creed and color and agrees to abide by the objective of the Institution can become a member of the Institution.
 All the branches are autonomous units and the income or loss as the case may

be of such unit is borne by the owner sister members of that branch by increasing or decreasing their rolling charges accordingly. The credit for rapid progress goes to the constant vigilance on the part of sister members maintaining the quality of Lijjat Papad with their hard work.
 Every branch is headed by a Sanchalika to see the production of the branch.  The cooperative form of organization has a committee of 21 that decides how

the profits are to be distributed. They generally buy gold coins 5gm or 10 gm, depending on the profit. Everyone gets an equal share of profit, irrespective of who does what work, irrespective of seniority or responsibility.

ORGANIZATIONAL STRUCTURE

LIJJAT PAPAD

Papad Making

Papad Collection

Papad Calculation

ITS GROWTH STORY

 The organization is wide-spread, with its Central Office at Mumbai and its 79

Branches and 27 Divisions in different states all over India.

 The organization started of with a paltry sum of Rs.80 and has achieved sales of

over Rs.829 crores with exports itself exceeding Rs. 36 crores.

 Membership has also expanded from an initial number of 7 sisters from one

building to over 43,000 sisters throughout India.

GREY AREAS OF COOPERATIVE SECTOR

Poor infrastructure, Lack of awareness, Lack of quality management, Over-dependence on government, Dormant membership, Non-conduct of elections, Lack of strong human resources policy, Neglect of professionalism, Restricted coverage Cooperatives are also unable to evolve strong communication and public relations strategies which can promote the concept of cooperation among the masses