Karnataka Co-operative Societies Act, 1959.

This Act may be called the Karnataka Co-operative Societies Act, 1959. It extends to the whole
of the State of Karnataka. It shall come into force on such [date] as the State Government may,
by notification in the official Gazette, appoint. Adapted by the Karnataka Adaptations of Laws
Order, 1/11/1973. Act came into force on 1/6/1960 by notification.

In this Act, unless the context otherwise requires 'Apex Society' means a federal society whose
area of operation extends to the whole of the State. 'Assisted Society' means a co-operative
society which has received the Government assistance in the form of share capital from the
Government. 'bye-laws' means the bye-laws registered or deemed to be registered under this Act
and for the time being in force and includes a registered amendment of the bye-laws. `Chief
Executive' means any employee of a co-operative society by whatever designation called and
includes an official of the State Government, an employee of any other institution or co-operative
society who discharges the functions of a Chief Executive under the Act, rules or the bye-laws.
Director of Co-operative Audit means the Director of Cooperative Audit referred to in sub-
section (1) of section 2AA who performs the functions of the Director of Co-operative Audit
under this Act and includes an Additional Director of Co-operative Audit, a Joint Director of Co-
operative Audit, a Deputy Director of Co-operative Audit, and an Assistant Director of Co-
operative Audit appointed to assist the Director of Co-operative Audit when exercising all or any
of the powers of the Director of Co-operative Audit. 'Committee' means the governing body of a
co-operative society, by whatever name called, to which the management of the affairs of the
society is entrusted. "Co-operative Bank" means a Co-operative Society which is doing the
business of banking. Explanation.--For the purpose of this clause "banking" shall have the
meaning assigned to it in section 5 of the Banking Regulation Act, 1949 (Central Act 10 of
1949). 'co-operative society' means a society registered or deemed to be registered under this
Act. 'co-operative society with limited liability' means a co-operative society in which the
liability of its members, for the debts of the society in the event of its being wound up is limited
by its bye-laws

Where a co-operative society is registered [or is deemed to be registered] under this Act, the
Registrar shall issue a Certificate of Registration signed by him, which shall be conclusive
evidence that the co-operative society therein mentioned is a co-operative society duly registered
[or is deemed to be registered] under this Act.

The registration of a co-operative society shall render it a body corporate by the name under
which it is registered having perpetual succession and a common seal, and with power to hold
property, enter into contracts, institute and defend suits and other legal proceedings and to do all
things necessary for the purposes for which it was constituted.

(1) A co-operative society may, by an amendment of its bye-laws, change its name.

(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the
register of co-operative societies in the place of the former name and shall amend the certificate
of registration accordingly.

(3) The change of name of a co-operative society shall not affect any rights or obligations of the
co-operative society, or renders defective any legal proceedings by or against it; and any legal
proceedings which might have been continued or commenced by or against the society by its
former name may be continued or commenced by its new name.

The Report of the Committee of Directors of the All India Rural Credit Survey, appointed by the
Reserve Bank of India, was published in December, 1954. At the first conference of State
Ministers in charge of Co-operation held at New Delhi in April, 1955, it was agreed that schemes
of Co-operative development under the Second Five-Year Plan should be drawn up to give effect
to the recommendations contained in the Rural Credit Survey Report. The Report recommended,
among other things, increased State partnership in Co-operative Societies and State participation
in their management. In order to implement the recommendations of the Rural Credit Survey
Report and to facilitate the implementation of the schemes of co-operative development under
the Second Five-Year Plan and also to simplify, rationalize and modernize the existing laws
relating to Co-operative Societies, the Committee on Co-operative Law was appointed by the
Government of India. The Committee observed that the implementation of the recommendations
of the Rural Credit Survey Report and of the schemes of co-operative development under the
Second Five-Year Plan requires revision of the existing Co-operative Societies Act and the Rules
made there under in all States. Further, the Re-organization of States has brought together, areas
which are being governed by different Acts and Rules. Under these circumstances the Committee
felt, the present juncture was very opportune for revising the Co-operative Societies Act, in force
in the different States with a view to bringing about as large a degree of uniformity in the
legislation governing Co-operative Societies as possible throughout the country. Taking these
factors into consideration, the Committee prepared a Model Co-operative Societies Bill and
Model Rules which they recommended to State Governments for enactment and adoption. At
present five different Co-operative Societies Acts are in operation in the different parts of the
Mysore State. This is a source of considerable administrative inconvenience. It is necessary to
have a uniform Co-operative Societies Law as applicable to the whole of the State. Governments
have, therefore, decided to introduce the present Bill. The Bill has been drafted after taking into
consideration the Model Co-operative Societies Bill recommended by the Committee on Co-
operative Law appointed by the Government of India. The principle of State partnership in Co-
operative Societies and State participation in their management has been accepted and
incorporated in the relevant provisions of this Bill.