Karnataka Co-operative Societies Act, 1959 Chapter II - Bare Act |
| State | Karnataka Government |
| Year | 1959 |
| Section Title | Registration of Co-operative Societies |
1 [3. x x x]
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1. Omitted by Act 40 of 1964 w.e.f. 26.6.1965.
1[4. Societies which may be registered
Subject to the provisions of this Act, a co-operative society which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance with co-operative principles, or a co-operative society established with the object of facilitating the operations of such a society, may be registered under this Act:
Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement.]
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1. Substituted by Act 40 of 1964 w.e.f. 26.6.1965.
(1) A co-operative society may be registered with or without limited liability:
Provided that the liability of a co-operative society of which any member is a co-operative society, shall be limited.
(2) The word 'limited' or its equivalent in any Indian language shall bethe last word in the name of a co-operative society registered under this Act with limited liability.
(1) An application for the registration of a co-operative society shall be made to the Registrar in such form1[and after complying with such formalities] as may be prescribed; and the applicants shall furnish to him all such information about the society as he may require.
(2) Every such application shall conform to the following requirements,namely:--
(a) the application shall be accompanied by2[five] copies of the proposed bye-laws of the co-operative society;
(b) where all the applicants are individuals, the number of applicantsshall not be less than ten;
(c) every one of the applicants who is an individual shall be abovethe age of eighteen years1[and the applicants shall not be members of the same family.
Explanation.--For the purpose of this clause family in relation to a person means an individual, wife or husband, as the case may be, and their dependent children and parents;]
(d) where the objects of the co-operative society include the creationof funds to be lent to its members and where all the applicants are individuals, the applicants shall reside in the same village or town2[or in the proposed area of operation of the co-operative society] or belong to the same class or pursue the same occupation;
(e) the application shall be signed by every one of the applicants whois an individual and by a person duly authorised on behalf of any cooperative society which is an applicant.
3[(f) the application shall be accompanied by such fee as may be prescribed and different fees may be prescribed for different class or classes of co-operative societies.]
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1. Inserted by Act 25 of 1998 w.e.f.15.8.1998.
2. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
3. Inserted by Act 25 of 1998 w.e.f. 27.10.1998 by notification.
(1) If the Registrar is satisfied,--
(a) that the application complies with the provisions of this Act 1 [, rules and the provisions of any other law for the time being in force];
(b) that the objects of the proposed society are in accordance with section 4;
(c) that the aims of the proposed society are not inconsistent with the principles of social justice;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and
(e) that the proposed society complies with the requirements of sound business and has reasonable chances of success;
the 1 [Registrar shall, within a period of three months from the date of receipt of the application, register] the co-operative society and its bye-laws.
2 [1 [1 [(2) If the Registrar is unable to dispose of such application within the period specified in sub-section (1), the society and the bye-laws shall be deemed to have been registered.]
(3) Where the Registrar refuses to register a proposed co-operative society, he shall forthwith communicate his decision, with the reasons there for, to the person making the application and if there be more than one to the person who has signed first in the application.
(4) The Registrar shall maintain a register of all co-operative societies registered or deemed to be registered under this Act.]
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1. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
2. Sub-sections (2) to (4) inserted by Act 40 of 1964 w.ef. 26.6.1965.
Where a co-operative society is registered1[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 registered1[or is deemed to be registered] under this Act.
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1. Inserted by Act 25 of 1998 w.e.f.15.8.1998.
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 shallenter 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 render 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.
(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability.
(2) When a co-operative society has passed a resolution to change theform or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(3) Any member or creditor who does not exercise his option within theperiod specified in sub-section (2) shall be deemed to have assented to the change.
(4) An amendment of the bye-laws of a co-operative society changingthe form or extent of its liability shall not be registered or take effect until either,--
(a) the assent thereto of all members and creditors has been, ordeemed to have been, obtained; or
(b) all claims of members and creditors who exercise the optionreferred to in sub-section (2) within the period specified therein have been met in full.
(1) No amendment of any bye-law of a co-operative society shall be valid unless such amendment has been registered under this Act.
(2) Every proposal for such amendment shall be forwarded to theRegistrar and if the Registrar is satisfied that the proposed amendment,--
(i) is not contrary to the provisions of this Act and the rules;
(ii) does not conflict with co-operative principles;
(iii) satisfies the requirements of sound business;
(iv) will promote the economic interests of the members of the society; and
(v) is not inconsistent with the principles of social justice; 1 [he shall, within a period of three months from the date of receipt of the proposal, register the amendment].
2 [(2A) If the Registrar is unable to dispose of such application within the period specified in sub-section (1), the amendment of bye-laws shall be deemed to have been registered.]
1 [(3) When the Registrar registers an amendment of the bye-laws of a society or where an amendment of the bye-laws is deemed to have been registered, he shall issue to the society a copy of amendment certified by him and such certificate shall be conclusive evidence that the amendment of the bye-law has been duly registered or deemed to be registered, as the case may be.]
(4) Where the Registrar refuses to register an amendment of the bye-laws of a co-operative society, he shall communicate the order of refusal, together with the reasonstherefor, to the society.
3 [(5) If it appears to the Registrar that any amendment of the bye-laws of a co-operative society is necessary or desirable in the interest of such society, the Registrar may, by order, call upon the co-operative society, to make the amendment proposed by him in such manner as may be prescribed and within such time as he may specify.
(6) If such amendment is not made by the co-operative society within thetime specified in the said order, notwithstanding anything contained in the Act, the Registrar may, after giving the co-operative society an opportunity of being heard, register the said amendment and forward a copy thereof to the co-operative society along with a certificate signed by him which shall be conclusive evidence that the amendment has been duly registered.]
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1. Substituted by Act Act 25 of 1998 w.e.f. 15.8.1998.
2. Inserted by Act Act 25 of 1998 w.e.f. 15.8.1998.
3. Sub-sections (5) and (6) inserted by Act 5 of 1984w.e.f. 9.1.1984.
Subject to any appellate order under section 106, an amendment of the bye-laws of a co-operative society shall unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
(1) A co-operative society may, by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society,--
(a) divide itself into two or more co-operative societies; or
(b) transfer its assets and liabilities in whole or in part to any otherco-operative society which by a like resolution agrees to such transfer.
(2) Any two or more co-operative societies may, by a resolution passedby a two-thirds majority of the members present and voting at a general meeting of each such society amalgamate themselves and form a new cooperative society.
(3) The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be, and no such resolution shall have any effect unless approved by the Registrar.
1[Provided that in the case of a co-operative bank, the Registrar shall not approve such resolution without the previous sanction in writing of the Reserve Bank.]
(4) When a co-operative society has passed any such resolution, and ithas been approved by the Registrar, the co-operative society shall give notice thereof in writing to all its creditors and such members of the society as did not vote in favour of the resolution and, notwithstanding any byelaws or contract to the contrary, any creditor or any member to whom such notice is given shall during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within theperiod specified in sub-section (4) and every member who has voted in favour of the resolution shall be deemed to have assented to the proposals contained in the resolution.
(6) A resolution passed by a co-operative society under this section shallnot take effect until either,--
(a) the assent thereto of all the members and creditors has been, ordeemed to have been, obtained under this section or;
(b) all claims of members and creditors who exercise the optionreferred to in sub-section (4) within the period specified therein, have been met in full.
(7) Where a resolution passed by a co-operative society under thissection involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
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1. Inserted by Act 39 of 1975 w.e.f. 23.9.1975.
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1. Sections 14A to 14C inserted by Act 39 of 1975 w.e.f. 23.9.1975.
2. Omitted by Act 25 of 1998 w.e.f. 15.8.1998.
(1) Where an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949 (Central Act 10 of 1949) in respect of a co-operative bank, the Registrar may, during the period of moratorium, prepare a scheme,--
(i) for the re-organisation of the co-operative bank; or
(ii) for the amalgamation of the co-operative bank with any other co-operative bank.
(2) No such scheme shall be given effect to unless it has beensanctioned by the Reserve Bank.
Notwithstanding anything contained in section 14 or other provision of this Act, where a co-operative bank being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961 (Central Act 47 of 1961) is amalgamated or re-organised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after such amalgamation or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance Corporation Act, 1961.]1
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1. Sections 14A to 14C inserted by Act 39 of 1975 w.e.f. 23.9.1975.
(1) Where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with the provisions of section 14, 1 [or section 14A] the registration of the first mentioned co-operative society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more co-operative societies are amalgamated into anew co-operative society in accordance with the provisions of section 14, 1 [or section 14A] the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each such society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a co-operative society 2 [is divided] into two or more cooperative societies in accordance with the provisions of section 14, 1 [or section 14A] the registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
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1. Inserted by Act 39 of 1975 w.e.f. 23.9.1975.
2. Substituted by Act 39 of 1975 w.e.f. 23.9.1975.