Why multi-state cooperative society registration is essential Professional
1 year ago - Services - Navi Mumbai - 22 viewsThe Multi-State Cooperative Societies Act provides a legal foundation for multi-state cooperative society registration. The Act applies to cooperative groups that are active in different states. The Act specifies the requirements for multi-state cooperative societies' bylaws and the registration process for such organizations. Additional regulatory requirements outlined in the Act must be followed by all cooperative societies registered under the Act. Registration under the MSCS Act is voluntary. However, the Act outlines the situations in which multi-state cooperative society registration is essential. Cooperative societies are listed in List II of the seventh schedule to the Indian Constitution. Therefore, cooperative societies are regarded as a state subjects.
Based on the particular circumstances in each state, the state governments formulate regulations for cooperative societies. The MSCS Act thus provides a legal foundation in addition to the cooperative society statutes established by the different states. By registering under the MSCS Act, one can receive advantages akin to those attained by forming a corporation. A registered multi-state cooperative society offers the members the flexibility to transfer their membership as well as limited liability and unique legal identity. Government-owned companies are permitted to subscribe as members of a multi-state cooperative organization that has been registered. Government capital input boosts the cooperative society's creditworthiness.
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