Registration of a Cooperative Society

A cooperative society comes into legal existence only on registration under the applicable Cooperative Societies Act — the central Cooperative Societies Act, 1912 laid down the original legal framework, and, as cooperation is a State subject, actual registration today is carried out by the Registrar of Cooperative Societies under the relevant State Act (for example, the Tamil Nadu Cooperative Societies Act, 1983, in Tamil Nadu).

Process of registration (in general outline):

1. Minimum members: A minimum of ten persons (this number can vary by type of society and state law) who are competent to contract come together and agree to form the society.
2. Application to the Registrar: An application is made to the Registrar of Cooperative Societies of the state, along with the proposed by-laws of the society, signed by all the applicant-members.
3. By-laws: The application is accompanied by the society's by-laws, which set out its name, registered address, objects, membership qualifications, capital structure, rights and duties of members, and the rules for management — essentially the society's own internal rule-book, corresponding to what a memorandum and articles of association do for a company.
4. Scrutiny and registration: The Registrar examines the application and by-laws to satisfy himself that all legal requirements are met and that the objects are lawful cooperative objects, and then registers the society and issues a Certificate of Registration.

Effects of registration:

• The society becomes a body corporate — a separate legal entity distinct from its members — from the date entered in the Certificate of Registration.
• It acquires perpetual succession and a common seal, so its existence and its dealings continue unaffected by a change in membership.
• It gets the right to own property, enter into contracts, and sue and be sued in its own registered name. …