multistatesociety

Kinds of multi state cooperative societies and requirements: -

A multi state cooperative society is of different types- Credit, Housing, Farming, Transportation, Hospital, Sugar, Stores, Fishery, Handloom, Labor, Customer and Multi Purpose Co-operative Society. The standard formalities for forming this society is to organize at least 50 members from 2 states each. There can be even more than 50 members too however each extra state requires a minimum of 50 members from that multi state. These first fifty members are average members who have voting right and to whom shares are allocated. The second classification of members are nominal members to whom shares are not allocated, who do not have ballot right and who never participate in any of the general body meetings. 

Role of Governing Body Members of Multi State:-.

As far the interim management committee list is worried who are responsible for the management and handling of the society, the society may want to minimum 7 members and this list can go upto 21 members. Just for example in a credit cooperative society, if the society desires to make any scheme like gold loan, automobile loan, dealt with deposit loan, double deposit strategy, triple deposit plan or any special plan, the society has to give a prior 15 days see to all its members by speed post, newspaper publication etc. As per the policies of MSCS Act 2002, a person currently being a member of a society can not be a member of a multi state cooperative society of the same type.

Management of a Multi State Cooperative Society: -.

The elections of the cooperative society is held first time within 6 months from the date of its registration. Thereafter the elections are conducted at every 5 years. A President can stay as a President for 2 consecutive times however the 3rd time, the President has to alter. No part of the funds, besides net profits of a multi state cooperative society will be divided by method of reward or dividend or otherwise distributed amongst its members. The net earnings of the multi provide society shall be calculated by subtracting from the gross profit for the year, all interest built up, and accruing in relation to quantities which are overdue, facility charges, interest payable on deposits and loans, audit charges, working expenses including repair works, lease, taxes and depreciation, incentive payable to employees under the law relating to payment of benefit for the time being in force, and equalization fund for such benefit, provision for payment of income-tax and making approved contributions under the Earnings Tax Act 1961, development discount, arrangement for development fund, bad debt fund, cost variation fund, dividend equalization fund, share capital redemption fund, investment change fund, share capital redemption fund, financial investment fluctuation fund, arrangement for retirement advantages to workers and after providing for or crossing out bad debts and losses not adjusted against any fund produced out of profit. The condition is that such society could add to the net revenues for the year interest accrued in the preceding years, however recuperated throughout the year. In case of multi state cooperative societies which do not have share capital, the surplus of earnings over expense will not be dealt with as net earnings and such surplus will be taken care of in accordance with the bye-laws. A multi state cooperative society shall, out of its net profits in any year transfer a quantity not less than twenty-five percent to the reserve fund, credit one percent to cooperative education fund maintained by the National Co-operative Union of India Limited, New Delhi or move a quantity not less than 10 percent to a reserve fund for meeting unanticipated losses. No multi state cooperative society should make a contribution either in money or in kind, whether straight or indirectly, to an institution which has an object of furtherance of the interest of a political celebration.