The Multi-State Cooperative Society Registration in India

The Multi-State Co-operative Society Registration

Ozg Registration, Approval & Licensing Consultant

The Multi-State Co-operative Societies Act, 2002

ACT NO. 39 OF 2002 [ 3rd July, 2002 ]

An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operatives as people's institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement -

(1) This Act may be called the Multi-State Co-operative Societies Act, 2002.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

2. Application - This Act shall apply to -

(a) All Co-operative societies, with objects not confined to one State which were incorporated before the commencement of this Act,-

(i) Under the Co-operative Societies Act, 1912 (2 of 1912), or

(ii) Under any other law relating to Co-operative societies in force in any State or in pursuance of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942) or the Multi-State Co-operative Societies Act, 1984 (51 of 1984), and the registration of which has not been cancelled before such commencement; and

(b) All Multi-State Co-operative societies.

3. Definitions - In this Act, unless the context otherwise requires -

(a) "Area of operation" means the area from which the persons are admitted as members;

(b) "board" means the board of directors or the governing body of a multi-State co-operative society, by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted;

(c) "bye-laws" means the bye-laws for the time being in force which have been duly registered or deemed to have been registered under this Act and includes amendments thereto which have been duly registered or deemed to have been registered under this Act;

(d) "Central Registrar" means the Central Registrar of Co-operative Societies appointed under sub-section (1) of section 4 and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section;

(e) "Chief Executive" means a Chief Executive of a multi-State co-operative society appointed under section 51;

(f) "Co-operative bank" means a multi-State co-operative society which undertakes banking business;

(g) "Co-operative principles" means the co-operative principles specified in the First Schedule;

(h) "Co-operative society" means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State;

(i) "Co-operative year", in relation to any multi-State co-operative society or class of such societies, means the year ending on the 31st day of March of the year and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;

(j) "Deposit Insurance Corporation" means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961);

(k) "Federal co-operative" means a federation of co-operative societies registered under this Act and whose membership is available only to a co- operative society or a multi-State co-operative society;

(l) "general body", in relation to a multi-State co-operative society, means all the members of that society and in relation to a national co-operative society or a federal co-operative means all the delegates of member co-operative societies or delegate of multi-State co-operative societies and includes a body constituted under the first proviso to sub-section (1) of section 38;

(m) "General meeting" means a meeting of the general body of a multi-State co-operative society and includes special general meeting;

(n) "Member" means a person joining in the application for the registration of a multi-State co-operative society and includes a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws;

(o) "Member co-operative" means a co-operative society or a multi-State co- operative society which is member of a federal co-operative;

(p) "Multi-State co-operative society" means a society registered or deemed to be registered under this Act and includes a national co-operative society and a federal co-operative;

(q) "multi-State co-operative society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any, unpaid on the shares, respectively, held by them or to such amount as they may, respectively, thereby undertake to contribute to the assets of the society, in the event of its being wound up;

(r) "National co-operative society" means a multi-State co-operative society specified in the Second Schedule;

(s) "Notification" means a notification published in the Official Gazette;

(t) "officer" means a president, vice-president, chairperson, vice-chairperson, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 123 and includes any other person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of a multi-State co-operative society;

(u) "Prescribed" means prescribed by rules;

(v) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934);

(w) "Rules" means the rules made under this Act.

CHAPTER II

CENTRAL REGISTRAR & REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES

4. Central Registrar -

(1) The Central Government may appoint a person to be the Central Registrar of Co-operative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.

(2) The Central Government may, by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall, in relation to such society, and such matters a may be specified in the notification, be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified therein: Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national co-operative society.

5. Multi-State co-operative societies which may be registered -

(1) No multi-State co-operative society shall be registered under this Act, unless,-

(a) its main objects are to serve the interests of members in more than one State; and

(b) its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co-operative principles.

(2) The word "limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-State co-operative society registered under this Act with limited liability.

6. Application for registration -

(1) For the purposes of registration of a multi-State co-operative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.

(2) The application shall be signed,-

(a) in the case of a multi-State co-operative society of which all the members are individuals, by at least fifty persons from each of the State concerned;

(b) in the case of a multi-State co-operative society of which the members are co-operative societies, by duly authorised representatives on behalf of at least five such societies as are not registered in the same State; and

(c) in the case of a multi-State co-operative society of which another multi- State co-operative society and other co-operative societies are members, by duly authorised representatives of each of such societies: Provided that not less than two of the co- operative societies referred to in this clause, shall be such as are not registered in the same State;

(d) in the case of a multi-State co-operative society of which the members are co-operative societies or multi-State co-operative societies and individuals, by at least-

(i) Fifty persons, being individuals, from each of the two States or more; and

(ii) One co-operative society each from two States or more or one multi-State co-operative society.

(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State co-operative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.

7. Registration -

(1) If the Central Registrar is satisfied-

(a) That the application complies with the provisions of this Act and the rules;

(b) that the proposed multi-State co-operative society satisfies the basic criterion that its objects are to serve the interests of members in more than one State;

(c) that its bye-laws provide for social and economic betterment of its members through self-help and mutual aid in accordance with the co- operative principles;

(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules, he may register the multi-State co-operative society and its bye-laws.

(2) The application for registration shall be disposed of by the Central Registrar within a period of four months from the date of receipt there of by him.

(3) Where the Central Registrar refuses to register a multi-State co-operative society, he shall communicate, within a period of four months from the date of receipt of the application for registration, the order of refusal together with the reasons therefore to the applicant or applicants, as the case may be: Provided that no order of refusal shall be made unless the applicants have been given a reasonable opportunity of being heard: Provided further that if the application for registration is not disposed of within a period of four months specified in sub-section (2) or the Central Registrar fails to communicate the order of refusal within that period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue the registration certificate in accordance with the provisions of this Act and the rules made there-under.

8. Registration certificate - Where a multi-State co-operative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.

9. Multi-State co-operative society to be body corporate -

(1) The registration of a multi-State 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 acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue o be sued.

(2) All transactions entered into in good faith prior to the registration of a multi- State co-operative society shall be deemed to be its transactions after registration for furtherance of the objects of its registration.

10. Bye-laws of multi-State co-operative societies -

(1) Every multi-State co-operative society may make its bye-laws consistent with the provisions of this Act and the rules made there under.

(2) In particular, and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:-

(a) the name, address and area of operation of the society;

(b) the objects of the society;

(c) the services to be provided to its members;

(d) the eligibility for obtaining membership;

(e) the procedure for obtaining membership;

(f) the conditions for continuing as member;

(g) the procedure for withdrawal of membership;

(h) the transfer of membership;

(i) the procedure for expulsion from membership;

(j) the rights and duties of the members;

(k) the nature and amount of capital of the society;

(l) the manner in which the maximum capital to which a single member can subscribe;

(m) the sources from which the funds may be raised by the multi-State co-operative society;

(n) the purpose for which the funds may be applied;

(o) the manner of allocation or disbursement of net profits of the multi-State co-operative society;

(p) the constitution of various reserves;

(q) the manner of convening general meetings and quorum there of other than those provided under this Act;

(r) the procedure for notice and manner of voting, in general and other meetings;

(s) the procedure for amending the bye-laws;

(t) the number of members of the board not exceeding twenty-one;

(u) the tenure, of directors, chairperson and other office-bearers of the society, not exceeding five years;

(v) the procedure for removal of members of the board and for filling up of vacancies;

(w) the manner of convening board meetings, its quorum, number of such meetings in a year and venue of such meetings;

(x) the frequency of board meetings;

(y) the powers and functions of the Chief Executive in addition to those provided under section 52;

(z) the manner of imposing the penalty;

(za) the appointment, rights and duties of auditors and procedure for conduct of audit;

(zb) the authorisation of officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society;

(zc) the terms on which a multi-State co-operative society may deal with persons other than members;

(zd) the terms on which a multi-State co-operative society may associate with other co-operatives societies;

(ze) the terms on which a multi-State co-operative society may deal with organisations other than co-operative societies;

(zf) the rights, if any, which the multi-State co-operative society may confer on any other multi-State co-operative society or federal co-operative and the circumstances under which such rights may be exercised by the federal co-operative;

(zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case of death of a member;

(zh) the educational and training programmes to be conducted by the multi-State co-operative society;

(zi) the principal place and other places of business of multi-State co- operative society;

(zj) the minimum level of services to be used by its members;

(zk) any other matter which may be prescribed.

11. Amendment of bye-laws of a multi-State co-operative society -

(1) No amendment of any bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered under this Act.

(2) The amendment to the bye-laws of a multi-State co-operative society shall be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.

(3) No such resolution shall be valid unless fifteen clear days notice of the proposed amendment has been given to the members.

(4) In every case in which a multi-State co-operative society proposes to amend its bye-laws, an application to register such amendments shall be made to the Central Registrar together with-

(a) a copy of the resolution referred to in sub-section (2);

(b) a statement containing the particulars indicating-

(i) the date of the general meeting at which the amendments to the bye-laws were made;

(ii) the number of days' notice given to convene the general meeting;

(iii) the total number of members of the multi-State co-operative society;

(iv) the quorum required for such meeting;

(v) the number of members present at the meeting;

(vi) the number of members who voted in such meeting;

(vii) the number of members who voted in favour of such amendments to bye-laws;

(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together with reasons justifying such amendments;

(d) Four copies of the text of the bye-laws incorporating therein the proposed amendments signed by the officer duly authorised in this behalf by the general body;

(e) a copy of the notice given to the members and the proposal to amend the bye-laws;

(f) a certificate signed by the person who presided at the general meeting certifying that the procedure specified in sub-sections (2) and (3) and the bye-laws had been followed;

(g) any other particular which may be required by the Central Registrar in this behalf.

(5) Every such application shall be made within sixty days from the date of the general meeting at which such amendment to the bye-laws was passed.

(6) The procedure given in sub-sections (2) to (5) of this section shall apply to the amendment of the bye-laws of a co-operative society desiring to convert itself into a multi-State co-operative society as per the provisions of section 22.

(7) If, on receipt of application under sub-section (5), the Central Registrar is satisfied that the proposed amendment -

(a) is not contrary to the provisions of this Act or of the rules;

(b) does not conflict with co-operative principles; and

(c) will promote the economic interests of the members of the multi- State co-operative society, he may register the amendment within a period of three months from the date of receipt thereof by him.

(8) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered amendment together with a certificate signed by him within a period of one month from the date of registration thereof and such certificate shall be conclusive evidence that the amendment has been duly registered.

(9) Where the Central Registrar refuses to register an amendment of the bye-laws of a Multi-State co-operative society, he shall communicate the order of refusal together with the reasons therefore to the Chief Executive of the society in the manner prescribed within fifteen days from the date of such refusal: Provided that if the application for registration is not disposed of within a period of three months specified in sub-section (7) or the Central Registrar fails to communicate the order of refusal within that period, the application shall be deemed to have been accepted for registration and the Central Registrar shall issue registration certificate in accordance with the provisions of this Act.

12. When amendment of bye-laws comes into force - An amendment of the bye-laws of a Multi-State 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.

13. Change of name.-

(1) A Multi-State Co-operative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, an any legal proceedings which might have been continued or commenced by or against the multi-State Co-operative society by its former name, may be continued or commenced by or against its new name.

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

14. Change of address - Every Multi-State Co-operative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent.

15. Publication of name by multi-State co-operative society - Every multi-State co-operative society-

(a) shall paint or affix its name and the address of its registered office and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in conspicuous position, in letters easily legible; and if the characters employed therefore are not those of the language, or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;

(b) Shall have its name engraver in legible characters on its seal; and

(c) shall have its name and the address of its registered office mentioned in legible characters in all its business letters, in all its bill heads and letter paper, and in all its notices and other official publications; and also have its name so mentioned in all bills of exchange, handiest, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the Multi-State Co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the multi-State co-operative society.

16. Liability -

(1) No Multi-State Co-operative society with unlimited liability shall be registered after the commencement of this Act: Provided that where a multi-State Co-operative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a Multi-State Co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4).

(2) Subject to the provisions of this Act and the rules, a Multi-State co-operative society may, by an amendment of its bye-laws, change the extent of its liability.

(3) When a Multi-State Co-operative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor 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.

(4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have assented to the change.

(5) An amendment of a bye-laws of a Multi-State Co-operative society changing the extent of its liability shall not be registered or shall not take effect until either-

(a) the assent thereto of all members and creditors has been obtained; or

(b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied.

17. Amalgamation or transfer of assets and liabilities or division of multi-State co-operative societies -

(1) A multi-State Co-operative society may, by a resolution passed by a majority of not less than two-thirds of the members, present and voting at general meeting of the society held for the purpose,-

(a) Transfer its assets and liabilities in whole or in part to any other multi-State co-operative society or co-operative society;

(b) Divide itself into two or more multi-State co-operative societies;

(c) Divide itself into two or more co-operative societies.

(2) Any two or more Multi-State Co-operative societies may, by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new Multi-State Co-operative society.

(3) The resolution of a Multi-State Co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation, as the case may be.

(4) When a multi-State Co-operative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the period of one month of 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 the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.

(6) (a) A resolution passed by a multi-State Co-operative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.

(b) The multi-State Co-operative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditors who exercise the option within the period specified in sub-section (4).

(7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub- section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new society or societies, as the case may be, and the bye-laws thereof.

(8) On the issue of an order under sub-section (7), the provisions of section 21 shall, so far as may be, apply to the Multi-State Co-operative society so divided or the Multi-State Co-operative societies so amalgamated.

(9) Where a resolution passed by a Multi-State Co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.

18. Central Registrar to prepare scheme of amalgamation or reorganization of a Co-operative bank in certain cases - When an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949) in respect of a Co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme-

(a) for the amalgamation of the Co-operative bank with any other co- operative bank; or

(b) for the reorganisation of the Co-operative bank.

19. Promotion of subsidiary institution -

(1) Any Multi-State Co-operative society may, by a resolution passed at general meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects.

(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body of the Multi-State Co-operative society deems its existence necessary: Provided that a Multi-State Co-operative society, while promoting such a subsidiary institution, shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects.

Explanation for the purposes of this section -

(a) an institution shall be deemed to be a subsidiary institution if the multi-State Co-operative society-

(i) controls the management or board of directors or members of governing body of such institution; or

(ii) holds more than half in nominal value of equity shares of such institutions; or

(iii) if one or more members of such Multi-State Co-operative society, hold whether by themselves or together with subsidiary institution or their relatives, as the case may be, the majority of equity shares in that institution;

(b) a subsidiary institution shall not include a partnership firm.

(3) The annual reports and accounts of any such subsidiary institution shall be placed each year before general meeting of the promoting Multi-State co- operative society.

20. Liability of a Co-operative bank to Deposit Insurance and Credit Guarantee Corporation - Notwithstanding anything contained in section 17 or any other provision of this Act, where a Co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), is amalgamated or reorganised 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 to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 .

21. Cancellation of registration certificate of Multi-State Co-operative societies in certain cases -

(1) Where the whole of the assets and liabilities of a Multi-State Co-operative society are transferred to another Multi-State Co-operative society or to a co-operative society in accordance with the provisions of section 17, the registration of the first- mentioned Multi-State Co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a co prorate body.

(2) Where two or more Multi-State Co-operative societies are amalgamated into a new Multi-State Co-operative society in accordance with the provisions of section 17, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(3) Where a Multi-State Co-operative society divides itself into two or more Multi-State Co-operative societies or two or more Co-operative societies in accordance with the provisions of section 17, the registration of that society shall stand cancelled n 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.

(4) The amalgamation or division of Multi-State Co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting Multi-State Co-operative society or societies or render defective any legal proceedings by or against the Multi-State Co-operative society or societies, and any legal proceedings that might have been continued or commenced by or against the Multi-State Co-operative society or societies, as the case may be, before the amalgamation or division, may be continued or commenced by or against the resulting Multi-State Co-operative society or societies.

22. Conversion of a Co-operative society into a Multi-State Co-operative society -

(1) A Co-operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a Multi-State Co-operative society: Provided that no such amendment of bye-laws of a Co-operative society shall be valid unless it has been registered by the Central Registrar.

(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in accordance with the provisions contained in sub- section (4) of section 11.

(b) If the Central Registrar, after consulting the Registrars of Co-operative Societies of the States concerned, has satisfied himself that such amendment-

(i) fulfils the requirements of the members being from more than one State;

(ii) is in accordance with the provisions contained in sub-section (4) of section 11, he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that no Co-operative society shall be deemed to have been converted into a Multi-State Co-operative society on any ground whatsoever unless such society is registered as a Multi-State co- operative society.

(3) The Central Registrar shall forward to the Co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered.

(4) Where the Central 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 reasons therefore to the society in the manner prescribed within seven days from the date of refusal.

(5) (a) Once the amendment of bye-laws has been registered by the Central Registrar, the Co-operative society shall, as from the date of registration of amendment, become a multi-State co-operative society.

(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered as a multi-State co-operative society under this Act and also forward a copy of the same to the Registrar of Co-operative Societies of the State concerned.

(c) The Registrar of Co-operative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to co-operative societies in force in that State.

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