How to become a Souharda Cooperative?

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How to become a Souharda Cooperative?

The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows :

• There should be at least ten persons.
• These persons should be from different families.
• These persons should be competent to enter into a contract under the Indian contracts Act 1872.
• He should reside in the area of operation of the Cooperative.
• He should be eligible as per the bye-laws of the proposed Cooperative.
• Any individual, firm, company or any other body corporate can become member of the Cooperative.
• Any Cooperative registered under this Act (For Union cooperative) or Societies registration Act 1860.
• The object of the Cooperative should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles.
• It should be economically sound, its registration should not affect adversely on the development of the co-operative movement.
• Its registration should not be contrary to the policy directives of the State government.

Procedure of Formation of a Co-operative Cooperative :

The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows :

• Promoters meeting : Willing , eligible persons should come together and conduct a meeting, which is called as promoters' meeting. This meeting will decide the name of the proposed Cooperative, its object and bye-laws and then elect a Chief Promoter authorizing him to sign the necessary documents on behalf of the promoter members.
• Collecting initial share capital : The Chief Promoter will apply to the Registrar of the concerned area for requesting to authorize to collect share-capital. The application shall consist of:
  • Prescribed application
  • Resolution of promoters' meeting
  • Proposed byelaw
  • Details of promoters
  Registrar will authorize the Chief promoter to collect the share and direct him to deposit the collected share capital in a particular Bank.
• Registration : After collection of the necessary share capital, the chief promoter shall apply for registration of the cooperative along with:
  • Prescribed application
  • 5 copies of proposed byelaws
  • List of persons who have contributed to the share-capital and the entrance fee of the proposed Cooperative
  • Bank documents having been deposited share capital
  • Registration fees : 1% of the authorized share capital, subject to minimum of Rs.500/- and maximum of Rs. 5000/-
  • After scrutinizing the documents Registrar will register the cooperative
• Election to first Board : After Registration the chief promoter shall call first General Body of the newly formed cooperative to elect its first board.
• Beginning of activities : After election of first board, the President and Secretary can open the Bank account and may start activities of the cooperative.