What Is Multi-State Cooperative Society?

The Multi-State Cooperative Societies Bill received President’s assent on 3rd July 2002 and became known as The Multi-State Cooperative Societies Act 2002 (39 of 2002).In this write-up, we will learn about the Multi-State Cooperative Society.

It is an Act to consolidate & amend the law relating to cooperative societies with objects not limited to one State and serving the interests of individuals in more than one State. It encourages the intentional development and majority rule working of co-agents as individuals and organizations dependent on self-improvement and shared guidance.

The Act also empowers organizations to advance their monetary and social improvement. 

Importance of Co-operative Societies

Cooperative societies are the largest and most powerful social institutions in India. They have an enormous potential to change the face of Indian society. The joint movement has been a driving force behind many progressive and innovative initiatives in various fields such as education, health care, housing, agriculture, etc. Cooperative societies provide employment opportunities for millions of people across the country. It is estimated that about 10 million people are employed by co-operatives in India today.

Society is not a personal institution owned by an individual but is a fully democratic organization managed by the Board Of Directors who are elected by the members of the society in the Annual General Meetings and the Board Of Directors also takes decisions in a collective manner with total transparency. The Department of Co-Operatives constantly reviews the functioning of society at regular intervals.

Finance companies are usually owned by individuals and frame the so-called policies according to the whims and fancies of the owners. The general members/ depositors/ Investors have no role to play. There are some possibilities for the absence of transparency. Members/ Investors have virtually no knowledge of the affairs/ legal provisions of N.B.F.Cs and the statutory liabilities of the N.B.F.C s are also limited.

A multi state co-operative society is of various types - Credit, Housing, Agriculture, Transport, Hospital, Sugar, Stores, Fishery, Handloom, Labour, Consumer and Multi-purpose Co-operative societies.

The mission of the multi state society is to facilitate the voluntary formation  and democratic functioning of cooperatives  as people institutions based on self help and mutual aid and enable them to promote their economic and social betterment and to provide functional autonomy.