Procedure of Formation of a Co-operative Society
Procedure of Formation of a Co-operative Society :
Ved Legal is expertise in Formation and Registration of Cooperative Housing Societies the procedure of the formation is as follows: The Willing and eligible persons should come together and conduct a meeting. This meeting will decide the name of the proposed Society, its object and bye-laws and then elect a Chief Promoter authorizing him to sign the necessary documents on behalf of the promoter members and open a bank account in the name of the proposed Society after obtaining the necessary permission from the Registrar.
The Chief Promoter will apply to the Registrar for reservation of name of the Society of the proposed society and permission to collect share-capital.
He will then deposit the collected share money in the bank account of the proposed Society.
The application for Registration has to be made in FORM-A . The promoters have to give four copies of Form-A to the Registrar alongwith copies of bye-laws and necessary documents depending on the type of the Society. This has to be done only after receiving the name reservation from the Registrar and after collection of the necessary share capital.
The application for registration should be accompanied with the Scheme showing economic feasibility of the proposed Society, bank balance certificate, list of persons who have contributed to the share-capital and the entrance fee of the proposed Society.
The prescribed Registration Fees have to be paid into the Government Treasury.
Copy of the document authorizing any person to sign the application on behalf of a partnership firm, Company or other body corporate
The documents that need to be submitted to the Registering Authorities for Housing Co-operative Society Registration are as under :
1. Application for registration of Housing Co-operative Society in Form A along with Statement A. Enclosure to application for Registration as per Rule 4(1) of Maharashtra Co-operative Societies Rules, 1961.
2. Information about proposed Housing Co-operative Society in Statement ‘B’ (vide Govt. Circular dated 2-5-1980).
3. Information about promoter members of the proposed Housing Co-operative Society in Statement ‘C’ (vide Govt. Circular dt. 2-5-1980).
4. A Statement of Accounts as per Form D.
5. Model Bye-laws.
6. Bank Balance Certificate.
7. S.B.I. / Treasury Challan for payment of Registration Fee of Rs. 2500
8. Title Clearance Certificate from an Advocate
9. A true copy of the approved Building Plan.
10. Letter of Authority Granting permission to commence construction work/Completion Certificate (if applicable).
11. Affidavit on Rs. 100/- Stamp Paper from at least 10 promoter members to the effect that they are residing in the area of operation of the Society (Proposed), made before a Competent Authority.
12. An affidavit from the Chief Promoter on Stamp Paper of Rs. 100/- executed before the Competent Authority in form ‘Y’.
13. Certified True Copy of an agreement made on Stamp paper and registered between the builder, promoter and purchasers of flat.
14. Where the promoter members are firms/ companies, a letter of authority from such firms/companies authorizing the promoter to sign on behalf of firm / company.
15. In the case of such proposed societies, names of 60% of the flat holders of the total number of flats constructed or proposed to be constructed as per the plan approved, must be included in Statement ‘A’ to be attached to the Registration Proposal. It is the duty of the Registrar to register the society and on registration of the society, it becomes a separate legal entity. Thereafter, the management of the affairs of the society is carried out by the managing committee which is elected by the general body meeting of the society. It may be of interest to note that in a co-operative society the principle is one member one vote. In a co-operative society, the right to be exercised in the general body meeting is a personal right. This is one of the reasons why even a person holding a power of attorney cannot attend the general body meeting of the society. The quantum of the capital being introduced by the member is not of much importance. Preference should be given to the formation of a private limited company if one member proposes to acquire the majority of flats in the building.