Cooperative society

The cooperative society which obtains any part of its working capital by maintaining such liquid resources in such form as may be specified by the Reserve India in case of urban thrift and credit bank or a financing bank. In case of other, the registrar fixes the amount of liquid resources which the society has to manage working capital or a portion of which has been obtained by way of utilized in lending business in accordance with such standards as may be fixed by the registrar of cooperative society from time to time.

A society may need funds for satisfactorily carrying out its objects and it may than the paid up share capital of the society. In order to raise additional funds, the society may raise funds by issue of debentures and bonds if such issue is under the memorandum. The multi state credit cooperative society may after obtaining approval of the regulations regarding the maximum amount to be raised by the issue of the bonds, class or classes of debentures of bonds, the face value of each debentures and the rate on which interest is payable apart from the terms and conditions transfer of debentures and other incidental matters. Where the society is issuing debentures to non-members, the maximum amount which the society can borrow exceed the maximum credit limit. However, for raising funds from the members, the condition does not apply although the approval of the Registrar is required, before it are debentures. Where the multi state cooperative society registration is accomplished and it starts accepting deposits and loans from members in its society, the excess amount is to be deposited in an account with the financing bank be invested in the Government securities specified in Section 20 of the Indian 1882 and the amount so deposited or invested cannot be withdrawn or otherwise except for the payment of deposits accepted in excess of the limit.

 

The different types of cooperative society have been around for centuries, yet they remain an integral part of the global economy. Cooperatives are organizations owned and operated by members who share in the benefits of their collective efforts. This type of organization encourages economic participation and helps to create a more equitable society. Cooperatives can provide a range of benefits for its members, from improved livelihoods to better access to financial services and other resources. While this type of organization is particularly effective in developing countries where local resources are limited, cooperatives have also been embraced by developed nations like Canada. Cooperatives have a long history of success in developing countries. They are particularly effective in areas where limited resources make it difficult for small-scale farmers and other entrepreneurs to succeed on their own. Cooperatives offer an alternative to the inequitable distribution of wealth that often results from a top-down approach to economic development. In many cases, cooperatives are a way for local communities to gain control over their own resources, and even create new jobs to help lift themselves out of poverty. The United Nations has also embraced cooperatives as a way to help achieve the UN’s Millennium Development Goals (MDGs) of eradicating extreme poverty and hunger by 2015. In the United Nations Conference on Trade and Development s (UNCTAD) 2013 publication, Creating an Enabling Environment for Cooperatives: The Role of the State, UNCTAD argues that cooperatives play a key role in promoting economic development by creating employment opportunities and fostering self-reliance. Cooperatives, it says, can be a central tool in the fight against poverty. In fact, many nations around the world have already begun to implement cooperative businesses and organizations as part of their poverty reduction strategies. For example, in the Philippines, the government has created a national federation of cooperatives to help strengthen the cooperative movement and provide support in areas such as legal assistance, accounting, technical training and marketing. While the report notes that much work needs to be done, it also highlights many examples of cooperative successes. For example, in Nepal, the Federation of Cooperative Sugar Mills was established to help the country combat its dependency on imported sugar and to increase domestic production. The federation has helped establish new sugar mills, reduced transportation costs and increased efficiency of existing mills. A cooperative society of district or state level can be converted into multi state cooperative society also if the respective states issue no objection certificates.