Indemnity under Multi State Cooperative Societies Act, 2002 which substitutes the earlier statute of 1984, facilitates the incorporation of cooperative societies whose objects and functions spread over to several states. The act provides for formation of both primary (with both individual and institutional members) and federal credit cooperative society (with only institutional memberships). Any application for the registration of a multi state society, of which all the members are individuals, should be signed by at least fifty persons from each of the states concerned. In case of a society of which members are cooperative societies, it should be signed by duly authorized representative of at least five such societies registered in different states.It is proposed to define active member to ensure the member's active participation in the affairs of the society. Time bound decision by the society for admitting members is proposed to prevent inordinate delay by the society in admitting members. A clause is proposed to be inserted for ensuring that the members make their payment due to the society to be eligible for exercising their rights as a member. It is proposed to allow the MSCS to refund full or part of the share capital subscribed by the Government to reduce/eliminate Government control of these cooperatives. Based on the experience of implementation of the MSCS Act, 2002, interaction and feedback received from various stakeholders including the multi- state co-operative societies and recommendations made by the High Powered Committee on Cooperatives constituted by the Government of India under the chairmanship of need was felt to further amend the multi state cooperative societies act, 2002 to keep the legislation in tune with the changing economic policies and to facilitate the multi-state co-operative societies to take advantage of the new and emerging opportunities. Provided also that so cooperative directors shall not have power to vote in the election of the office bearers or represent the multi State co-operative society in any other multi-State co-operative society Provided also that a person who has lost in election of members of board shall not be cooperative society as director in the board on casual vacancy or otherwise Provided also that one seat shall be reserved for the Scheduled Castes or the Scheduled Tribes and two seats for women in the board of a multi State cooperative society consisting of individuals as members and having members from such class or category of persons.