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Monday 19 September 2022

Section 6 of MCS ACT 1960 : Conditions of registration

6. Conditions of registration

(1) No society, other than a federal society, shall be registered under this Act, unless it consists of at least ten persons 4[or such higher number of persons as the Registrar may, having regard to the objects and economic liability of a society and development of the co-operative movement, determine from time to time for a class of societies], (each of such persons being a member of a different family), who are qualified to be members under this Act, and who reside in the area of operation of the society :

      Provided that, a lift irrigation society consisting of less than ten but of five or more such persons may be registered under this Act:]

      Provided further that, the condition regarding residence of the members in the area of operation of the society shall not apply for registration of the society, being the co-operative credit structure entity:]

     Provided also that, the Registrar may specify the norms and conditions for registration of societies or class of societies.]

(2)No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages.

(2A)No crop protection society shall be registered, unless the Registrar is satisfied, after such inquiry as he thinks necessary, that a draft of the proposal made by the society for protecting the crops, structures, machinery, agricultural implement and other equipment such as those used for pumping water on the land, was duly published for inviting all owners of lands likely to be affected by the proposal and all other persons likely to be interested in the said lands to join the proposal or to send their objections or suggestions and that the objections and suggestions received, if any, have been duly considered by the society and that the owners in possession of not less than 66 per cent., in the aggregate of the lands included in the proposal have given their consent in writing to the making of the proposal and that the proposal made is feasible. For this purpose, the society shall submit to the Registrar :–

     (a)a plan showing the area covered by the proposal and the surrounding lands as shown in the map or maps of the village or villages affected ;

     (b)an extract from the record of rights duly certified showing the names of the owners of the lands and the areas of the lands included in the proposal ;

     (c)statements of such of the owners of the lands as consented to the making of the proposal signed by owners before two witnesses ;

     (d)a detailed estimate of the cost of implementing the proposal ;

     (e)a detailed statement showing how the cost is proposed to be met.

When such society is registred, the cost of implementing the proposal shall be met wholly or in part by contribution to be levied by the society from each owner of the land included in the proposal, including any such owner who may have refused to become a member of the society. The owner of every land included in the proposal shall also be primarily liable for the payment of the contribution leviable from time to time in respect of such land.]


(3) No federal society shall be registered, unless it has at least five societies as its members.

(4) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.

(5) The word “ limited ” or “ unlimited ” shall be last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act.

Explanation.—For the purposes of this section and section 8, the expression “ member of a family ” means a wife, husband, father, mother, 1[son or unmarried daughter.]