overview of coopeartive societies ca. rajkumar s. adukia

7/25/2019 Overview of Coopeartive Societies CA. Rajkumar S. Adukia

1/34

CA Rajkumar S. AdukiaChairman

Committee for Co-Operatives and NPO Sectors,ICAI

Mo! "#$%%&'%(")"*$*%&'%("+mai! rajkumarradukiacaaa.in

CA Rajkumar S. Adukia 1

OVERVIEW ofCo-operative Sector
mailto:[email protected]:[email protected]


2/34

(c) Mansha, www.shgportal.com

Co-operative Sector


3/34


An autonomous

association of personsunited voluntarily tomeet their commoneconomic, social, and

cultural needs andaspirations through a

ointly-o!ned anddemocratically-

controlled enterprise"# International Co-operative Alliance$ICA%&


4/34


M+ANIN O/ CO-OP+RA0ION

' Co-operation()erived from the *atin !ord ' co-operari' co ( means '!ith( and ' operari ( means 'to!or(Co-operation ( means !oring together

'Section of the Co-operative Societies Act, ./.0 de1nes cooperatives2as a society !hich has its o3ectives the promotion of economic interest,its mem3ers in accordance !ith cooperative principles"#

Co-operative Society ( meansA voluntary association of persons4

!oring together !ith common economico3ective 4providing support to the mem3ers4self-help and mutual help 4non-pro1t motive4

pooling individual resources for group


5/34

CA Rajkumar S. Adukia


6/34

CA Rajkumar S. Adukia !

0he Cooperative Principes/irst schedue of the Muti state cooperative societies

Act,$%%$ 1sec *123


7/34CA Rajkumar S. Adukia "

Cooperatives in India14istor53

#5he cooperative movement in India o!es its origin toagriculture and allied sectors"#At the end of the ./th century, the pro3lems of ruralinde3tedness and the conse6uent conditions of farmerscreated an environment for the chit funds and cooperative

societies"#5he e7perience gained in the !oring of cooperatives ledto the enactment of Cooperative Credit Societies Act,./8"#9nder the :overnment of India Act, ./;


8/34CA Rajkumar S. Adukia $


9/34CA Rajkumar S. Adukia %

-After independence '"(6- India- 7efarestate

-4ep of peope in education?health?social!elfare and development

-/irst5 started in a2ricuture and alliedsectors"

->erging resources of farmers for sovin2common proems

-5he pro3lems of rural inde3tedness and the

resultant conditions of farmers created anenvironment for the chit funds and

4IS0OR8!


10/34CA Rajkumar S. Adukia 1&

IMPOR0AN0 /AC0S A9O:0 COOP+RA0I;+)NPO

#8ear $%'$, has 3een declared as Internationa 8ear of

Cooperatives 3y 9nited =ations of States" $*aunched on ;.stOct, 08..%#In India, Cooperative and =@O is the third ar2est sector ofthe econom5"#orm irth ti death, Cooperative?=@O sector aBects each

and every part of our life" It is present in our routine and dayto day life"#5here are more than '%


11/34

Changes in

the IndianCooperative

Scenario

'mrgnc

o

Modl Coop.

Soc. Act

'nactmnt o MACS *

Sl Rliant Cooprati+

Socitis Acts in

dirnt stats

'mrgnc o

Mutuall Aidd, Autonomous,

-mocratic cooprati+s

Rnginring o +arious

old Cooprati+

Socitis Acts

Rduction in

th /o+rnmnt0s

uit and

thir controls

Application o

R+i+al 2ackag or

Rural Cooprati+ Crdit

nstitutions

gal rorms*

amndmnts

incooprati+ crdit

structur*socitis

5asd on

Ri+al 2ackag

6w Ag 7inancial

Cooprati+s inancing

through S8/s

9

2ACS continu to do

rural inancing

Constitutional

Amndmnt :&11

Various Committees of

Cooperative Reforms


12/34CA Rajkumar S. Adukia 1:

05pes of Co-operative Societies

Mutistate

cooperative

Statecooperati

ve

Re2uated 5Muti state

cooperativeSocieties Act,$%%$

Re2uated 5respective

statecooperativeAct


13/34


Co-operative Societies!A%Co-operative societies Act ./.0D%>ultistate Co-operative Societies

Act 0880C%State Co-operative Societies Act)%=ADAR) Act ./G.E%>utually Aided Cooperative

Societies Act $>ACS%

Statues :overning

Cooperatives


14/34


State Cooperative Societies Acts of individuastates

Sr

No

State State Act

. Assam Assam Co-operative Societies Act, .//

0 Arunachal@radesh

Arunachal @radesh Co-operative Societies Act,./G

; Andhra @radesh Andhra @radesh Co-operative Societies Act,

./H

Dihar Dihar Cooperative Societies Act, ./;aharashtra Co-operative Societies Act, ./H8

>adhya @radesh >adhya @radesh? Chhattisgarh Co-operativeSocieties act, ./H8

G Jammu Kashmir

Jammu and ashmir Co-operative Societies Act,./H8

/ @una3 @una3?Chandigarh Co-operative Societies Act,./H.

.8 :uarat :uarat Co-operative societies Act, ./H0


15/34



SrNo

State State Act

. 5amil =adu 5amil =adu cooperative Societies Act, ./G;

.< 5ripura 5ripura Cooperative Societies Act, ./

.H >eghalaya 5he >eghalaya Co-operative Societies Act, ./H

. Siim Siim Co-operative Societies Act, ./G

.G aryana aryana Co-operative Society Act, ./G

./ :oa :oa Co-operative Societies Act, 088.

08 Chhattisgarh >adhya @radesh? Chhattisgarh Co-operativeSocieties act, ./H8

0. )elhi )elhi Co-operative Societies Act, 088;

00 Chandigarh @una3?Chandigarh Co-operative Societies Act,

./H.

0; Jharhand 5he Jharhand Self Supporting CooperativeSocieties Act, .//H

0 >anipur 5he >anipur Cooperative Societies Act, ./H

0< >iLoram 5he >iLoram Cooperative Societies Act, 088H

0H =agaland =agaland $adopted Assam Co-operative


16/34

CA Rajkumar S. Adukia 1!


SrNo

State State Act

0 Orissa 5he Orissa Co-Operative Societies Act, ./H0

0G Raasthan 5he Raasthan CoMoperative Society Act, 088.

0/ 5elangana Andhra @radesh Co-operative Societies Act,

./H


17/34

CA Rajkumar S. Adukia 1"

NArticle ./$c% to include under right to freedom the right to

citiLens to form co-operative societies"

NArticle ;D#@romotion of co-operative societies M 5he State shallendeavor to promote voluntary formation, autonomous

functioning, democratic control and professionalmanagement of co-operative societies&

N@art ID M Article 0;P to Article 0;P5 - 5he Co-operative Societies M inserting articles relating to the co-

operative societies"5his part gives out the co-operative societies relatedprovisions of incorporation, 3oard structure, election ofmem3ers, application of this part among others" Article0;PR under this part also speci1es that these provisions

shall also apply to multi-state co-operative societies"

0he Constitution of India 1Ninet5-seventh Amendment3 Act, $%'' 7ithe?ect from '=th/eruar5 $%'$.


18/34

CA Rajkumar S. Adukia 1$

Cassi@cation of cooperatives

Cooperatives may 3e classi1ed asFNWorkerCooperativesNConsumer CooperativesNProducer CooperativesNPurchasing CooperativesNHousing Cooperatives

Sectora Cassi@cation!NAgriculture/ ForestryNBanking/ Credit UnionsNConsumer

NHealthNInsuranceNWorkers, Industrial, Artisanal & Serice ProducersNFisheries

NHousing


19/34

CA Rajkumar S. Adukia 1%

Producer Compan5


20/34

roducer Company ( C)

A holistic concept

2C is an ntit or, ; and o producrs

6ds go+rnmnt unding

2C stad ; prossionals

2roducrs rsponsi;l or on arm acti+itis

Managd ; prossionals


21/34

CA Rajkumar S. Adukia :1

5he concept of producer companies !asintroduced in 0880 3y incorporating a ne! @artIA into the Companies Act, ./


22/34

CA Rajkumar S. Adukia ::

Characteristics Of Producer Compan5

N 5he registered producer company should 3e treated

as a private limited company !ith the signi1cantdiBerence that a minimum of t!o persons cannot getthem registered"N 5hese companies are !ith limited lia3ilities andlimited only 3y share capital"

N 5he lia3ility of the mem3ers is limited to the unpaidamount of the shares held 3y them"N 5he ma7imum num3er of mem3ers can e7ceed em3ers e6uity cannot 3e pu3licly traded 3ut 3eonly transferred"


23/34


h5 Producer Compan5B#5o oBer a statutory and regulatory frame!or thatcreates the potential for producer-o!nedenterprises to compete !ith other enterprises on acompetitive footing"N 5o provide for the method of formation and

registration of #@roducer Companies& !hich, interalia carries the principles of #mutual assistance&and #Co-operation& !ithin the more li3eralregulatory frame!or aBorded 3y the company la!

!ith suita3le adaptation"N 5o provide an opportunity $on a purely voluntary3asis%, to the e7isting large multi-state cooperativeinstitutions and societies, to voluntarily convertthemselves into the ne! form of producer

companies"


24/34


i?erence et7een Cooperative and ProducerCompan5

Cooperative compan5 @roducer company

It registered under the

Cooperative society Act

registered under the Indian

company Act

Cooperative company is singleo3ected

@roducer company ismulti o3ectives

Cooperative company share isnot trada3le and transforma3le

area of restriction is entire unionof India tae operation

Cooperative company Area ofoperation is restricted

share is not 5rada3le 3ut it cantransfera3le to limited mem3erson per value

Cooperative company

mem3ership is individual andcooperatives

mem3ership !ill 3e individual,

group, Association, producer ofservice"

one mem3er can vote only onevote 3ut register of cooperativeshave veto po!er

one mem3er can vote only onevote company can not hold vetopo!er"

3orro!ing po!er is restricted 3orro!ing po!er is morefreedom and more alternative"


25/34

CA Rajkumar S. Adukia :

Provisions relating to producer company (Sec 581 to 581!" of the

Companies ct 1#5$%

PROC+:R+ /OR INCORPORA0ION O/ PRO:C+R

COMPAN8#Section OA K AOA, certi1cate of registration, audit , management

and compliances are more or less similar to normal private


26/34

CA Rajkumar S. Adukia :!

Co-operative Societies in NC0 of ehi

5he Co-operative movement in the =C5 of )elhi !as3orn on 0arch, ./8 !ith the enactment of 1rstco-operative Societies Act, =o""

Acts E Re2uation

5he )elhi Cooperative Societies Act ./05he )elhi Cooperative Societies Act ./;5he )elhi Co-Operative Societies Act, 088;

)elhi Cooperative 5ri3unal Rules 088H5he )elhi Co-Operative Societies Rules, 088)elhi Cooperative 5ri3unal $Amendment% Rules 088/


27/34

CA Rajkumar S. Adukia :"

RO


28/34

CA Rajkumar S. Adukia :$

RO


29/34

CA Rajkumar S. Adukia :%

PROFESSIONAL

OPPORTUNITIES IN THE CO-

OPERATIVE SECTOR


30/34

CA Rajkumar S. Adukia 3&

." )rafting of 3ye-la!s0" Registration of society;" Consultancy !ith regard to formation of

society and activities of the co-operativesociety

" )rafting of various deeds and agreements


31/34


.." >aintenance of accounts

.0" Internal audit

.;" Statutory Audit

." Compliances under the Companies Act for@roducer Company

.


32/34

)EVE*O@I=: WOR I=COO@ERA5IVE SEC5ORWriting articles in cooperative?=@O related magaLines

and other pu3lications@articipating as speaer in conferencesCommunicating !ith people related to cooperative

activitiesDuilding a cooperative information !e3siteWriting 3oos on topics covered under cooperative@roecting oneself as a cooperative society e7pert

Reaching out to the prospective service receivers9sing social media to reach more num3er of peoplerelated to Cooperative societies

Increase e7pertise in the 1eld of Cooperative society3y undertaing capacity 3uilding initiatives

3:rajkumarradukia


33/34

33rajkumarradukia


34/34

overview of coopeartive societies ca. rajkumar s. adukia

Documents