How to form a Co-operative Society
By Team Legistify / 2016-04-06
Any group of persons can form a cooperative society of their own if they so like to act jointly for the common benefit of each other. But that is not the legal way of formation the cooperative society. All societies must be formed under the Cooperative Societies Act, 1912 or under the relevant state cooperative laws.

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The 97th Constitutional Amendment Act of 2011 gave a constitutional status and protection to co-operative societies. It added a new Part IX-B in the Constitution which is entitled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).

February 15, 2012, was the date of commencement of the Constitution (Ninety-seventh Amendment) Act, 2011. The State Governments have been mandated to amend their respective State Cooperative Society Act in tune with the Constitution (97th Amendment) Act, 2011 before February 14, 2013.

Right to form a cooperative society is now a fundamental right of the citizens

There have been certain crucial amendments to the Constitution whereby the right to form a cooperative society has been deemed to be a fundamental right equitable with the right to freedom of speech and expression, while also putting a mandate on the respective State Legislatures to promote cooperative societies and ensure a functional framework of laws in every state for the same.


1. Article 19 – Protection of certain rights regarding freedom of speech etc. contains a provision of citizens’ six specific freedoms :
In clause (c) of the clause (1) of this Article:
The word “cooperative societies” has been added to this. So the amended clause (c) is as –
“(c) to form associations or unions or co-operative societies”.
Right to form a cooperative society is now a fundamental right of the citizens.

Any group of persons can form a cooperative society of their own if they so like to act jointly for the common benefit of each other. But that is not the legal way of formation the cooperative society. All societies must be formed under the Cooperative Societies Act, 1912 or under the relevant state cooperative laws.

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


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