Section 6 of The Co-operative Societies Act, 1912
- (1)No society, other than a society of which a member is a registered society, shall be registered under this Act which does not consist of at least ten persons above the age of eighteen years and, where the object of the society is the creation of funds to be lent to its members, unless such persons—
- (a)reside in the same town or village or in the same group of villages; or
- (b)save where the Registrar otherwise directs, are members of the same tribe, class, caste, or occupation.
- (2)The word “limited” shall be the last word in the name of every society with limited liability registered under this Act.
Summary
- This provision sets the minimum age and membership numbers required to form a standard society, along with special conditions for societies that lend money.
- Unless a registered society is already a member, a new society must have at least ten persons who are above the age of eighteen years to register.
- If the new group's purpose is to lend money to its members, those members must all reside in the same town, village, or group of villages.
- Alternatively, for a lending society, the members must belong to the same tribe, class, caste, or occupation, unless the Registrar directs otherwise.
- Any society that registers with limited liability is legally required to put the word limited as the very last word in its name.
Practical examples
FAQ
1. How many people do I need to register a society under Section 6 of The Co-operative Societies Act, 1912?
Under Section 6 of The Co-operative Societies Act, 1912, you must have a group of at least ten people to register a standard society. Every person in this group must be older than eighteen years of age. The only exception to this minimum number is if one of the members is already a registered society itself.
2. Where do members need to live to start a lending group under Section 6 of the 1912 cooperative law?
Section 6 of the 1912 cooperative law sets rules for any society that wants to create funds to lend money to its own members. The law requires that these members must reside in the exact same town, the same village, or the same group of villages.
3. What if the members of a lending group do not live in the same town under Section 6 of the Indian cooperative act?
If the members do not live in the same town or village, Section 6 of the Indian cooperative act provides another option. The members must all belong to the same tribe, class, caste, or occupation. However, the Registrar (the official overseeing the societies) has the power to make exceptions to this shared background rule.
4. Does Section 6 of the Co-operative Societies Act require any specific words in the name of the society?
Yes, Section 6 of the Co-operative Societies Act requires a specific word for any society that registers with limited liability. The word "limited" must always be used as the very last word in the name of the society.
Test yourself
Q1.Under Section 6 of the Co-operative Societies Act, 1912, what is the required age for the minimum ten persons forming a society?
Q2.According to Section 6 of the Co-operative Societies Act, 1912, which of the following is an absolute requirement for the name of a society registered with limited liability?
Q3.Under Section 6 of the Co-operative Societies Act, 1912, if a society's object is creating funds to be lent to its members, and the members do not reside in the same town or village, what other condition can satisfy the registration requirement by default?
Q4.Reading Section 4 (which requires limited liability if a registered society is a member) alongside Section 6 of the Co-operative Societies Act, 1912, what is true about a new society that has one existing registered society as a member and five regular people?