Section 9 of The Multi-State Co-operative Societies Act, 2002
- (1)The registration of a multi-State cooperative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be sued.
- (2)All transactions entered into in good faith prior to the registration of a multi-State co-operative society shall be deemed to be its transactions after registration for furtherance of the objects of its registration.
Summary
- Registration turns the cooperative into a body corporate, which means it becomes a distinct legal person separate from its individual members.
- The society gets perpetual succession, meaning it continues to exist legally even if its members die or leave, and a common seal to stamp official documents.
- It has the legal power to own, buy, and sell both movable and immovable property, enter into contracts, and sue or be sued in its registered name.
- Any business transactions made in good faith before the official registration date are legally treated as the society's own transactions once it is registered.
Practical examples
FAQ
1. What does it mean for a society to be a body corporate under Section 9 of The Multi-State Co-operative Societies Act, 2002?
Under Section 9 of The Multi-State Co-operative Societies Act, 2002, being a body corporate means the society is recognized as an independent legal entity that can enter contracts, own property, sue, and be sued in its own name.
2. What are the powers of a society regarding property under Section 9 of The Multi-State Co-operative Societies Act, 2002?
Under Section 9 of The Multi-State Co-operative Societies Act, 2002, the registered society has the legal power to acquire, hold, and dispose of both movable and immovable property.
3. How are prior transactions treated under Section 9 of The Multi-State Co-operative Societies Act, 2002?
Under Section 9 of The Multi-State Co-operative Societies Act, 2002, all transactions entered into in good faith prior to registration are deemed to be the transactions of the society after registration to help further its objects.
Test yourself
Q1.Under Section 9 of The Multi-State Co-operative Societies Act, 2002, what legal status does a society acquire upon registration?
Q2.Under Section 9 of The Multi-State Co-operative Societies Act, 2002, what happens to transactions entered into in good faith before the society is registered?
Q3.Under Section 9 of The Multi-State Co-operative Societies Act, 2002, in whose name must legal proceedings be instituted if someone wants to sue a registered society?
Q4.If a registered cooperative wants to buy a plot of land for a new processing unit, which provision of The Multi-State Co-operative Societies Act, 2002 gives it the corporate power to hold immovable property?