I want to start a dairy cooperative in Dhanbad, what does the state cooperative societies act require?

Detailed Legal Analysis

To start a dairy cooperative in Dhanbad, you must comply with the provisions of the Bihar Cooperative Societies Act, 1935, as it governs the formation and functioning of cooperatives in the state of Bihar, which includes Dhanbad.

Here are the key steps and requirements to establish a dairy cooperative under the Bihar Cooperative Societies Act:

• Formation of the Society:
  • Gather a minimum of 10 members who are interested in promoting the cooperative.
  • Draft a proposed name for the cooperative, ensuring it includes the term "Cooperative" or "Sahakari".
• Drafting the Bye-Laws:
  • Prepare bye-laws that outline the objectives, governance structure, membership criteria, share capital, and distribution of profits.
  • The bye-laws must comply with the requirements specified in Section 6 of the Bihar Cooperative Societies Act, 1935.
• Registration:
  • Submit the application for registration to the Registrar of Cooperative Societies in Bihar.
  • Include the following documents with your application:
    • Filled application form (Form A).
    • Proposed bye-laws signed by all the members.
    • Proof of identity and address of the members.
    • Details of the proposed office address.
  • The registration fee as prescribed under the rules must also be paid.
• Obtaining Registration Certificate:
  • The Registrar will review the application and documents. If everything is in order, a certificate of registration will be issued under Section 9 of the Act.
  • The society will then become a legal entity with perpetual succession.
• Compliance and Governance:
  • Hold the first general meeting to elect the board of directors as per the bye-laws.
  • Maintain proper records, accounts, and comply with annual auditing as per Section 81 of the Act.
  • Follow the provisions of the Bihar Cooperative Societies (Amendment) Act, 2005, ensuring adherence to governance standards.

By following these steps and adhering to the regulations, you can successfully establish a dairy cooperative in Dhanbad.