Question

The following statements are on Co-operative Credit Societies Act, 1904. Which statement is not correct?

1. It gives legal protection only to credit Co-operative societies.

2. Co-operative societies were classified as rural and urban.

3. Societies formed under this act shall be with unlimited liability only

4. The Registrar of the Co-operative credit societies shall audit the accounts atleast once in a year.

• A. iii and iv
• B. Only iv
• C. Only iii
• D. ii and iii

Answer 1

Answer:

C. Only iii

The statement that is not correct about the Co-operative Credit Societies Act, 1904 is that the act did not specify the maximum number of members for a cooperative society:

• Explanation

  The Co-operative Credit Societies Act, 1904 was enacted to encourage thrift, self-help, and cooperation among people of limited means, artisans, and agriculturists. The act gave impetus to the cooperative movement, and the first urban cooperative credit society was registered in Canjeevaram in October 1904.

• Minimum number of members

  The Co-operative Societies Act requires a minimum of ten members to form a cooperative society.

• Registration of cooperative societies

  The Cooperative Societies Act, 1912 requires the registration of cooperative societies