Question

What key ability does Section 9 of Kerala Co-operative Societies Act, grant a Co-operative Society after registration?

• A. The ability to borrow money only from government sources.
• B. The ability to hold property and enter contracts
• C. The ability to operate without any external audits.
• D. The ability to transfer ownership to individuals without member consent.

Answer 1

Answer:

B. The ability to hold property and enter contracts

Section 9:Co-operative Societies to be Bodies Corporate

• Upon registration, every Co-operative Society becomes a body corporate with perpetual succession and a common seal. It acquires the legal capacity to hold property, enter into contracts, initiate and defend legal proceedings, hold assets, and perform all acts necessary for achieving the objectives for which it was established.

• Furthermore, the Government and the Registrar are vested with the authority to regulate the functioning of the society to ensure the economic and social welfare of its members, as well as to promote the general public interest.

Section 9 A –Publication of a name of cooperative society

• Sec 9A(a) shall paint or affix its name, register number and the address of its registered office and keep the same painted or affixed in conspicuous position, in letters easily legible to members in vernacular language and in English language, on the outside of every office or place in which its business is carried on.

• Sec 9 A(b) shall have its name engraved in legible characters on its seal with common emblem; and shall have its name and address of its registered office.

• Sec 9 A(c) Mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundis, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the cooperative society.