Cooperative society
Fahad
(Querist) 17 February 2013
This query is : Resolved
Hi,
Can a cooperative society be formed with a sole intention of investing in share market, commodity market and govt. bonds (keeping some money as cash reserve too), and returning the profit to its members in the form of dividend. Obviously the loss and profit will be shared equally among its members just like a mutual fund, but my query is, Is this kind of business model acceptable for a Cooperative Society to have, and if yes then under which category of society (urban credit, salary t/c, multipurpose society etc...).
I'm from New Delhi and intended to form one with above business model.
Kindly advise.. Thanks in advance.. :)
ajay sethi
(Expert) 18 February 2013
section 4 of mahrashtra Ccoperative soceties act states that a society which could be registered is one which has objects for promotion of the economic interests or general welfare of its members or of the public in accordance with the co-operative principles.
since you are located in delhi check the provisions of Delhi cooperative soceties act . since your objective is promotion of economic interest of members you can check with Registrar CCoperative societes Delhi regarding formation of cooperative society
Fahad
(Querist) 18 February 2013
Sir, Thanks for your valuable insight to the matter. I would like to ask you that, if I were based in mumbai, had I been allowed to open a cooperative society with above business model.
Raj Kumar Makkad
(Expert) 19 February 2013
You can surely open such desired model in Mumbai even.
