Section 11 in The West Bengal Co-Operative Societies Act, 1983
11. Co-operative societies which may be registered. -
(1)Subject to the provisions of this Act and the rules, a co-operative society established with the object of promoting the common interests of its members in accordance with co-operative principles and facilitating the operation of. such cooperative society (including a co-operative society formed by division of an existing co-operative society or by amalgamation of two or more existing cooperative societies) may be registered under this Act with limited liability :Provided that a co-operative society with unlimited liability functioning immediately before the commencement of this Act may continue to function as such or may convert itself into a co-operative society with limited liability within such time and in such manner as may be prescribed ;Provided further that a co-operative society registered under this Act may, subject to the provisions of this Act and the rules, by amendment of its by-laws, change the form, or the extent, of its liability.[Explanation.-For the avoidance of doubts, it is hereby declared that "co-operative principles" shall include the following:-] [This 'Explanation' added by West Bengal Act 21 of 1990.](a)the membership of a co-operative society shall be voluntary and shall be open to all persons who are eligible for such membership without any social, political or religious discrimination;(b)every member of a co-operative society, other than a nominal member, shall have equal right of voting in accordance with the principle of "one member, one vote";(c)any surplus or saving arising out of the operation of a co-operative society shall belong to such co-operative society as a whole, and no individual member shall have any claim to such surplus or saving;(d)the surplus of a co-operative society shall be utilised for all or any of the following purposes:-(i)providing for development of business of the co-operative society,(ii)providing service for common enjoyment of membership of the co-operative society,(iii)distributing among the members of the co-operative society in proportion to the transaction of the members with the cooperative society;(e)a co-operative society shall arrange for the education of its members, office-bearers and employees and of people in the principles and practices of co-operation;(f)a co-operative society shall, in every practical way co-operate actively with other co-operative societies at the local, State or national level;(g)the share capital of a co-operative society shall receive the strictly limited rate of interest in the shape of dividend;(h)the affairs of a co-operative society shall be administered in accordance with the will of its members expressed through unanimous or majority decision at a meeting of the general body of members of the co-operative society;(i)the directors of the board for a co-operative society shall be accountable to the general body of members of the co-operative society.(2)The word "Limited" shall be the last word in the name of a co-operative society registered under this Act.
