Formation of Association or Society

Formation of Association or Society

• An association or society as follows may be formed with a view to rendering services and facilities for the economic and social development of its members in consonance with the cooperative principle.

(a) A preliminary association consisting of at least twenty-five persons as its members.

(b) A sectoral society consisting of at least five associations as referred to in Clause (a) as its members.

(c) A District cooperatives society consisting of at least five associations or sectoral societies out of those as referred to in Clause (a) or in Clause (b) or both as to its members.

(d) A central cooperatives society consisting of at least twenty five sectoral associations as referred to in Clause (a) or at least five sectoral societies as referred to in Clause (b) as its members.

(e) A national cooperatives society consisting of at least fifteen societies as referred to in Clauses (b), (c) and (d) as its members.

• Notwithstanding anything contained in Sub-section (1), not more than one District cooperatives society or sectoral society of the same nature and not more than one central cooperatives society of the same nature may be formed in the same District.

• The jurisdiction/domain of an association or society shall be as specified in the Bye-law of that association or society.

Application for registration of association or society

(1) The members concerned have to make an application to the Registrar for the registration of an association or society formed pursuant to Section 3.

(2) An application to be made pursuant to Sub-section (1) has to be accompanied by two copies of the Bye-law of the concerned association or society, work plan and description of shares which the members have undertaken to subscribe and signed by at least the members as referred to in Section 3.

Action of Registrar on Application for registration of association or society

(1) On an application made pursuant to Section 4 for the registration of an association or society, the Registrar shall hold the necessary inquiry as to whether the Bye-law of that association or society is in consonance with the cooperative principle.

(2) If the Registrar so considers appropriate on an inquiry held pursuant to Sub-section (1), the Registrar shall register the association or society and issue the registration certificate, as prescribed.

Powers to refuse to register

(1) If on an inquiry held pursuant to Sub-section (1) of Section 5, the Registrar thinks that any matter needs to be amended, the Registrar shall give the persons making application for the registration of the concerned association or society a notice for amendment within fifteen days.

(2) If the applicants refuse to make amendment pursuant to the notice as referred to in Sub-section (1) or fail to make amendment within thirty-five days after the date of receipt of such notice, the Registrar may refuse to register the association or society and assign the reasons for such refusal to register and give information thereof to the concerned applicants.

(3) Where the Registrar refuses to register an association or society pursuant to Sub-section (2), an applicant who is not satisfied with such refusal may make a petition to Government of Nepal.