Cooperative Law in Pakistan governs the formation, registration, management, and regulation of cooperative societies. These societies are associations of people who voluntarily unite to meet common economic, social, and cultural needs through a jointly owned and democratically controlled enterprise.

⚖️ Overview of Cooperative Law in Pakistan

📜 Main Law:

Cooperative Societies Act, 1925
This is the primary law regulating cooperative societies in Pakistan. It applies to all provinces unless a province has enacted its own law (e.g., Punjab and Sindh have made some amendments).

🧾 1. Definition of a Cooperative Society

Under Section 2 of the Act:

A cooperative society is an association of persons united voluntarily to achieve a common economic objective (such as savings, credit, farming, housing, or trade) through a jointly owned and democratically managed organization.

🏛️ 2. Types of Cooperative Societies

  • Credit Societies (for lending money to members)

  • Housing Societies (for acquiring and developing land)

  • Agricultural Societies (farming inputs, equipment)

  • Consumer Societies (joint purchase of goods)

  • Industrial Societies (small-scale production and services)

  • Multipurpose Societies (combined objectives)

🏢 3. Registration of Cooperative Societies

📝 Requirements for Registration (Section 4 & 5 of the Act):

  • Minimum 10 adult members

  • Members must share a common bond (e.g., profession, locality)

  • Application submitted to the Registrar Cooperative Societies of the province

  • Society must have a clear objective, bylaws, and membership rules

Once approved, the society becomes a legal entity with the right to:

  • Enter into contracts

  • Own property

  • Sue and be sued

⚙️ 4. Governance and Management

  • Each society must have a Managing Committee / Executive Body elected by members

  • Operations must follow the bylaws of the society

  • Decision-making is democratic (1 member = 1 vote)

📘 Annual Requirements:

  • Hold Annual General Meetings (AGMs)

  • Submit audit reports and accounts to the Registrar

  • Maintain records of meetings and membership

🔍 5. Role of Registrar Cooperative Societies

Each province appoints a Registrar to oversee cooperatives. Their powers include:

  • Registration and cancellation of societies

  • Inspecting records and financials

  • Enforcing compliance with laws

  • Dissolving mismanaged or fraudulent societies

  • Appointing administrators where needed

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