State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

4. Co-operatives which may be registered.- 1["(1) No co-operative shall be registered under this Act, unless,- (a) its main objects are to serve the interests of the members in the area of operation. (b) its bye-laws provides for economic and social betterment of its members through self help and mutual aid in accordance with the co-operative principles."]1 1[(2)]1 Subject to the provisions of this Act where,- (a) not less than ten individuals belonging to different families intend to form a Co-operative; or (b) a Co-operative society intends to convert itself into a Co-operative under this Act by passing a resolution in this behalf; or (c) 2[twenty or more cooperatives]2 registered under this Act intend to form into a union Co-operative by passing a resolution in this behalf; they may be 3[to avoid unhealthy competition among different types of Co-operatives, Registrar may issue direction and circulars from time to time, subject to these circular and direction.]3 registered as Co-operative under this Act. 1["Provided that no Co-operative shall be registered if it is likely to be economically unsound or the registration of which may have an adverse impact on the development of the Co-operative movement. Provided further that no Co-operative shall be registered under this Act as a Housing Co-operative and no Housing Co-operative Society shall be converted into a Housing Co-operative."]1