October 7, 2026 · Guides

Multi-State Co-operative Societies Act, 2002 Explained

The Multi-State Co-operative Societies Act, 2002 (Act 39 of 2002) governs co-operatives whose objects are not limited to one state. It was amended in 2023. Here is a plain-language walk through its main parts, with section references so you can check the original text on India Code.

In this guide

Purpose of the Act
A map of the main sections
Registration
Governance
Money and funds
The 2023 amendment
FAQs

Purpose of the Act

The Act consolidates and amends the law for co-operative societies whose objects are not limited to one state and which serve members in more than one state. It replaced the earlier 1984 Act.

A map of the main sections

Topic	Sections	What it covers
Definitions	3	Including what a multi-State co-operative society and a member are
Registration	5 to 8	Conditions, minimum members, how the Registrar decides, effect of registration
Bye-laws, name, address	10 to 14	What bye-laws cover, amendment, change of name, address
Amalgamation, transfer, division	17	Two-thirds resolution and notice to members and creditors
Members and shares	25, 33	Who can be a member, cap on any one member’s holding
General body	38 to 40	Annual and special general meetings
Board	41, 43, 45J, 50	Size, disqualifications, elections, quorum
Funds and profits	62, 63, 63A to 63C	Reserve fund, education fund, rehabilitation and development fund
Audit	70 to 74	Auditors and reports
Accounts and returns	108, 109, 120	Books, annual accounts, annual return

Registration

Section 5 requires main objects that serve members in more than one state, and bye-laws that promote self-help and mutual aid. Section 6 sets the minimum number of members. Under Section 7, the Central Registrar must decide within three months, with up to two more for rectification, and an application left undecided is treated as accepted. Section 8 makes the certificate conclusive evidence of registration. See our registration guide.

Governance

The general body is the ultimate authority (Section 38). The annual general meeting has to be called within six months of the close of the year (Section 39). The board can have up to 21 directors (Section 41), elected for five years (Section 45J) through the Co-operative Election Authority. Directors can be disqualified, for example if the society fails to hold its annual general meeting or complete its audit within six months of year end (Section 43).

Money and funds

Net profit must first go to statutory funds, including the reserve fund and a co-operative education fund, before anything else. The Act also sets up a rehabilitation and development fund for sick societies.

The 2023 amendment

The Multi-State Co-operative Societies (Amendment) Act, 2023 brought in the Election Authority, a Co-operative Ombudsman, information officers and online filing of annual returns, among other changes. We cover it in a separate post. You can also read the Act on India Code.

This is a summary, not legal advice. For the exact wording, read the Act and Rules, or ask us.

Need help with your MSCS? See our Multistate Co-operative Society registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

What is the MSCS Act?

It is the law that governs co-operatives whose objects are not limited to one state: the Multi-State Co-operative Societies Act, 2002.

Which Act did it replace?

It replaced the Multi-State Co-operative Societies Act, 1984.

Was the Act amended?

Yes. The Multi-State Co-operative Societies (Amendment) Act, 2023 made changes, including the Co-operative Election Authority.

Where can I read the Act?

On India Code, which hosts the Act and its amendments.