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Cooperative Act, 1992

The preamble of the Cooperative Act, 1992 has quoted as "Whereas it is expedient to provide for the formation and operation of various type of cooperative societies and unions for the social and economic development of the country's farmers, workers, artisans, people possessing inadequate capital and low income groups, landless and unemployed people or social workers for the benefit of general consumers on the basis of mutual cooperation and cooperative principles." The important provisions of the Cooperative Act, 1992 includes registration of cooperative societies/unions, distribution of membership, operational procedures, appointment of registrar, authority of registrar, delegation of authority, mobilization of resources, integration and disintegration of cooperatives, system of information recording and auditing of accounts, rebates and incentives to cooperatives, dissolution and liquidation of cooperatives, regulations and penalties to defaulters etc. Some special features of the Act are simple registration procedures, legal and corporate personality, equality, elected board of directors, voluntary membership, autonomy, self regulatory mechanism, federal structure of cooperative movement, limited liability of members, wide scope of cooperative business etc.