Write short notes on Minimum Subscription and Registration of a cooperative society.
It is said to be the minimum amount which as per the directors must be raised by issuing shares to overcome various expenses like working capital required, preliminary expenses, repayment of money borrowed or any other payment etc. Company has to make sure that it must receive share applications for minimum subscription as mentioned in the prospectus, before it applies for the certificate of commencement of business.
Company has to refund back all the money received from the applicants and cannot make any allotment, if the amount of capital subscribed by the public is less than the minimum subscription or if the company could not get minimum subscription within 120 days of the issue of prospectus.
Registration of a Cooperative Society:
An organisation where persons voluntarily combine together on the basis of equality, pool their resources and work together is said to be a cooperative society. It is essential for a cooperative society to get itself registered with the Registrar of Cooperative Societies. Following steps are required to get a cooperative society registered:
- Make an application stating in it the name of proposed society, its objects, information about its share capital.
- Prepare the rules and regulations of the society and submit it with the application for registration of the society.
- Remember, to get the application and the Bye laws signed by the promoters.
After going through the documents, if Registrar gets satisfaction, only then the certificate of registration is issued.