Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995 (Act No. 30 of 1995).

This Act, consisting of 45 sections, broke new ground in the history of the Indian cooperative movement. This is a cooperative law which respects the right of members to fully own and control their own cooperative enterprise. The enactment, an act of political courage and wisdom by the Andhra Pradesh Government, was the final step in a long effort to create a new legislative environment for cooperatives in Andhra Pradesh. It provides for the voluntary formation of cooperative societies as accountable, competitive, self reliant business enterprises, based on thrift, self-help and mutual aid and owned, managed and controlled by members for their economic and social betterment and for related matters.
The Cooperative principles and by-laws establish that individuals or cooperatives intending to form into a cooperative society shall frame by-laws conforming to the following principles of cooperation, namely: a) membership of a cooperative society shall be voluntary and available without restriction of any social, political, racial or religious discrimination, to all persons who can make use of its services and are willing to accept the responsibilities of membership; b) cooperative societies are democratic organisations; their affairs shall be administered by persons elected or appointed in a manner agreed by the members and accountable to them. Members of primary cooperative societies shall enjoy equal rights of voting and participation in decisions affecting their cooperative societies; c) share capital shall only receive a strictly limited rate of interest, if any; d) the economic results, arising out of the operations of a cooperative society belong to the members of that cooperative society and shall be distributed in such a manner as would avoid one member gaining at the expense of others, which shall be achieved; e) all cooperative societies shall make provision for the education of their members, officer-bearers and employees and of the general public, in the principles and techniques of cooperation, both economic and democratic; f) all cooperative societies shall actively cooperate in every way with other cooperatives at local, national and international levels having as their aim the achievement of unity of action by cooperators throughout the world.