Cooperatives Act, 2017 (Act No. 41 of 2017).

This Act provides for formation of cooperative organizations and associations, their management and operation. It consists of twenty chapters: 1. Preliminary; 2. Formation and Registration of Cooperative Organization; 3. Objectives and Functions of Organization or Association; 4. Byelaws and Internal Procedures; 5. Membership; 6. General Meeting, Board of Directors and Account Supervision Committee; 7. Mobilization of Savings and Credits; 8. Provisions concerning Cooperative Bank; 9. Mobilization of Financial resources; 10. Fund of Cooperative Organization; 11. Records and Information; 12. Accounts and Auditing; 13. Exemptions, Facilities and Discounts; 14. Recovery of Debt and Due Amount; 15. Amalgamation, Dissolution and Revocation of Registration; 16. Registrar; 17. Inspection and Monitoring; 18. Problematic Organizations or Associations; 19. Offences, Punishment, Fines and Appeal; and 20. Miscellaneous Provisions.
Chapter 1 contains short title, commencement and definitions. Chapter 2 provides for formation of various types of cooperative organizations (cooperatives), associations and federation of national cooperatives. It requires registration of cooperatives and lays down process for the same. Chapter 3 contains the objectives and functions of cooperatives, associations and federation. Chapter 4 requires byelaws to be framed by the cooperatives. Chapter 5 lays down the criteria and procedure for membership of cooperatives and termination thereof. Chapter 6 contains provisions relating to various types of meetings of the cooperatives and their functions; election and functions of Board of Directors; and related matters. Chapter 7 allows for mobilization of savings and credit only between members of the cooperative. Chapter 8 contains provisions in respect of cooperative banks. Chapter 10 describes the various funds that need to be maintained by cooperatives.
Chapters 11 and 12 deal with the records and accounts to be maintained by the cooperatives. Chapter 13 provides for certain exemptions and discounts to the cooperatives. Chapter 14 contains provisions in respect of recovery of debt from members of the cooperatives. Chapter 15 provides for amalgamation, division and dissolution of cooperatives. Chapter 16 makes provision for appointment of Registrar and Chapter 17 empowers such Registrar to inspect the accounts of cooperatives. Chapter 18 contains the mechanism to declare a cooperative as problematic and its management may be given to a management committee specially formed for such purpose. Chapter 19 provides for offences and punishment and appeal provisions. Chapter 20 allows for conducting social audit to assess the positive impact made on the economic, social and cultural aspects of the members. It also provides for settlement of disputes between cooperatives.