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Q.

How to Cancel Society Registration?

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2 months

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Recently, when I visited the sales office of my relative’s new society, one of the members asked how to cancel society registration. As I was unsure, I researched about this. I found that a member must start the dissolution procedure in order to revoke a society's registration. I have shared the complete rules below.

How can I Cancel Society Registration?

Members of the society may also approach the Registrar (or state authority) to request dissolution or cancellation if the society no longer functions effectively. Under the Co-operative Societies Act, 1912, a registered society’s registration can be cancelled by the Registrar in certain circumstances.

  • Section 40 empowers the Registrar to issue a written order of cancellation when one of the fundamental conditions for registration, notably that the society must consist of at least ten members, is no longer met, i.e., the membership falls below ten.

  • In practice, cancellation may follow either: 

    • A dissolution initiated under Section 39, when the society itself resolves to wind up its affairs; or

    • Cancellation under Section 40 when the Registrar is satisfied that the membership threshold is breached.

  • Once cancellation is ordered, the society ceases to exist as a corporate entity from the effective date of the order.

The Registrar’s cancellation must be published in the Official Gazette so the public is notified. After cancellation, the society enters a winding-up phase. A liquidator may be appointed to settle liabilities, dispose of assets, adjudicate claims, and distribute any residual funds in accordance with the Act and the society’s bylaws. I hope you found these tips helpful.

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