Registration of a cooperative society is:

Question

Accepted Answer

The correct option is 2:
The correct option is 2: Registration of a cooperative society is **Compulsory** as per the provisions of the Cooperative Societies Act, 1912, and various state-level cooperative laws. Unlike certain other forms of business organisation, a cooperative society *must* be registered with the Registrar of Cooperative Societies to attain its distinct legal identity and status. This mandatory step is crucial because registration legally establishes the society as a separate legal entity, meaning it possesses the right to enter into contracts, own property in its own name, and sue or be sued, entirely independent of its members. Furthermore, this legal requirement is what formally bestows the core advantage of limited liability upon its members and ensures the society's perpetual succession. Without compulsory registration, a group of individuals operating on cooperative principles would be treated as an ordinary association, forfeiting all the specific legal rights and privileges associated with a formal cooperative society.

The incorrect option is 1:
The term 'Protected' describes an *outcome* or *benefit* of the registration, rather than the core *nature* of the requirement. While a registered cooperative society does enjoy legal protection, such as protection from unlimited liability for its members and state support, the question asks for the fundamental legal status of the registration process itself. The act of registration is essentially a legal mandate (compulsion), which subsequently leads to protection, making 'Protected' an incomplete and secondary description for the primary legal requirement.

The incorrect option is 3:
Registration is **Optional** for forms of organisation like a Partnership Firm, but this is strictly not true for a cooperative society that seeks to operate under the Cooperative Societies Act. If the members could choose not to register, the society would not acquire the crucial characteristics of a separate legal entity, limited liability, and perpetual existence, which are the main reasons to form a cooperative. Therefore, to gain the legal existence and benefits inherent in a cooperative structure, registration is a mandatory prerequisite, rendering 'Optional' incorrect.

The incorrect option is 4:
'Through member's' describes the **procedure** or **agency** that initiates the registration, not the legal **status** of the requirement. The registration process does involve an application submitted *by the members* (typically at least ten adult members), but this is merely a procedural step required to satisfy the compulsory registration mandate. The option focuses on *who* applies for registration, whereas the question asks about *what* the registration is (i.e., whether it is mandatory or elective), making this a procedurally correct but contextually incorrect answer.