Welcome to the world of Karnataka State Souharda Federal Cooperative Ltd, the first Apex Body of New generation cooperatives in India. Souharda Federal Cooperative is a democratically elected self-regulatory organization of the cooperatives registered under Karnataka Souharda Sahakari Act, 1997.


The earliest co-operatives were set-up among the weavers, in other words workers in cottage industries, who were the first and the hardest hit by the development of the mercantile economy and the industrial revolution.


Salient Features Of Karnataka Souharda Sahakari Act, 1997

  • Wholly owned, managed and controlled by members.

  • Removes all kinds of restrictions that have come to clog the free functioning of the co-operatives and the controls the interference by the Government except registration and cancellation.

  • Formation of Co-operatives on the basis of self-help and mutual aid.

  • Economic Enterprise guided by Co-operative Principles.

  • More responsibility and freedom of business for the Co-operatives.

  • Encourage Co-operatives to become more competitive and independent.

  • Inclusion of internationally accepted Co-operative Principles in the Act.

  • Promotes subsidiary organizations, partnership between co-operatives and also collaboration between co-operatives and other institutions.

  • Allows any 5 or more Souharda Co-operatives to form Union Co-operatives.

  • Powers of inspection, liquidation and supersession vests with the Federal Co-operative, which has a representation from all revenue districts.

  • No restrictions on business with a non-member.

  • Audit of accounts by the Panel of Auditors made by the Federal Co-operative instead of the Co-operative Audit Department.

  • Member Responsibility includes minimum business with the co-operative and participation in the general body.

  • The General Body is the final authority with regard to the recruitment of staff, pay-scale fixation, promotions, increments etc.

  • The General Body is the Highest Appeal for a person who has been denied or removed of the membership by the Board.

  • Inquiry will be conducted by the Registrar only on receipt of an application from not less than 1/3 of the members of the Board or not less than 1/10 of the total number of members of the co-operative or Federal cooperative with prescribed fee.

  • Continuation of the Arbitration System to resolve and settle the disputes with the members.

  • General Body has the final say regarding the winding up of the Co-operative or Cancellation of registration under the Act.

  • Provision to enroll Associate and nominal members.


The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows:

  • Promoters meeting
  • Collecting initial share capital
  • Registration
  • Election to first Board
  • Beginning of activities

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