Section 5 of MSCS Act, 2002 : Section 5: Multi-State Co-Operative Societies Which May Be Registered

Explanation using Example

Imagine a group of farmers from different states, say Karnataka and Maharashtra, decide to form a cooperative society to market their agricultural products more effectively and secure better prices. They come together and draft a set of objectives and bye-laws for their society. To register as a multi-State cooperative society under The Multi-State Co-operative Societies Act, 2002, they must ensure that:

1. Their cooperative's main objective is to serve the interests of its members who are based in both Karnataka and Maharashtra, not just one state.
2. The bye-laws they have drafted must focus on the social and economic upliftment of its members through collective efforts and adherence to cooperative principles like democratic decision-making and equitable distribution of benefits.

Furthermore, since they decide that their cooperative will have limited liability, they must include the word "limited" in their society's name, which could be something like "Karnataka-Maharashtra Farmers' Cooperative Society Limited".