The Constitution (97th Amendment) Act, 2011 relates to the Cooperative Societies working in India.
|Fundamental right||Article 19 (1) (c) as ‘Right to form cooperatives.’|
|Directive Principle of State Policy||Art. 43-B “The state shall endeavour to promote voluntary formation, democratic control, autonomous functioning and professional management of cooperative societies”.|
|Part IX-B||“The Co-operative Societies” (Articles 243-ZH to 243-ZT).|
|State List||State Subject under entry No.32 (7th schedule) of the of the Constitution of India|
Incorporation of Cooperative Societies
- The state legislature may make provisions for the incorporation, regulation and winding-up of co-operative societies based on the principles of voluntary formation, democratic member control, member economic participation and autonomous functioning.
- The board shall consist of such a number of directors as may be provided by the state legislature.
- A maximum number of directors of a co-operative society shall not exceed twenty-one.
- Terms: 05 years
Election of Cooperative Societies
- The election of a board shall be conducted before the expiry of the term of the board.
- The superintendence, direction and control of the preparation of electoral rolls and the conduct of elections to a co-operative society shall vest in such body, as may be provided by the state legislature.
Supersession and Suspension of Board
- Board can be superseded or kept under suspension for a period not more than six months
- Of its persistent default
- Of negligence in the performance of its duties
- Of committing any act prejudicial to the interests of the cooperative society or its members
- Of there being a stalemate in the constitution or functions of the board
- Of the election body having failed to conduct elections in accordance with the provisions of the State Act
Audit and Accounts
- The state legislature may make provisions for the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year.
- The audit report of the accounts of an apex co-operative society shall be laid before the state legislature
Convening General Body Meeting
- The State Legislature may provide that the annual general body meeting of every cooperative society shall be convened within a period of six months of the close of the financial year.
- Every co-operative society shall file returns, within six months of the close of every financial year, to the authority designated by the State Government
Offences and Penalties
- The State Legislature may make provisions for the offences relating to the co-operative societies and penalties for such offences.
Reasons for 97th CAA, 2011
- Cooperative sector has shown weaknesses in safeguarding the interests of the members and fulfilment of objects for which these institutions were
- For securing social and economic justice and equitable distribution of the fruits of development.
- It has been experienced that in spite of considerable expansion of co-operatives, their performance in qualitative terms has not been up to the desired level.
- The Central Government was committed to ensure that the co-operative societies in the country function in a democratic, professional, autonomous and economically sound
- On many instances, elections have been postponed indefinitely and nominated office bearers or administrators have remained in-charge of these institutions for a long time. This dilutes the accountability.
- Inadequate professionalism in management in many of the co-operative institutions has led to poor services and low productivity.
- To keep the co-operatives free from unnecessary outside interferences and also to ensure their autonomous organizational set up and their democratic functioning.
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