Section 3 in THE CONSTITUTION (NINETY-SEVENTH AMENDMENT) ACT, 2011
3. The Central Government is committed to ensure that the co-operative societies in the country function in a democratic, professional, autonomous and economically sound manner. With a view to bring the necessary reforms, it is proposed to incorporate a new Part in the Constitution so as to provide for certain provisions covering the vital aspects of working of co-operative societies like democratic, autonomous and professional functioning. A new article is also proposed to be inserted in Part IV of the Constitution (Directive Principles of State Policy) for the States to endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies. The proposed new Part in the Constitution, inter alia, seeks to empower the Parliament in respect of multi-State co-operative societies and the State Legislatures in case of other co-operative societies to make appropriate law, laying down the following matters, namely-
(a)provisions for incorporation, regulation and winding up of co-operative societies based on the principles of democratic member-control, member-economic participation and autonomous functioning;(b)specifying the maximum number of directors of a co-operative society to be not exceeding twenty-one members;(c)providing for a fixed term of five years from the date of election in respect of the elected members of the board and its office bearers;(d)providing for a maximum time limit of six months during which a board of directors of co-operative society could be superseded or kept under suspension;(e)providing for independent professional audit;(f)providing for right of information to the members of the co-operative societies;(g)empowering the State Governments to obtain periodic reports of activities and accounts of co-operative societies;(h)providing for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on the board of every co-operative society, which have individuals as members from such categories;(i)providing for offences relating to co-operative societies and penalties in respect of such offences.
