A big change in the multi state cooperative societies is in offing which will not only change the multi state cooperative institutions but also the cooperative movement as a whole. Union Cabinet has already passed the Multi-State Cooperative societies (Amendment) Bill 2010.
Parliamentary Affairs Minister Pawan Kumar Bansal on behalf of Sharad Pawar on Monday tabled legislation in the Lok Sabha The continuous uproar in the Parliament has so far stalled this bill along with many other business transactions of the House. But it can not be stalled for ever.
Cooperative sector in India is divided on its opinion on the bill with NCUI president Mr Chandra Pal Singh Yadav strongly objecting to provisions of bill while IFFCO Chairman Mr Surendra Jakhar announcing full support to the bill during Nehru Memorial Lecture function.
Government says that after the working of Multi state cooperative act for last 8 years, it has been felt that certain modifications in the act are needed.
But what is the bill and what are its implications? Talking to various experts, Indian cooperative.com has tried to understand them.
We present below the major provisions of the bill
1 The central registrar may declare a multi state cooperative society as sick. He may dissolve the board and constitute an interim board for a maximum period of 5 years.
2 Multi State Cooperative Society may refund full or part of the share capital held by the government on the face value or book value which ever is higher.
3 one seat will be reserved for scheduled caste or schedule tribe and two seats for women in the board of multi state cooperative society.
4 The board will constitute an audit and ethics committee in accordance with the bye laws which shall meet once in three months. Besides, the Central Government may lay down auditing and accounting standards to be adopted by the societies. The Central Govt also may order for a special audit of multi state society where the central govt or state govt holds any share capital
5 On receipt of reference of dispute, the central registrar may decide the dispute himself or may transfer it for decision to such person and upon such terms and condition as may be specified. The order passed under this sub section shall be final and binding and shall not be called in question in any court.
6 Every multi state cooperative society shall appoint a Chief Information Officer to provide information about the affairs and management of the society within 30 days of receipt of application
7 The Central government will appoint a Cooperative Election Authority which will conduct the election, prepare voters list and appoint returning officer.
8 The Central government will establish a fund to be called the Cooperative Rehabilitation and Reconstruction Fund in which a society has to contribute 0.005 to 0.1 percent of its turn over subject to a maximum of Rs 3 crore a year
9 If the Chairman of the multi state cooperative fails to fix a date of meeting of Board the chief executive can convene the meeting of the Board on receipt of the requisition from one fourth of Directors
10 Quorum of board meeting will be one third of total strength and participation by video-conferencing will be counted for the purpose of quorum
11 There would be compulsory filing of applications, document, inspection etc in electronic form
