Co-Operative Societies Act – Amendment of Feb-2013
Co-Operative Societies Act – Amendment of Feb-2013
In October 2012, the Centre had asked state governments to amend their respective State Cooperative Society Act in tune with the Constitution (97th Amendment), 2011 before February 14 of 2013.
The Maharashtra Co-operative Societies Act of 1960 has been amended with effect from 16-February-2013. The Act is applicable to 2.47 lakh co-operative bodies all over Maharashtra with an annual turnover of Rs6 lakh crore and a total member strength of 5.50 lakh.
Below are the Amendments.
1. Every Member of the Society must attend at least one General Body Meeting (GBM) within a consecutive period of Five years. The Member must utilise minimum level of services at least once in a period of five consecutive years as specified in the Bye-laws of the Society.
Failing this such member shall be classified asa non-active member and shall not be entitled to vote.
If a non-active member who does not attend at least one meeting of the General Body and does to utilise minimum level of services as specified in the Bye-Laws, in the next five years from the date of classification as non-active member, shall be liable for expulsion.
However, the non-active member can be re-classified as an active member on fulfilment of the eligibility criteria.
Co-operative bodies would be required to prepare lists of active and non-active members annually.
2. The term of Office of the elected members of the Management Committee and its Office Bearers shall be Five years from the date of election.
3. Maximum number of Members in the Management Committee shall be 21. Five seats shall be reserved. 2 seats shall be reserved for women, 1 for SC/ST, 1 for Backward Class, 1 for Vimukta Jati and notified tribes.
4. The State Government shall constitute the ‘State Co-operative Election Authority’ as an authority for the superintendence, election and control of the preparation of the electoral rolls for all elections to a society.
5. General Body meeting of a Society must be held within a period of Six months after the close of the financial year.
12 Impacts of the above Amendments to the MCS Act.
Dear Friends,
On Feb 14th, 2013, Maharashtra Co-operative Societies Act 1960 was amended vide an ordinance. The impact of this will be felt immediately by Co-operative Housing Societies.
This change was mandated by the 97th Constitutional Amendment, which was at various stages of process since 2006.
I gave a talk on this yesterday at a function organised by SAHAKARSUTRA at Dombivili. In the months to come, we at SAHAKARSUTRA will have to hold many meetings in the neighbourhoods of every city, to ensure that people understand what the amendments in MCS Act requires of them, what it mandates them to do, and how it empowers them.
Contrary to all the negative vibes that are being spread about 97th Amendment etc., I feel that a lot of good winds are blowing. However, we have the duty to spread our sail to receive the good winds!
AMENDED MAHARASHTRA CO-OP. SOCIETIES ACT - HIGHLIGHTS:
1. Empowers active members. Non-serious participants cannot participate in decision-making.
2. Power to expel dormant members or compel them to become active is given to co-operative societies.
3. No Administrators can be appointed for most co-op housing societies. Instead, active members will be “authorized officer” or “interim committee”.
4. Regular education & training to groom fresh leaders through Apex Co-operatives.
5. No more ignorant MC members. Managing Committee must attend regular training at least once in five years.
6. Stop washing dirty linen in Co-operative Court. Resolve internal differences through “Grievance Redressal Committee”.
7. Co-operative court to encourage Win-Win compromise, and discourage litigation. This will reduce clutter of neighbour-to-neighbour conflicts, and let co-operative court focus on important cases.
8. Mandate and power to get professionals’ help for CHS management. Adopt modern methods of management, record keeping etc. and stop being frogs in the well!
9. Strengthen Audit function. Duty of auditors, Registrar etc. to pinpoint responsibility for fraud and register FIR. Also, mandate for auditor to present audit findings including irregularities in every AGM. If they don’t, Auditors will be disqualified.
10. Realistic penalties for offences. Fine and prison sentences have been substantially increased.
11. Disqualification of errant MC members is now very easy, and much more long-lasting. Disqualified MC members will be debarred for contesting for 5 years.
12. State Election Authority to monitor elections closely. No more bullying by a small clique retaining power by token elections by show of hands etc!
All this and much more is there to make co-operatives truly participative democracies… but we have to act, educate co-op. society members and let them know about their new rights!
Come, let us create a mass movement to educate and train co-op housing societies in Mumbai, Thane and MMR region to understand and utilize co-operative legal structure!
Regards,
Dayanand Nene
Convener, SAHAKARSUTRA
National Secretary, Consumer Protection Service Council
(Each and every action of government, parliament and political establishment is NOT tainted by corrupt motives; even a defective clock shows the correct time twice a day! Please let us shed our habitual negativity and cynicism. We (civil society and activists) need not find fault with everything that the government does; otherwise, we will become paralyzed, and the only thing that we will be capable of doing is armchair criticism! In the end, governance is determined by our actions, and not only the actions of the government.)
In October 2012, the Centre had asked state governments to amend their respective State Cooperative Society Act in tune with the Constitution (97th Amendment), 2011 before February 14 of 2013.
The Maharashtra Co-operative Societies Act of 1960 has been amended with effect from 16-February-2013. The Act is applicable to 2.47 lakh co-operative bodies all over Maharashtra with an annual turnover of Rs6 lakh crore and a total member strength of 5.50 lakh.
Below are the Amendments.
1. Every Member of the Society must attend at least one General Body Meeting (GBM) within a consecutive period of Five years. The Member must utilise minimum level of services at least once in a period of five consecutive years as specified in the Bye-laws of the Society.
Failing this such member shall be classified asa non-active member and shall not be entitled to vote.
If a non-active member who does not attend at least one meeting of the General Body and does to utilise minimum level of services as specified in the Bye-Laws, in the next five years from the date of classification as non-active member, shall be liable for expulsion.
However, the non-active member can be re-classified as an active member on fulfilment of the eligibility criteria.
Co-operative bodies would be required to prepare lists of active and non-active members annually.
2. The term of Office of the elected members of the Management Committee and its Office Bearers shall be Five years from the date of election.
3. Maximum number of Members in the Management Committee shall be 21. Five seats shall be reserved. 2 seats shall be reserved for women, 1 for SC/ST, 1 for Backward Class, 1 for Vimukta Jati and notified tribes.
4. The State Government shall constitute the ‘State Co-operative Election Authority’ as an authority for the superintendence, election and control of the preparation of the electoral rolls for all elections to a society.
5. General Body meeting of a Society must be held within a period of Six months after the close of the financial year.
12 Impacts of the above Amendments to the MCS Act.
Dear Friends,
On Feb 14th, 2013, Maharashtra Co-operative Societies Act 1960 was amended vide an ordinance. The impact of this will be felt immediately by Co-operative Housing Societies.
This change was mandated by the 97th Constitutional Amendment, which was at various stages of process since 2006.
I gave a talk on this yesterday at a function organised by SAHAKARSUTRA at Dombivili. In the months to come, we at SAHAKARSUTRA will have to hold many meetings in the neighbourhoods of every city, to ensure that people understand what the amendments in MCS Act requires of them, what it mandates them to do, and how it empowers them.
Contrary to all the negative vibes that are being spread about 97th Amendment etc., I feel that a lot of good winds are blowing. However, we have the duty to spread our sail to receive the good winds!
AMENDED MAHARASHTRA CO-OP. SOCIETIES ACT - HIGHLIGHTS:
1. Empowers active members. Non-serious participants cannot participate in decision-making.
2. Power to expel dormant members or compel them to become active is given to co-operative societies.
3. No Administrators can be appointed for most co-op housing societies. Instead, active members will be “authorized officer” or “interim committee”.
4. Regular education & training to groom fresh leaders through Apex Co-operatives.
5. No more ignorant MC members. Managing Committee must attend regular training at least once in five years.
6. Stop washing dirty linen in Co-operative Court. Resolve internal differences through “Grievance Redressal Committee”.
7. Co-operative court to encourage Win-Win compromise, and discourage litigation. This will reduce clutter of neighbour-to-neighbour conflicts, and let co-operative court focus on important cases.
8. Mandate and power to get professionals’ help for CHS management. Adopt modern methods of management, record keeping etc. and stop being frogs in the well!
9. Strengthen Audit function. Duty of auditors, Registrar etc. to pinpoint responsibility for fraud and register FIR. Also, mandate for auditor to present audit findings including irregularities in every AGM. If they don’t, Auditors will be disqualified.
10. Realistic penalties for offences. Fine and prison sentences have been substantially increased.
11. Disqualification of errant MC members is now very easy, and much more long-lasting. Disqualified MC members will be debarred for contesting for 5 years.
12. State Election Authority to monitor elections closely. No more bullying by a small clique retaining power by token elections by show of hands etc!
All this and much more is there to make co-operatives truly participative democracies… but we have to act, educate co-op. society members and let them know about their new rights!
Come, let us create a mass movement to educate and train co-op housing societies in Mumbai, Thane and MMR region to understand and utilize co-operative legal structure!
Regards,
Dayanand Nene
Convener, SAHAKARSUTRA
National Secretary, Consumer Protection Service Council
(Each and every action of government, parliament and political establishment is NOT tainted by corrupt motives; even a defective clock shows the correct time twice a day! Please let us shed our habitual negativity and cynicism. We (civil society and activists) need not find fault with everything that the government does; otherwise, we will become paralyzed, and the only thing that we will be capable of doing is armchair criticism! In the end, governance is determined by our actions, and not only the actions of the government.)
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