On October 29, 2009, India’s Union Cabinet gave its approval to the proposal of Department of Agriculture and Cooperation to introduce the Constitution (One Hundred and Tenth Amendment ) Bill, 2009 in the Winter Session of Parliament for incorporation of special provisions relating to Cooperative Societies in the Constitution.
Following are the salient features of proposed amendment:
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Insertion of new article 43 B in Part IV of the Constitution providing for the State obligation to promote voluntary formation, autonomous functioning, democratic control and professional management of the cooperative societies;
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Incorporation of cooperative societies on the principles of voluntary formation, democratic member control, member economic participation and autonomous functions;
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Conduct of election of a cooperative society by an independent authority;
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Fix term of five years of office bearers of the cooperative society;
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Supersession of Board of cooperative society for a period of not exceeding six months;
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Independent professional audit of the cooperative societies;
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Convening of the General Body meeting of every cooperative society within a period of six months of the close of the financial year;
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Access to every member of the society to the books, information and the accounts of the cooperative society;
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Filing of the returns by every cooperative society within six months of the close of every financial year;
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Free, fair, impartial and timely elections of cooperative societies by the State Election Commission or by any other appropriate and independent body as may be provided by State law;
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Audit of the cooperative societies to be carried by the auditors from the government approved panel of auditors or firms;
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Maximum number of 21 Directors to be applicable to all cooperative societies irrespective of their size;
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Co-opted members not to be eligible to be elected as office-bearers of the Board.