Question

Consider the following statements regarding cooperative societies under the 97th Amendment.

1. The board of a cooperative society can be superseded for up to six months in case of persistent default or negligence.

2. The State Legislature has no role in determining the number of board members of a cooperative society.

3. Members of a cooperative society have the right to access its books, information, and accounts.

Which of the statements given above is/are correct?

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. All of the above

Answer 1

Answer:

B. 1 and 3 only

97th Amendment Act, 2011 - Cooperative Societies

• The 97th Constitutional Amendment Act of 2011 significantly altered the Indian Constitution by introducing Part IXB, which deals with ''Cooperative Societies''. This amendment aimed to encourage the growth of cooperative societies and provide them with constitutional status.
• Statement 1 is Correct: According to the provisions related to cooperative societies under the 97th Amendment, the board of a cooperative society can be superseded. This action is permissible in cases of persistent default or negligence. However, the period for supersession is generally limited. While the amendment doesn't explicitly state a six-month limit in the general clause, specific rules under state cooperative acts or the central act might prescribe such periods for administrative actions. The core principle is that administrative oversight and intervention are allowed under specific circumstances.
• Statement 2 is Incorrect: The State Legislature plays a crucial role in determining the number of board members of a cooperative society. The 97th Amendment empowers state legislatures to make laws with respect to cooperative societies, including provisions for the number of members on the board, their qualifications, and the process of their election or nomination, subject to the constitutional framework.
• Statement 3 is Correct: The 97th Amendment upholds the democratic principles within cooperative societies. It grants members the right to access the books, information, and accounts of the society. This provision ensures transparency and accountability, allowing members to be informed about the society's functioning and financial health. This aligns with the cooperative principle of ''Open membership and democratic member control''.
• Key Provisions of 97th Amendment:
  • Added Part IXB to the Constitution dealing with Cooperative Societies.
  • Gave constitutional recognition to cooperative societies.
  • Provided for the formation of cooperatives, their rights, and limitations.
  • Mandated the states to take steps for the promotion of cooperative societies.
  • The amendment aims to ensure that cooperatives function democratically and professionally.