Question

Consider the following statements regarding the 97th Constitutional Amendment (2012):

1. The annual general body meeting of a co-operative society must be convened within six months of the close of the financial year, as per provisions made by the State Legislature.

2. Every co-operative society must file returns, including an audited statement of accounts, within six months of the financial year’s close.

3. The State Legislature has the authority to determine the number of board members, which cannot exceed 21, as per Article 243ZJ.

Which of the statements given above is/are correct?

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

Answer 1

Answer:

D. All of the above

97th Constitutional Amendment Act, 2011

• This amendment significantly altered the Indian Constitution by inserting Part IXB titled 'Co-operative Societies'.

• It aims to encourage the formation and functioning of co-operative societies as democratic, autonomous, and economically viable entities.

• The amendment introduced provisions related to the management, control, and regulation of co-operative societies.

• Key aspects include:

  • Governing Body: The Act stipulates that the board of a co-operative society shall be constituted and the election of its members shall be held within a period of six months from the date of expiry of the term of the previous board.

  • Meetings: The amendment mandates that the annual general body meeting of a co-operative society must be convened within six months of the close of the financial year. This provision allows State Legislatures to make laws in this regard.

  • Filing of Returns: Co-operative societies are required to file returns and audited statements of accounts with the respective authorities within six months of the close of the financial year.

  • Number of Directors: The State Legislature is empowered to make laws on the number of directors, with the maximum limit not exceeding 21. This is elaborated under Article 243ZJ.

  • Residuary Powers: Parliament may by law make provisions with respect to co-operative societies, if it deems it necessary in the public interest.

  • Inclusion of Co-operatives in Directive Principles: The amendment also added a new Directive Principle of State Policy (DPSP) - Article 45B - promoting co-operative societies.

• The amendment has been influential in strengthening the co-operative sector by ensuring better governance, accountability, and democratic participation within these organizations.