Question

Consider the following statements regarding the 97th Constitutional Amendment:

I. Article 43B was inserted in Part IV of the Constitution, promoting voluntary formation, autonomous functioning, democratic control, and professional management of co-operative societies.

II. The maximum number of directors on the board of a co-operative society is 21, excluding co-opted members and functional directors.

III. The board of co-operative societies having government shareholding, loan, or financial assistance can only be superseded for a period of six months.

Which of the above statements are correct?

• A. I, II, III
• B. I only
• C. II, III only
• D. I, II only

Answer 1

Answer:

A. I, II, III

97th Constitutional Amendment Act, 2011

• The 97th Constitutional Amendment Act of 2011 is a significant piece of legislation that aimed to strengthen and protect the co-operative sector in India.

• Statement I: Insertion of Article 43B

  • This amendment introduced Article 43B into the Constitution, which falls under Part IV (Directive Principles of State Policy).

  • Article 43B mandates the state to promote the voluntary formation, autonomous functioning, democratic control, and professional management of co-operative societies.

  • This was a crucial step to ensure the independence and efficiency of co-operatives.

• Statement II: Maximum Number of Directors

  • The amendment also stipulated that the maximum number of directors on the board of a co-operative society should not exceed 21.

  • This limit, however, explicitly excludes co-opted members and functional directors from the count.

  • This provision aims to prevent excessive concentration of power and ensure broader representation.

• Statement III: Superseding Boards of Co-operative Societies

  • For co-operative societies where the government holds shares, provides loans, or financial assistance, the amendment introduced specific regulations regarding the supersession of their boards.

  • Such boards can only be superseded (i.e., removed and replaced by an administrator) for a maximum period of six months.

  • This measure prevents indefinite administrative control by the government and encourages timely elections and a return to democratic functioning.

• Impact of the Amendment

  • The 97th Amendment also led to the insertion of Part IXB concerning co-operative societies, granting them constitutional status and protection.

  • It aimed to improve governance, accountability, and financial health within the co-operative movement across India.