Question

Consider the following statements regarding the 97th Constitutional Amendment:

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

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

III. The amendment allows the supersession of a cooperative society's board for up to six months only if there is government shareholding, loan, or financial assistance.

Which of the statements given above is/are correct?

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

Answer 1

Answer:

D. I, II, and III

97th Constitutional Amendment Act, 2011

• This amendment is a landmark legislation that significantly impacted the cooperative sector in India.

• It was enacted to give constitutional status and protection to cooperative societies.

Key Provisions and Statements:

• Statement I: Insertion of Article 43B and Part IXB

  • The amendment inserted Article 43B into Part IV (Directive Principles of State Policy) of the Constitution.

  • This article mandates the state to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies.

  • It also introduced Part IXB of the Constitution, titled "The Co-operative Societies", which contains articles from 243ZH to 243ZT.

  • This Part provides for the incorporation, regulation, and winding up of cooperative societies.

• Statement II: Maximum Number of Directors

  • The amendment stipulated that the maximum number of directors on the board of a cooperative society shall not exceed twenty-one.

  • This limit excludes members who are co-opted for their expertise and functional directors.

  • This provision aims to ensure efficient governance and prevent over-representation.

• Statement III: Supersession of Cooperative Society Boards

  • The amendment introduced provisions regarding the supersession of the board of a cooperative society.

  • A board can be superseded for a period not exceeding six months.

  • This action is permissible only under specific circumstances, such as when the society has government shareholding, has received loans from the government, or has obtained financial assistance from the government.

  • This clause aims to safeguard the interests of government investment and financial aid in cooperative ventures.

Significance:

• The 97th Amendment sought to strengthen the cooperative movement by providing a constitutional framework for its operation.

• It aimed to enhance accountability, transparency, and efficiency within cooperative societies across the country.

• The amendment was a response to the need for better governance and autonomy for cooperatives, while also ensuring checks and balances.