LI Network
Published on: 4 August 2023 at 12:39 IST
The Rajya Sabha passed the Multi-State Co-operative Societies (Amendment) Bill, 2023, which seeks to amend the Multi-State Co-operative Societies Act, 2002. The Lok Sabha had already approved the Bill on July 25.
The Multi-State Co-operative Societies Act, 2002 was originally enacted to consolidate and amend the laws related to co-operative societies that serve the interests of members in more than one state.
It aimed to promote the voluntary formation and democratic functioning of co-operatives as people’s institutions based on self-help and mutual aid.
The Statement of Objects and Reasons of the Bill highlights the need for changes in the Act to strengthen the co-operative movement in multi-State co-operative societies, considering the developments over the years.
The key amendment in the Bill allows state co-operative societies to merge into existing multi-state co-operative societies.
The newly added Section 17 (10) states that any co-operative society may decide to merge into an existing multi-state co-operative society through a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society.
However, such a resolution must comply with the provisions of the respective State Co-operative Societies Act under which the co-operative society is registered.
The Bill also introduces a new section, 63A, which pertains to the establishment of the “Co-operative Rehabilitation, Reconstruction, and Development Fund” to revive sick multi-State co-operative societies.
Furthermore, the Bill provides for the establishment of the “Co-operative Election Authority,” which will be responsible for conducting and supervising elections to the boards of multi-state co-operative societies.
The amended Section 35 of the Act specifies that the shares of a multi-state co-operative society cannot be redeemed without the prior approval of the concerned government authorities.
This provision aims to regulate the redemption of shares to ensure compliance with relevant regulations and policies.