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An Overview of the Broad Cooperative Legal Framework Prof. K. Elumalai

An Overview of the Broad Cooperative Legal Framework Prof. K. Elumalai Lead Person – Action Group (Cooperative Acts and MF) & Professor – School of Law, IGNOU. POWER OF REGISTRAR. REGISTRATION OF COOP. SOCIETY. REGISTRATION NON-REGISTRATION DE-REGISTRATION CANCELLATION

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An Overview of the Broad Cooperative Legal Framework Prof. K. Elumalai

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  1. An Overview of theBroad Cooperative Legal Framework Prof. K. Elumalai Lead Person – Action Group (Cooperative Acts and MF) & Professor – School of Law, IGNOU

  2. POWER OF REGISTRAR

  3. REGISTRATION OF COOP. SOCIETY • REGISTRATION • NON-REGISTRATION • DE-REGISTRATION • CANCELLATION • DEEMED REGISTRATION

  4. REORGANISAGTION OF SOCIETIES • AMENDMENT OF BYE-LAWS • AMALGAMATION AND DIVISION OF SOCIETIES • ALLOW PARTNERSHIP OF SOCIETIES • POWER TO RESCIND/ANNUAL RESULUTIONS OF THE BAORD OF MEMBERS

  5. MEMBERSHIP OF COOPERATIVES • ADMISSION OF MEMBERS • REMOVAL OF MEMBERS • RE-ADMISSION OF MEMBERS

  6. PROPERTY AND FUND OF SOCIETIES • POWER TO MAKE ENQUIRY REGARDING NON-PAYMENT OF CONTRIBUTION TO EDUCATION FUND AND ISSUANCE OF RECOVERY CERTIFICATE

  7. MANAGEMENT OF COOP. SOCIETIES • POWER TO ADMIT MAXIMUM NUMBER OF MEMEBRS IN THE MANAGING COMMTITEE • TAKE OVER THE MANAGEMENT OR APPOINT ADMINISTRATOR IF WILFUL NEGLECT TO CONDUCT ELECTION BEFORE THE EXPIRY OF THE TERM/NEW COMMTITEE FAILED TO ASSUME OFFICE. • POWER TO CAL AGM • POWER TO FIX QUALFIICATION AND EMOLUMENTS

  8. SUPERSESSION • REMOVAL OF A COMMITTEE, APPOINT A NEW COMMTITEE, CHANGE THE NEW COMMITTEE/MEMBER/ADMINISTRATOR (VAST DISCRETIONARY POWER VESTED ON RCS)

  9. POWER TO SETTLE DISPUTE • POWER TO HEAR APPEAL, REVIEW AND REVISION • POWER TO GIVE DIRECTION TO FRAME REGULATIONS • POWER TO SEIZE RECORDS AND SEARCH PRIMISES

  10. POWER TO CONDUCT • AUDIT • INQUIRY • INSPECTION • SUPERVISION

  11. LIQUIDATION/WINDING UP OF COOPERATIVE SOCIETIES POWER OF LIQUIDATION

  12. POWER OF GOVERNMENT UNDER COOPERATIVE LAW

  13. APPOINMENT OF REGISTRAR • REORGANISATION OF SOCIETIES ON ACCOUNT OF ALTERATION OF LIMITS OF LOCAL AREAS IN WHICH THE SOCIETY OPERATE • GRANT EXEMPTION FROM PAYMENT OF TAXES (STAMP DUTY, FEE AND OTHER TAX) AND POWER TO REFUND • POWER TO PROHIBIT, RESTRICT OR REGULATE THE LENDING OF MONEY BY SOCIETIES ON THE SECURITY OF ANY PROPERTY

  14. IN THE FORM OF AID TO COOP. SOCIETIES STATE GOVERNMENT MAY: • GIVE LOANS TO SOCIETIES AND • GUARANTEE (i) PAYMENT OF PRINCIPAL AND INTERST OF DEBENTURES (ii) REPAYMENT OF SHARE CAPITAL

  15. (iii) THE PAYMENT OF DIVIDEND (iv) PAYMENT OF LOAN GIVEN BY A SOCIETY TO ANOTHER SOCIETY (v) THE REPAYMENT OF LOANS ADVANCED BY FINANCIAL INSTITUTIONS (vi) PROVIDE FINANCIAL ASSISTANCE

  16. POWER TO FIX THE RATE OF EDUCATIONAL FUNDS OF STATE FEDERAL SOCIETY. • POWER TO ISSUE NOTIFICATION • POWER TO: • CONDUCT ELECTION • POSTOPONE THE ELECTION • TO MAKE RULES FOR THE PURPOSE OF ELECTION OF COMMITTEE AND OFFICE BEARERS

  17. POWER TO DIRECT THE SOCIETY TO RESERVE SEATS TO SC, ST AND WEAKER SECTIONS, WOMEN, ETC. • CONSTITUTION OF FEDERAL AUTHORITY TO SUPERVISE THE WORKING OF SOCIETIES. • CONSTITUTION OF COOPERATIVE COURTS/TRIBUNAL/ARBITRATION • APPINTMENT OF ADMINISTRATOR AS AND WHEN SOCIETY IS REORGANISED OR CREATED ON ACCOUNT OF ALTERATION

  18. TO HEAR APPEAL, REVIEW AND REVISION PETITIONS • CONSTITUTION OF STATE GOVERNMENT COOPERATIVE COUNCIL • POWER TO EXEMPT SOCIETIES FROM THE PROVISION OF THE ACT/RULES • DELEGATION OF POWER TO REGISTRAR • RULE MAKING POWER

  19. COMMITTEE ON COOPERATIVE LAW FOR DEMOCRATISATION AND PROFESSIONALISATION OF MANAGEMENT IN COOPERATIVES 1987

  20. TERMS OF REFERENCE “TO EXAMINE THE VARIOUS STATE COOPERATIVE SOCIETIES ACTS AND TO SUGGEST GUIDELINES FOR LEGISLATIVE ACTION TO ACTIVISE DEMOCRATIC PROCESS AND TO PROMOTE PROFESSIONAL MANAGEMENT IN COOPERATIVES”.

  21. RECOMMENDATIONS (A) ACTIVISATION OF DEMOCRATIC PROCESS IN COOPERATIVES (B) PROFESSIONALISATION OF MANAGEMENT IN CO-OPERATIVES (C) NON-LEGISLATIVE SUPPORTING MEASURES

  22. (A) ACTIVISATION OF DEMOCRATIC PROCESS IN COOPERATIVES • COOPERATIVE PRINCIPLES • COOPERATIVE DEMOCRACY • COMPULSORY AMENDMENT, AMALGAMATION AND DIVISION OF CO-OPERATIVES

  23. POWER OF VETO TO GOVERNMENT NOMINEE • POWER TO RESCIND/ANNUAL RESOLUTION OF THE BOARD • SUPERSESSION OF BOARD OF MANAGEMENT • LIMITATION ON PERIOD OF SUPERSESSION • POWER TO ISSUE DIRECTIVES • FORMAL INTERACTION BETWEEN GOVERNMENT AND COOPERATIVE INTERESTS

  24. FRAMING OF MODEL BYE-LAWS • AMENDMENT OF BY-LAWS OF SOCIETIES • GOVERNMENT NOMINEES ON THE BOARD OF COOPERATIVE SOCIETY • RESTRICTIONS ON HOLDING OFFICE IN COOPERATIVE SOCIETIES • POLICIES OF CO-OPERATIVES • GOVERNMENT SHARE PARTICIPATION IN VILLAGE SOCIETIES

  25. PROCEDURE FOR LIQUIDATION OF SOCIETIES • MEMBERSHIP OF CO-OPERATIVE • PROVISIONAL REGISTRATION • MINIMUM MEMBERSHIP OF A CO-OPERATIVE • REPRESENTATION TO WOMEN • ELECTIONS

  26. PROFESSIONALISATION OF MANAGEMENT IN CO-OPERATIVES • DEMOCRATIZATION OF POWER AND FUNCTIONS OF THE BOARD AND THE CHIEF EXECUTIVE • SIZE OF THE BOARD • NUMBER OF COMMITTEES • NOMINATION OF FIRST BOARD OF MANAGEMENT • CO-OPTION OF THE BOARD

  27. VICE-CHAIRMAN OF THE BOARD • DISQUALIFICATION OF DIRECTORS • COMMON CADRE SYSTEM • RECRUITMENT OF STAFF • AUTONOMY IN RECRUITMENT OF STAFF

  28. PREFERENCE TO LOCAL PERSONNEL • CAREER GROWTH SELECTION OF CHIEF EXECUTIVE • ROLE OF REGISTRAR

  29. (C) NON - LEGISLATIVE SUPPORTING MEASURES • ACTIVE INVOLVEMENT OF WOMEN AND YOUTH • MEMBERSHIP OF WEAKER SECTIONS • TIMELY AUDIT • MANPOWER PLANNING • TRAINING OF PERSONNEL

  30. ROLE OF FEDERAL SOCIETIES • REMUNERATION AND INCENTIVES • APPROACH TO DEPUTATION • MANAGEMENT INFORMATION SYSTEM • COLLECTIVE MANAGEMENT LEADERSHIP • ENVIRONMENT FOR PROFESSIONAL MANAGEMENT

  31. MODEL COOPERATIVES ACT 1991 SALIENT FEATURES

  32. SALIENT FEATURES OF MODEL ACT • STATE POLICY ON COOPERATIVES AND THE PRINCIPLES OF COOPERATION - EXPLICITLY INCORPORATED IN THE ACT ITSELF AS A GUIDE TO THE REMAINING PROVISIONS OF THE MODEL ACT TO FACILITATE THE GOVERNMENT TO CONFORM TO THE BASIC IDEOLOGY OF COOPERATION.

  33. 2. PROCEDURE FOR REGISTRATION OF NEW COOPERATIVE SOCIETY - SIMPLIFIED BY REMOVING ALL ARTIFICIAL RESTRICTIONS IN THE FORM OF AREA OF OPERATION, ECONOMIC VIABILITY ETC. 3. THE RULE MAKING POWER, HITHERTO VESTED WITH THE GOVERNMENT - GIVEN TO THE CONCERNED SOCIETIES BY ALLOWING FREEDOM TO FRAME RULES.

  34. THE REGISTRAR HAS NO POWER ON THE FOLLOWING ASPECTS: A) SUPERSESSION OF THE BOARD OF DIRECTORS; B) COMPULSORY AMALGAMATION/DIVISION AMENDMENT OF BYE-LAWS; C) VETO/RECIND/ANNUL THE RESOLUTION; ISSUE OF DIRECTIVES

  35. 5. GREATER RESPONSIBILITY TO FEDERATIONS DEVELOPMENTAL. • RCS POWER LIMITED CONSIDERABLY. • NO EQUITY PARTICIPATION FROM GOVERNMENT. • CONSTITUTION OF COOPERATIVE TRIBUNAL. • QUALIFICATION OF RCS : PRESCRIBED. 10 THE TERM OF RCS SHALL BE ATLEAST 3 YEARS.

  36. 11. DEPUTATION FROM GOVERNMENT PROHIBITED. 12. CONFERMENT OF SPECIAL RIGHTS ON COOPERATIVES 13. SPECIAL PROVISION IMPOSING DISQUALIFICATION ON MEMBERS OF BOD

  37. 14 STATE AID TO COOPERATIVES : GOVERNMENT NOMINEE RESTRICTED TO ONE WITHOUT ANY VOTING RIGHT. • PROMOTION OF SUBSIDIARY ORGANISATION : FOR THE FURTHERANCE OF ITS OBJECTIVES, SUBSIDIARY ORGANISATIONS CAN BE REGISTERED UNDER ANY LAW (COMP. LAW) AS AGREED BY GENERAL BODY.

  38. 16. RESTRICTIONS ON BORROWINGS AS SPECIFIED IN BYE-LAWS. HOWEVER, DEPOSIT AND LOANS RAISED FROM EXTERNAL SOURCES SHALL NOT EXCEED 10 TIMES THE SUM OF MEMBER FUNDS AND ORGANISATIONS RESERVES LESS ACCUMULATED DEFICIT.

  39. . RESTRICTIONS ON HOLDING OF EQUITY: • NOT MORE THAN ONE TENTH OF PAID UP EQUITY CAPITAL, BY ANY MEMBER • 18. TERM OF OFFICE : MAXIMUM 3 YEARS FOR INDIVIDUAL DIRECTOR. HOWEVER, CAN BE TERMINATED BY GENERAL BODY.

  40. 19 DISSOLUTION BY : 1. MEMBERS 2. BY RCS. IF (A) NOT COMMENCED BUSINESS WITHIN 2 YEARS. (B) NOT CARRIED ON BUSINESS FOR TWO CONSECUTIVE YEARS; (C) NOT OPERATING WITH THE COOPERATIVE PRINCIPLES AND PROVISIONS OF THE ACT.

  41. 3 BY COURT: IF (A) REGISTRATION OBTAINED BY MISTAKE OR FRAUD. (B) EXIST FOR ILLEGAL PURPOSE, (C) WILLFULLY VIOLATED THE PROVISIONS OF THE ACT. (D) NOT OPERATING ON COOPERATIVE BASIS. 20. ENABLING PROVISIONS FOR DIFFERENT COOPERATIVES. POWER TO ADD SEPARATE CHAPTER FOR DIFFERENT TYPE OF COOPERATIVES.

  42. THANK YOU CONTACT US- nicmkel@rediffmail.com VISIT US – www.ignou.ac.in

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