Parliament Passes Multi-State Co-operative Societies (Amendment) Bill, 2023
Rajya Sabha on Tuesday passed the Multi-State Co-operative Societies (Amendment) Bill, 2023 to amend the Multi-State Co-operative Societies Act, 2002. The Bill was approved by Lok Sabha on July 25.The Multi-State Co-operative Societies Act, 2002 was enacted to consolidate and amend the law relating to co-operative societies, “with objects not confined to one state and serving the interests...
Rajya Sabha on Tuesday passed the Multi-State Co-operative Societies (Amendment) Bill, 2023 to amend the Multi-State Co-operative Societies Act, 2002. The Bill was approved by Lok Sabha on July 25.
The Multi-State Co-operative Societies Act, 2002 was enacted to consolidate and amend the law relating to co-operative societies, “with objects not confined to one state and serving the interests of members in more than one state, to facilitate the voluntary formation and democratic functioning of co-operatives as people's institutions based on self-help and mutual aid.”
As per the Statement of Objects and Reasons of the Bill, “Further, developments over the years necessitated changes in the Act so as to strengthen the co-operative movement in the multi-State co-operative societies.”
The amendment allows state co-operative societies to merge into an existing multi-state co-operative society. The Bill adds Section 17 (10) stating that, “Any co-operative society may, by a resolution passed by majority of not less than two-thirds of the members present and voting at a general meeting of such society, decide to merge into an existing multi-State co-operative society:
Provided that such resolution shall be subject to the provisions of the respective State Co-operative Societies Act for the time being in force under which such co-operative society is registered.”
It also inserted a new section 63A relating to "establishment of the Co-operative Rehabilitation. Reconstruction and Development Fund" for revival of "sick multi-State co-operative societies."
The Bill provides for the establishment of an Authority to be known as the “Co-operative Election Authority” to conduct and supervise elections to the boards of multi-state co-operative societies.
According to the amended Section 35, shares of multi- state co-operative society shall not be redeemed without the prior approval of the concerned government authorities.