Sahakar Bharati Patron Satish Marathe spoke on dos and don’ts for Directors of credit cooperative societies.
“The govt, RBI and sometimes even judiciary put cooperatives under unnecessary scrutiny. There are 28 points which have been given to you in writing and if followed, these points could save us from future trouble on the one hand and lead to increased efficiency on the other”, Marathe underlined.
Sahakar Bharati appeals to 90 thousand credit co-ops of the country to follow the Charter of Self regulation and do’s and don’ts, Marathe said emphatically.
Some of the points raised by Marathe included awareness of bye – laws for Directors, understanding of risk management, understanding four subjects- deposits, advances, investment and interest rates, avoiding day to day interference by Directors, etc.
Marathe lamented that all the three fundamentals of cooperatives are being violated these days. He listed them as the Cooperative Principles, the 97th Constitutional Amendment and Section 43B of Directive Principles which require the Centre and states to promote the cooperative movement.
DOs
The Directors Should –
1.To get familiar with the Objectives of the Co Op Credit Socs and the Co Op Law, Rules & Bye Laws.
2.Attend Board Meeting regularly and participate effectively.
3.Should work in a spirit of mutual trust and co operation.
4.Study the Agenda papers thoroughly and seek additional information, if necessary, from the Chairman/Chief Executive Officer (CEO).
5.Seek Action Taken Report (ATR) from the CEO about the steps taken to implement the decision/s taken at the Board Committee Meetings.
6.Welcome constructive ideas and suggestions for improve the working of the Co Op Credit Soc.
7.Share their Experience and Knowledge with the Board as well as the Management.
8.Analyse trends in the fields of Finance, Banking, Trade & Industry and contribute to formulate policies relating to
Mobilisation of Deposits, Advances, Investments, etc.
9.Initiate measures to improve Customer Friendly Services to enhance business levels of the Co Op Credit Soc.
10.Analyse expenses, operations of the Co Op Credit Soc and formulate policies and initiate steps to optimize costs at all levels.
11.Ensure compliance of guidelines on Income Recognition, Asset Classification and Provisioning towards Non -Performing Assets (NPA).
12.Monitor Overdues and NPAs and ensure recoveries are made promptly with regular follow up.
13.Carefully note the observations of the Auditors and ensure submission of satisfactory compliance.
14.Strengthen Housekeeping, Maintenance of Books of Accounts, Internal Control Systems and ensure periodical Reconciliation of all accounts.
15.Should initiate firm and deterrent action whenever Frauds, Misappropriations, etc if any, is reported or is noticed.
16.Take steps to develop Management Information System (MIS) so that Knowledge based Decision Making process can be put in place in a Co Op Credit Soc.
17.Ensure full Computerization of Co Op Credit Soc and have the software audited every year by Qualified Experts.
18.Should ensure that the funds of the Co Op Credit Soc are utilized in a transparent and judicious manner.
DON’TS
The Directors Should Not –
1.Involve themselves in routine day to day functioning and also not interfere in the Management functions of the Co Op Credit Soc.
2.Give instructions/directions to any Manager, Officer, Employee of the Co Op Credit Soc.
3.Individually or collectively champion any loan proposal. So also, not sponsor proposal for acquisition of Premises on ownership, lease or on rental basis for use of the Co Op Credit Soc.
4.Deviate from Policy laid down for empanelment of Contractors, Architects, Auditors, Lawyers, Service Providers, etc.
5.Participate in the proceedings of the Board or Committee of the Board which is to consider any proposal in which the Director/s is/are directly or indirectly interested. (Before the Board takes up any item for consideration, the Director/s should disclose their interests, if any)
6.Sponsor any candidate for recruitment or promotion or interfere in the process of selection, appointment or in transfers.
7.Do anything which will be subversive of maintenance of discipline, good conduct and decorum in the working of the Co Op Credit Soc.
8.Encourage individual Staff or Union/s to directly approaching them in any matter.
Confidentiality –
1.The Directors should not reveal any information relating to any constituent of the Co Op Credit Soc to anyone.
2.The Directors should maintain confidentiality about the papers/notes that they receive for consideration at the meetings of the Board. Normally, after the Board/Committee meeting, all papers, notes, etc should be returned.
