By I C Naik
The state of Karnataka excels in honoring Constitutional Mandates of 97th Constitutional Amendments unlike other Indian states.
The State enacted Karnataka Cooperative Societies (Amendment) Act 2012 having got the Governor’s Assent the previous day was first published in the Karnataka Gazette Extra-ordinary on the Eleventh day of January, 2013. At that time, some States were eyeing at the extension dead line of 13 02 2103!
In a successful attempt the State has put to gather jut 54 Sections in the Amending Act in an extremely well aligned provisions to Constitutional Mandates.
It starts with an apt and crisp preamble QUOTE: to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies UNQUOTE
In recognition of the increased significance of the Bye Laws and a right of cooperative society to make its own Bye Laws a new Section has been inserted reading as QUOTE: “11A- Bye-laws.- (1) Every cooperative society shall make its bye-laws in accordance with the provisions of this Act, and the rules made there under.
(2) Except on such specific matters which the Act, or the rules have provided for and which the bye-laws may further regulate on but not contravene, the functioning of every cooperative society shall be regulated by its bye-laws” UNQUOTE
It has inserted standing instructions for the cooperative societies to align their registered Bye Laws by suitably amending within 90 days of passing any Amendment to the KCS Act 1959 and Rules through a substituted Section12(1).
QUOTE: “(1) A cooperative society may amend its bye-laws in conformity with the provisions of this Act, and the rules made there under from time to time.
Provided that every cooperative society shall make amendments to its bye-laws in conformity with the amendments made to this Act or the rules from time to time within ninety days from the date of coming into force of the said amendments UNQUOTE
It has cast a statutory duty on every member of a cooperative society to attend three of 5 the general body meetings in Section 20(2) (a-iv) QUOTE: a member, a representative or a delegate who has failed to attend three general meetings out of the last five general meetings UNQUOTE This is repeated in new Section 27A also. Significantly members of cooperative society in Karnataka can not condone breach of this duty of attending three general body meetings as is the case under the M C S Act 1960 [ Section 26(2)(a) mandates members to attend only 1 of 5 general body meetings that too members can condone such absence]
By amending Section 26 of the KCS Act 1959 the power of the Registrar has been rightly transferred to the general body meeting QUOTE: for words “the Registrar may amend the bye-laws of the cooperative society”, the words “the general body of a cooperative society may amend its byelaws” shall be substituted; UNQUOTE
In support of the duty of members to attend 3 out of 5 the general body meetings a Sub-Section has been inserted in Section 27. QUOTE: “(4) The quorum for a general meeting shall be as specified in the bye-laws, but shall not be less than twenty percent of the members eligible to vote at the meeting UNQUOTE
One good clarification is in Proviso to New Sub-Section (4A) in amended Section 28A QUOTE: Provided also that the professional directors and functional directors shall not form a part of the quorum for the conduct of the board meetings. UNQUOTE
The KCS Act 1959 has also one liberty beyond 97CAA that is in Sub-Section (4B)-(1) QUOTE: The State Government may nominate one person as its representative on the board of every assisted society other than the board of a primary agricultural credit cooperative society. UNQUOTE .
One very good provision is in new Section 28C where under besides conferring and entrusting Powers and functions of the board in general in Sub-Section (2) 21 types of Powers and functions are listed.
Where as the M C S Act 1960 post amendment is going in circles on filling up casual vacancies on board, the KCS Act 1959 has vide Proviso to Section 29E transferred this power from the Bye Laws to Election Commission with absolute clarity. QUOTE: “Provided that the cooperative election commission shall conduct the election to fill up any vacancy in the office of the director of the board if the remaining term of office of the board is more than half of its original term. UNQUOTE
Whereas the cooperative societies registered under the M C S Act 1960 are under a grip of very serious tension as to filling up casual vacancies of office bearers the KCS Act 1959 is very clear about it thanks to Sub-Section (6) of Section 29F of the KCS Act 1959 QUOTE: The cooperative election commission shall conduct elections within sixty days from the date it being notified about the occurrence of any casual vacancy in the office of a director or any office bearer of a co-operative society to fill up such casual vacancy UNQUOTE
The KCS Act 1959 is very kind to auditors in the matter of fees which are to be fixed in the general body meeting but the M C S Act 1960 does not give this small democratic gesture since in Clause (f) of Section 81(1a) it provides QUOTE: The remuneration of the auditor or auditing firm of a society shall be borne by the society and shall be at such rate as may be prescribed. UNQUOTE Prescribed under the M.C.S. Rules 1961 by the State.
In the matter of compliances like making of annual accounts, holding the general body meeting for adopting accounts, filing annual returns directors may visit a prison which is not the case in any non-compliance of any such requirements under the M C S Act 1960.
On the whole Karnataka has shown extreme loyalty to The Constitution ( 97th Amendment ) Act 2011.