Superseding and Suspension of Board of Directors of Co-operative Societies
Q. In general, no Board of Directors shall be superseded or kept under suspension for a period exceeding -- Published on 16 Mar 17a. 2 months
b. 3 months
c. 6 months
d. 12 months
ANSWER: 6 months
Election of Members of Board -
- The election of a board shall be conducted before the expiry of the term of the board so as to ensure that the newly elected members assume office immediately on the expiry of the term of the office of members of the outgoing board.
- The superintendence, direction and control of the preparation of electoral rolls and the conduct of elections to a co-operative society shall vest in such body, as may be provided by the State Legislature.
Supersession and Suspension of Board and Interim Management -
- No board shall be superseded or kept under suspension for a period exceeding six months.
The board may be superseded or kept under suspension in case -
1. of its persistent default;
2. of negligence in the performance of its duties;
3. of committing any act prejudicial to the interests of the co-operative society or its members;
4. of there being a stalemate in the constitution or functions of the board;
5. of the election body having failed to conduct elections in accordance with the provisions of the State Act.
- However, the board of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee by the Government.
- In case of super-session of a board, the administrator appointed to manage the affairs of such a co-operative society shall arrange for conduct of elections within the period of six months and handover the management to the elected board.
Audit of Accounts of Co-operative Societies -
- The State Legislature may make provisions for the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year.
- It shall lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing the accounts of the co-operative societies.
- Every co-operative society shall be audited by an auditor or auditing firm, appointed by the general body of the co-operative society.
- But, such an auditor or auditing firm shall be appointed from a panel approved by the State Government or a body authorized by the State Government on this behalf.
- The accounts of every co-operative society shall be audited within six months of the close of the financial year.
- The audit report of the accounts of an apex co-operative society shall be laid before the State Legislature.
- Convening of General Body Meetings - The State Legislature may provide that the annual general body meeting of every co-operative society shall be convened within a period of six months of the close of the financial year.
