Maharashtra Co-operative Societies Amendment Act 2013 - Part I


Part – I




Short title and commencement.
Sec. 1.
(1)
This Act may be called the Maharashtra Co-operative Societies (Amendment) Act, 2013.


(2)
It shall be deemed to have come into force on the 14th February 2013.



AMENDMENT OF SECTION 2 OF MAHARASHTRA XXIV OF 1961.
Sec. 2.

In section 2 of the Maharashtra Co-operative Societies Act, 1960 (hereinafter referred to as “the principal Act”),-


(a)
after clause (2), the following clause shall be inserted, namely:-



“(2-A) “authorised person” means any person duly authorised by the Registrar to take action under the provisions of this Act;”;


(b)
in clause (7), for the words “or other directing body, by whatever name called, to which the management of the affairs of a society is vested” the following shall be substituted, namely:-



“or the governing body or other directing body of a co-operative society, by whatever name called, in which the management of the affairs of a society is entrusted”;


(c)
clause (10-B) shall be deleted;


(d)
after clause (11), the following clause shall be inserted, namely:–



“(11A) “expert director” means a person having experience in the field of banking, management, co-operation and finance and includes a person having specialization in any other field relating to the objects and activities undertaken by the concerned society;”;


(e)
after clause (14), the following clause shall be inserted, namely:-



“(14 A) “functional director” means a Managing Director or a Chief Executive Officer by whatever designation called, and includes any Head of the Department, workman or representative of the recognised union of the concerned society, nominated by the Committee;”;


(f)
in clause (19),-



(i) in clause (a), for the words “associate or sympathizer” the words “or associate” shall be substituted;



(ii) after sub-clause (a), the following sub-clause shall be inserted, namely:-



“(a-1) “active member” means a member who participates in the affairs of the society and utilizes the minimum level of services or products of that society as may be specified in the by-laws;”;



(iii) sub-clause (d) shall be deleted;


(g)
in clause (20), for the words “a chairman, vice-chairman, president, vice-president, managing director, manager, secretary, treasurer, member of the committee and any other person,” the following shall be substituted, namely: –



“any office bearer such as a chairperson, vice-chairperson, president, vice-president, managing director, manager, secretary, treasurer, member of the committee and any other person, by whatever name called,”;


(h)
in clause (27), after the words "under this Act" the following shall be inserted, namely:–



“which is an autonomous association of persons, united voluntarily to meet their common needs and aspirations through a jointly owned and democratically controlled enterprise and adhering to the co-operative principles and values”;


(i)
after clause (29), the following clause shall be inserted, namely:-



“(29A) “State Co-operative Election Authority” means an authority constituted by the State Government under section 73CB”.




Amendment of Section 3A of Maharashtra XXIV of 1961.
Sec. 3.

In section 3A of the principal Act, in clause (a), after the words “in the case of the Registrar, the” the word “Special” shall be inserted.



Amendment of Section 6 of Maharashtra XXIV of 1961.
Sec. 4.

In section 6 of the principal Act, in sub-section (1), after the second proviso, the following proviso shall be added, namely:-



“Provided also that, the Registrar may specify the norms and conditions for registration of societies or class of societies”.




Amendment of Section 13 of Maharashtra XXIV of 1961.
Sec. 5.

In section 13 of the principal Act, the proviso to sub-section (1) shall be deleted.




Amendment of Section 14 of Maharashtra XXIV of 1961.
Sec. 6.

In section 14 of the principal Act,-


(a)
in sub-section (1), after the words “of such society,” the following shall be inserted, namely :-



“or any by-laws of the society are inconsistent with the provisions of this Act or rules and that amendment is necessary in such bye-laws,”;


(b)
in sub-section (2), the following provisos shall be added, namely:-



“Provided that, such notified State federal society shall communicate its opinion to the Registrar within a period of forty five days from the date of receipt of communication, failing which it shall be presumed that such State federal society has no objection to the amendment and the Registrar shall be at liberty to proceed further to take action accordingly:



Provided further that, the Registrar may specify the Model bye-laws, for such type of societies or class of societies, as he may deem fit.”




Amendment of Section 17 of Maharashtra XXIV of 1961.
Sec. 7.

In section 17 of the principal Act, in sub-section (1), after the proviso, the following proviso shall be added, namely:-



“Provided further that, in case of societies doing the business of banking, no such amalgamation, transfer, division or conversion shall be initiated without the prior approval of the Reserve Bank of India.”




Amendment of Section 18 of Maharashtra XXIV of 1961.
Sec. 8.

In section 18 of the principal Act,-


(a)
in sub-section (1),-


(i) after the words “in the public interest” the following shall be inserted, namely:- “or in the interest of members of such societies”;



(ii) the following proviso shall be added, namely:-



“Provided that, such notified federal society shall communicate its opinion to the Registrar within a period of forty-five days from the date of receipt of communication, failing which it shall be presumed that such federal society has no objection to the amalgamation, division or reorganization and the Registrar shall be at liberty to proceed further to take action accordingly.”;


(b)
for the marginal note, the following marginal note shall be substituted, namely:-



“Power to direct amalgamation, division and reorganization in the public interest or in the interest of members, etc.”




Amendment of Section 18A of Maharashtra XXIV of 1961.
Sec. 9.

In section 18A of the principal Act,-


(a)
to sub-section (1), the following proviso shall be added, namely:-



“Provided that, such notified federal society or other authority shall communicate its opinion to the Registrar within a period of forty-five days from the date of receipt of communication, failing which it shall be presumed that such notified federal society or other authority has no objection to the scheme of amalgamation and the Registrar shall be at liberty to proceed further to take action accordingly.”;


(b)
in sub-section (2), after clause (b), the following clause shall be added, namely:-


(c)
the Registrar has obtained the prior approval of the Reserve Bank of India.




Amendment of Section 18B of Maharashtra XXIV of 1961.
Sec. 10.

In section 18B of the principal Act, to sub-section (1), the following proviso shall be added, namely:-



“Provided that, such notified federal society or the other authority shall communicate its opinion to the Registrar within a period of forty-five days from the date of receipt of communication, failing which it shall be presumed that such notified federal society or other authority has no objection to the scheme of amalgamation and the Registrar shall be at liberty to proceed further to take action accordingly.”.




Amendment of Section 18C of Maharashtra XXIV of 1961.
Sec. 11.

In section 18C of the principal Act, in sub-section (2),-


(a)
in clause (e), for the words “appointment of an administrator or an interim committee of management” the following shall be substituted, namely :-



“appointment of an authorised officer or an interim committee of management from amongst the active members of that society”;


(b)
both the provisos shall be deleted.




Amendment of Section 23 of Maharashtra XXIV of 1961.
Sec. 12.

In section 23 of the principal Act, in sub-section (2), after the words “may appeal to the Registrar” the following shall be inserted, namely:-



“Within a period of sixty days from the date of the decision of the society”.



Amendment of Section 24 of Maharashtra XXIV of 1961.



In section 24 of the principal Act
Sec. 13.
(a)
in sub-section (1), for the words “nominal, associate or sympathizer member” the words “nominal or associate member” shall be substituted;


(b)
in sub-section (2), the words “or sympathizer member” and “or sympathizer” shall be deleted;


(c)
for the marginal note, the following marginal note shall be substituted, namely:- “Nominal and associate member.”



Insertion of Section 24A of Maharashtra XXIV of 1961.
Sec. 14.

After section 24 of the principal Act, the following section shall be inserted, namely:-


(1)
“24A. Every society shall organize co-operative education and training, for its members, officers and employees through such State federal societies or the State Apex Training Institutes, as the State Government may, by notification in the Official Gazette, specify. Such education and training shall,-



(i) ensure the effective and active participation of the members in the management of the society;



(ii) groom talented employees for leadership position;



(iii) develop professional skills through co-operative education and training.


(2)
Every member of the committee, whether elected or co-opted, shall undergo such co-operative education and training for such period and at such intervals as may be prescribed.


(3)
Every society shall contribute annually towards the education and training fund of the State federal societies or State Apex Training Institutes, notified under sub-section (1), at such rates as may be prescribed and different rates may be prescribed for different societies or classes of societies.”




Substitution of Section 26 of Maharashtra XXIV of 1961.
Sec. 15.

For section 26 of the principal Act, the following section shall be substituted, namely :-


(1)
“26. A member shall be entitled to exercise such rights as provided in the Act, rules and by-laws:



Provided that, no member shall exercise the rights, until he has made such payment to the society in respect of membership, or acquired such interest in the society, as may be prescribed and specified under the by-laws of the society, from time to time:



Provided further that, in case of increase in minimum contribution of member in share capital to exercise right of membership, the society shall give a due notice of demand to the members and give reasonable period to comply with.


(2)
It shall be the duty of every member of a society,-


(a)
to attend at least one general body meeting within a consecutive period of five years :



Provided that, nothing in this clause shall apply to the member whose absence has been condoned by the general body of the society;


(b)
to utilize minimum level of services at least once in a period of five consecutive years as specified in the by-laws of the society:



Provided that, a member who does not attend at least one meeting of the general body as above and does not utilize minimum level of services at least once in a period of five consecutive years, as specified in the by-laws of such society shall be classified as non active member :



Provided further that, when a society classifies a member as a non-active member, the society shall, in the prescribed manner communicate such classification, to the concerned member within thirty days from the date of close of the financial year :



Provided also that, a non-active member who does not attend at least one meeting of the general body and does not utilize minimum level of services as specified in the by-laws, in next five years from the date of classification as a non-active member, shall be liable for expulsion under section 35 :



Provided also that, a member classified as non-active member shall, on fulfillment of the eligibility criteria as provided in this sub-section be entitled to be re-classified as an active member :



Provided also that, if a question of a member being active or non-active member arises, an appeal shall lie to the Registrar within a period of sixty days from the date of communication of classification :



Provided also that, in any election conducted immediately after the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 2013, all the existing members of the society shall be eligible for voting, unless otherwise ineligible to vote.”.