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Consider the following statements about cooperatives
1. Part IX B in the Constitution deals with cooperatives.
2. Forming cooperative societies is a fundamental right under the constitution.
3. As per Directive Principles of State Policy the “State shall endeavour to promote voluntary formation,
autonomous functioning, democratic control and professional management of co-operative societies.”
Which of the above statements are correct
  • a)
    1, 2, 3
  • b)
    2 only
  • c)
    1, 3 only
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about cooperatives1. Part IX B in th...
· 97th Constitution Amendment( to Encourage Economic Activities of Cooperatives) received the assent of
president on 12 Jan 2012.
· The amendment adds a new Directive Principles of State Policy stating that the “State shall endeavour to
promote voluntary formation, autonomous functioning, democratic control and professional
management of co-operative societies.” It further inserts a new part IX B in the Constitution (adding
Articles 243ZH through 243ZT), which outlines certain guidelines for running co-operative societies.
· It makes the right to form cooperative societies a fundamental right under Article 19(1)(c)
· The state legislature shall specify the number of members of the Board of Directors of a co-operative
society. The number is limited to 21. The term of the Board is for a period of five years. On every Board
of a co-operative society, one seat shall be reserved for a person who is a Scheduled Caste or Schedule
Tribe and two seats shall be reserved for women.
· The election of members to the Board must be conducted before the expiry of the previous one. The
state legislature would outline the guidelines for conducting such elections.
· The state legislature shall make provisions for co-opting any person having experience in the field of
banking, management, finance or specialization in a field related to a particular co-operative society as
members of the Board. A maximum of two people can be co-opted to the Board. The co-opted member
would not have the right to vote in any election of the co-operative society or be eligible for election as
Chairman, President, Vice-Chairman or Vice-President.
· The Board of a co-operative society can be superseded in case of (a) persistent default; (b) negligence in
the performance of its duties; (c) commission of any act prejudicial to the interest of the co-operative
society or its members; (d) there is a stalemate in the constitution or function of the Board; or (e) the
general body has failed to conduct the elections as per the required procedure.
· A Board cannot be superseded or suspended for more than six months. In case a Board has been
superseded, the administrator appointed to manage the affairs of such a co-operative society shall
arrange for conducting elections within the specified time period.
· The Board of a co-operative society which does not have any shareholding or guarantee or loan or
financial assistance from the government cannot be superseded.
· The provisions of the Banking Regulations Act, 1949 will be applicable to banking co-operative societies.
· The state legislature may define the offences and penalties related to co-operative societies. An offence
would be committed if (a) a co-operative society files a false return, (b) wilfully disobeys any summon or
requisition issued under the state Act, (c) any employer who, without sufficient cause, does not pay to
the co-operative society the amount deducted from an employee within a period of 14 days, (d) any
officer who wilfully does not hand over custody of books, accounts or cash of a co-operative society to
an authorized person, and (e) any person who adopts corrupt practices before, during or after the
election of Board members or office bearers.
Free Test
Community Answer
Consider the following statements about cooperatives1. Part IX B in th...
· 97th Constitution Amendment( to Encourage Economic Activities of Cooperatives) received the assent of
president on 12 Jan 2012.
· The amendment adds a new Directive Principles of State Policy stating that the “State shall endeavour to
promote voluntary formation, autonomous functioning, democratic control and professional
management of co-operative societies.” It further inserts a new part IX B in the Constitution (adding
Articles 243ZH through 243ZT), which outlines certain guidelines for running co-operative societies.
· It makes the right to form cooperative societies a fundamental right under Article 19(1)(c)
· The state legislature shall specify the number of members of the Board of Directors of a co-operative
society. The number is limited to 21. The term of the Board is for a period of five years. On every Board
of a co-operative society, one seat shall be reserved for a person who is a Scheduled Caste or Schedule
Tribe and two seats shall be reserved for women.
· The election of members to the Board must be conducted before the expiry of the previous one. The
state legislature would outline the guidelines for conducting such elections.
· The state legislature shall make provisions for co-opting any person having experience in the field of
banking, management, finance or specialization in a field related to a particular co-operative society as
members of the Board. A maximum of two people can be co-opted to the Board. The co-opted member
would not have the right to vote in any election of the co-operative society or be eligible for election as
Chairman, President, Vice-Chairman or Vice-President.
· The Board of a co-operative society can be superseded in case of (a) persistent default; (b) negligence in
the performance of its duties; (c) commission of any act prejudicial to the interest of the co-operative
society or its members; (d) there is a stalemate in the constitution or function of the Board; or (e) the
general body has failed to conduct the elections as per the required procedure.
· A Board cannot be superseded or suspended for more than six months. In case a Board has been
superseded, the administrator appointed to manage the affairs of such a co-operative society shall
arrange for conducting elections within the specified time period.
· The Board of a co-operative society which does not have any shareholding or guarantee or loan or
financial assistance from the government cannot be superseded.
· The provisions of the Banking Regulations Act, 1949 will be applicable to banking co-operative societies.
· The state legislature may define the offences and penalties related to co-operative societies. An offence
would be committed if (a) a co-operative society files a false return, (b) wilfully disobeys any summon or
requisition issued under the state Act, (c) any employer who, without sufficient cause, does not pay to
the co-operative society the amount deducted from an employee within a period of 14 days, (d) any
officer who wilfully does not hand over custody of books, accounts or cash of a co-operative society to
an authorized person, and (e) any person who adopts corrupt practices before, during or after the
election of Board members or office bearers.
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Consider the following statements about cooperatives1. Part IX B in the Constitution deals with cooperatives.2. Forming cooperative societies is a fundamental right under the constitution.3. As per Directive Principles of State Policy the “State shall endeavour to promote voluntary formation,autonomous functioning, democratic control and professional management of co-operative societies.”Which of the above statements are correcta)1, 2, 3b)2 onlyc)1, 3 onlyd)NoneCorrect answer is option 'A'. Can you explain this answer?
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Consider the following statements about cooperatives1. Part IX B in the Constitution deals with cooperatives.2. Forming cooperative societies is a fundamental right under the constitution.3. As per Directive Principles of State Policy the “State shall endeavour to promote voluntary formation,autonomous functioning, democratic control and professional management of co-operative societies.”Which of the above statements are correcta)1, 2, 3b)2 onlyc)1, 3 onlyd)NoneCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements about cooperatives1. Part IX B in the Constitution deals with cooperatives.2. Forming cooperative societies is a fundamental right under the constitution.3. As per Directive Principles of State Policy the “State shall endeavour to promote voluntary formation,autonomous functioning, democratic control and professional management of co-operative societies.”Which of the above statements are correcta)1, 2, 3b)2 onlyc)1, 3 onlyd)NoneCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements about cooperatives1. Part IX B in the Constitution deals with cooperatives.2. Forming cooperative societies is a fundamental right under the constitution.3. As per Directive Principles of State Policy the “State shall endeavour to promote voluntary formation,autonomous functioning, democratic control and professional management of co-operative societies.”Which of the above statements are correcta)1, 2, 3b)2 onlyc)1, 3 onlyd)NoneCorrect answer is option 'A'. Can you explain this answer?.
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