Part IXB: The Co-operative Societies
Article 243ZL: Supersession and Suspension of Board
Original Article:
(1) Notwithstanding anything contained in any law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months:
Provided that the board may be superseded or kept under suspension in cases of persistent default, negligence, actions prejudicial to members, stalemate, or failure to conduct elections as per Article 243ZK.
(2) In case of supersession of a board, the administrator shall arrange for elections within six months and hand over management to the elected board.
(3) State Legislatures may define conditions of service for the administrator.
Explanations:
Article 243ZL provides a framework for managing failures in the governance of cooperative societies. It defines the conditions for supersession and suspension of boards and highlights the temporary nature of such interventions to uphold democratic principles and operational integrity.
Clause-by-Clause Explanation:
Clause (1): Limits the period of supersession to six months, ensuring quick restoration of elected governance. Example: Instances of mismanagement in cooperative banks where timely interventions resolved operational issues.
Clause (2): Requires administrators to conduct elections and transfer power promptly, reinforcing accountability. Example: Rural cooperatives in Maharashtra where administrators facilitated smooth transitions.
Clause (3): Empowers states to set terms for administrators, ensuring context-specific solutions. Example: Kerala’s cooperative governance laws stipulating administrator roles during crises.
Historical Significance:
The 97th Amendment introduced Article 243ZL to address challenges in cooperative governance, emphasizing the temporary nature of administrative interventions to uphold democracy.
Legislative History:
Added through the 97th Constitutional Amendment, this article aims to balance state oversight with cooperative autonomy, preventing long-term administrative control.
Frequently Asked Questions (FAQs):
To provide guidelines for supersession and suspension of cooperative boards while ensuring quick restoration of democratic governance.
Boards can be superseded for a maximum of six months, except in banking cooperatives where the period is one year.
An administrator is appointed to manage the cooperative’s affairs and facilitate elections.
References:
- The Constitution (97th Amendment) Act, 2011.
- State Cooperative Laws like the Maharashtra Cooperative Societies Act.
- Case Studies on Cooperative Governance in India.