Part IXB: The Co-operative Societies

Article 243ZN: Convening of General Body Meetings

Original Article:

The Legislature of a State may, by law, make provisions 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 to transact the business as may be provided in such law.

Explanations:

Article 243ZN mandates that state legislatures ensure the timely convening of annual general body meetings for co-operative societies. These meetings are critical for discussing financial results, electing board members, and reviewing key decisions, fostering transparency and member participation.

Clause-by-Clause Explanation:

Clause: Empowers state legislatures to prescribe rules for convening AGMs, ensuring financial accountability and democratic functioning.

Example: In Gujarat, dairy co-operatives like Amul regularly hold AGMs to review performance and elect members, ensuring active participation from stakeholders.

Historical Significance:

Introduced by the 97th Amendment, Article 243ZN emphasizes democratic governance within co-operative societies, ensuring regular member engagement and transparent decision-making processes.

Legislative History:

Part IXB, including Article 243ZN, was added to the Constitution to standardize co-operative governance across states, with a focus on accountability and inclusivity.

References:

• The Constitution (97th Amendment) Act, 2011.
• State laws governing co-operative societies, such as Gujarat Co-operative Societies Act.
• Best practices in co-operative governance across India.