Amending Act 13 of 2000

Several amendments were made to the Karnataka Co-operative Societies Act, 1959 by the Karnataka Co-operative Societies (Amendment) Act, 1997 including the amendments,- (i) to deprive a nominated member's right to vote in the election of office bearers and President, Chairperson, Vice President and Vice Chairperson of the Co-operative Society; (ii) to omit section 30B which provides for power to give direction in public interest; (iii) to omit section 53A which provides for nomination of members to a Committee by the State Government in certain cases. The Government has come across several hurdles while implementing the amended provisions. The Government has invested a large amount of money in various Co-operative Societies in the form of share capital, loan and subsidy. Further, the Government has also given guarantee to various Co-operative institutions for repayment of loan and interest due by them. Therefore, it is felt that there should be some enabling provision providing for effective intervention by the Government to safeguard public interest and also the interest of the shareholders of a Co-operative Society. Therefore, it is considered necessary to amend the Karnataka Co-operative Societies Act, 1959,- (i) to confer voting right on nominated members in the election of office bearers of the Committee and Chairpersons, Vice Chairpersons, President and Vice President so that they can effectively participate in the management of a Co-operative Society; (ii) to reintroduce the provision 30A empowering the State Government to issue direction in public interest; (iii) to reintroduce section 52A providing for nomination of members of Committee of a Co-operative Society by the State Government in certain cases where the State Government has given substantial financial assistance. As the matter was urgent and where both the Houses of the Karnataka Legislature were not in session, the Karnataka Co-operative Societies (Amendment) Ordinance, 2000 was promulgated. This Bill seeks to replace the said Ordinance. Hence the Bill. (Obtained from L.A. Bill No. 13 of 2000)