Section 1. Ins. by Act 11 of 2023, s. 49 (w.e.f. 3-8-2023)

1. Ins. by Act 11 of 2023, s. 49 (w.e.f. 3-8-2023). STATEMENT OF OBJECTS AND REASONS Co-operative societies with objects not confined to one State and serving the interests of members of more than one State are at present governed by the provisions of the Multi-unit co-operative Societies Act, 1942-А Сentral Act. This is only an enabling legislation facilitating the incorporation, regulation and winding up of multi-unit (State) cooperative societies under the provisions of the Co-operative Societies Act of the State where the principal place of business of any such society is located. As' a result, different multi-unit co-operative societies are governed by different co-operative laws in the country. 1. Sub. by Act 11 of 2023, s. 45, for "the Companies Act, 1956" and "the Monopoly and Restrictive Trade Practices Act, 1969" (w.e.f. 3-8-2023). the bye-laws[1] [or has committed any act including fraud, misappropriation and the like which is prejudicial to the interests of the society or its members, or has omitted or failed to comply with any directions given to it under section 122 in public interest or that there is a stalemate in the constitution or functions of the board or the Co-operative Election Authority has failed to conduct elections in accordance with the provisions of this Act, the Central Government may, after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, supersede or suspend the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding six months, as may be specified in the order: ] 2[Provided that while taking a decision for supersession or suspension on grounds of failure to conduct election, such action shall only be taken if the Board had not given requisition to hold election to the Co-operative Election Authority within the time limit or not extended necessary assistance as per the provisions of section 45.] (2) The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi-State co-operative society. (3) The administrator shall, subject to the control of the Central Government and to such instructions as it may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the specified multi-State co-operative society and take all such actions as may be required in the interests of the society. (4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board in accordance with the bye-laws of the specified multi-State co-operative society. (5) If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefore, direct the administrator to arrange for the constitution of a new board for such specified multi-State co-operative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function. CHAPTER I PRELIMINARY 1. Short title, extent and commencement.— (1) This Act may be called the Multi-State Co-operative Societies Act, 2002. (2) It extends to the whole of India. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. (6) Where a specified multi-State co-operative society is indebted to any financial institution, the Central Government shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution. 3[ Explanation. —For the purposes of section 122 and this section, the expression "specified multiState co-operative society" means any multi-State co-operative society where there is Government shareholding or loan or financial assistance or any guarantee by the Government.] 1. Sub. by Act 11 of 2023, s. 4, for "address" (w.e.f. 3-8-2023). (ze) the terms on which a multi-State co-operative society may deal with organisation other than co-operative societies; (zf) the rights, if any, which the multi-State co-operative society may confer on any other multi-State co-operative society or federal co-operative and the circumstances under which such rights may be exercised by the federal co-operative; (zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case of death of a member; (zh) the educational and training programmes to be conducted by the multi-State co-operative society; (zi) the principal place and other places of business of multi-State co-operative society; - (zj) the minimum level of services, to be used by its members; - (zk) any other matter which may be prescribed. 1. Voluntary and Open Membership.— Co-operatives are voluntary organisations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on bases of gender, social inequality, racial, political ideologies or religious consideration.