ANNEX

ANNEX-I
SPECIAL FEATURES OF THE MODEL COOPERATIVE ACT, INDIA

1. State policy on cooperatives and the Principles of Cooperation have been stated in the beginning of the Act as guide to the remaining provisions of the Model Act and to facilitate the government to conform to the basic ideology of cooperation;

2. Procedure for Registration of a new cooperative is simplified and all artificial restrictions by way of area of operation, economic viability etc., are removed;

3. The Model Act gives no rule making power to the government. The law itself lays down the broad parameters necessary to be observed by cooperative and leaves all other matters relating to constitution management and business of the society to be conducted in accordance with its bye-laws;

4. The Model Act gives no power to the Registrar or the Government to issue orders for any of the following in a cooperative:

   1. Supersession of the Board of Directors
   2. Compulsory amalgamation or division of societies
   3. Compulsory amendment of the bye-laws
   4. Veto/rescind/annul the resolution

   5. Issue directives

5. Cooperative Federations/Unions are to assume greater responsibility towards the member cooperatives and in particular to ensure regular conduct of elections to the Board of Management and timely conduct of annual audit of accounts;

6. The Role of the Registrar under the Model Act has been confined to the registration and liquidation of cooperatives, conduct of inquiry and in case of default to conduct elections, audit and to convene meeting of general body;

7. The Model Act prohibits cooperatives from accepting funds from the Government by way of equity;

8. To ensure the character of cooperative as a member user organization, special obligations have been imposed on members;

9. Board of Directors have been made accountable for timely conduct of elections, regular convening of meetings of the managing committee and the general body and for participation therein and for the timely conduct of the audit of the books of accounts;

10. Model Act prohibits officers of the Government to work in a cooperative;

11. The Model Act provides for the Constitution of Cooperative Tribunal for settlement of disputes including appeals on matters relating to constitution, management and business of a cooperative and to take cognizance of any offence under the Act.