Part IXB - Co-operative Societies • Article

Article 243ZJ Simplified: Number and term of members of board and its office bearers

Article 243ZJ regulates the composition and term of cooperative boards. It limits the maximum number of directors to 21, mandates the reservation of 1 SC/ST seat and 2 women's seats on every board (with individuals as members), sets a fixed 5-year term for elected members and office bearers, and permits the co-option of up to 2 experts who can advise the board but have no voting rights in elections.

Official Text

(1) The board shall consist of such number of directors as may be provided by the Legislature of a State, by law: Provided that the maximum number of directors of a co-operative society shall not exceed twenty-one: Provided further that the Legislature of a State shall, by law, provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on board of every co-operative society consisting of individuals as members and having members from such class of category of persons. (2) The term of office of elected members of the board and its office bearers shall be five years from the date of election and the term of office bearers shall be conterminous with the term of the board: Provided that the board may fill a casual vacancy on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the board is less than half of its original term. (3) The Legislature of a State shall, by law, make provisions for co-option of persons to be members of the board having experience in the field of banking, management, finance or specialisation in any other field relating to the objects and activities undertaken by the co-operative society, as members of the board of such society: Provided that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in the first proviso to clause (1): Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member or to be eligible to be elected as office bearers of the board: Provided also that the functional directors of a co-operative society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in the first proviso to clause (1).

Simple Meaning

Explain Like Ten

This rule says a cooperative board can have a maximum of 21 directors. They serve for 5 years. There must be at least one seat for Scheduled Castes or Scheduled Tribes, and two seats for women. The board can also invite up to 2 experts to advise them, but these experts cannot vote.

Student Mode

Article 243ZJ sets strict guidelines for cooperative boards: (1) Maximum of 21 directors. (2) Mandatory reservation of 1 SC/ST seat and 2 women's seats on every board where members are individuals. (3) Fixed 5-year term for board members and office bearers, with office bearers' terms conterminous with the board. (4) Mid-term casual vacancies can be filled by nomination if the remaining term is less than half. (5) State laws must provide for the co-option of up to 2 experts in banking, finance, or management, who cannot vote in cooperative elections or be elected as office bearers. Functional directors are members of the board but excluded from the 21-member cap.

Example

A housing co-operative society elects a board of 15 directors. The board must include at least two women directors and one SC/ST director. The elected directors and their chosen president will serve a fixed term of 5 years, and they can co-opt a retired bank manager to advise them on finance (without voting rights).

Key Takeaway

Article 243ZJ brings democratic stability and social representation to cooperative boards through fixed tenures, size limits, and mandatory SC/ST and women's reservations.

FAQs

What is the maximum number of directors allowed on a cooperative society board under Article 243ZJ?

Under Article 243ZJ(1), the maximum number of directors of a co-operative society shall not exceed twenty-one.

What are the mandatory reservation quotas on cooperative boards under Article 243ZJ?

Every cooperative board must reserve one seat for Scheduled Castes or Scheduled Tribes and two seats for women, provided the cooperative consists of individuals as members.

Quiz

Under Article 243ZJ, what is the maximum number of expert members that a cooperative board can co-opt?

Answer: 2

What is the restriction placed on co-opted expert board members under Article 243ZJ?

Answer: They do not have the right to vote in cooperative elections or be elected as office bearers