DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIESCentral

Section 46 of The Multi-State Co-operative Societies Act, 2002

Notwithstanding anything contained in this Act, no person shall be eligible to hold, at the same time, office of a president or chairperson or vice-president or vice-chairperson on the board of more than two multistate co-operative societies.

Summary

A person is legally restricted from holding certain top leadership offices in too many multi-state co-operative societies at the same time.
The restricted offices are those of president, chairperson, vice-president, and vice-chairperson.
A person can hold these specified offices in a maximum of two multi-state co-operative societies concurrently.
This limitation applies notwithstanding any other provisions contained in the Act.

Practical examples

1Ramesh is the chairperson of a multi-state housing co-operative in Haryana and the president of a multi-state credit society in Delhi. When a third multi-state farming co-operative in Rajasthan elects him as their vice-president, Ramesh cannot accept the post under the co-operative rules unless he resigns from one of his existing positions.

2Kavita is currently the vice-chairperson of a multi-state handloom society and the vice-president of a multi-state cooperative bank. She is nominated to run for the chairperson post in a newly registered multi-state transport co-operative. She is eligible to run, but if she wins, she must step down from one of her other board positions to stay within the legal limit.

FAQ

1. What is the maximum number of multi-state co-operative societies in which a person can hold the office of president or chairperson at the same time under Section 46 of the Act?

Under Section 46 of the Multi-State Co-operative Societies Act, 2002, a person can hold the office of president or chairperson in a maximum of two multi-state co-operative societies at the same time.

2. Does the restriction under Section 46 of the Multi-State Co-operative Societies Act, 2002 apply to the office of vice-president?

Yes, under Section 46 of the Multi-State Co-operative Societies Act, 2002, the restriction applies to the offices of president, chairperson, vice-president, and vice-chairperson.

3. Can a person be a simple director on the board of three different multi-state co-operative societies under Section 46 of the Act?

Yes, under Section 46 of the Multi-State Co-operative Societies Act, 2002, the dual-holding restriction only applies to the offices of president, chairperson, vice-president, or vice-chairperson, not to ordinary board directors.

Test yourself

Q1.Under Section 46 of the Multi-State Co-operative Societies Act, 2002, what is the maximum number of multi-state co-operative societies in which a person can hold the office of chairperson?

Q2.Which of the following offices is NOT subject to the simultaneous holding restriction under Section 46 of the Multi-State Co-operative Societies Act, 2002?

Q3.Under Section 46 of the Multi-State Co-operative Societies Act, 2002, if a person is already the president of one multi-state co-operative society and the vice-chairperson of another, can they legally accept the office of vice-president in a third multi-state co-operative society?

Q4.Under Section 46 of the Multi-State Co-operative Societies Act, 2002, the restriction on holding multiple offices on the board applies to which type of societies?

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