Committee has envisioned cooperatives as primarily, autonomous, economic
institu­tions of user members. It sees them as self-reliant and self-sustaining
institutions functioning in a free, fair and transparent manner in keeping with
the principles and values of the cooperative movement. Summary Recommendations
of the Committee are given below:

Considering the importance of a progressive
and enabling legislation, which provides a level playing field for
cooperatives with other corporate entities, the law enacted in each State
should be amended to truly reflect the letter and spirit of the Model
Cooperatives Act proposed by the Choudhary Brahm Perkash Committee Report.
Even in States where a Parallel law has been enacted, considering its poor
utility and problems faced, a single enabling law be enacted, which is
member centric and based on cooperative principles, replacing the existing
State Acts.

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laws enacted with the Model Cooperatives Act as the basis should also consider
the following:

With a view to enhance member participation in
cooperatives and enable them to do away with non-user members the Acts must
provide for a definition of ‘active member’, right to vote and contest only to
active members and an enabling provision for speedy exit of non-user members

In order to improve the effectiveness of Boards
particularly their trusteeship role and fi­duciary responsibilities, ensure
accountability and professionalization of the organization, the laws should
provide for clearly defined roles and responsibilities of the cooperative’s
board vis-a-vis that of paid executives/managers and a fair, but enforceable
provision for fiduciary responsibility as provided in the Companies Act.

With a view to build in professionalism, the
Acts should provide for co-option of experts/sub­ject matter specialists,
mandate that any person elected as a Director on the Board should undergo a set
of prescribed training programmes within six months of being elected

Considering the need to remove all such
loopholes in the law, which have contributed to the politicization of
cooperatives, it is necessary that the laws also provide for rotational
retirement of Board members and restriction on contribution to political and
religious orga­nizations.

Keeping in view the need to enable cooperatives,
which have already received equity con­tribution from the government, the laws
should also provide for repatriation of government equity and where
cooperatives are unable to return the government equity,