The Goa Co-operative Societies (Amendment) Act, 2021.

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The Government of Goa on 7th October 2021 has notified the bill to amend the Goa Co-operative Societies (Amendment) Act, 2001.

Through this amendment, a new section 20B has been notified which deals with Deposit Protection Scheme in which every co-operative credit society and other co-operative societies having credit business, shall register themselves under such Deposit Protection Scheme and pay such contributions, so as to secure deposits of its depositors and members and take such other measures, as specified in the Scheme.

The Co-operative societies shall renew the registration under such deposit protection scheme by making payment of annual renewal fees as specified in such scheme and all sums received towards registration fees, annual renewal fee and contributions shall form part of a fund to be called Deposit Protection Fund as may be constituted under the Deposit Protection Scheme.

Further under section 41 which deals with “Restriction on borrowings”the following has been inserted:

A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as may be prescribed.

The total amount of deposits received and/or loans raised during any financial year shall not exceed ten times of the paid up share capital, reserve fund, building fund and accumulated profit less accumulated loss, if any, of the society:

 Provided that, with prior written approval of the Registrar, the society may enhance the limit of borrowings upto twenty-five times of it’s paid-up share capital, reserve fund, building fund and accumulated profit less accumulated loss, if any further subject to the condition that the society fulfils all the financial parameters of a healthy co-operative credit society as provided under section 76 C.

A mutually aided society shall not accept share capital from the Government but may accept other funds or guarantee from the Government on such terms and conditions as are mutually agreed upon through a memorandum of understanding.

The bill seeks to substitute section 61 of the said Act. By substituting said section an opportunity is provided to the erring board members of being heard before disqualifying them.

Further, the bill seeks to amend sub-section (6) of section 66 of the said Act. By amending said section, housing societies and self help groups having less then or up to two hundred members are allowed to hold the elections of the office bearers in the first board meeting of the newly elected board. Likewise, by inserting new provisos, the elected directors are given liberty to fill the subsequent vacancies created due to retirement, resignation, death, etc.

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