The recent order by the Ministry of Cooperation, enforcing "Fit & Proper" criteria for CEOs of Multi-State Credit Cooperatives, signifies a significant shift towards improved governance and accountability within the cooperative sector. This follows the enactment of the Multi-State Cooperative Societies (MSCS) (Amendment) Act, 2023, which outlines detailed eligibility requirements for CEO appointments in these societies.
CEOs must be between 21 and 70 years old. Exceptions for those over 70 can be made through a special resolution by three-fourths of the board members. The required experience varies by the size of the credit society: from a minimum of 2 years for 'Micro' Credit Societies to 8 years for 'Large' Credit Societies.
Essential qualifications include being a graduate of a recognized university or having professional qualifications like CA, ICWA, CAIIB, or a Diploma in Cooperative Business Management. Additional desirable qualifications cover certifications in computer applications, cyber laws, labor laws, finance, accountancy, or law.
The MSCS (Amendment) Act, 2023 represents a step towards strengthening the cooperative sector's governance framework. By ensuring that only qualified and ethically sound individuals can lead these societies, the Act aims to enhance their credibility, efficiency, and reliability. The implementation of these guidelines, backed by the approval of the Competent Authority, underscores the commitment to fostering a thriving cooperative sector.
