Section 2

Amendment status not verified — confirm the current text below against the official source.

As the matter was very urgent, and the Legislative Assembly was not in session, the Karnataka Co-operative Societies (Amendment) Ordinance, 1959:KAR.ACT 11] Co-operative Societies 18 1985 (Karnataka Ordinance No. 15 of 1985) was issued. This Bill seeks to replace the said ordinance. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 29th July 1985 as No. 405 at page 3.) XVIII Amending Act 34 of 1991.—It is considered necessary to omit section 101-C, since other provisions relating to recovery of Co-operative dues are found to be adequate and the purchase of immovable property by the State Government in the auctions has caused un-necessary anxiety and hardship to the farmers. Hence the Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 30th September 1991 as No. 622 at page 254.) XIX Amending Act 25 of 1998.—Keeping in view the recommendations made by the Committee headed by Sri K. H. Patil and two other Committees and also various suggestions made by prominent co-operators and officers of the Co-operative Department, It was considered necessary to amend the Karnataka Co-operative Societies Act 1959,— (i) to define primary societies, secondary societies, federal societies and apex societies; (ii) to prohibit members of the same family from applying for registration of a co-operative society; (iii) to provide deemed registration of co-operative, society and amendment of byelaws within a period of three months from the date of receipt of the proposal; (iv) to provide for cessation of membership of a person who fails to fulfill his obligations as a member under the Act, Rules and Byelaws for a continuous period of three years; (v) to remove the powers of the Registrar to direct amalgamation, division, and re-organization of co-operative societies; (vi) to prohibit a member who is a defaulter from exercising his right to vote at a meeting of the co-operative society (vii) to remove the restrictions on holding of shares by the members of co- operative societies; (viii) to substitute section 27 to have more comprehensive provision in respect of conducting annual general meeting; (ix) to require a Committee to make arrangements for election of membership of next Committee and also to provide for consequences of default in making such arrangements; (x) to provide for nomination of only three persons in the Committee of assisted societies; (xi) to remove the powers of Government under section 30A and 30B for appointment of special officer; 1959:KAR.ACT 11] Co-operative Societies 19 (xii) to do away with the Government nomination of one third of the total strength of the Committee under section 53A; (xiii) to prohibit such nominated members from contesting in the election of President, Vice-President and other office bearers of the Committee; (xiv) to provide office bearers to continue even after two terms; (xv) to make detailed provisions regarding election of President, Vice- President and other office bearers and also filling up of casual vacancy in the office of the members of the Committee; (xvi) to provide for appointment of Chief Executive of the Co-operative Society and also to specify his powers and functions; (xvii) to provide for appointment of Special Officer in case a society is not functioning on account of the number of members of the Committee falling short of the required number of quorum; (xviii) to incorporate a new Chapter VA and sections 39A to 39K to have comprehensive provisions relating to election of the members of the Committee; (xix) to remove the powers of the Government under section 121 by deleting the provision; (xx) to take power to notify model byelaws. Certain consequential amendments are also made. Hence the Bill. (Obtained from file DPAL16 LGN 97.) XX Amending Act 2 of 2000.— Keeping in view the recommendations made by the various Committees and the suggestions made by leading co- operators, it is considered necessary to amend the Karnataka Co-operative Societies Act, 1959, (i) to make co-operative institutions economically sound in the interest of society and its members; (ii) to bar Industrial Tribunals from entertaining disputes of the nature of industrial disputes arising under the Co-operative Societies Act, in order to avoid multiplicity of forums, and for certain other purposes. Hence the Bill. (Obtained from L.A. Bill No. 20 of 1997.) XXI Amending Act 13 of 2000.— Several amendments were made to the Karnataka Co-operative Societies Act, 1959 by the Karnataka Co-operative Societies (Amendment) Act, 1997 including the amendments,- (i) to deprive a nominated member's right to vote in the election of office bearers and President, Chairperson, Vice President and Vice Chairperson of the Co-operative Society; (ii) to omit section 30B which provides for power to give direction in public interest; 1959:KAR.ACT 11] Co-operative Societies 20 (iii) to omit section 53A which provides for nomination of members to a Committee by the State Government in certain cases. The Government has come across several hurdles while implementing the amended provisions. The Government has invested a large amount of money in various Co-operative Societies in the form of share capital, loan and subsidy. Further, the Government has also given guarantee to various Co-operative institutions for repayment of loan and interest due by them. Therefore, it is felt that there should be some enabling provision providing for effective intervention by the Government to safeguard public interest and also the interest of the shareholders of a Co-operative Society. Therefore, it is considered necessary to amend the Karnataka Co- operative Societies Act, 1959,- (i) to confer voting right on nominated members in the election of office bearers of the Committee and Chairpersons, Vice Chairpersons, President and Vice President so that they can effectively participate in the management of a Co-operative Society; (ii) to reintroduce the provision 30A empowering the State Government to issue direction in public interest; (iii) to reintroduce section 52A providing for nomination of members of Committee of a Co-operative Society by the State Government in certain cases where the State Government has given substantial financial assistance. As the matter was urgent and where both the Houses of the Karnataka Legislature were not in session, the Karnataka Co-operative Societies (Amendment) Ordinance, 2000 was promulgated. This Bill seeks to replace the said Ordinance. Hence the Bill. (Obtained from L.A. Bill No. 13 of 2000) XXII Amending Act 6 of 2001.- To give effect to the proposals made in the Budget Speech, it is considered necessary to amend the Karnataka Stamp Act, 1957 and the Karnataka Co-operative Societies Act, 1957. Hence the Bill. (Vide L.A.Bill No.6 of 2001 File No. ÊÐàÀÐôÆÑ… 10 ÆÑÊйР2001) XXIII Amending Act 24 of 2001.- To achieve better results in the Co-operative Field and to over come certain difficulties encountered in the effective implementation of the existing provisions of the Karnataka Co-operative Societies Act, 1959. It is considered necessary to amend the Act to provide for the following, namely:- (1) To enlarge the definition of "Assisted Society" by including even societies which receive assistance in the form of loan or grant or guarantee for repayment of loan or interest. (2) To restore the earlier provision providing for appointment of a person as the Director of Co-operative Audit. 1959:KAR.ACT 11] Co-operative Societies 21 (3) To omit section 2B as it is redundant in view of the provisions contained in the Karnataka Appellate Tribunal Act, 1976. (4) To provide for levy of fee in respect of amendment of bye-laws of Co- operative Societies. (5) To provide for admission of Self Help Groups as nominal members of a society. (6) To have a specific provisions indicating when a person shall cease to be a member of a Co-operative Society. (7) To restore earlier provision providing for expension of time by the Registrar to convene the Annual General Body Meeting of a Society by a period not exceeding six months. (8) To enhance the total of members of an Apex Society from the existing 25 to 32 and in the case of an urban co-operative bank having an area of operation not beyond a district to enhance it upto 15 members. (9) To reduce the term of office of the members of the Committee from the existing five co-operative years to three co-operative years. (10) To provide that the nominated members shall not have right to become bearers of a primary co-operative society and any other class or classes of co-operative society as may be specified by the Government and to provide that the members so nominated shall hold office during the pleasure of the Government. (11) To provide for disqualification under certain circumstances in the case of a person who represents a co-operative society in the Committee of District Central Society or with a Federal society or an Apex society. (12) To reduce the term of office of the office bearers from the existing two and half years to one year. (13) To provide for appointment and removal of the Chief Executive of an assisted Society by the Government or Registrar. (14) To provide for supercession of a Committee even in case of violation of any direction issued under section 30B and to provide for further extension of period of appointment of an Administrator up to one year in aggregate. (15) To restore the earlier provision providing for appointment of a Special Officer to a society by the State Government on a report made by the Registrar. (16) To empower the Registrar to extend the period of appointment of a special officer under section 31 for a further period of one year in the aggregate. (17) To provide for postponement of election of co-operative societies in the case of natural calamities et., (18) To restore earlier provision providing for audit of all co-operative societies by the Director of co-operative Audit. (19) To provide explicitly for initiation of surcharge proceedings against Government nominees and ex-officio members. 1959:KAR.ACT 11] Co-operative Societies 22 (20) To restore earlier provision providing for exemption of societies from the applicability of the provisions of the Act subject to the modification that it shall not apply to section 30A. (21) To provide for submission of copies or resolution or order to the Registrar by the Chief Executive and for rescinding or canceling the resolution or order under certain circumstances. Certain incidental provisions are also made. Hence the Bill. (obtained from LA Bill No. 32 of 2000) XXIV Amending Act 13 of 2004.- It is considered necessary to amend the Karnataka Co-operative Societies Act, 1959 to provide for.- (i) conversion of a Co-operative under Karnataka Souharda Sahakari Act, 1997 into a Co-operative Society. (ii) voting rights to the Co-operative Societies after 12 months of their admission as in the case of individuals. (iii) prior sanction of RBI in respect of a Co-operative Bank under section 26A and 26B. (iv) the Registrar to conduct the general meeting in case of failure to the Committee to hold Annual general body meeting. (v) the election shall be held within a three months from the date of registration of a Co-operative Society or Societies formed after amalgamation or reorganization or division and that an administrator be appointed for the said period of three months. (vi) vesting of powers under section 30, 31, 59 and 64 with the Registrar. (vii) appeal provision against the orders of Registrar under sec 12, 17 and 31. (viii) vesting of compounding of offences relating to audit with the Director of Co-operative Audit. Some consequential amendments are also made in view of judgement passed by the Hon'ble High Court in W.A.No: 1899-1912/2001 and W.P.No. 21461/1999. Hence the Bill [ L.A. BILL No. 1 OF 2004 ] (Entry 32 of List II of the Seventh Schedule to the Constitution of India) XXV Amending Act 6 of 2010.- The Government of Karnataka had appointed a 3 men Committee namely:- 1) Sri B.S. Viswanathan, Ex-President & Present director of Karnataka State Cooperative Apex & Rural Development Bank Ltd., Bengaluru 1959:KAR.ACT 11] Co-operative Societies 23 2) Sri M.C. Nanayya, Former Minister for Law & Parliamentary Affairs 3) Sri Shivanand Patil, President, D.C.C. Bank Ltd., Bijapur with Registrar of Cooperative Societies as Secretary to the Committee on 27.05.2005 to suggest amendments to Karnataka Cooperative Societies Act 1959 to remove restrictive provisions in the Act and to enable the cooperative societies to function in a transparent, accountable, vibrant and democratic manner. The said Committee travelled extensively throughout the State and interacted with cooperative societies and cooperators. The Committee visited some of the States. The Committee submitted its report to Government in February 2006. The Government of India (GOI) also appointed a task force on 05.08.2004 under the Chairmanship of Prof. A.Vaidyanathan to suggest measures for revival of short-term cooperative credit structure in the country. The said task force travelled extensively throughout the country and interacted with cooperative societies and cooperators and made a critical study of the short-term cooperative credit structure in the Country and submitted its report to GOI on 04.02.2005. Thereafter the GOI held discussions with the representatives of the State Governments and formulated a revival package for revitalisation of short-term credit cooperative structure on the basis of the recommendations of Prof.A.Vaidyanathan and taking into account the views of the State Governments and communicated the revival package to the States in January 2006. The Government of Karnataka has accepted the revival package and signed tripartite Memorandum of Understanding(MoU) with GoI & NABARD on 25.03.2008. The said MoU envisages certain amendments to be brought to the Karnataka Cooperative Societies Act 1959 giving more powers to the cooperative societies and at the same time vesting certain powers with RBI / NABARD. It is a pre-condition under the MoU that the Karnataka Cooperative Societies Act 1959 be amended accordingly before release of the financial assistance by GoI through NABARD under the package. In the light of the recommendations of Sri B.S. Viswanathan Committee Report and the MoU signed with GoI on 25.03.2008 and administrative requirements, it is considered necessary to amend the Karnataka Cooperative Societies Act 1959 as follows. 1) Section 2.- It is proposed to insert the definitions of 'Agriculture and Rural Development Bank', 'Backward Class', 'Co-operative Credit Structure', 'Central Co-operative Bank', 'Chartered Accountant', 'Multipurpose Cooperative Society', 'National Bank', 'Primary Agricultural Credit Society', 'State Agriculture and Rural Development Bank' and 'State Cooperative Bank'. It is proposed to 1959:KAR.ACT 11] Co-operative Societies 24 substitute the words 'Government or State' for the word Government in the definition of 'Assisted Society'. 2) Section 12.- It is proposed to amend Section 12 by inserting the words 'or to give effect to the provisions of the Act or Rules made thereunder' after the words 'interest of such society' to have a clear understanding. 3) Section 16.- It is proposed to amend Section 16 with the insertion of a Depositor or a self-help group so as to enable them to become members of a cooperative society in the light of the revival package 4) Section 20.- It is proposed to amend Section 20 clarifying the word 'affairs' to mean 'the general meeting and the election of the members of the Committee' and to give a notice of forty five days to the defaulters instead of thirty days. 5) Section 21.- It is proposed to amend Section 21 by clarifying the word 'affairs' to mean 'the general meeting and the election of the members of the Committee' and inserting the words 'or a self-help group' after the words 'a firm' so as to enable the self-help group to send its delegate. It is also proposed that the newly elected members of the Committee shall have an opportunity to send a delegate or nominee to any other cooperative society. 6) Section 28A.- It is proposed to amend Section 28A to provide necessary clarifications as to when an administrator could be appointed. 7) Section 28B.- It is proposed to amend Section 28B stipulating that the period of the administrator shall not exceed three months in respect of a society in cooperative credit structure. 8) Section 29.- It is proposed to amend Section 29 by enunciating the duties of Government nominees. 9) Section 29A.- It is proposed to amend Section 29A by omitting the word 'elected' so as to have a clear understanding regarding the term of office of the members of the Committee. 10) Section 29C.- It is proposed to amend Section 29C that the disqualification mentioned in caluse (e) shall not be applicable to the chief executive. 11) Section 29F.- It is proposed to amend Section 29F to stipulate that the chief executive shall not have the right to vote at a meeting convened for the purpose of electing office-bearers. 1959:KAR.ACT 11] Co-operative Societies 25 12) Section 29G.- It is proposed to amend Section 29G to enable the co-operative credit structure to appoint their own chief executives in the light of the revival package and stipulating that the chief executive shall be a member of the Committee. 13) Section 30.- It is proposed to amend Section 30 in the light of the revival package. 14) Section 31.- It is proposed to amend Section 31 by omitting the words 'or for any other reason' so as to limit the power to appoint the special officer to a situation of want of quorum only and to stipulate that the period of special officer shall not exceed three months in respect of a society in cooperative credit structure. 15) Section 39A.- It is proposed to amend Section 39A by stipulating multi-level holding of elections to different cooperative societies and that the State Government should not postpone the elections of a society in co-operative credit structure for a period exceeding three months. 16) Section 54.- It is proposed to omit the Section 54 in keeping with the MoU. 17) Section 56.- It is proposed to amend Section 56 to state the mode of moblisation of funds of a co-operative society and to provide that TA, DA & Other allowances payable to the members of the Committee be specified in the bye-laws subject to the maximum rate specified by the Registrar. 18) Section 58.- It is proposed to amend Section 58 to lay down that a Co-operative Bank may invest its funds in Scheduled bank or financial institution regulated by the Reserve Bank as per the directives of the Reserve Bank of India. 19) Section 59.- It is proposed to amend Section 59 to provide for the limit of deposits and loans that a cooperative society can raise to be specified in the bye-laws. 20) Section 60.- It is proposed to amend Section 60 to enable a cooperative society to make loans to another cooperative society without the sanction of the Registrar. 21) Section 63.- It is proposed to amend Section 63 making it obligatory on the part of every society to get its accounts audited every year and elaborate the scope of audit. 22) Section 64.- It is proposed to amend Section 64 to enable a copy of the inquiry report to the cooperative society and the society shall report the action taken thereon within three months to the Registrar. 1959:KAR.ACT 11] Co-operative Societies 26 23) Section 65.- It is proposed to amend Section 65 to enable a copy of the inspection report to the cooperative society and the society shall report the action taken thereon within three months to the Registrar. 24) Section 69.- It is proposed to amend Section 69 stipulating that the application shall be decided within a period of twelve months which may be extended upto eighteen months. 25) Section 70.- It is proposed to amend Section 70 substituting the words 'or any other office bearer' for the words 'secretary, treasurer' as the latter are paid employees. 26) Section 70A.- It is proposed to amend Section 70A stipulating that a dispute relating to the disciplinary action against or service conditions of an employee shall be filed within a period of twelve months from the date of cause of action. 27) Section 71.- It is proposed to amend Section 71 stipulating that the dispute shall be decided within a period of twelve months which may be extended upto eighteen months. 28) Section 76.- It is proposed to amend Section 76 by omitting clauses (b) & (c) as they have been inserted in Section 2. 29) Section 98A to 98Y.- It is proposed to incorporate a separate chapter making special provisions applicable to societies in cooperative credit structure as envisaged in the MoU signed with GOI & NABARD in the revival package for revitalisation of cooperative credit structure. 30) Section 100.- It is proposed to dispense with the approval of the Registrar in the light of the revival package. 31) Section 105.- It is proposed to amend section 105 stipulating that 25% of the amount due shall be deposited before filing an appeal. 32) Section 106.- It is proposed to amend section 106 by providing appeals against the orders passed under section 28A(5), 99, 105A and 111 and lay down the appellate authorities specifically. It is also proposed to stipulate that 25% of the amount due shall be deposited before filing an appeal and that the appeal shall be decided within a period of twelve months which may be extended upto eighteen months. 33) Section 111.- It is proposed to amend section 111 to provide for the sanction of the Registrar for launching a criminal case in respect of all matters concerning a co-operative credit structure society in 1959:KAR.ACT 11] Co-operative Societies 27 keeping with MoU. It is also proposed to provide that no sanction of the Registrar or the Director of Cooperative Audit is necessary for filing criminal complaints against the concerned for misappropriation. 34) Section 128A.- It is proposed to retain Section 128A for a period of six months in order to comply with directions of the Hon'ble High Court in certain cases and give postings to employees who are on weighting and to settle such other service conditions of the employees of primary cooperative agricultural and rural development banks. As the matter was urgent and both the Houses of the Karnataka Legislature were not in Session, the Karnataka Cooperative Societies (Amendment) Ordinance,2009 (Karnataka Ordinance No. 8 of 2009) was promulgated on 30.10.2009. This Bill seeks to replace the said Ordinance. [L.C.Bill No. 1 of 2010, File No.DPAL 50 Shasana 2009] [Entry 32 of List II of the Seventh Schedule to the Constitution of India.] XXVI Amending Act 04 of 2011.- The Karnataka State Co-operative Agriculture and Rural Development Bank has expressed that the revival package for long-term loan (under Prof. A. Vaidyanathan Committee) has not been implemented, it is necessary to continue the existing system till the Government of India takes a decision to implement the Prof. A. Vaidyanathan package for the long-term credit structure. Therefore, it is considered necessary to continue the Common Cadre Committee to prevent adverse effect on the functioning of Primary Co-operative Agricultural and Rural Development (PCARD) Banks. Hence, it is proposed to insert the new section 97A in the Karnataka Co-operative Societies Act, 1959. It is considered necessary to hold the elections in respect of Co- operative Credit Structure Societies also in four stages namely.- Primary, Secondary, Federal and Apex. Hence, it is proposed to amend section 98Q on the lines of section 39A (2). Hence the Bill. [L.A. Bill No. 05 of 2011, File No. Samvyashae 45 Shasana 2010] [Entry 32 of List II of the Seventh Schedule to the Constitution of India.] XXVII Amending Act 28 of 2012.- The Government of India (GOI) had appointed a task force on 05.08.2004 under the Chairmanship of Prof. A.Vaidyanathan to suggest measures for revival of short-term cooperative credit structure in the country. The said task force travelled extensively throughout the country and interacted with cooperative societies and cooperators and made a critical study of the short-term cooperative credit 1959:KAR.ACT 11] Co-operative Societies 28 structure in the Country and submitted its report to GOI on 04.02.2005. Thereafter the GOI held discussions with the representatives of the State Governments and formulated a revival package for eorganization of short- term credit cooperative structure on the basis of the recommendations of Prof.A.Vaidyanathan and taking into account the views of the State Governments and communicated the revival package to the States in January 2006. The Government of Karnataka has accepted the revival package and signed tripartite Memorandum of Understanding(MoU) with GOI & NABARD on 25.03.2008. The said MoU envisages certain amendments to be brought to the Karnataka Cooperative Societies Act 1959 giving more powers to the cooperative societies and at the same time vesting certain powers with RBI/NABARD. It is a pre-condition under the MoU that the Karnataka Cooperative Societies Act 1959 be amended accordingly before release of the financial assistance by GOI through NABARD under the package. It is considered necessary to amend the Karnataka Co-operative Societies Act 1959 with the insertion of Section 14A which empowers the Registrar to order for compulsory amalgamation or division or re- organisation of co-operative societies. This has become a necessity in the light of eorganization of districts/proposed eorganization of taluks in the State and to implements the revival package of the Government of India for short-term cooperative credit structure. Hence the Bill. [L.C. Bill No.2 of 2010, File No. Samvyashae 57 Shasana 2009] [Entry 32 of List II of the Seventh Schedule to the Constitution of India.] XXVIII Amending Act 3 of 2013.- It is considered necessary to amend the Karnataka Cooperative societies Act, 1959 (Karnataka Act No, 11 of 1959) to be in conformity with the provisions of the constitution (97th Amendment) Act, 2011. Opportunity is also taken to make other consequential amendments. Hence the Bill [L.A. Bill No.43 of 2012, File No. Samvyashae 71 Shasana 2012] [Entry 32 of List II of the Seventh Schedule to the Constitution of India.] XXIX Amending Act 35 of 2014.- In view of the 97th Amendment of Constitution of India, it is considered necessary to further to amend the Karnataka Cooperative Societies Act, 1959 (Karnataka Act 11 of 1959) to provide for.- (1) Follow the social justice by giving reservation: (2) Substitution of word "Commission" as "Authority"; (3) Define the delegate and nominee words; (4) give empower to the Registrar to make amendments for bye-laws; (5) prescribing the maximum limit for associated membership; 1959:KAR.ACT 11] Co-operative Societies 29 (6) cessation of directorship in federal and apex society; (7) prescribing the quorum of general body; (8) prescribing the qualification of professional directors in urban banks according to RBI recommendations; (9) Simplify the elections process of cooperative societies; (10) Provisions for resignation of directors and office-bearers in cooperative societies; (11) Contribution of one percent of the net profit from Urban Cooperative Banks to the Karnataka State Cooperative Urban Banks Federation; (12) Provisions for re-audit and re-verification in cooperative societies; (13) Elections disputes of cooperative societies is made as a quasi judicial; (14) Reforms of administration in Agricultural Credit Structure; and (15) Provisions for appeal when the membership is refused in cooperative societies. Hence, the Bill. [L.A. Bill No.51 of 2014, File No. Samvyashae 58 Shasana 2013] [entry 32 of List II of the Seventh Schedule to the Constitution of India] XXX Amending Act 07 of 2017.- It is considered necessary to amend the Karnataka Co-operative Societies Act, 1959 (Karnataka Act No 11 of 1959) to Provide for payment of one fourth of the total contribution made by a Co- operative society to the account of the Co-operative education fund, every year to the account of the Sahakari Academy (Reg.), Mysore, registered under the Karnataka Societies Registration Act, 1960 and sponsored by the State Government for the purpose of carrying out co-operative education, training and research. Hence, the Bill. [L.A. Bill No. 42 of 2016, File No. Samvyashae 60 Shasana 2016] [entry 32 of List II of the Seventh Schedule to the Constitution of India] 1959:KAR.ACT 11] Co-operative Societies 30 1 [KARNATAKA ACT] 1 No.11 OF 1959 (First published in the 1 [Karnataka Gazette] 1 on the Twentieth day of August, 1959.) THE 1 [KARNATAKA] 1 CO-OPERATIVE SOCIETIES ACT, 1959 (Received the assent of the President on the Eleventh day of August, 1959.) (As Amended by Karnataka Acts, 40 of 1964, 27 of 1966, 16 of 1967, 1 of 1972, 14 of 1973, 2 & 39 of 1975, 19, 70 & 71 of 1976, 14 of 1978, 16 of 1979, 3 & 4 of 1980, 5 of 1984, 34 of 1985, 34 of 1991 and 25 of 1998, 13 of 2000, 6 of 2001, 24 of 2001, 13 of 2004, 6 of 2010, 4 of 2011, 28 of 2012, 03 of 2013, 35 of 2014 and 07 of 2017) An Act 2 [to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies] 2 in the 1 [State of Karnataka] 1 . WHEREAS it is expedient 2 [to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies] 2 in the 1 [State of Karnataka] 1 ; BE it enacted by the 1 [Karnataka State] 1 Legislature in the Tenth Year of the Republic of India as follows:—