Q.State and explain the powers and functions of the general body of a co-operative society.

Because the general body is the supreme authority, the Act reserves to it a set of important powers that the managing committee cannot exercise on its own.

Because the general body is the supreme authority of a co-operative society, the Maharashtra Co-operative Societies Act, 1960 reserves to it a set of important powers that the managing committee cannot exercise on its own. These reserved powers are the practical expression of member control, and they can be explained under the following heads.

First, in relation to the working of the society, the general body considers and adopts the annual report of the managing committee on the year's working, together with the audited annual accounts, including the balance sheet and the profit and loss account. This is how the members review and formally approve the way the society has been run over the past year.

Second, and very importantly, the general body decides the disposal of the net profits of the society. It determines how the surplus is to be divided — the transfer to the reserve fund, the declaration of dividend to members and bonus, contributions to co-operative education and other statutory funds, and any other purpose permitted by the Act and bye-laws. Control over the money of the society thus rests with the whole membership.

Third, the general body elects the members of the managing committee, and, where the law allows, can remove them. This is the power to choose — and to change — the persons who manage the society, and it is what makes the committee answerable to the members.

Fourth, the general body considers the audit report and decides on the rectification of the defects and irregularities pointed out by the auditor, thereby exercising control over the correctness and honesty of the society's affairs. Fifth, the general body alone has the power to amend the bye-laws of the society (the amendment taking effect on its registration by the Registrar) — that is, the power to alter the society's own constitution. Sixth, the general body approves the annual budget or programme where the bye-laws so require, sanctions expenditure of an exceptional kind beyond the committee's ordinary authority, and fixes the maximum limit up to which the committee may borrow, thereby controlling the society's finances and borrowings. …