Section 49 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 49 gives the board all such powers as are necessary or expedient to carry out its functions under the Act, and lists specific powers from admitting members to sanctioning loans. In 2023 it gained a new clause (aa) on electing the Chairperson and Vice-Chairperson and a proviso on recruitment of employees. This article states the section as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
The board may exercise all such powers as may be necessary or expedient for carrying out its functions (s.49(1)). Sub-section (2) lists powers without limiting that generality, from admitting members and appointing the Chief Executive to raising funds and sanctioning loans to members. The 2023 Act adds clause (aa): the board elects the Chairperson and Vice-Chairperson (or President and Vice-President) from among the elected members, in accordance with the directions of the Authority, and the Chief Executive issues the certificate of election. Recruitment of employees is subject to a procedure to be prescribed.
Section 49(1): the general power
"The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act." The general power is tied to the board's functions under the Act. Section 49(2) says that, "without prejudice to the generality of the foregoing powers", the powers "shall include" the listed ones, so the list is illustrative, not exhaustive.
For the board's size and composition see our note on the board of directors. If you are structuring delegation between the board, the Chief Executive and committees, our legal consultation team can help.
Section 49(2): the listed powers
| Clause | Power |
|---|---|
| (a) | to admit members |
| (aa) | (inserted 2023) to elect the Chairperson and Vice-Chairperson or President and Vice-President from amongst the elected members of the board, in accordance with the directions of the Authority |
| (b) | to interpret the organisational objectives and set up specific goals |
| (c) | to make periodic appraisal of operations |
| (d) | to appoint and remove a Chief Executive and such other employees as are not required to be appointed by the Chief Executive |
| (e) | to make provisions for regulating the appointment of employees and their scales of pay, allowances and other conditions of service, including disciplinary action |
| (f) | to place the annual report, annual financial statements, annual plan and budget for the approval of the general body |
| (g) | to consider audit and compliance report and place the same before the general body |
| (h) | to acquire or dispose of immovable property |
| (i) | to review membership in other cooperatives |
| (j) | to approval annual and supplementary budget |
| (k) | to raise funds |
| (l) | to sanction loans to the members |
| (m) | to take such other measures or to do such other acts as may be prescribed or required under this Act or the bye-laws or as may be delegated by the general body |
Clause (j) is printed as "to approval annual and supplementary budget", which looks like a slip for "to approve"; we quote it and flag it.
Clauses that interact with other sections
- Clause (a), admission, sits with section 25 on who may become a member.
- Clause (d), appointment of the Chief Executive, is read with section 51 (appointment and eligibility) and section 52 (powers).
- Clause (f) and (g) feed the general body; see our note on the annual general meeting.
- Clause (l), loans to members, is limited elsewhere in the Act; section 49 gives the power and does not state the limits.
The 2023 additions
Clause (aa): election of the Chairperson and Vice-Chairperson
Clause (aa) reads: "to elect the Chairperson and Vice-Chairperson or President and Vice-President of the multi-State co-operative society from amongst the elected members of the board in accordance with the directions of the Authority".
Three things to note:
- Only an elected member of the board can be chosen, so a nominated or co-opted director does not qualify under this clause as printed.
- The board elects, not the general body.
- The manner follows "the directions of the Authority", the Co-operative Election Authority created by the substituted section 45. Whether and from when it was set up is not in the sources.
The proviso to clause (aa) says: "the certificate of election shall be issued by the Chief Executive of the multi-State co-operative society after conclusion of resolution by the board". So the Chief Executive issues the certificate after the board passes the resolution. Barriers to the top offices are in sections 44 and 46, covered in our note on bar on holding office and removal of elected members.
Proviso to clause (e): recruitment
The new proviso says: "Provided that the recruitment of such employees shall be subject to such procedure as may be prescribed." "Such employees" are the employees whose appointment the board regulates under clause (e). The procedure is left to rules; none is given here. Amendment rules were notified on 4 August 2023 (G.S.R. 591(E)); the consolidated Rules should be checked.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.49(2)(aa) | Not present | Board elects Chairperson and Vice-Chairperson (or President and Vice-President) from elected members, as the Authority directs; Chief Executive issues the certificate of election |
| s.49(2)(e) proviso | Not present | Recruitment of such employees subject to the prescribed procedure |
The 2023 Act is Act 11 of 2023 and came into force on 3 August 2023 by notification S.O. 3493(E). The principal Act came into force by notification, date not in the source. No other part of section 49 was amended.
A practical example
Ujjwal Dairy Multi-State Co-operative Society has a nine-member elected board, one nominated director and a Chief Executive. After the election of the board, the board must elect its Chairperson and Vice-Chairperson from the nine elected members; the nominated director is not eligible under clause (aa) as printed. Once the board passes its resolution, the Chief Executive issues the certificate of election. Separately, the board decides to recruit three field officers. Under clause (e) it frames the service conditions, but recruitment must follow whatever procedure has been prescribed.
Where the board's powers stop
Section 49 gives the board powers, not unlimited ones. The Chief Executive has statutory functions under section 52, the general body has its own powers under section 38, and the Act elsewhere restricts borrowing, investments and loans. The section does not say that the board may override these.
Need help with governance?
A board that wants to document its delegations, its recruitment policy or its resolution for electing office bearers can work from the text of section 49 and the bye-laws. If you want a second pair of eyes on those documents, our legal consultation team can review them.
Key takeaways
- The board has all powers necessary or expedient for its functions; the list in sub-section (2) is illustrative.
- Since 2023 the board elects the Chairperson and Vice-Chairperson from the elected members, as the Authority directs.
- The Chief Executive issues the certificate of election after the board's resolution.
- Recruitment of employees under clause (e) is subject to the prescribed procedure.
- Clause (j) is printed "to approval"; we flag it as printed.
Read next
- Meetings of the board and quorum (section 50)
- Chief Executive: appointment and eligibility (section 51)
- Elections of members of the board (section 45J)
- Multi-State Co-operative Societies Act, 2002: complete guide
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.