Sections 53 and 54 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 53 lets the board set up an Executive Committee and other committees, and since 2023 it makes two committees compulsory: an Audit and Ethics Committee and a Committee on prevention of sexual harassment at work place. Section 54 gives the Chief Executive a route to a magistrate to secure records and property in three situations. Section 54 was not amended in 2023. This article states both as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
Under section 53(1), as substituted in 2023, the board "may constitute an Executive Committee, and such other committees or sub-committees as may be specified in the bye-laws", and it shall constitute an Audit and Ethics Committee and a Committee on prevention of sexual harassment at work place. Under section 54, the Chief Executive may apply to the magistrate to secure records and property where they are at risk, where the board is reconstituted at a general meeting, or where a winding-up order is made and the outgoing board refuses to hand over charge.
Section 53: committees of the board
A society setting up these committees can get the board resolution and terms of reference reviewed by our legal consultation team.
Sub-section (1) after 2023
The substituted sub-section reads: "The board may constitute an Executive Committee, and such other committees or sub-committees as may be specified in the bye-laws of the multi-State co-operative society: Provided that the board shall constitute— (a) an Audit and Ethics Committee; (b) a Committee on prevention of sexual harassment at work place."
So there are two tiers:
| Tier | Committee | Nature in the text |
|---|---|---|
| Optional ("may") | Executive Committee; other committees or sub-committees as specified in the bye-laws | The bye-laws decide on the others |
| Compulsory ("shall") | Audit and Ethics Committee | The board must constitute it |
| Compulsory ("shall") | Committee on prevention of sexual harassment at work place | The board must constitute it |
The Act gives no membership, size, chair, tenure or terms of reference for the two compulsory committees. Whatever rules may be prescribed on these points are not in the sources; amendment rules were notified on 4 August 2023 (G.S.R. 591(E)) and the consolidated Rules should be checked. The Act uses the words "sexual harassment at work place" and names no statute on the subject, so we name none.
What the substitution removed
The principal copy's sub-section (1) said the board may constitute committees "subject to such conditions as may be prescribed", and carried a proviso that "other committees or sub-committees, other than the Executive Committee shall not exceed three". The 2023 Act substitutes sub-section (1) as a whole, and the substituted text has neither the "conditions as may be prescribed" nor the cap of three. We state that as a comparison of the two texts and do not read anything further into it.
Sub-section (2): functions
"The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State cooperative society." This sub-section was not amended. It refers to "other committee or sub-committee", and does not mention the two compulsory committees by name; it applies to committees "referred to in sub-section (1)". Whether the functions of the Audit and Ethics Committee are also to be assigned by the bye-laws is a question the text leaves open.
The Chief Executive is a member of the Executive Committee and of the other committees under section 51(2); see our note on the Chief Executive's appointment and eligibility. The Chief Executive also convenes committee meetings and keeps their records under section 52(e); see the Chief Executive's powers and functions.
Section 54: securing possession of records
When the Chief Executive may apply
Section 54(1) applies if:
- (a) the records, including registers and books of account, "are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated"; or
- (b) the board "is reconstituted at a general meeting of the society"; or
- (c) the society "is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge."
In those cases "the Chief Executive may apply to the magistrate within whose jurisdiction the multi-state cooperative society functions for securing the records and property of the society."
Notice that the application is by the Chief Executive and that the magistrate is the one within whose jurisdiction the society "functions". The sub-section does not say who acts if the Chief Executive is himself the person suspected of tampering.
The warrant
Under sub-section (2), "on receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property". The records and property seized "shall be handed over to the new board or the liquidator, as the case may be". The print has no full stop after "as the case may be". The word is "may": the magistrate has a discretion.
The procedure
Sub-section (3): "Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974)." Check the current law for the corresponding provision. No other law is named.
A practical example
At the general meeting of Prakash Multi-State Co-operative Society, the members vote to reconstitute the board. The outgoing chairman keeps the registers and the cash book at his own premises. Under section 54(1)(b) the Chief Executive may apply to the magistrate; if the magistrate issues a warrant, a police officer not below the rank of sub-inspector can enter, search and seize, and the records go to the new board. In a second case, a society is ordered to be wound up under section 86 and the outgoing board members refuse to hand over charge; clause (c) applies and the records go to the liquidator.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.53(1) | Board may constitute an Executive Committee and other committees or sub-committees, subject to conditions as may be prescribed; other committees not to exceed three | Board may constitute an Executive Committee and other committees specified in the bye-laws; board shall constitute an Audit and Ethics Committee and a Committee on prevention of sexual harassment at work place |
| s.53(2) | As above | Unchanged |
| s.54 | As above | Unchanged |
The 2023 Amendment Act is Act 11 of 2023 and came into force on 3 August 2023 by notification S.O. 3493(E).
Need help setting up board committees?
A board that has not yet constituted the two compulsory committees should record the decision, the members and the terms of reference. Our legal consultation team can help you draft the resolution and check it against the bye-laws.
Key takeaways
- The board may constitute an Executive Committee and other committees specified in the bye-laws.
- Since 2023 the board must constitute an Audit and Ethics Committee and a Committee on prevention of sexual harassment at work place.
- The old cap of three on other committees does not appear in the substituted text.
- Under section 54 the Chief Executive may apply to the magistrate in three situations to secure records and property.
- The magistrate may authorise a police officer not below the rank of sub-inspector to search and seize, under the Code of Criminal Procedure, 1973.
Read next
- Chief Executive: appointment and eligibility (section 51)
- Powers and functions of the Chief Executive (section 52)
- Appointment and remuneration of auditors (section 70)
- 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.