The Hindu Business Line : `Bring co-op sector under corporate governance'

WITH large amounts of public money involved in the cooperative sector, the Institute of Company Secretaries of India (ICSI) wants such bodies to be brought under corporate governance norms.

"There is a need for greater transparency in the accounting practices of the cooperatives. Several of these agencies have large investments by individuals and their members need to be aware of the actions of their trustees. We are speaking to state governments to enact laws to bring the cooperative sector in the ambit of corporate governance," the ICSI President, Mr R. Ravi, told Business Line on Thursday.

To begin with, ICSI will make a presentation before the Gujarat Government highlighting the need for legislation on the issue. It would also make similar presentations before several state governments, including Maharashtra, Tamil Nadu and Uttar Pradesh, where there is a strong cooperative movement, Mr Ravi said.

The ICSI is lobbying with the Central Government to permit the formation of multi-disciplinary partnership firms in order to face competition from similar firms abroad that would now be allowed to offer their services in India as per the new World Trade Organization (WTO) norms.

In order to get recognition as a service under WTO, the ICSI has been engaging similar institutions in different countries. "Right now, company secretaryship is not recognised as a distinct service. Different aspects of our activities are covered under different services. We are now trying to get recognition for the profession at WTO," said the ICSI Secretary, Mr N.K. Jain.

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`Bring co-op sector under corporate governance'