Neil Parekh Nimil Rajnikant on Co-operative Societies (Amendment) Bill

Co-operative societies play a significant role in Singapore's economic landscape, as evident during the COVID-19 pandemic when they helped people who were displaced at the workplace or were struggling with reduced pay, said NMP Neil Parekh Nimil Rajnikant. Speaking in Parliament on Wednesday (Apr 3), he said by proposing to allow dividends and honorariums to be paid from the reserves with the Registrar’s approval, the Act acknowledges the need for greater operational flexibility. This would empower leadership and ensure co-operative societies can respond more rapidly to the changing needs of members. He said the Co-operative Societies (Amendment) Bill represents a pragmatic shift towards a more efficient and responsive governance. He also sought clarifications on the Bill and wanted to know how obtaining the Registrar’s approval for distributing dividends or paying from the reserves would work in practice. He asked if there has been any assessment of the impact of the amendments on members’ rights and benefits. He also wanted to know what additional guidelines would be needed to ensure transparency and accountability.