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(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of elections of the members of the committee of, a co-operative society shall be vested in the committee.
(2) The vote at such election shall be by secret ballot.
(3) The term of office of the elected members of the committee shall be three years.
(4) All co-operative societies shall hold election at the commencement of this Act on the date fixed for holding annual general body meeting as provided in section 31 and on failure to conduct election as aforesaid, the committee shall cease to hold office and its affairs shall be managed by a person (hereinafter referred to as "administrator") appointed by the Registrar who shall also hold election within ninety days of his appointment.
(5) Thereafter the committee shall arrange election of the new committee before the expiry of its term and in case the committee fails to do so, the committee shall cease to hold office on the expiry of its term and the affairs of the co-operative society shall be managed by an administrator appointed by the Registrar who shall also hold election within ninety days from the date of his appointment.
(6) No person shall be eligible to be elected as a member of the committee of a co-operative society unless he is a shareholder of that co-operative society.
(7) Notwithstanding any thing contained in this Act, a person shall be disqualified for election of office in a committee -
(a) if he holds any such office on a committee of another co-operative society of the same type;
(b) if he holds any such office on the committees of three or more co-operative societies of a different type or types;
(c) if he has been held guilty of any of the offences as enumerated in section 118;
(d) if he is an officer of a co-operative society which has not got its statutory audit completed within the statutory period prescribed in this Act; or
(e) if he fails to give a declaration on oath about his eligibility for contesting election as prescribed.
(8) On the committee of a co-operative society or class of co-operative societies where the Government has subscribed to the share capital seats shall be reserved for scheduled castes, other backward classes and women as may be prescribed and two seats for women in all types of co-operative societies.
(9) The Government may make rules generally to provide for or to regulate matters in respect of elections of members of the committees.
(10) Notwithstanding anything contained in sub-section (1) to sub-section (9), where the Government has subscribed to the share capital of a co-operative society, the Government shall have right to nominate on the committee such number of persons as its members on the following basis, namely -
(a) where the total amount of issued equity share capital held by the Government is less than twenty six per cent of the total issued equity share capital, one member on the committee;
(b) where total amount of issued share capital held by the Government is twenty six per cent or more, but less than fifty one per cent of the total equity share capital, two members on the committee;
(c) where the total amount of issued equity share capital held by the Government is fifty one per cent or more of the total issued share capital, three members of the committee:
Provided that the number of such nominated persons shall not exceed one-thirds of the total number of members of the committee or three, whichever is less :
Provided further that where the Government has guaranteed repayment of principal and payment of interest on debenture issued by the co-operative society or guaranteed repayment of principal and payment of interest on loans and advances to a co-operative society, the Government shall have the right to nominate a person on the committee of such a co-operative society as may be prescribed :
Provided also that in case of a financing bank, there shall be a Director on the Board from NABARD with or without any share holding with the right of vote in the affairs thereof;
(d) where the Industrial Finance Corporation of India or a federal co-operative society or a financing bank or the Delhi Financial Corporation Ltd. or any other financing institution notified in this behalf by the Government has provided finance to a co-operative society, the Industrial Finance Corporation of India or such federal co-operative society or financing bank or the Delhi Financial Corporation Ltd., or such other financing institution, as the case may be, shall have the right to nominate one person on the committee.
(11) A person nominated under sub-section (10) shall hold office during the pleasure of the Government or the concerned Corporation or federal co-operative society, or financing bank or other financing institution, as the case may be.
Last Updated Date :- 09-05-2018
Page last updated on: 22-09-2021