Committee, qualifications and disqualifications of members of Committee

1. (1) The management of every society shall vest in a Committee constituted under this Regulation, which shall exercise such powers and perform such duties as may be conferred or imposed on it by this Regulation, the rules and the bye-laws: Provided that in case of co-operative society carrying on the business of banking, the fit and proper criteria framed by the Reserve Bank shall be followed.
2. (2) Save as otherwise provided, the Managing Committee of a society, which is not an apex society, shall consist of, such number of elected members not exceeding twenty-one. Explanation.––For the purposes of this sub-section, the expression “apex

society ” means a society,—

1. (a) the area of operation of which extends to the whole of the Union territory;
2. (b) the main object of which is to promote the principal objects of the societies affiliated to it as members and to provide for the facilities and services to them; and
3. (c) which has been classified as an apex society by the Registrar.

1. (3) There shall be reserved one seat for the Scheduled Castes or the Scheduled Tribes or Other Backward Classes and two seats for women in the Managing Committee of every society consisting of individuals as members and having members from such class or category of persons as may be prescribed: Provided that one seat may be reserved for the persons who are small farmers and marginal farmers.
2. (4) Every member of a society who is entitled to vote shall be eligible for appointment as a member of a Committee thereof, if––
   • (a) he is continuously a member of the society for a period not less than three years and continues to be such member;
   • (b) he is not in default in respect of any loan taken by him from any co-operative society, co-operative bank or any other financial institution;
   • (c) he has any interest directly or indirectly in any subsisting contract made with the society or in any property sold or purchased by the society or any other transaction of the society except in any investment made in or any loan taken from the society;
   • (d) he is not otherwise disqualified for being appointed as such member;
   • (e) he is not held responsible under section 87;
   • (f) no order for recovery of costs is made against him by a magistrate under section 97;
   • (g) no order is made against him under sections 65 and 99;
   • (h) he is not found guilty of any of the offences mentioned under

section 156 or any offence under section 314 of the Bharatiya Nyaya

Sanhita, 2023, in respect of the property of any society.

1. (5) A member of the Committee who incurs any of the disqualifications specified above shall vacate the office, and if he does not vacate such office, he shall be removed by the Registrar as such member: Provided that the Registrar shall before issuing the order of removal, give the person concerned an opportunity of being heard.
2. (6) Notwithstanding anything contained in sub-sections (4) and (5),––
   • (a) in case of societies dispensing with credit, no person who carries on the business of money lending, shall be eligible for appointment as a member of the Managing Committee of the society;
   • (b) a member of a society, who carries on business of the kind carried on by the societies of which he is the member, shall not be eligible to be the member of any Committee of that society without the sanction of the Registrar.
3. (7) Where any person becomes a member of a Committee of a society in contravention of sub-section (6), he shall be removed from office as a member of such Committee by the Registrar: Provided that the Registrar shall, before issuing the order of removal, give the person concerned an opportunity of being heard.
4. (8) The term of the elected members of the Managing Committee and its office bearers shall be five years from the date of election for all co-operative societies including co-operative bank and federal societies: Provided that the Managing Committee shall fill up a casual vacancy in the Committee by nomination out of the same class or categories of members in respect of which the casual vacancy has arisen within sixty days from the date of such vacancy, if the remaining term of office of the Managing Committee is less than half of its original term.
5. (9) The elected members of the Managing Committee and its office bearers shall cease to hold the office on the date of expiry of their term.
6. (10) The office bearers of the Managing Committee of the societies shall be eligible for re-election.
7. (11) The society shall co-opt persons having experience in the field of banking, management, finance or specialisation in any other field relating to the objects and activities undertaken by the society as the members of the Managing Committee: Provided that the number of such co-opted members shall not exceed two in addition to the twenty-one members as specified in sub-section (2).
8. (12) The co-opted members as aforesaid shall not have the right to vote in any election of the society in their capacity as such members or to be eligible to be elected as office bearers of the Managing Committee.
9. (13) In case, where there are functional directors of a society, they shall also be members of the Managing Committee and such members shall be excluded for the purpose of counting the total number of members of such Managing Committee. Explanation.––For the purposes of this sub-section, the expression “functional director” means and includes a Managing Director or a Chief Executive Officer, by whatever designation called, or any exofficio member or any of the Head of the Department of the concerned society, nominated by the Committee.
10. (14) No Committee member of a society shall, as a Committee member, be present in the discussion of, or vote on, any contract or arrangement entered into, or to be entered into, by or on behalf of such society, if he or his relative is directly or indirectly concerned or interested in such contract or arrangement and no relative of any of the sitting Managing Committee members of the society shall be recruited as employee including the Chief Executive Officer of that society. Explanation.––For the purposes of this sub-section, the term “relative” with reference to an individual, includes—
    • (a) spouse;
    • (b) father (including step father);
    • (c) mother (including step mother);
    • (d) son (including step son);
    • (e) son’s wife;
    • (f) daughter (including step daughter);
    • (g) daughter’s husband;
    • (h) father’s father;
      • (i) father’s mother;
    • (j) mother’s father;
    • (k) mother’s mother;
    • (l) son’s son;
    • (m) son’s son’s wife;
    • (n) son’s daughter;
    • (o) son’s daughter’s husband;
    • (p) daughter’s son;
    • (q) daughter’s son’s wife;
    • (r) daughter’s daughter; daughter’s daughter’s husband;
    • (t) brother (including step brother);
    • (u) brother’s wife;
      • (v) sister (including step sister);
    • (w) sister’s husband; and
      • (x) Hindu undivided family.
11. (15) Any member of the Managing Committee who violates the provision of sub-section (14), shall be disqualified for being a member of the Managing Committee and deemed to have vacated his office from the date of such meeting of the Managing Committee as is referred to in the said sub-section and such proceedings shall be deemed to be void.