Chapter II ESTABLISHMENT AND CONSTITUTION OF THE CORPORATION

1. (1) The State Government may, by notification in the Official Gazette, add to the Schedule any class which in its opinion is a socially and educationally backward class and thereupon the class so added shall be deemed to be socially and educationally backward class specified in the Schedule for the purposes of this Act.
2. (2) Every notification issued under sub-section
3. (1) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make, during the session in which it is so laid or the session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.

1. (1) For the purpose of securing the uplift of backward class citizens in the State of Gujarat the State Government may, by notification in the Official Gazette, establish a Corporation by the name of the Gujarat Backward Classes Development Corporation with effect from such date as may be specified in the notification.
2. (2) The Corporation shall be a body corporate with perpetual succession and common seal and may be sue and be sued in its corporate name, and shall be competent to acquire, hold and dispose of property, both movable and immovable, and to contract and do all things necessary for the purposes of this Act.

The headquarters of the Corporation shall be at Gandhinagar or at such other place as the State Government may, by notification in the Official Gazette, specify.

1. (1) The Corporation shall consist of not more than fifteen directors who shall be nominated by the State Government: Provided that not less than three directors shall be officials and the remaining directors shall be non-officials who shall be nominated from amongst persons who, in the opinion of the State Government, have special knowledge or practical experience in matters relating to agriculture, agro-industries, water development projects, finance, co-operation and socio-economic problems of socially and educationally backward class citizens: Provided further that not less than six directors shall be socially and educationally backward class citizens: Provided also that the State Government shall nominate at least one woman as non-official member.
2. (2) The State Government shall appoint one of the directors as Chairman and one of the directors as Vice-Chairman.
3. (3) The State Government shall appoint one of the official directors to be the managing director of the Corporation.

1. (1) The director shall hold office during the pleasure of the state Government.
2. (2) Subject to the provisions of this Act, the terms and conditions of the appointment of the directors other than the managing director and the fees and allowances payable to them shall be such as may be prescribed.

On the occurrence of any vacancy in the office of a director due to death, resignation or any other reason, the same shall be filled up by the State Government in the manner provided in section-6.

A person shall be disqualified for being nominated as, and for being a director, if he-

1. (a) is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
2. (b) is or unsound mind and stand so declared by a competent court; or
3. (c) is, or has been, convicted of any offence which, in the opinion of the State Government, involves moral turpitude or convicted under Protection of Civil Rights Act, 1955; or
4. (d) is, or has been, removed or dismissed from the service of any State Government or the Central Government or a Corporation owned or controlled by any State Government or the Central Government.

A director who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Corporation shall, as soon as possible, after the relevant circumstance have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Corporation and the director shall not take any part in any deliberation or decision of the Corporation with respect to that matter.

1. (1) [The State Government] may, at any time, remove any director from office, if, in its opinion, such a director.
   • (a) is, or has become, subject to any disqualification mentioned in section-9:
   • (b) is absent without leave of the Corporation from more than three consecutive meetings thereof without cause sufficient, in the opinion of the Corporation, to exonerate his absence:
   • (c) has acted in contravention of the provisions of section 10; or
   • (d) has been guilty of misconduct in the discharge of his duties : Provided that no order of removal shall be passed without giving the director a reasonable opportunity of showing cause against the proposed order.
2. (2) A director may resign his office by giving notice thereof in writing to the State Government and on such resignation being accepted he shall be deemed to have vacated his office.

1. (1) The managing director shall be a whole time officer of the Corporation and shall-
   • (a) be the Chief Executive Officer of the Corporation,
   • (b) be responsible for the operational management of the Corporation and implementation of the general policy approved by the Corporation,
   • (c) perform such duties as the Corporation may, by regulations or otherwise, assign to him,
   • (d) receive such salary and allowances and be governed by such terms and conditions of service as may be approved by the State Government in consultation with the Corporation.
2. (2) If the managing director is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise in circumstances not involving the vacation of his appointment the State Government may appoint another person to act in his place during his absence.

1. (1) The Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions and determine by regulations or otherwise their conditions of appointment and service and the remuneration payable to them.
2. (2) The Corporation may, by general or special order, delegate to the managing director or to any other officer or employee of the Corporation, subject to such conditions and limitations, if any, as may be specified, such of its powers and duties under this Act except the power to make regulations, at it may deem necessary.

1. (1) The Corporation shall meet at the such time and place and shall observe such rules of procedure in regard to the transaction or business at its meetings (including the quorum at such meeting) as may be provided by regulations.
2. (2) The Chairman or, if for any reason he is unable to attend any meeting, the Vice-Chairman or, if for any reason he is also unable to attend any meeting, any other director elected by the directors present at the meeting, shall preside at the meeting of the Corporation.
3. (3) All the questions which come up before any meeting of the Corporation shall be decided by a majority of the votes of directors present and voting, and in the event of an equally of votes, the Chairman or, in his absence, the Vice-Chairman or, in absence of both the Chairman and the Vice-Chairman, the person presiding, shall have and exercise a second or casting vote.

1. (1) No act or proceeding of the Corporation shall be questioned or be invalid on the ground merely of the existence of any vacancy in, or any defect in, the constitution of the Corporation.
2. (2) No act done by any person acting in good faith is a director shall be deemed to be invalid merely on the ground that he was disqualified to be a director or that there was any other defect in his nomination.

No person shall be disqualified for being chosen as, or being, a member of the Legislative Assembly of the State by reason only of the fact that he is a Chairman or a director.