Chapter II ESTABLISHMENT, INCORPORATION AND CONSTITUTION OF BOARD

1. (1) The State Government may, by notification in the Official Gazette, establish a Board for the whole of the State to be called the Gujarat State Khadi and Village Industries Board.
2. (2) The Board shall be a body corporate having perpetual succession and a common seal and may sue and be sued in its corporate name and shall be competent to acquire, hold and dispose of property, both moveable and immoveable and to contract and do all things necessary for the purposes of this Act.
3. (3) The head quarters of the Board shall be at such place as the State Government may, by notification in the Official Gazette, specify.

1. (1) The Board shall consist of non-official members, one from each district of the State, in addition to the official members appointed by the State Government. The non-official members may be chosen from amongst the persons who, in the opinion of the State Government are qualified as having had experience and capacity in matters relating to development of khadi and village industries. One of the members of the Board shall be appointed by the State Government as the Chairman of the Board. The State Government may appoint one of the other members as the Vice-Chairman and shall also appoint one or two of the remaining members as it thinks fit as the Member-secretary or Member-secretaries, as the case may be, of the Board. The Chairman and other members of the Board shall hold office for such period as the State Government may, by general or special order, direct.
2. (2) The Chairman or any other member of the Board may at any time resign his office by submitting his resignation to the State Government.
3. (3) The Chairman and other members shall receive such emoluments as may be prescribed.

A person shall be disqualified for being appointed as, or for being, a member of the Board, if such person,-

1. (a) is or is found to be a lunatic or a person of unsound mind and stands so declared by the Competent Court; or
2. (b) is adjudged insolvent; or
3. (c) has been convicted of an offence involving moral turpitude; or
4. (d) has any financial interest in any subsisting contract made with or in any work being done by the Board, except as a share holder (other than a Director) in a company as defined in section 3 of the Companies Act, 1956: Provided that where he is a shareholder, he shall disclose to the State Government the nature and extent of shares held by him in such a company;
5. (e) has any financial interest in any business dealing by the Board with any village industry; or
6. (f) being an office bearer of a village industry is held responsible by the Board for any default in payment of its dues by village industry to the Board ; or
7. (g) holds any office of profit under the Board; or
8. (h) has directly or indirectly, by himself or his partner or by a member of his family, any share or interest in any transaction of loan or money borrowed by any village industry from the Board; or
   • (i) has directly or indirectly, by himself or his partner or by a member of his family, any share or interest in any work done by the order of the Board; or
9. (j) has remained absent from three consecutive meetings of the Board without the leave of the Board.

1. (1) The members of the Board other than ex-officio members, shall hold office during the pleasure of the State Government.
2. (2) The members of the Board other than ex-officio member may resign from his office by tendering his resignation in writing to the State Government and such resignation shall take effect from the date of acceptance by the State Government.

Whenever any vacancy occurs in the office of a member of the Board other than ex-officio member, by reason of death, resignation or otherwise, it shall be filled in by the State Government as early as may be practicable after occurrence of such vacancy.

1. (1) The Board shall meet at least once in every three months, at such time and place and shall observe such rules of procedure in regard to the transaction of its business at its meetings (including quorum at such meetings) as may be provided by the regulations.
2. (2) All the questions at a meeting of the Board shall be decided by a majority of the members present and voting and, in the event of an equality of votes, the Chairman shall have and exercise a second or casting vote.

No act or proceeding of the Board or any of its committee shall be invalidated merely by reason of -

1. (a) any vacancy therein, or any defect in the constitution thereof, or
2. (b) any disqualification of or any defect in the appointment of a person acting as a member thereof, or
3. (c) any irregularity in its procedure not affecting the merits of the case.

The Board may associate itself with any person whose assistance or advise is required in performing any of its functions under this Act and such person shall have right to take part in the discussion of the Board for the relevant purpose but shall not have right to vote.

1. (1) The Board may, subject to any rules made in this behalf, constitute one or more committees as it may consider necessary for the purpose of discharging of its functions and duties efficiently, for any work or for a particular khadi and village industry or for any specified local area.
2. (2) The constitution of any such committee, the powers, duties and functions of the committee and the jurisdiction of the committee shall be such as may be determined by the Board.

1. (1) The State Government shall appoint an officer as it may think fit to be the Executive Officer to manage the affairs of the Board.
2. (2) The powers, functions and duties of the Executive Officer shall be such as be fixed by the Board with the prior approval of the State Government.
3. (3) The Board may, subject to any rules as to creation of posts or payment of salaries made in this behalf, appoint such other officers and employees sub-ordinate to the Executive Officer as it may think fit for the efficient performance of its functions.
4. (4) The officers and employees appointed under sub-section
5. (3) shall be entitled to receive such salaries and allowances and shall be governed by such terms and conditions of service as may be determined by regulations.
6. (5) The officers and employees of the Board shall perform such functions as may be imposed upon them by general or special order issued by the

Power to make contracts

1. (1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act.
2. (2) Every contract shall be made on behalf of the Board by the Chairman or an officer authorised by the Board in this behalf and be entered into in such manner as may be prescribed.