Chapter II ESTABLISHMENT AND CONSTITUTION OF THE BOARD.

(1) As soon as may be after the commencement of this Act, the State Government shall, by notification in the Official Gazette, with effect from a date to be specified therein, established for the purpose of this Act, a Board to be called the "Gujarat Municipal Finance Board". (2) The Board shall be a body corporate, having perpetual succession and a common seal, with powers subject to the provisions of this Act, to acquire, hold or dispose of property both, movable and immovable and to contract and to do all things necessary for the purpose of this Act, and may sue or be sued by its corporate name. (3) The head office of the Board shall be at such place, as the State Government may, by notification in the Official Gazette, direct.

(1) The Board shall consist of the following members, namely:— (i) a Chairman to be appointed by the State Government; (ii) three members to be appointed by the State Government who, in the opinion of the State Government, have knowledge of the municipal finances or municipal administration out of whom at least one shall be a woman; (iii) three members to be appointed by the State Government by virtue of their office from amongst the officers of the State Government out of whom at least one shall be a woman; (iv) one member to be appointed by the State Government by virtue of his office or otherwise from amongst the officers of the State Government who in the opinion of the State Government, has experience in the financial matters and administration of the Government and the local authorities. (2) The member appointed under clause (iv) of sub-section (2) shall be the Chief Executive Officer of the Board.

A person shall be disqualified for being appointed as, or for being a member, if he—- (a) has been removed or dismissed from the service of Government, or, of a local authority or, a corporation owned or controlled by Government; or (b) has been convicted of an offence which in the opinion of the State Government involves moral turpitude; or (c) is of unsound mind and stands so declared by a competent court; or (d) is an undischarged insolvent; or (e) has such financial or other interest as is likely to affect prejudicially his functions as a member of the Board.

(1) The Chairman and the members other than those appointed by virtue of their office shall hold office during the pleasure of the State Government. (2) A member who is appointed by virtue of his office shall, unless dismissed earlier, cease to be such member on his ceasing to hold that office. (3) (a) The Chairman shall be entitled to draw such honorarium, sitting fees and allowances as may be prescribed. (b) The members other than those appointed by virtue of their office, shall be entitled to draw such sitting fees and allowances as may be prescribed. (c) The members who are appointed by virtue of their office may be paid such compensatory allowance for the purpose of meeting the personal expenditure in attending the meetings of the Board or any committee thereof or for being appointed in connection with the work undertaken by or for the Board as may be prescribed. (4) The honorarium, sitting fees and allowances of the Chairman and sitting fees and allowances including compensatory allowance of the members shall be paid from the Fund.

(1) If a member- (a) becomes subject to any of the disqualifications mentioned in section 5, or (b) tenders his resignation in writing to, and such resignation is accepted by, the State Government, or (c) is absent without the permission of the Board from three consecutive meetings of the Board or from all meetings of the Board for three consecutive months, he shall cease to be a member of the Board. (2) The State Government may, by order, suspend from office for such period as it thinks fit, or remove from office, any member of the Board who in its opinion,- (a) has refused to act, or (b) has become incapable of acting, or (c) has so abused his position as member as to render his continuance on the Board detrimental to the interest thereof or of the general public, or (d) is otherwise unfit to continue as a member.

Any vacancy of a member of the Board shall be filled as early as practicable: Provided that, during any such vacancy the continuing members may act as if no vacancy had occurred.

If the Chairman is by infirmity or otherwise rendered incapable of carrying at his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, such person, as the State Government may appoint, shall act as the Chairman.

No act or proceeding of the Board or a Committee appointed by the Board shall be invalid merely on the ground of— (a) any vacancy of a Chairman or a member or any defect in the constitution or reconstitution of the Board or a committee thereof; or (b) any defect or irregularity in the appointment of a person as a Chairman or member of the Board or of a committee thereof; or (c) any defect or irregularity in such act or proceeding, not affecting the substance.

(1) The Board shall hold meetings at such times and places, and shall subject to the provisions of sub-sections (2), (3) and (4) follow such procedure in regard to the transaction of business at its meetings as may be provided in the regulations. (2) The Chairman, and in his absence any person chosen by the members present from amongst themselves, shall preside at meetings of the Board. (3) All questions at a meeting of the Board shall be decided by a majority of the votes of the members present and voting and, in the case of an equality of votes, the person presiding shall have a second or casting vote. (4) The number of members necessary to constitute a quorum at a meeting shall be such as may be provided in the regulations and no business shall be transacted at any meeting unless the members constituting the quorum are present throughout such meeting.

(1) The Board may, from time to time, constitute from amongst its members one or more committees each consisting of such number as the Board may consider necessary, for the purpose of discharging such of its duties and functions as may be delegated to such committee or committees by the Board. (2) A committee constituted under sub-section (1) shall meet at such time and at such place and shall follow such procedure in regard to the transaction of business at its meetings (including the quorum) as may be provided in the regulations.

(1) The State Government shall appoint an officer to be the secretary to the Board who shall be subordinate to the Chief Executive Officer. (2) The Board may appoint such other officers and servants subordinate to the Chief Executive Officer as it considers necessary for the efficient performance of its duties and functions. (3) The recruitment and conditions of service of- (a) the secretary shall be such as may be proscribed, and (b) the other officers and servants shall be such as may be determined by regulations.