Nominees of the Government and other nominees on the committee of co-operative societies.

(1) (a) Where the State Government- (i) has subscribed to the share capital of a co-operative society; or (ii) has assisted indirectly in the formation or augmentation of the share capital of a co-operative society as provided under section 48; or (iii) has guaranteed the repayment of a principal and payment of interest on loans and advances to a society; the State Government or any authority specified by the State Government in this behalf shall have the right to nominate, having such qualifications and experience and in the manner as may be prescribed, not more than three members or one-third of the total number of the members of the committee of the society whichever is less. (b) Where the employer has contributed to the share capital of a co-operative society of his employees to the extent of Rs. 5,000 or more, the employer shall have right to nominate two members or one-third of the total members whichever is less, on the committee of such society. (c) Where any financing institution notified in this behalf by the Government has provided finance to a co-operative society, such financing institutions shall have the right to nominate one member on the committee. (2) A member nominated on the committee of a co-operative society under sub-section (1) shall hold office during the pleasure of the State Government or the specified authority or the employer or the financing institution, as the case may be. (3) Where in a co-operative society in which shares have been subscribed or liability by way of guarantee for borrowing has been undertaken by the Government, exceeding fifty per centum of the working capital of the society, a difference of opinion in respect of any matter arises between any member of the committee nominated under sub-section (1) (a) and other members thereof, the matter shall be referred by the committee to the Government whose decision thereon shall be final and will operate as if same were a decision taken by the committee.