Chapter II ESTABLISHMENT OF BOARD OF INDUSTRIES AND MATTERS

CONNECTED THEREWITH

purposes of this Act, the State Government shall, as soon as possible, after thecommencement of this Act, establish Board to be called the “Board of Industries” consisting of the following members, namely:-

1. (a) the Chairman to be nominated by the State Government;
2. (b) the Director;
3. (c) the Managing Director, Himachal Pradesh Financial Corporation; Subs. for ‘Union territory of Himachal Pradesh’ by A.O. 1973. The Board constituted vide Not. No. 7-2/73-SI (Loan) dated the 31 st August, 1973, (Appended).
4. (d) three non-official members to be appointed by the State Govern- ment; and
5. (e) three members to be elected by the Legislative Assembly of HimachalPradesh from amongst members of the Assembly, election beingin accordance with principle of proportional representation by means of the single transferable vote: Provided that the Board shall have power to invite for consultation on any particular question before it, not more than three persons specially qualified to advise on the matter in question or having special knowledge of local conditions in the area where the industry in question is situated. Any person so invited by the Board shall not have the right to vote.

1. (2) The Director shall be ex-officio Secretary of the Board.
2. (3) Four members of the Board shall form a quorum.

If by such date as may be fixed by the State Government, the Legislative Assembly of Himachal Pradesh does not elect any member to be elected by it under the provisionsof clause (e) of section 3 (1), the State Government shall appoint a member of that Assembly to be a member of the Board, as if he had been duly elected under that clause.

The Board may, from time to time, elect, for such period as it thinks fit, one of its members to be the Vice-Chairman.

The names of the Chairman, Vice-Chairman and ofthe appointed and elected members of the Board shall be published by the State Government in the Official Gazette.

(1) The Vice-Chairman or any other appointed or elected member may resign his office by giving notice in writing to the Chairman. (2) (a) Subject to the provisions of this Act, an appointed member shall hold office for five years unless the State Government otherwise directs; and an elected member shall hold office for five years or until such time as he ceases to be a member of the body electing him, whichever is shorter. (b) An outgoing member may, if otherwise qualified, be re-elected or re-appointed. (3) Notwithstanding the expiration of the term mentioned in sub- section (2), an appointed or elected member shall continue to hold office until the vacancy caused by the expiration of the said term has been filled, provided that no vacancy shall be allowed to remain unfilled for more than six months.

1. (2) (a) Subject to the provisions of this Act, an appointed member shall hold office for five years unless the State Government otherwise directs; and an elected member shall hold office for five years or until such time as he ceases to be a member of the body electing him, whichever is shorter.
   • (b) An outgoing member may, if otherwise qualified, be re-elected or re-appointed.
2. (3) Notwithstanding the expiration of the term mentioned in sub- section (2), an appointed or elected member shall continue to hold office until the vacancy caused by the expiration of the said term has been filled, provided that no vacancy shall be allowed to remain unfilled for more than six months.

(1) The State Government may, by noti- fication, in the Official Gazette remove the Chairman, Vice-Chairman or any member of the Board ifhe- (a) refuses to act or becomes incapable of acting as a member of theBoard; or (b) isdeclaredinsolvent; or (c) is convicted of any such offence, or is subjected by a criminal courtto any such order, as in the opinion of the State Governmentimplies a defect of character which unfits him to continue to bea Chairman, Vice-Chairman, or member of the Board, provided that before the State Government notifies the removal of a member under this sub-section, the reason for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing; (d) without excuse, sufficient in the opinion of the State Government, is absent, without the consent of the Board, from more than four consecutive meetings ofthe Board. (2) The State Government may fix a period during which any person soremoved under clause (b) or (c) of sub-section (1) of this section shall not be eligible for re-appointment or re-election.

1. (a) refuses to act or becomes incapable of acting as a member of theBoard; or (b) isdeclaredinsolvent; or
2. (c) is convicted of any such offence, or is subjected by a criminal courtto any such order, as in the opinion of the State Governmentimplies a defect of character which unfits him to continue to bea Chairman, Vice-Chairman, or member of the Board, provided that before the State Government notifies the removal of a member under this sub-section, the reason for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing;
3. (d) without excuse, sufficient in the opinion of the State Government, is absent, without the consent of the Board, from more than four consecutive meetings ofthe Board.

1. (2) The State Government may fix a period during which any person soremoved under clause (b) or (c) of sub-section (1) of this section shall not be eligible for re-appointment or re-election.

When the place of any member of the Board becomes vacant by his removal, resignation or death, a new member shall be appointed by the State Government: Provided that if the place of any member elected by the Legislative Assembly of Himachal Pradesh becomes vacant, the Assembly shall elect another member, in his place, election being in accordance with the principle of proportional representation by means of the single transferable vote: Provided further that any person so appointed under this section shall be subject to retirement at the same time as if he had become a member of the Board on the day on which the member of the Board in whose place he is appointed was last appointed a member of the Board: Provided further that no act of the Board or of its officers shall be deemed to be invalid by reason only that the number of members of the Board at the time of performance of such act was less than the number provided by section 3.

Assembly of Himachal Pradesh becomes vacant, the Assembly shall elect

another member, in his place, election being in accordance with the principle of proportional representation by means of the single transferable vote: Provided further that any person so appointed under this section shall be subject to retirement at the same time as if he had become a member of the Board on the day on which the member of the Board in whose place he is appointed was last appointed a member of the Board: Provided further that no act of the Board or of its officers shall be deemed to be invalid by reason only that the number of members of the Board at the time of performance of such act was less than the number provided by section 3.

The members of the Board and the members of committees, which may be appointed by the Board, when necessary, shall be paid travelling allowance of the prescribed amount and on the prescribed conditions for attending meetings of the Board, or for performing any duty assigned to them by the Board for the purposes of this

President at meetings.-(1) The Chairman or, in his absence, the Vice-Chairman shall preside at every meeting of the Board, and shall have a second or casting vote in all cases of equality of votes.

1. (2) In the absence of both the Chairman and the Vice-Chairman, the members present at any meeting may elect one of the members to preside, who shall have a second or casting vote in all cases of equality of votes.

No member of the Board shall vote on any question coming before the Board for consideration in which (otherwise than in its general application to all persons and properties within the State) he has a pecuniary interest. Explanation.-In case of any question arising whether a member has or has not a pecuniary interest, the decision of the Chairman shall be final.

(1) The Board may make regulations, consistent with this Act and the rules made thereunder, for the carrying out of all or any of its purposes. (2) In particular and without prejudice to the generality of the foregoing power, the Board may make regulations regulating or determining all or any of the following matters, namely:- (i) the time and place of its meetings; (ii) the manner in which notice of meetings shall be given; (iii) the conduct of proceedings at meetings; (iv) the division of duties among the members of the Board; and (v) the appointment, duties and procedure of special committeesconsisting wholly of members of the Board or partly of such membersand partly of other persons.

1. (2) In particular and without prejudice to the generality of the foregoing power, the Board may make regulations regulating or determining all or any of the following matters, namely:-
   • (i) the time and place of its meetings;
   • (ii) the manner in which notice of meetings shall be given;
   • (iii) the conduct of proceedings at meetings;
   • (iv) the division of duties among the members of the Board; and
   • (v) the appointment, duties and procedure of special committeesconsisting wholly of members of the Board or partly of such membersand partly of other persons.

(1) If at any time it appears to the StateGovernment that the Board is not properly performing the duties imposed upon it by or under this Act, the State Government may,afterconsideringanyexplanation offered by the Board, by an order in writing specifying the reasons for so doing, dissolve the Board and direct that the vacancies shall thereupon be filled by election in respect of elected members and by appointment in respect of appointed members in the manner indicated above.

1. (2) From the date of an order under sub-section (1) until the vacancies an filled, all powers and duties of the Board shall be exercised and performed by such person in such manner as the State Government may direct.

1. (a) to report to the State Government, after such enquiry, if any, as itdeems necessary or as may be required by this Act, on applicationsfor State aid that may be referred to it for advice by the State Government or any officer authorised in this behalf by it; and
2. (b) to advise the State Government on any matter that may be referredto it: Provided that the State Government shall not sanction State aid withoutreference to the Board except in the case of a loan the amount of which doesnot exceed Rs. 30,000.

If the State Government so directs, the Secretary shall forward to the State Government any document and prepare and submit any report relating to the work of the Board.