Chapter II Chapter II

Establishment of a Board of Industries.—

1. (1) For carrying out the purposes of this Act, the Government shall, as soon as possible, after the commencement of this Act, establish a Board to be called the "Board of Industries" consisting of the following members, namely:—
   • (a) Minister-in-Charge of Industries ;
   • (b) the Director of Industries ;
   • (c) three members to be appointed by the Government one of whom shall be a banking expert ;
   • (d) two members to be elected by the Jammu and Kashmir Legislative Assembly and one member to be elected by the members of the Jammu and Kashmir Legislative Council from among their members, election being in accordance with the principle of single transferable vote ;
   • (e) one member to be elected by the Chamber of Commerce, Srinagar ; and
   • (f) one member to be elected by the Chamber of Commerce, Jammu : Provided that the Board shall have power to invite for consultation on any particular question before it not more than three persons specially qualified in its opinion to advise on the matter in question or having special knowledge of local conditions in the area where the industry in question is situate : Provided further that at any meeting of the Board the Minister shall have power to invite any person for consultation on any particular question. Any person so invited whether by the Board or by the Minister shall not have the right to vote.
2. (2) The Minister-in-Charge of Industries shall be ex-officio Chairman and the Director shall be ex-officio Secretary of the Board.
3. (3) Five members of the Board shall form a quorum.

Procedure in default of election of members.—If by such date as may be fixed by the Government, any of the bodies referred to in clauses (d),

1. (e) and
2. (f) of sub-section

1. (1) of section 3 does not elect a member to be elected by it under the provisions of that section, the Government shall appoint a suitable person from among those bodies to be such member and any person so appointed shall be deemed to be a member as if he had been duly elected by the body failing to elect a member under the said provisions.

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

Elections and appointments to be notified in Government Gazette.—The names of the Vice-Chairman and of the appointed and elected members of the Board shall be published by the Government in the Government Gazette.

Term of office.—

1. (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 three years, unless the Government otherwise directs ; and an elected member shall hold office for three years or until such time as he ceases to be a member of the body electing him whichever is shorter : Provided that in the case of members elected under the provisions of section 3 by bodies other than the Jammu and Kashmir Legislative Assembly, the term of membership shall in any case, terminate automatically on the dissolution of the Legislative Assembly.
   • (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.

Removal of members.—

1. (1) The Government may, by notification, remove the Vice-Chairman or any member of the Board if he—
   • (a) refuses to act or becomes incapable of acting as a member of the Board ;
   • (b) is declared insolvent ;
   • (c) is convicted of any such offence or is subjected by a Criminal Court to any such order as in the opinion of the Government implies a defect of character which unfits him to continue to be a Vice-Chairman or member of the Board, provided that before the 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 Government, is absent, without the consent of the Board, from more than four consecutive meetings of the Board.
2. (2) The Government may fix a period during which any person so removed under clause
   • (b) or
   • (c) of sub-section
3. (1) of this section shall not be eligible for reappointment or re-election.

Casual vacancies.-When the place of any appointed or elected member of a Board becomes vacant by his removal, resignation or death, a new member shall be appointed or elected in the manner provided in section 3: Provided that if the place of any member elected by the Jammu and Kashmir Legislative Assembly or the Jammu and Kashmir Legislative Council becomes vacant, the Government may nominate in his place another member of the Jammu and Kashmir Legislative Assembly or the Jammu and Kashmir Legislative Council, as the case may be : Provided further that any person so appointed, elected or nominated 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, elected or nominated was last appointed, elected or nominated a member of the Board : Provided also 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 the performance of such act was less than the number provided by section 3.

Allowances and fees.-The members of the Board and the members of committees, which may be appointed by the Board when necessary, shall be paid travelling allowances 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 purpose of this Act.

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 their member to preside, who shall have second or casting vote in all cases of equality of votes.

Interested members not to vote.-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.

Power of Board to make regulations.-(1) The Board may make regulations consistent with this Act and the rules thereunder for the carrying out of all or any of its purposes.

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 meeting ;
   • (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 committees consisting wholly of members of the Board or partly of such members and partly of other persons.

Supersession of Board.-(1) If at any time it appears to the Government that the Board is not properly performing the duties imposed upon it by or under this Act, the Government may, after considering any explanation 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
2. (1) until the vacancies are filled, all powers and duties of the Board shall be exercised and performed by such person in such manner as the Government may direct.

Duty of Board.-It shall be the duty of the Board-

1. (a) to report to the Government after such enquiry, if any, as it deems necessary or as may be required by this Act, on applications for State aid that may be referred to it for advice by the Government or any other officer authorised in this behalf by it ;
2. (b) to advise the Government on any matters that may be referred to it : Provided that the Government shall not sanction State aid without reference to the Board except in the case of a loan the amount of which does not exceed Rs. 3,000.

Documents and reports to be furnished to the Government.-If the Government so directs, the Secretary shall forward to the Government any document and prepare and submit any report relating to the work of the Board.