Management of co-operative societies vest in the board

Management of co-operative societies vest in the board. It is proposed to amend Section 28A to provide necessary clarifications as to when an administrator could be appointed. (1) The management of a co-operative society shall vest in a board constituted in accordance with this Act, the rules and the bye-laws of such society. The board shall exercise such powers, discharge such duties and perform such functions as may be conferred or imposed upon it by this Act, the rules and the bye-laws. (2) The board of a co-operative society shall consist of not less than eleven but not exceeding the number of members specified below excluding the Chief Executive, namely:— (i) in case of a primary society and a secondary society whose area of operation extends to,- (a) a part of taluk, eleven members; (b) whole of taluk, thirteen members; (c) beyond a taluk but not beyond a district, fifteen members: Provided also that in case of Urban Cooperative Banks having area of operation not beyond a district the maximum number shall not exceed seventeen members. (d) beyond a district, nineteen members; (ii) in the case of a federal society, including Apex societies, twenty one members; (iii) [Omitted]. Provided that a member shall not represent more than one constituency in the board of a society. Provided that, subject to the minimum and maximum number of the members of the board specified in sub-section (2) of section 28A, the bye-laws of a Co-operative Society shall provide for the composition of the board of that society to include within the permissible limits,- (a) in case of assisted society, Government nominee as specified in sub-section (4-B) of section 28A; (b) in case of all Co-operative Societies other than non agricultural credit Co-operative Societies, if necessary, an ex-officio member and nominee from financing or the credit agency. The remaining members of the board shall be filled only through election subject to the provisions of section 29E. (3) In the board of every cooperative society there shall be reserved:— (i) one seat to be filled by election, in favour of the persons belonging to the Scheduled Castes and Scheduled Tribes; (ii) two seats to be filled by election, in favour of women: (iii) Two seats to be filled by election, in favour of the persons belonging to backward classes in such manner as may be prescribed. (b) whole of taluk, thirteen members; (c) beyond a taluk but not beyond a district, fifteen members: Provided also that in case of Urban Cooperative Banks having area of operation not beyond a district the maximum number shall not exceed seventeen members. (d) beyond a district, nineteen members] (ii) in the case of a federal society, [including] Apex societies, twenty one members; [ (iii) XXX] Provided that a member shall not represent more than one constituency in the board of a society. [Provided that, subject to the minimum and maximum number of the members of the board specified in sub-section (2) of section 28A, the bye-laws of a Co-operative Society shall provide for the composition of the board of that society to include within the permissible limits,- (a) in case of assisted society, Government nominee as specified in sub-section (4-B) of section 28A; (b) in case of all Co-operative Societies other than non agricultural credit Co-operative Societies, if necessary, an ex-officio member and nominee from financing or the credit agency. The remaining members of the board shall be filled only through election subject to the provisions of section 29E] (3) In the board of [every cooperative society] there shall be reserved:— (i) one seat to be filled by election, in favour of the persons belonging to the Scheduled Castes and Scheduled Tribes; (ii) [two seats] to be filled by election, in favour of women: [(iii) Two seats to be filled by election, in favour of the persons belonging to backward classes in such manner as may be prescribed.] Provided that such reservation shall be made on the board of every cooperative society consisting of individuals as members and having members from such class or category of persons (4) Subject to the provisions of sections 29A and 39A, the term of office of the members of [the board shall save as otherwise] be [five years from the date of election] and they shall be deemed to have vacated office as such members of the board on the date of completion of the said term: Provided that if an election to the board of any co-operative society had already been held in accordance with the bye-laws of such society, prior to the commencement of the Karnataka Co-operative Societies (Amendment) Act, 1997, the term of office of the board of such co-operative society shall be three years including the co-operative year in which such election was held. Explanation.— [XXX] Provided further that the first general meeting of a society after registration shall be held within one month from the date of its registration to elect the first committee to manage the affairs of the society and the term of office of such committee shall also be [five years from the date of election] [Provided also that the first general meeting of the Co-operative Society or Societies formed after amalgamation or reorganization or division in accordance with section 14 shall be held within three months from the date of registration to elect the first board to manage the affairs of the Co-operative Society or Societies, and the term of office of such board shall also be [five years from the date of election]] (4A)- The board of a cooperative society, may co-opt persons having experience in the field of banking, management, finance or specialization in any other field relating to the objects and activities undertaken by the cooperative society to be the members of the board. Provided that the number of such co-opted members shall not exceed two in addition to the maximum number specified in sub-section (2). Provided further that such co-opted members shall not have a right to vote in any election of the cooperative society in their capacity as such members or to be eligible for being elected as office-bearers of the board. Provided also that the functional directors not exceeding three, if any, shall also be the members of the board in accordance with the byelaws and such members shall be excluded for the purpose of counting the total number of directors specified in sub-section (2). Provided also that the professional directors and functional directors shall not form a part of the quorum for the conduct of the board meetings. [Provided also that if the directors Co-opted to urban Co-operative Banks do not have the requisite knowledge and experience as stipulated by Reserve Bank of India, the board of such banks shall remove such persons within two months from the date of receipt of direction by the Reserve Bank of India after giving such directors an opportunity of being heard] (4B)-(1) The State Government may nominate one person as its representative on the board of every assisted society other than the board of a primary agricultural credit cooperative society. [The nominated person can vote in all meetings and elections of the co-operative society; and also can contest in all the elections of the Co-operative Society. The ex-officio members and nominee from financial or credit agency shall have the voting right but are not eligible to contest as office bearer] Provided that the person so nominated as a member of a cooperative society shall hold office as such member during the pleasure of the State Government. (2) Where an officer of Government is nominated under clause (1), such officer may, if unable to be present himself at any meeting of the board, depute a subordinate officer to the meeting as his representative and such subordinate officer shall be deemed to be a person nominated as a representative of the State Government for the purpose of such meeting. (5) If the new board is not constituted under section 29A, on the date of expiry of the [term of office of the board or if the elections are not held within the time limits specified in Section 39A,] the Registrar or any other officer within whose jurisdiction the society is situated, and who is authorized by the Registrar, shall be deemed to have assumed charge as Administrator and he shall, for all purposes function as such board of management. The Administrator shall, subject to the control of the Registrar, exercise all the powers and perform all the functions of the board of the co-operative society or any office bearer of the co-operative society and take all such actions as may be required, in the interest of the co-operative society. [Provided that the Registrar shall appoint an administrator to a Co-operative Society or each of the co-operative Societies formed after amalgamation or reorganization or division in accordance with section 14 for a period of three months and the administrator so appointed shall arrange for holding elections to a board of such Co-operative Society or Societies as the case may be] (6) The [members] of the board shall elect from among themselves the office bearers of the co-operative society. The election of the office bearers shall be by secret ballot. (6) The members of the board shall elect from among themselves the office bearers of the co-operative society. The election of the office bearers shall be by secret ballot.