Amendment of section 31

It is proposed to amend Section 31 by omitting the words 'or for any other reason' so as to limit the power to appoint the special officer to a situation of want of quorum only and to stipulate that the period of special officer shall not exceed three months in respect of a society in cooperative credit structure. (1) Where the Registrar is of the opinion that a co-operative society is not functioning in accordance with the provisions of the Act, rules or bye-laws on account of the number of members of the board falling short of the required number to form a quorum due to disqualification, resignation or death or removal of a member, the Registrar may, notwithstanding anything contained in this Act, rules or bye-laws, by order appoint a Special Officer for such co-operative society, for such period not exceeding six months. The Registrar may for the reasons to be recorded in writing extend the period of such appointment for a further period of six months at a time and in any case such extension shall not exceed one year in the aggregate. (2) Before making an order under sub-section (1), it shall not be necessary for the Registrar to give any co-operative society or person likely to be affected by such order, an opportunity to state its or his objection, if any. (3) On the issue of the order under sub-section (1),— (a) the members of the board of the co-operative society, if any, shall vacate and shall be deemed to have vacated their offices; and (1) Where the Registrar is of the opinion that a co-operative society is not functioning in accordance with the provisions of the Act, rules or bye-laws on account of the number of members of the board falling short of the required number to form a quorum due to disqualification, resignation or death or removal of a member the Registrar may, notwithstanding anything contained in this Act, rules or bye-laws, by order appoint a Special Officer for such co-operative society, for such period not exceeding six months. The Registrar may for the reasons to be recorded in writing extend the period of such appointment for a further period of six months at a time and in any case such extension shall not exceed one year in the aggregate. (2) Before making an order under sub-section (1), it shall not be necessary for the Registrar to give any co-operative society or person likely to be affected by such order, an opportunity to state its or his objection, if any. (3) On the issue of the order under sub-section (1),— (a) the members of the board of the co-operative society, if any, shall vacate and shall be deemed to have vacated their offices; and (b) the Special Officer shall be deemed to have assumed charge of the affairs of the co-operative society. (4) The Special Officer shall, subject to the control of the Registrar, exercise and perform all the powers and 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. (5) The Special Officer shall, before the expiry of his term, arrange for constitution of a new board for the co-operative society in accordance with the Act, rules and its bye-laws. Provided that the Special Officer so appointed shall not continue for a period beyond three months in respect of a society in cooperative credit structure.