Chapter II Chapter II

(1) With effect from such date as the Government may, by notification in the Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board by the name of the Kerala Khadi and Village Industries Board. The Board shall be a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and do all things necessary for the purposes of this Act, and may by the said name sue and be sued. (2) The Board shall consist of not less than five and not more than fifteen members appointed by the Government from among- (a) Non officials, who, in the opinion of the Government have shown active interest in the production and development of Khadi or in the development of Village Industries of whom one shall be from among the District Panchayat Presidents and one shall be from among the Mayors of a Municipal Corporation or a Chairperson of a Municipality and; (b) Officials: Provided that at least one of the non-official members so appointed shall be a person belonging to a Scheduled Caste or a Scheduled Tribe. Explanation:In this sub-section, the expressions ‘Scheduled Caste’ and ‘Scheduled Tribe’ shall have the same meaning as in the Constitution of India. (2 A) The Government shall nominate one of the members of the Board to be its Chairman and another member to be its Vice-Chairman. Provided that the Vice-Chairman shall be nominated from among the non-official members of the Board. (3) The Chairman, Vice Chairman and other members shall be paid from the funds of the Board such allowances as the Government may fix.

(1) The Government may, by notification in the Gazette and for reasons to be specified in the notification, reconstitute the Board in accordance with the provisions of sub-section (2) of section 4. (2) When the Board is reconstituted under the provisions of sub-section (1), all members of the Board (including the Chairman and Vice-Chairman) holding office immediately before such reconstitution shall, from the date of reconstitution, vacate their offices as such members, notwithstanding that their term of office has not expired, unless they are appointed as members of the Board as so reconstituted. (3) Every notification issued under sub-section (1) shall be laid as soon as may be after it is issued before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid, or the session immediately following, the Legislative Assembly makes any modification in the notification or decides that the notification should not be issued, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be;so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.

Any member of the Board may at any time resign his office by giving notice in writing to the Government and on such resignation being notified in the Gazette by the Government, shall be deemed to have vacated his office.

(1) A person shall be disqualified for being appointed or for continuing as a member of the Board if he— (a) holds any office or place of profit under the Board other than the office of secretary; (b) is of unsound mind and stands so declared by a competent court, a deaf-mute or a leper ; (c) is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors ; (d) has directly or indirectly by himself, by his wife or son, or by any partner, any share or interest in any subsisting contract or employment with, by or on behalf of the Board ; (e) is a Director or Secretary or a Manager or other salaried officer of any incorporated company or any co-operative society, which has any share or interest in any contract or employment with, by or on behalf of the Board. (2)(a) A person shall not be disqualified under clause (a) of sub-section(1) by reason only of his being a member receiving any allowance as provided in sub-section (3) of section 4. (b) A person shall not be disqualified under clause (d) or clause (e) of sub-section (1), or be deemed to have any share or interest in any contract or employment within the meaning of those clauses by reason only of his, or of the incorporated company or of a co-operative society, of which he is a Director, Secretary, Manager or other salaried officer, having a share or interest in any newspaper in which any advertisement relating to any affairs of the Board is inserted. (c) A person shall not also be disqualified under clause (d) or clause (e) of sub section (1)or be deemed to have any share or interest in any contract or employment with, by or on behalf of the Board by reason only of his being a share holder of such company or society: Provided that such person discloses to the Government the nature and extent of the share held by him from time to time.

(1) The Government may remove from the Board any member who, in their opinion,- (a) refuses to act;or (b) has become incapable of acting;or (c) has so abused his position, as a member, as to render his continuance on the Board detrimental to the interest of the public;or (d) is absent without permission from all the meetings of the Board for four successive months or for the period in which three successive meetings are held, whichever period is longer;or (e) ceases to reside in the State of Kerala;or (f) is otherwise unsuitable to continue as a member: Provided that removal under this sub section shall not be made unless the member concerned has been given an opportunity to submit his explanation to the Government. (2) The Government may suspend any member of the Board pending action against him under sub-section (1). (3) A member who has been removed under sub-section (1) shall not be re-appointed as a member of the Board or appointed in any other capacity under the Board. (4) The Government may declare void any transaction in connection with which a member has been removed under sub-section(1).

When a member dies or resigns as provided in section 5, or is subject to any of the disqualifications specified in section 6, or is removed under sub-section (1) of section 7 he shall cease to be a member of the Board, and any vacancy so occurring shall be filled in by the Government as early as practicable: Provided that during any such vacancy, the remaining members may act as if no vacancy has occurred.

No act or proceeding of the Board shall be deemed to be invalid by reason only of a defect in its constitution or on the ground that [………] any member there of was disqualified for, or had ceased to hold his office, or by reason of such act or proceeding having been done or taken during the period of any vacancy in the office of any member of such Board.

(1) The Board may associate with itself in such manner and for such purposes as may be determined by regulations any person whose assistance or advice it may desire in carrying out any of the provisions of this Act. (2) A person associated with the Board under sub-section (1) shall not be deemed to be a member of the Board, and shall have no right to vote at any meeting thereof, but he may take part in the discussions of the Board relating to the purpose or purposes for which he was associated with the Board. (3) The Government may, by order, depute one or more officers of the Government to attend any meetings of the Board and to take part in the discussions of the Board but such officer or officers shall not have the right to vote.

(1) The Government may appoint a person to be the Secretary to the Board. (2) The remuneration, allowances and other conditions of service of the secretary shall be such as may be prescribed. (3) The secretary shall exercise such powers and discharge such duties as may be prescribed. (4) The Board may appoint such other members of the staff of the Board as it may consider necessary. (5) The remuneration, allowances and other conditions of service of the members of the staff of the Board, other than the Secretary, shall be such as may be determined by Regulations. (6) The Local Authorities shall have power to supervise the schemes of the Board formulated and funded by them.

(1) The Board may appoint a Standing Finance Committee to exercise such powers and perform such functions relating to the finances of the Board as may be laid down by regulations. (2) Subject to any rule made under section 33, the Board may, from time to time, appoint one or more other committee or committees for the purpose of securing the efficient discharge of its functions and in particular for the purpose of securing that the said functions are exercised with due regard to the circumstances and requirements of khadi or any particular village industry. Such committees may be appointed for any particular area.

(1) The Board shall meet at such times and places and shall, subject to the provisions of subsections (2) and (3), observe such rules of procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Board: Provided that the Board shall meet at least once in every three months. (2) The chairman or, in his absence, the vice-chairman or, if he is also absent, such member as may be chosen by the members present from among themselves shall preside at a meeting of the Board. (3) All questions at a meeting of the Board shall be decided by a majority of the votes of the members present and voting, and in the case of an equality of votes, the chairman or in his absence, the person presiding shall have a second or casting vote. (4) The proceedings of the meeting of the Board shall be forwarded to the Government within fifteen days of every meeting.

(1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of the purposes of this Act. (2) Every contract shall be made on behalf of the Board by the chairman. (3) Every contract made by the chairman on behalf of the Board shall, subject to the provisions of this section, be entered into in such manner and form as may be prescribed. (4) A contract not executed in the manner provided in this section and the rules made thereunder shall not be binding on the Board.

The term of office of the vice-chairman, Chairman and the other members of the Board shall be such as may be prescribed.