Chapter II ESTABLISHMENT AND CONSTITUTION OF RAJASTHAN KHADI AND VILLAGE INDUSTRIES BOARD

1. (1) As soon as may be after the coming into force of this Act, the State Government, shall, by a notification in the 1[Official Gazette] establish for the purposes of this Act a Board to be called the Rajasthan Khadi and Village Industries Board.
2. (2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, to contract and to do all things necessary for the purposes of this Act and shall by the said name sue and be sued through its Secretary.

2[The Board shall consist of the following,-

1. (a) A Chairman, who shall be a non-official to be nominated by the State Government, and
2. (b) Twelve other members to be appointed by the State Government of whom at least eight shall be non-official members.]

1. (1) The Vice-Chairman of the Board shall be elected, by the Non-official members of the Board from amongst themselves in the prescribed manner.
2. (2) Subject to the provisions of sub-section (3), the Vice-Chairman shall hold office so long as he is a member of the Board.
3. (3) The Vice-Chairman may resign his office by a letter addressed to the Chairman of the Board, or may be removed by a resolution passed by majority of the non-official members of the Board of which not less than fourteen clear days' notice shall be given to all non-official members.

1. (1) The Chairman shall exercise such powers and discharge such duties as may be conferred on him by or under this Act.
2. (2) The Vice-Chairman shall exercise such of the powers and discharge such of the duties of the Chairman, as may be prescribed or as may be delegated to him by the Board.

The term of office of members, other than ex-officio members of the Board shall be such as may be prescribed.

1. (1) The Board may constitute an Executive Committee consisting of not more than five members including 1[the Chairman and] the Vice-Chairman of the Board, to exercise such powers and discharge such duties as the Board may determine by regulations or as may be prescribed.
2. (2) The 2[Chairman] of the Board shall be ex-officio Chairman of the Executive Committee.
3. (3) Subject to such restrictions, if any, as may be prescribed, the Board may constitute other Standing Committees or ad hoc Committees for exercising any power or discharging any duty of the Board or for enquiring into or reporting and advising on any matter which the Board may refer to them.
4. (4) A Standing Committee shall consist exclusively of members of the Board.
5. (5) An ad hoc committee may include persons who are not members of the Board, but their number shall not exceed one-half of its strength.

1[The State Government shall appoint a person not being a member to be a Financial Adviser to the Board, who shall exercise such powers and perform such duties as may be prescribed.]

1. (1) The State Government shall appoint a Secretary to the Board who shall exercise such powers and perform such duties as may be prescribed or as may be delegated to him by the Board or the Chairman.
2. (2) The Secretary shall be an officer of the Board, whole time or parttime as the State Government may direct. 2[(3) Notwithstanding anything contained in any other provision of this Act, where the Board is to in existence or is prohibited under section 15 from acting or taking proceedings due to the vacancies, the State Government may, by order published in the Official Gazette, authorize the Secretary/Chairman to exercise all or any of the powers, and perform all or any of the functions, of the Board.]

3[The Chairman and non-official members of the Board shall be paid from the fund of the Board such allowances as may be prescribed.]

Any member other than an ex-officio member of the Board may, at any time, resign his office by giving notice thereof in writing to the State Government and, on such resignation being accepted by the State Government, shall be deemed to have vacated his office.

1. (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,
   • (b) is found to be a lunatic or becomes of unsound mind,
   • (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, or
   • (e) is a Director or a 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. (2) (a) A person shall not, however, be disqualified under clause (a) of sub-section (i) by reason only of his being a member receiving allowance as provided in section 10;
   • (b) a person shall not be disqualified under clause (d) or (e) of subsection (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 (e) of sub-section (1) or be deemed to have any share of interest in any contract or employment with, by or on behalf of the Board by reason only of his being a shareholder of a company or society having any such share or interest as is referred to in either of those two clauses: Provided that such person discloses to the State Government the nature and extent of the share held by him from time to time.

1. (1) The State Government may remove from the Board any member, other than an ex-officio member, who, in its 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 interests 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 Rajasthan; or
   • (f) is otherwise unsuitable to continue as a member.
2. (2) The State Government may suspend any member pending an inquiry against him in connection with his proposed removal.
3. (3) No order of removal under sub-section (1) shall be made unless the member concerned has been given an opportunity to submit his explanation to the State Government with reference to the grounds of his proposed removal.
4. (4) A member who has been removed under sub-section (1) shall not be eligible for appointment as a member of the Board.
5. (5) The State Government may declare void any transaction in connection with which a member has been removed under sub-section (1).

When a member other than an ex-officio member dies, or resigns under section 11 or is removed under section 13, or when any member is subject to any of the disqualifications specified in section 12, he shall cease to be a member of the Board, and any vacancy so occurring shall be filled in by the State Government as early as practicable: Provided that during any such vacancy the continuing members may act as if no vacancy had occurred.

No act or proceeding of the Board under this Act shall be questioned on the ground merely of the existence of any vacancy in, or defect in the appointment of a member or in the constitution of the Board: Provided that the Board shall not act or take any proceeding at any time when, by reason of any vacancy occurring, the number of continuing non-official members is less than one-half of the total number of such nonofficial members in the Board.

The Board shall from time to time make such arrangements with respect to the date, time, place, notice, management and adjournment of its meetings as may be determined by regulations made by the Board, subject to the following provisions viz:-

1. (a) ordinary meetings shall be held once at least in every three months,
2. (b) the Chairman may, whenever he thinks fit, call special meetings,
3. (c) the proceedings of the meetings of the Board shall be forwarded to the State Government in the department concerned.

1. (1) The State Government may, at any time, with the previous approval or the 1[State Legislative Assembly] by notification in the 1[Official Gazette] make a declaration that with effect from such date as may be specified in the notification, the Board shall be dissolved. 2[(2) On the Board ceasing to exist by dissolution by the State Government under sub-section (1)-
   • (a) the executive committee and all other committees of the Board shall cease to function;
   • (b) all members of the Board and of the executive committee and other committees of the Board shall vacate office as such members;
   • (c) all properties and funds, which immediately before the said date vested in or were in possession of the Board for the purposes of this Act, shall vest in the State Government;
   • (d) all legal rights, obligations and liabilities (including the liabilities under any contract) of the Board shall become the rights, obligations and liabilities of the State Government; and
   • (e) all legal acts and proceedings of the Board shall, unless set aside, modified or in any way amended by the State Government, continue to have effect as if the Board were not dissolved.]