Establishment and constitution of the Board

(1) With effect from such date as the Government may, by notification fix, in this behalf, there shall be established a Board to be called the Tamilnadu Khadi and Village Industries Board. It shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract and may, by the said name, sue and be sued. (2) (a) The Board shall consist of not more than fifteen members including the President, the Vice-President, and the Secretary (where the Secretary is appointed by the Government from amongst the members). The appointment of members except the President, shall be made by the Government and shall be published in the Tamilnadu Gazette. (b) The Minister in charge of Khadi development in the State shall be the President of the Board. (c) The Vice-President shall be elected from amongst the non-official members of the Board. (d) The Government may, in consulation with the Board, appoint a person who may or may not be a member of the Board to be the Secretary of the Board. (e) The majority of the members shall be non-officials. (f) The Government shall appoint as members:- Provided that where a person other than a member is appointed as Secretary, he shall not be entitled to vote at meetings of the Board. (i) only such non-officials as have shown an active interest in the production and development of Khadi or in the development of Village Industries, and (ii) Officials. The time and place of each meeting of the Board, shall be such as may be fixed by the President. (1) All money received by the Board shall be deposited in one or more Nationalized Banks and shall be credited to account under the title “The Tamil Nadu Khadi and Village Industries Board Funds” Khadi Fund” or Village Industries Funds” as the case may be. (2) The accounts of the Board shall be operated upon by such officers jointly or individually as may be authorized by the Board.