Cessation of Membership of Committee

(1) A member of the committee shall cease to hold office forthwith as such, for the residue of his term of office and he shall also be ineligible for being chosen as or for being a member of the committee through election or co-option for the subsequent two terms if,-

(a) [xxx]

(b) on an enquiry under this Act he is found guilty of misuses of the property of the society for his personal gain;

(c) he is found responsible for making any appointment to any post in the society in contravention of the relevant service rules and regulations.

(2) A member of the Committee found responsible for wilfully or knowingly sanctioning benami loans or against whom an order of surcharge is issued under section 60 shall cease to hold office and shall also be ineligible to be elected as member of the Committee for a period of six years from the date of cessation.

(3) Where a society incurs loss in any co-operative year as a result of misuse or misapplication of share capital, the President and the Secretary of such society shall cease to hold office as such.

(4) Where the Committee fails to prepare and submit or cause to be prepared and submitted within the period specified in section 50 of the Act, Annual accounts of the Society to the Chief Auditor and also to submit defect rectification report as per section 54, the members of the Committee shall after 15 days on the expiration of the period aforesaid cease to hold such office. The order to such effect shall be issued by the Registrar.

(5) Where the committee of a society fails to place the inquiry report under section 51 or Inspection report under section 52 or section 53 or Audit Report or Special Audit Report under section 50 along with the findings of the Registrar and action taken on serious irregularities, if any which need immediate corrective action, before the next General Body held after the date of the receipt of the report by the society, the members of the committee shall, cease to hold such office.

(6) Where the committee fails to initiate action for prosecution of any member or servant of a society who may have incurred criminal liability under the provisions of this Act or any other law for the time being in force, the members of the Committee shall cease to hold such office.

(7) Where the committee fails to dispose profits of the society as provided u/s.45 of this Act the members of the committee shall cease to hold such office.