Power of Removal of committee or member thereof

(74) (1) If, in the opinion of the Registrar, the committee of any society on any member of such committee persistently makes default, or is negligent, in the performance of the duties imposed on it or him by this Act or the rules or the bye-laws, or commits any act which is prejudicial to the interests of the society or its members, or willfully disobeys directions issued by the Registrar for the purpose of securing proper implementation of co-operative production and other development programmes approved or undertaken by Government, “or does not hold annual general meetings, or does not conduct the election of the Board of Directors as per provisions of this Act and rules framed there under, or if the overdue loans of a society exceeds the amount of net worth of the society and if in the opinion of the Registrar the said position is not likely to be improved by the present management, or if the cumulative net loss exceeds the paid up share capital of a society where the Government has contributed the major part of the share capital and if in the opinion of the Registrar the position is not likely to be improved by the present management of the Society” or is otherwise not discharging its or his functions properly, the Registrar may, after giving the committee or the member, as the case may be, an opportunity of standing its or his objections (if any) within fifteen days from the date of issue of notice, and after consulting the federal society to which the society is affiliated, by order published in the Official Gazette, -- (a) remove the committee, and (i) appoint a committee, consisting of three or more members of the society, in its place ; or (ii) appoint one or more administrators, who need not to be members of the society, to manage the affairs of the society for a period ( not Exceeding two months) specified in the order. (b) remove the member and appoint any person as a member of such committee, in his place, for the remainder of the term of office of the member removed. Explanation For the purpose of this sub-section ‘net worth’ shall mean the fixed assets minus depreciation, reserve funds, if any, cash in hand and at Bank, investments in Government securities, other investments in public sector or Joint Sector under- takings, investments in other Co-operative Societies, advances to contractors or suppliers under written agreements and other current assets, but shall not include the overdue loans.