1[(1) There shall be a Board of Directors for every co-operative society with such number and composition as
prescribed or as specified in the bye-laws but which shall
not exceed 21. The Board of Directors are elected by the
General Body of the Society in accordance with the
provisions under section 23 of this Act. The Board of
Directors is entrusted with the management of affairs of co-operative society in accordance with provisions of the Act,
rules and bye-laws of the society:
Provided that there shall be reservation of one seat for Scheduled Castes or Scheduled Tribes and two seats for Women on Board of the Co-operative Society consisting of individual as members and having members from such class or category of persons:
In addition to the number specified above, the Board of the Society may co-opt, not more than two persons, as the functional directors of the Board, out of which one shall have experience in the field of banking or management or finance and the other shall have specialization in any other field relating to the objects and activities undertaken by the Co-operative Society:
Provided that the functional directors as prescribed in the bye-laws shall not have the right to vote in any election of the Co-operative Society in their capacity and are not eligible to be elected as office bearers of the Board. Co-operative Society shall also be the members of the Board and such members shall be excluded for the purpose of counting the total number of the Directors as specified above.]
1[(2) The term of office of elected members of the Board and its Office-bearers shall be five years from the date of election and the term of office-bearers shall be co-terminus with the term of Board:
Provided that the Board may fill casual vacancy by nomination out of the same class of members in respect of which the short fall / casual vacancy has arisen, if the term of office of the Board is less than half of its original term:
Provided further no member who has lost in the current election shall be eligible for filling the casual vacancy that has arisen during the current term of the Board.]
2[(3) [XXX]]
(4) In addition to such criteria as may be specified in the bye-laws, a person shall be ineligible for being chosen as a Director if such person,-
(a) has at any time lost the right to vote as a member or to continue as one as specified in the bye-law;
(b) incurs any other disqualification specified in the bye-laws.
(5) In addition to such criteria as may be specified in the bye-laws, a person shall cease to be a Director if he incurs any of the disqualifications specified in sub-section (4) or,-
(a) absent himself from three consecutive Board meetings without leave or absence;
(b) absents himself from General Body Meetings out of three consecutive Board meetings without leave or absence;
(c) is penalised under this Act.
1[(6) In addition to such criteria as may be specified in the bye-laws, the Directors of the Board attract disqualification for a period of three years for being chosen as Directors and shall be ineligible to continue as Directors of any Co-operative Society, if during their term as Directors of a Co-operative society,-
(a) they did not submit proposals to State Co-operative Election Authority for conduct of elections within the time specified in the bye-laws and before the expiry of the term:
Provided that the order, disqualifying the Directors of the Board shall be issued by the Registrar.]
(7) In order to be eligible for being chosen as director of the Board of a Co-operative Society which has been in existence for more than two years a member,-
(a) shall have been a voting member of the Co-operative Society for at least two years immediately preceding the year of election;
(b) shall have attended the two general body meetings of the Co-operative Society held immediately preceding the elections.
(8) Every Director and employee of a Co-operative Society while exercising his powers and discharging his duties shall,-
(a) act honestly and in good faith and in the best interests of the Co-operative Society; and
(b) exercise such due care, diligence and skill as reasonably prudent person would exercise in similar circumstances.
(9) A Director or employee who is guilty of misappropriation, breach of trust or any other omission or commission resulting in loss to the Co-operative Society as a result thereof, shall be personally liable to make good that loss, without prejudice to such criminal action to which he is liable under the law.
Provided that there shall be reservation of one seat for Scheduled Castes or Scheduled Tribes and two seats for Women on Board of the Co-operative Society consisting of individual as members and having members from such class or category of persons:
In addition to the number specified above, the Board of the Society may co-opt, not more than two persons, as the functional directors of the Board, out of which one shall have experience in the field of banking or management or finance and the other shall have specialization in any other field relating to the objects and activities undertaken by the Co-operative Society:
Provided that the functional directors as prescribed in the bye-laws shall not have the right to vote in any election of the Co-operative Society in their capacity and are not eligible to be elected as office bearers of the Board. Co-operative Society shall also be the members of the Board and such members shall be excluded for the purpose of counting the total number of the Directors as specified above.]
1[(2) The term of office of elected members of the Board and its Office-bearers shall be five years from the date of election and the term of office-bearers shall be co-terminus with the term of Board:
Provided that the Board may fill casual vacancy by nomination out of the same class of members in respect of which the short fall / casual vacancy has arisen, if the term of office of the Board is less than half of its original term:
Provided further no member who has lost in the current election shall be eligible for filling the casual vacancy that has arisen during the current term of the Board.]
2[(3) [XXX]]
(4) In addition to such criteria as may be specified in the bye-laws, a person shall be ineligible for being chosen as a Director if such person,-
(a) has at any time lost the right to vote as a member or to continue as one as specified in the bye-law;
(b) incurs any other disqualification specified in the bye-laws.
(5) In addition to such criteria as may be specified in the bye-laws, a person shall cease to be a Director if he incurs any of the disqualifications specified in sub-section (4) or,-
(a) absent himself from three consecutive Board meetings without leave or absence;
(b) absents himself from General Body Meetings out of three consecutive Board meetings without leave or absence;
(c) is penalised under this Act.
1[(6) In addition to such criteria as may be specified in the bye-laws, the Directors of the Board attract disqualification for a period of three years for being chosen as Directors and shall be ineligible to continue as Directors of any Co-operative Society, if during their term as Directors of a Co-operative society,-
(a) they did not submit proposals to State Co-operative Election Authority for conduct of elections within the time specified in the bye-laws and before the expiry of the term:
Provided that the order, disqualifying the Directors of the Board shall be issued by the Registrar.]
(7) In order to be eligible for being chosen as director of the Board of a Co-operative Society which has been in existence for more than two years a member,-
(a) shall have been a voting member of the Co-operative Society for at least two years immediately preceding the year of election;
(b) shall have attended the two general body meetings of the Co-operative Society held immediately preceding the elections.
(8) Every Director and employee of a Co-operative Society while exercising his powers and discharging his duties shall,-
(a) act honestly and in good faith and in the best interests of the Co-operative Society; and
(b) exercise such due care, diligence and skill as reasonably prudent person would exercise in similar circumstances.
(9) A Director or employee who is guilty of misappropriation, breach of trust or any other omission or commission resulting in loss to the Co-operative Society as a result thereof, shall be personally liable to make good that loss, without prejudice to such criminal action to which he is liable under the law.
1. Substituted by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II) Department, dated 19.04.2016.
2. Omitted by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II) Department, dated 19.04.2016.