Section 15 - Amendment of section 41 - Multi-State Co-operative Societies (Amendment) Act, 2023

Amendment of section 41. 15 . In section 41 of the principal Act, for sub-section (3), the following sub-sections shall be substituted, namely: (3) The board shall consist of such number of directors not exceeding twenty-one, as may be specified by the bye-laws, out of which one member shall be Scheduled Caste or Scheduled Tribe and two shall be women in the board of multi-State co-operative society consisting of individuals and having members from such class or category of persons: Provided that the board may co-opt as members of the board having experience in the field of banking, management, co-operative management and finance or specialisation in any other field relating to the objects and activities undertaken by such multi-State co-operative society: Provided further that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in this sub-section. (4) The co-opted directors referred to in sub-section (3) shall not have the right to vote in any election of the office bearers or be eligible to be elected as office bearers of the board. (5) The functional directors in a multi-State co-operative society shall also be the members of the board and such directors shall be excluded for the purpose of counting the total number of directors specified in sub-section (3). (6) No director of a multi-State co-operative society shall, as a director, be present in the discussion of, or vote on, any contract or arrangement entered into, or to be entered into, by or on behalf of such society, if he or his relative is directly or indirectly concerned or interested in such contract or arrangement and no relative of any of the sitting directors of the multi-State co-operative society shall be recruited as employee including the Chief Executive of that society. Explanation. For the purposes of this sub-section, the term, relative with reference to an individual, includes (a) spouse; (b) father (including step father); (c) mother (including step mother); (d) son (including step son); (e) son s wife; (f) daughter (including step daughter); (g) daughter s husband; (h) father s father; (i) father s mother; (j) mother s father; (k) mother s mother; (l) son s son; (m) son s son s wife; (n) son s daughter; (o) son s daughter s husband; (p) daughter s son; (q) daughter s son s wife; (r) daughter s daughter; (s) daughter s daughter s husband; (t) brother (including step brother); (u) brother s wife; (v) sister (including step sister); (w) sister s husband; and (x) Hindu undivided family. (7) Any director of the board who violates the provision of sub-section (6), shall be disqualified for being a member of the board and deemed to have vacated his office from the date of such meeting of the board as is referred to in the said sub-section and such proceedings shall be deemed to be void. .