Section 17 - Substitution of new section for section 45 - Multi-State Co-operative Societies (Amendment) Act, 2023

Substitution of new section for section 45. 17 . For section 45 of the principal Act, the following sections shall be substituted, namely: Establishment of Cooperative Election Authority. 45. (1) The Central Government shall, by notification, establish an Authority to be known as the Co-operative Election Authority which shall consist of a Chairperson, a Vice-Chairperson and Members not exceeding three to be appointed by the Central Government on the recommendation of the Selection Committee consisting of such persons as may be prescribed. (2) The head office of the Authority shall be at such place as may be notified by the Central Government. (3) A person shall not be qualified for appointment as a, (i) Chairperson of the Authority unless he held the post of Additional Secretary to the Government of India or equivalent rank; (ii) Vice-Chairperson of the Authority unless he held the post of Joint Secretary to the Government of India or equivalent rank; and (iii) Member unless he fulfils such qualification and experience as may be prescribed. (4) The Chairperson, Vice-Chairperson or Member of the Authority shall hold office for a period of three years from the date on which they enter upon their office or until they attain the age of sixty-five years, whichever is earlier and they shall be eligible for re-appointment: Provided that in case of appointment of a Government servant as a Chairperson, Vice-Chairperson or a Member, he shall be treated as an ex officio Member and he shall continue so long as he holds the office by virtue of which he is a Chairperson, Vice-Chairperson or Member. (5) The salaries and allowances payable to, and the other terms and conditions of service of the Chairperson, Vice-Chairperson and Members of the Authority, other than the ex officio Member, shall be such as may be prescribed. Power of Chairperson. 45A. The Chairperson of the Authority shall have powers of general superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such other powers and functions as may be prescribed. Removal and suspension of Chairperson, Vice- Chairperson and Members. 45B. (1) The Central Government may, by order, remove from office the Chairperson, Vice-Chairperson or Member of the Authority, other than ex officio Member, if the Chairperson, Vice-Chairperson or Member of the Authority, as the case may be, (a) has been adjudged as an insolvent; (b) has been convicted of an offence which, in the opinion of the Central Government involves moral turpitude; (c) has been physically or mentally incapable of acting as a Chairperson, Vice-Chairperson or Member of the Authority; (d) has acquired such financial or other interests, as is likely to affect prejudicially his function as a Chairperson, Vice-Chairperson or Member of the Authority; (e) has so abused his position, as to render his continuance in office prejudicial to the public interest; or (f) has engaged at any time during his term of office in any other employment. (2) The Chairperson, Vice-Chairperson or Member of the Authority shall not be removed from his office except by an order of the Central Government on the ground of his proved misbehaviour or incapacity after the Central Government has, on an inquiry, held in accordance with the procedure prescribed in this behalf by it, come to the conclusion that the Chairperson, Vice-Chairperson or Member of the Authority ought on any such ground to be removed. (3) The Central Government may suspend the Chairperson, Vice-Chairperson or Member of the Authority in respect of whom an inquiry under sub-section (2) is being initiated or pending until the Central Government has passed an order on receipt of the report of the inquiry. Disclosure and declaration of interest. 45C. (1) Before appointing any person as Chairperson, Vice-Chairperson or Member, the Central Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Chairperson, Vice-Chairperson or Member. (2) The Chairperson, Vice-Chairperson or Members shall immediately after entering office and every year thereafter, make a declaration as to the extent of their interest, whether direct or indirect and whether financial or otherwise, in any co-operative society. (3) The declaration so made under sub-section (2) shall be placed in the public domain by the Authority. Resignation of Members 45D. The Chairperson, Vice-Chairperson or Members, other than ex officio Members, may, by notice in writing of not less than thirty days under their hand addressed to the Central Government, resign their office and on such resignation being accepted by that Government, shall be deemed to have vacated their office: Provided that the Chairperson, Vice-Chairperson or Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. Filling of casual vacancy. 45E. If a casual vacancy occurs in the office of the Chairperson, Vice-Chairperson or Member of the Authority, whether by reason of his death, resignation or otherwise, such vacancy shall be filled within a period of ninety days by making a fresh appointment in accordance with the provisions of section 45 and the person so appointed shall hold office for the remainder of the term of office for which the Chairperson, Vice-Chairperson or Member of the Authority, as the case may be, in whose place he is so appointed. Restriction of reemployment 45F. The Chairperson, Vice-Chairperson and Member of the Authority, on ceasing to hold office shall not, for a period of two years, accept any employment (including as consultant or otherwise) in any co-operative society: Provided that nothing contained in this section shall apply to any employment under the Central Government or in any State Government or any Corporation established by or under any Central or State Act or a Government Company as defined under clause (45) of section 2 of the Companies Act, 2013 (18 of 2013.). Vacancies, etc., not to invalidate proceedings of Authority. 45G. No act or proceeding of the Authority shall be invalid merely by reason of (a) any vacancy in, or any defect in the constitution of the Authority; (b) any defect in the appointment of a person as Chairperson or Member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. Meetings of Authority. 45H. (1) The Authority shall meet at such places and times and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings), as may be prescribed. (2) The Chairperson of the Authority shall preside at the meeting of the Authority and if for any reason the Chairperson of the Authority is unable to attend a meeting of the Authority, the Vice-Chairperson of the Authority shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes of the members present and voting and, in the event of an equality of votes, the Chairperson or the Vice-Chairperson of the Authority presiding shall have the right to exercise a second or casting vote. (4) Save as otherwise provided in sub-section (1), every Member shall have one vote. Functions of Authority. 45-I. The Authority shall discharge the following functions, namely: (i) conduct the elections of the multi-State co-operative society; (ii) supervise, direct and control the matters relating to preparation of electoral rolls; and (iii) such other functions as may be prescribed. Elections of members of board. 45J. (1) No person shall be eligible to be elected as a member of the board or office bearer of a multi-State co-operative society, unless he is an active member of the general body of that society. Explanation. For the purposes of this sub-section, the term active member means any member (i) availing minimum level of products or services of the society; or (ii) attending not less than three consecutive general meetings, as specified in section 29. (2) A member of the board or office bearer of a multi-State co-operative society shall cease to be such member or office bearer, if he ceases to be a member of general body of that society. (3) The election of members of board shall be held by secret ballot in such manner as may be prescribed. (4) The election of the members of the board shall be held in the general meeting of the members of the multi-State co-operative society and the elected members of the board shall, if the bye-laws of such society permit, be eligible for re-election. (5) 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 the board: Provided that the board may fill casual vacancies up to one-third of number of elected directors on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the board is less than half of its original term: Provided further that in case the number of such casual vacancies in the same term of the board exceeds one-third of number of elected directors, such vacancies shall be filled by elections. (6) The expenses for holding elections by the Authority shall be borne by the multi-State co-operative society in such manner as may be prescribed. (7) The Central Government may make rules to provide for the powers and the procedure to be followed by the Authority for conduct of election of members of the board. (8) The Chairperson and the Chief Executive of the multi-State co-operative society shall inform the Authority, six months before the expiry of the term of the existing board, to conduct the elections within time. (9) The multi-State co-operative society in respect of which the election is being held shall provide such infrastructure, personnel, information, documents or other assistance to the Authority as it may require. Appointment of Returning Officer and other officers 45K. (1) The Authority may appoint a Returning Officer to conduct the election of the multi-State co-operative societies and discharge such functions, as directed by the Authority, in such manner as may be prescribed. (2) The Central Government shall provide such staff and officers to the Authority as may be necessary for the efficient discharge of functions by the Authority under the Act. (3) The Authority may appoint, (a) such observers as it may consider necessary to supervise the elections and discharge such other functions as may be prescribed; and (b) such number of Assistant Returning Officers as it may consider necessary to assist the Returning Officer. Power to issue directions. 45L. The Authority may, by general or special order, issue such directions to the board, its members, Chief Executive and other staff of the multi-State co-operative society as may be necessary for the conduct of free and fair elections and the board, its members, Chief Executive and staff of the society shall comply with such directions. .