Radahkrishna
I am from Hyderabad and I am a member of a Multi-State Cooperative society.
As per Section 43 of The Multi-State Co-operative Societies Act, 2002, no member of the society shall be eligible for being chosen as, or for being, a member of the board, if such member
Is concerned or participates in the profits of any contract with the society
Holds any office or place of profit under the society
Has interest in any business of the kind carried on by the society of which he is a member
In contravention of the provisions of the Act as stated above, one member beside being a member of the board, he has also been holding the office of profit under the society as its Valuer for the properties mortgaged for the loans sanctioned by the society and receiving lakhs of rupees of payment from the society for the services rendered as a Valuer.
In addition, he has also been sitting in the meetings of sub-committee of the board in the capacity as a member of the board and sanctioning the loans for which he has valued the properties which were offered for mortgage as Valuer.I would like to know whether such board member incur disqualification for continuing as a member of the board and being chosen as a member of the board?
If so, how long will he be barred from being chosen as member of the board again? In section 43, it is not mentioned for how long will he be barred from being chosen again as a member of the board if he incur disqualification under the clauses mentioned above.
Could you please advise me on the legal position in the above issue? What steps I should take and to whom I should complain to make him disqualified and debarred from contesting election?
I C Naik
There is a prohibitive period of one year is the 2nd Proviso to Clause 1. “Provided that a member of the board who has ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold office, for re-election as a member of the board of the multi-state cooperative society of which he was a member or for the election to the board of any other multi-state cooperative society;’
You have a remedy to move a resolution for removal of such member in the General Body Meeting under Section 47 of the Act.
How to remove an ineligible member is not provided under the Act. You can still give details to Central Registrar to take action.