Rights of a co-opted director

Ajit Pathak

I am an advocate and looking after one Multi state co-operative society name Kisan Agro-tech co-operative society as legal advisor.

I have some query and clarification with related to Board of director and co-opted director.

As per sec-41 of MSCS Act there is limit of Director in board ie 21 Society may co-opt maximum two from expert or other…

1.As per may understanding we can’t count this two co-opted in 21 or even that would be minimum 05 or 21 in their bye laws. Is it true?

2.As we know there is no voting right of co-opted director but can we appoint him as authorized signatory for the society?

3.Can co-opted director sign on appointment letter or LOI as official of society?

4.As per 97th amendment of our constitution our secretarial officer has filed amendment of bye laws to Registrar to put SC OR ST and Two women… Can we elect or appoint as per 97th amendment prior to approval of Registrar??

Sir, I have put my query in brief and may be my query would be not much clear but I hope some reply from your side to able me get more interpreted and implied knowledge with related to sec-41 of MSCS Act and 97th amendment of constitution.

I C Naik

Answers to your question are to be found in article 243ZJ as the States Laws are required to align to these provision or else they prevail over any contrary provision. Multi State Cooperative Law also has to go by this.

1.Maximum number of directors of a co-operative society shall not exceed twenty-one:

2.As a co-opted (EXPERT) member of the board two limitations are applicable;

(a) He cannot vote in Election to Committee or to a position of an office bearer and

(b) he cannot himself become office bearer.

Although there is no express prohibition Expert directors are not expected to take up executive responsibilities like signing papers which is the responsibility of secretary and Chairman or any other office bearer. It could be interpreted as allowing him to function as a part time office bearer, which he is not permitted to.

Reservations having been provided in the constitution which provisions have after  14-02-2013 superseded all conflicting provisions in law or in bye laws reservation of one seat for st/sc and two for women members of the society is applicable with effect from 14 2 2013.

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