Section 38(1) in Sikkim Co-Operative Societies Act, 1978
(1)Notwithstanding anything contained in this Act, but subject to the provisions of section 36, where the Government has subscribed to the share capital of a society or has assisted directly or indirectly, in the formation or augmentation of the share capital of a society, or has guaranteed the repayment of principal and payment of interest on loans and advances to a society, the government or any other person authorised by it in this behalf shall have the right to nominate [Chairman and] [Inserted vide Act No. 6 of 1985, dated 28.6.1985.] members on the committee in the manner prescribed below viz.(i)where the Government shareholding is not less than one third and not more than two-thirds of the equity the number of Government nominees shall not exceed a third of the total number of members of the committee or three, whichever is less.(ii)where the Government holds more than two-thirds of the total equity, the number of Government nominees shall not exceed one-half of the total number of members of the committee or five whichever is less:Provided that in the case of societies registered after the commencement of this Act, the Government may have the power to nominate the initial committee for a period of 3 years or such extended period as may be decided by the Government.
