Section 14 in The Bihar Co-operative Societies Act, 1935
14. Registered societies to have a managing committee etc.
(1)Every registered society shall have an address, registered in accordance with rules, to which all notices and communications may be sent, and shall send notice, in writing to the Registrar and to the financing bank, if any, of which it is a share holder and to the Co-operative Federation, if any, of which it is a member, of any change in the said address within fifteen days of such change.(2)The management of registered Society shall be vested in a managing committee constituted in accordance with the rules:[Provided that on the Managing Committee of such Societies or class of societies and in such areas as the State Government may by general or special order direct, at least two seats shall be reserved for the members belonging to the Scheduled Castes or Scheduled Tribes and three seats for small or marginal farmers in such manner as may be determined by the State Government and that the seats so reserved shall be filled up from amongst the members of the Scheduled Castes or Scheduled Tribes and small or marginal farmers either by election or by co-option or by nomination by the Registrar, Co-operative Societies:Provided further that if some members of these categories are elected by general election then the number of reserved seats shall be reduced to that extent, this provision shall be effective from the primary society to the Apex Society. But this shall not be effective for the commercial societies:Provided also that if no person belonging to Scheduled Castes or Scheduled Tribes and small or marginal farmers is a member of the Society, the society shall enrol at least two persons from the Scheduled Castes or Scheduled Tribes and three persons from the small or marginal farmers as its members from the area of its operation and co-opt them as members of the Managing Committee.] [Inserted by Act 39 of 1982.](3)[ An Officer of the State Government if deputed to a registered society either as a Managing Director, Executive officer or in similar position shall be the Chief Executive thereof and subject to general direction and control of the Managing Committee, shall have the following powers and functions:-(i)to have general control over the administration of the registered society;(ii)to convene meetings of the Managing Committee;(iii)to receive all moneys and securities on behalf of the registered society and to make arrangement for the proper maintenance and custody of cash balances and other properties of the registered society;(iv)to endorse and transfer promissory notes, Government and other Securities and to endorse, sign and negotiate cheques and other negotiable instrument on behalf of the registered society;(v)to be responsible for the general conduct, supervision and management to the day-to-day business and affairs of the registered society;(vi)to sign all deposits, receipts and operate the accounts of the registered society with Bank;(vii)to sign all bonds and agreements on behalf of the registered society;(viii)to determine the powers, duties and responsibilities of the employees of the registered society;(ix)to appoint, promote, transfer, punish, suspend, remove or dismiss any paid employee of the registered society except to the extent of the powers vested in the Managing Committee under the bye-laws of the registered society;(x)to institute, conduct, defend, compound or to withdraw any suit or other legal proceedings for or against the registered society and also to compound and allow time for payment to satisfaction of any claims;(xi)to delegate all or any of the powers to an employee or employees of the registered society subject to his control and supervision.(4)Notwithstanding anything contained in any provision of this Act, the Rules framed thereunder or the bye-laws of any registered Society where the State Government has-(a)subscribed directly to the share capital of a registered Society; or(b)assisted indirectly in the formation or augmentation of the share capital of a registered society; or(c)given loans or made advances to a registered society or guaranteed the re-payment of principal and payment of interest on debentures issued by a registered society for or guaranteed the re-payment of principal and payment of interest on loans or advances to a registered society;In that case the State Government shall have the right to nominate on the Managing Committee of such registered society not more than two persons one of whom shall be a Government servant, but the said Government servant shall have no right to vote in the election of the office-bearers of the registered society:Provided that notwithstanding the foregoing provisions contained in subsection (4) (a), (b) and (c)-(i)Where the share of the State Government in the share capital of such registered society exceeds thirty percent but does not exceed fifty percent, the State Government shall have the right to nominate upto one third of the total number of the members of the Managing Committee including the Chairman; and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than twenty-five percent;(ii)Where the share of the State Government in the share capital of such registered society exceeds fifty per cent, but does not exceed sixty percent of the total share capital of the registered society, the State Government shall have the right to nominate such number of members of the Managing Committee including the Chairman, as is nearest up to one-half of the total, and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than forty percent;(iii)Where the share of the State Government in the share capital of such registered society exceeds sixty per cent, the State Government shall have the right to nominate upto two-third of the total number of members of the Managing Committee including the Chairman, and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than fifty-five per cent:Provided that notwithstanding anything contained in provisos (i), (ii) and (iii) of sub-section (4), the State Government shall not nominate Chairman and other members of the Managing Committee if the share capital subscribed to by the State Government in a registered society is less than fifteen lakhs of rupees:Provided further that where the bye-laws of a registered society so provide, the State Government or the Registrar, as the case may be, may nominate more than two third members including office bearers of the Managing Committee on such terms and conditions as may be prescribed in the bye-laws:Provided further also that the Government shall nominate members of the Managing Committee including the Chairman as far as possible from amongst persons-(i)having interest in co-operative movement; or(ii)having knowledge and experience of organising or managing co-operative societies; or(iii)having experience of general administration; or(iv)is the member of such registered society; or(v)is or was associated with the administration and implementation of the Bihar Co-operative Societies Act.(5)Notwithstanding anything contained in any provision of this Act, rules made thereunder and the bye-laws of the society, the existing Managing Committee of a registered society in respect of which the State Government has power to nominate Chairman and other members of the Managing Committee in accordance with provisos (i), (ii) and (iii) of sub-section (4) shall cease to exist from the date of promulgation of Ordinance No. 17,1988 and its management shall vest in the State Government. The State Government shall appoint an Administrator for the management of the affairs of such registered society till the Managing Committee is constituted in accordance with the provisions of this Act.(6)(a)The Administrator so appointed under sub-section (5) shall hold the elections within six months of his appointment:Provided that the State Government, in special circumstances, after recording the reasons in writing, may extend the period from time to time, but not exceeding six months at a time over and above the prescribed period.(b)The State Government shall nominate the members of the Managing Committee including the Chairman under provisos (i), (ii) and (iii) of sub-section (4) within the said period.(7)Notwithstanding the provisions of re-numbered sub-section (9) the nominated members of the Managing Committee including the Chairman shall hold office during the pleasure of the State Government.(8)Notwithstanding anything contained in any provision of this Act, rules made thereunder and the by-laws of a registered society, no person shall be eligible for election or nomination as an office-bearer of the Managing Committee of a registered society if he has been an office bearer of the Managing Committee for two consecutive terms:Provided that such person may be eligible for election or nomination as an office-bearer of the said Managing Committee at the interval of three Co-operative years after having been the office-bearer of that Managing Committee for two consecutive terms.] [Original sub-section (3) made sub-section (11) and sub-section (3) and (4) inserted by Act 39 of 1982. Subsequently these sub-sections (3) and (4) made sub-sections (9) and (10) and new subsections (3) to (8) added by Act 8 of 1989.](9)Notwithstanding anything contained in the rules or bye-laws of a registered society, the term of the members and the office-bearers of the managing committee of a registered society shall be three co-operative years, and they shall continue to hold office after expiry of their term till the elections are held or for [nine months] [Substituted for 'six months' by Act 5 of 1989.] from the close of the co-operative year, whichever is earlier.(10)If, for any reason, elections are not held within the said period after expiry of the term of the members and the office-bearers of the managing committee, the committee shall be deemed to have been superseded with effect from the said date within the meaning of section 41, and thereafter the business of the society shall be carried on in the manner provided by the section:Provided that irrespective of the date when the election is so held, the term of the members and the office-bearers of the managing committee shall be deemed to have commenced from the beginning of the co-operative year in which the elections are held:Provided further that the members and the office-bearers who have held their respective offices beyond the period specified under sub-section (3) before coming into force of the Bihar Co-operative Societies (Sixth Amendment) Ordinance, 1974 shall be deemed to have validly held their respective offices:Provided also that the members and the office-bearers of the managing committee of the registered society, who have completed their terms of office before promulgation of the Bihar Co-operative Societies (Sixth Amendment) Ordinance,1974, other than those office-bearers who have ceased to hold office under sub-section (7), shall continue to hold their respective offices, till the expiration of 180 days from the date of promulgation of the said Act or till the election of the new office bearers, whichever is earlier.](11)Every registered society shall keep open to inspection free of charge at all reasonable times at its registered address-(a)a copy of this Act,(b)a copy of the rules governing such society,(c)a copy of the bye-laws of such society, and(d)a register of its members:Provided that if at any time it is found that the representation of the Scheduled Castes and Scheduled Tribes and marginal and small farmers on the managing committee of a society is not to the extent as prescribed in the proviso to subsection (2) the State Government may by notification nominate such members of Scheduled Castes/Scheduled Tribes/Small and Marginal Farmers as member of the Managing Committee of the society as may be required to give them adequate representation, and such nominated members may be in addition to the existing total number of members of the managing committee and they will hold office till the next general election of the society.]
