Section 35 in The Tamil Nadu Co-Operative Societies Act, 1983
35. Members of the board not to hold certain financial interests.
(1)Every person shall, prior to his election or nomination as a member of the board of any registered society, give such registered society, intimation of, and shall, before taking charge of his office as such member of the board sell or divest himself of any interest (other than investment and borrowing) which he may have for his own benefit whether in his own name or otherwise, in any contract made with the registered society or in any sale or purchase made by the registered society privately or in any auction or in any contract or transaction of the registered society; and it shall not be lawful for a member of the board of any such registered society, so long as he holds office to acquire or purchase any such interest (other than investment and borrowing) and if he, under any will or by succession or by gift becomes entitled for his own benefit to such financial interest, he shall sell the same within three months after becoming so entitled thereto and he shall also within three months, sever any connections he may have and cease to have any such financial interest direct or indirect (other than investment and borrowing):Provided that nothing contained in this sub-section shall apply to such class of contracts, sales, purchases or transactions as may be prescribed.(2)Where any member fails to comply with the provisions of sub-section (1), the Registrar may, by an order in writing, remove such member from the office of membership of the board.(3)No member shall be removed under sub-section (2) without being given an opportunity of making his representations. A copy of the order removing him shall be communicated to him.
