Section 41 in The Bihar Co-operative Societies Act, 1935
41. [ Dissolution of Managing Committee. [Substituted by Act 5 of 1989 and shall be deemed always have been so substituted.]
(1)If, in the opinion of the Registrar, the Managing Committee of any registered society is mismanaging the affairs of the registered society or has failed to sufficiently improve the affairs of the registered society or is persistently making default or is negligent in the performance of the duties imposed on it by this Act, the Rules or the bye-laws, he may, by order in writing after giving the Managing Committee an opportunity to state its objections, if any, dissolve the Managing Committee for any period not exceeding six months and order that all or any of its members shall be disqualified from being elected to the Managing Committee of the registered society for a period to be specified in the order not exceeding three years:Provided that the Registrar, in special circumstances, by recording the reasons in writing and with the prior approval of the State Government, shall extend the period of dissolution for such further period as may be considered necessary by the State Government.Every order of the Registrar under this sub-section shall state the reasons for which it is made and shall be communicated by registered post to the registered society concerned.(2)Where the registrar while proceeding to take action under sub-section (1) is of opinion that suspension of the Managing Committee is necessary in the interest of the registered society, he may suspend the Managing Committee which shall thereupon cease to function, and make such arrangement as he thinks proper for the management of the affairs of the registered society till the proceedings under sub-section (1) are completed:Provided that if the Managing Committee so suspended is not dissolved it shall be reinstated and the period during which it has remained suspended shall count towards its term.(3)When a Managing Committee is dissolved under sub-section (1), the Registrar shall appoint an Administrator on such remuneration, if any, as he may fix, to carry on the business of the society, and the Administrator, shall subject to any direction issued by the Registrar from time to time, exercise all the powers and perform all the duties which may under this Act, the rules and the bye-laws, be exercised or performed by the Managing Committee or any officer of the registered society:Provided that the Registrar shall have the power to change the Administrator during the period of dissolution.(4)The Registrar shall, before the expiry of the period of dissolution under subsection (1), require the Administrator to take necessary action for the constitution of the new Managing Committee and the Administrator shall forthwith hand over the management to the new Managing Committee constituted in accordance with the provisions of the Act and the Rules.(5)The Registrar may dissolve the Managing Committee of a registered society in case where-(a)majority of the members and elected office-bearers of the Managing Committee of a registered society resign from their respective membership or office; or(b)half the total number of seats of the Managing Committee of a registered society, becomes vacant for any reason whatsoever;and shall appoint Administrator for the better management of the registered society;Provided that if during the period of dissolution of the Managing Committee, the Registrar is satisfied that the affairs of a registered society have sufficiently improved and it is desirable to restore the management to a newly elected Managing Committee, he may by order direct that the Administrator shall take steps for the constitution of a new Managing Committee and on such Committee having been constituted in accordance with the provision of this Act and the Rules, the Administrator shall hand over the management to such newly constituted Managing Committee forthwith.(6)An appeal shall lie from an order of the Registrar under sub-section (1) to the State Government on application made by any member of the ManagingCommittee within three months from the date of communication of the order to the registered society concerned. The order of the State Government on appeal, and subject to the result of such appeal, if any, the order of the Registrar shall be final.(7)The Registrar may issue such direction to the Administrator as to his powers and duties and the affairs of registered society as the Registrar deems desirable and the Administrator may apply to the Registrar at any time for instruction as to the manner in which the Administrator shall conduct the management of the registered society.(8)Nothing in this Section shall be deemed to affect the powers of Registrar to order the winding up of a registered society under Section 42 or to cancel the registration of the registered society under sub-section (8) of Section 44.]
