Section 29C in Karnataka Co-Operative Societies Act, 1959
29C. Disqualification for membership of the committee.
(1)No person shall be eligible for being elected or appointed or continued as a member of the [committee of any co-operative society] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998.], if,-(a)[ he is in default to that society or any other co-operative society in respect of any dues from him as borrower;] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998.](b)he is interested directly or indirectly in any contract made with such co-operative society or in the sale or purchase made by such co-operative society privately or in auction or in any contract or transaction of the co-operative society (other than investment and borrowing) involving financial interests in that contract, sale, purchase or transaction;(c)[he or any of his near relation carries] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998.] on a business of the kind carried on by such co-operative society or by a co-operative society of which such co-operative society is a member;[Provided that if any question arises as to whether any person is near relation or not, the case shall be decided by the Registrar and his decision shall be final.] [Inserted by Act 25 of 1998 w.e.f. 15.08.1998.](d)he is employed as legal practitioner on behalf of such co-operative society or accepts employment as legal practitioner against such co-operative society;(e)he is a paid employee of such co-operative society or of its financing bank;[***] [Inserted by Act 5 of 1984 w.e.f. 09.01.1984 and Omitted by Act 24 of 2001 w.e.f. 05.09.2001.](f)he is a near relation of a paid employee of such co-operative society.[Explanation.-For the purpose of [this clause and clause (c)] [Substituted by Act 19 of 1976 w.e.f. 20.01.1976.] 'near relation' means,-(i)husband, wife and unmarried daughter;(ii)father, mother, undivided son, undivided brother and unmarried sister; and(iii)such other relations as may be prescribed to be a near relation.[***] [Omitted by Act 70 of 1976 w.e.f. 04.12.1976.]](g)[ he was a paid employee of a co-operative society and was dismissed, removed or compulsorily retired from service of a co-operative society; [Clauses (g) to (n) inserted by Act 25 of 1998 w.e.f. 15.08.1998.](h)he is disqualified to be a member of the society or to vote as such member;(i)he has been convicted for an offence punishable under section 153A or section 171E or section 171F or sub-section (2) or sub-section (3) of section 505 of the Penal Code, 1860 (Central Act 45 of 1860) or under section 39J or clause (b) of sub-section (2) of section 39K of this Act, unless a period of six years has elapsed from the date of such conviction;(j)he has been convicted by a Court in India for any offence and sentenced to imprisonment for a term of not less than two years, unless a period of five years has elapsed from the date of his release;(k)he is found guilty of corrupt practice within the meaning of section 39C unless a period of six years has elapsed from the date on which he was found guilty;(l)he has failed to remit to any co-operative society any amount (other than a loan) retained by him in contravention of the provisions of this Act, rules or bye-laws;(m)he is a representative of a co-operative society which is in default to a financing bank or to any co-operative society in respect of any dues by the co-operative society which he represents, for a continuous period of one year:Provided that the disqualification under this clause for being continued as a member of the committee shall apply to a co-operative society which has defaulted in payment of an amount exceeding thirty percent of such dues;(n)he was a member of the committee which failed to make arrangement for election within the time limit specified in section 39A.](o)[ he, is in the Committee of a District Central Society or a Federal Society or an Apex Society as a representative of a Co-operative Society; and,- [Inserted by Act 24 of 2001 w.e.f. 05.09.2001.](i)he ceases to be a member of the primary or secondary society which he represents; or(ii)the society which nominated him as a representative withdraws his nomination; or(iii)the committee of the society of which he is a member has been removed under section 30, or a special officer is appointed under section 31;(iv)the society of which he is the representative has been liquidated;](2)No person including a person elected by a co-operative society as a member of a committee of another co-operative society of which such co-operative society is a member shall be a [President or Chairperson, Vice-President or Vice-Chairperson or other office bearer] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998.] of more than two co-operative societies.(3)[ ***] [Omitted by Act 25 of 1998 w.e.f. 15.08.1998.](4)[ Nothing in sub-section (2) shall apply,-(i)to any person who is appointed by the State Government or the Registrar as the President or Chairperson, Vice-President or the Vice-Chairperson; or(ii)to any person who is merely a member of the committee.](5)In the case of co-operative marketing societies, consumers co-operative societies and such class or classes of co-operative societies as may be specified by the State Government, by notification in the official Gazette, no member shall be eligible for being appointed or elected as a member of the committee of such co-operative society if he does not fulfill the minimum qualifications relating to his transactions with the co-operative society upto such monetary limits as may be specified from time to time in such notification.(6). There shall be no representative of individual members on the committees of a District Central Co-operative Bank or an Apex Co-operative Bank or such other classes of co-operative banks as may be prescribed.(7)Any question as to whether a member of the committee was or has become subject to any of the disqualifications mentioned in this section shall be decided by the Registrar after giving the person concerned a reasonable opportunity of being heard.(8)[ If any member of a committee of a co-operative society during the term of his office,-(a)becomes subject to any disqualifications specified in sub-sections (1), (2) and (5); or(b)has acted or has been acting fraudulently or with gross negligence or in contravention of the provisions of this Act, the rules or the bye-laws of the co-operative society or without the sanction of the committee of the co-operative society where such sanction is necessary or contrary to the resolution of the co-operative society or its committee or in any way prejudicial to the interest of the co-operative society; or(c)has acted or has been acting persistently against the directions or orders issued under this Act, rules or bye-laws; or(d)is not discharging his duties satisfactorily; the Registrar may either on a report made to him or otherwise, by order remove such member, and in cases falling under clauses (a), (b), (c) and (d) of this sub-section disqualify him from holding any office in the co-operative society for such period not exceeding five years, as may be specified in such order:Provided that no order shall be made under this sub-section unless a reasonable opportunity of being heard, is given to the person against whom the order is to be made.(9)A copy of the order made under sub-section (8) shall be communicated to the member and the co-operative society concerned.] [Sub-sections (8) and (9) inserted by Act 25 of 1998 w.e.f. 15.08.1998.]
