Section 38A in The Karnataka Souharda Sahakari Act, 1997
38A. [ Appointment of Special Officer. [Inserted by Act 4 of 2013 w.e.f. 11.02.2013.]
(1)Where the activities of a cooperative are not being conducted in accordance of the provisions of this Act, the Rules or the bye-laws made there under as a result of the directors of the board falling short of the required number to form a quorum due to disqualification, resignation or death or removal of a director or where all the directors of a cooperative have incurred any disqualification under sub-section (2) of section 25 or where all the directors have tendered resignation, [or for the reason that the new board has not been constituted and the term of previous board has expired] the Federal cooperative may by order appoint a Special Officer for such co-operative, for such period not exceeding six months.(2)Before making an order under sub-section (1), it shall not be necessary for the Federal cooperative to give any co-operative or persons likely to be affected by such order, an opportunity to state its or their objection, if any.(3)The Special Officer shall inform the cooperative election commission about conducting election to fill up the vacant seats on the board and the Election Commission shall conduct election for the remaining term of the vacant seats.(4)As soon as the elections are held and the number of directors to form the quorum are available, the Special Officer shall handover the management to the board and the office of the Special officer shall be deemed to have been vacated.]
