Section 26 in The Punjab Co-operative Societies Act, 1961
26. Election and nomination of members of committee.
- [(1) The members of the committee of a co-operative society shall be elected in the manner prescribed and no person shall be so elected unless he is a share holder of the society:Provided that the maximum number of members of the committee of a co-operative society shall not exceed twenty-one:Provided further that there shall be reservation of one seat for the scheduled castes and two seats for women on the committee of every co-operative society consisting of individuals as members and having members from such class or category of persons.](1A)[ The committee of any co-operative society may subject to the approval of the Registrar, divide the area of operation of the society into zones for the purpose of election of members of the committee.] [Inserted by Punjab Act 26 of 1969 Section 9 w.e.f. 10.9.1969.][(1-B) The term of office of elected members of the committee and its office bearers shall be five years from the date of election and the term of office bearers and shall be coterminous with the term of the committee:Provided that the committee may fill a casual vacancy on the committee by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the committee is less than half of its original term:Provided further that such casual vacancy shall be filled in a meeting of the committee held in the presence of a nominee of the Registrar.][(1-C) Each committee shall, ninety days before the expiry of its term, make arrangements for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder ;] [Inserted by Punjab Act No. 26 of 1969 Section 9 (i) w.e.f. 10th September 1969.][(1-D) Where any committee has ceased to hold office and no committee has been constituted in accordance with the provisions of this Act and rules and bye- laws made thereunder, the Registrar may, by an order in writing, appoint a Government employee as an Administrator for such period as may, from time to time, be specified in the order and the Administrator shall, before the expiry of the period of his appointment, arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder :] [Substituted by Act No. 6 of 1974 Section 4 w.e.f. 1st January 1973.][Provided that the period for which an Administrator may be appointed, shall not in case of a co-operative society carrying on the business of banking exceed one year and shall not exceed six months in case of other co-operative society.] [Substituted by Punjab Act No. 14 of 2014.][Explanation. - The delay caused in constitution of an elected committee due to judicial proceedings in civil courts in this regard, shall be excluded at the time of computing the period for which an Administrator is appointed.] [Added by Punjab Act No. 27 of 2017.](1E)[ The provisions of sub-section (3) and sub-section (4) of section 27 shall apply to the Administrator appointed under sub-section (1D) as if the Administrator had been appointed under that section.] [Inserted by Punjab Act 26 of 1969 Section 9 (i) w.e.f. 10th September 1969.](1F)[ Notwithstanding anything contained in this section, where the bye-laws of a society so provide, the first committee may be nominated by the Registrar for a period of six months extendable upto one year in the case of primary society, and for a period of one year extendable upto three years in the case of a central society or an apex society :Provided that the Registrar may make such changes in the membership of a nominated committee at the time of each extension, as he may consider appropriate, subject, however, to the condition that no mid-term change shall be made during any of the extended periods.](2)Notwithstanding anything contained in sub-section (1) [but subject to a ceiling of twenty one members of the committee] [Words Added by Punjab Act No. 14 of 2014.], -(a)[ Where the Government have subscribed to the share capital of a co-operative society or has guaranteed the repayment of the principal of and payment of interest on debentures issued for loans raised by a co-operative society, the Government or any person authorised by it in this behalf, shall have the right to nominate on the committee such number of persons, not exceeding three or one- third of the total number of members thereof, whichever is less, as the Government may determine : [Substituted for clause (a) by Punjab Act 26 of 1969 Section 9.]Provided that where the Government have subscribed to the share capital of a co-operative society to the extent of twenty lacs of rupees or more, the Government may, notwithstanding anything contained in the bye-laws of the society, -(a)appoint one of the members nominated in the aforesaid manner as Chairman of the committee of such society ; or(b)nominate another member in addition to those nominated in the aforesaid manner and appoint him as Managing Director :Provided further that no person shall be appointed to act as Managing Director unless he is a member of the Indian Administrative Service, Punjab Civil Service (Executive Branch) or a Deputy Registrar, a Joint Registrar or an Additional Registrar, Co-operative Societies;][Provided further that the condition of share capital of twenty lacs of rupees or more mentioned in the first proviso to clause (a) of subsection (2) of section 26 of the Punjab Co-operative Societies Act, 1961, shall not apply in the case of any Central Co-operative Bank, which has been provided finance by the Government, the Government of India, the National Bank for Agriculture and Rural Development or the Reserve Bank of India and the Government may appoint as Managing Director of such Bank, any person, who is a Member of the Indian Administrative Service, the Punjab Civil Service (Executive Branch), a Deputy Registrar, a Joint Registrar or an Additional Registrar of Co-operative Societies or is a professional having specialization in the field of banking and possessing the qualifications and experience specified by the Government in this behalf.] [Added by Punjab Act No. 1 of 2014.](b)Where the Industrial Finance Corporation, the State Finance Corporation or any other financing institution notified in this behalf by the Government has provided finance to a co-operative society, the Industrial Finance Corporation, State Finance Corporation or other financing institution, as the case may be, shall have the right to nominate one person on the committee.(2A)[ Where the Government appoints a Chairman or Managing Director under the proviso to clause (a) of sub-section (2) the Chairman or Managing Director, if any, as the case may be, holding office immediately before such appointment shall cease to hold office on such appointment.(2B)The terms and conditions of service of the Managing Director or Chairman, as the case may be, appointed by the Government shall be such as may be determined by the Government and the remuneration payable to the Managing Director for Chairman as the case may be, shall be paid out of the funds of the co-operative society.] [Inserted by Punjab Act 26 of 1969 Section 9 w.e.f. 10th September 1969.](3)A person nominated under sub-section (2) shall hold office during the pleasure of the Government or the Corporation or other financing institution as the case may be.(4)Where, in a co-operative society in which shares have been subscribed for liability by way of guarantee for borrowing exceeding fifty per centum of the working capital of the society has been undertaken by the Government, a difference of opinion in respect of any matter arises between the nominated members of the committee and other members thereof the matter shall be referred by the committee to the Government whose decision thereon shall be final and will operate as if the same were a decision taken by the committee.[26A. Co- option of members. - (1) Notwithstanding anything in section 26, the Registrar may, by an order in writing, direct the committee of any co-operative society or any class of co-operative societies to co-opt in the prescribed manner for serving on the committee such number of members not exceeding two as may be specified in the direction.] [Inserted by Punjab Act 2 of 1969 Section 10 w.e.f. 10-9-1969.](2)Where a direction is issued under sub-section (1), co-option shall be made from amongst members of the co-operative society belonging to scheduled castes, scheduled tribes or backward classes or from amongst members who as landowner or tenant or as both do not hold more than the prescribed area of agricultural land and fulfil the prescribed conditions.(3)Members co-opted under sub-section (2) for serving on the committee of a co-operative society shall have the same rights and privileges and shall be subject to the same liabilities as elected members of the committee of that society.
