Section 25 in The Karnataka Souharda Sahakari Act, 1997
25. Disqualification for being elected or continued as director.
(1)A person shall be disqualified [for being elected or continued as director of the [Co-operative for a maximum period] [Substituted by Act 4 of 2013 w.e.f. 11.02.2013.] of five years from the date of incurring disqualification] if such person, -(a)has at any time lost the right to vote as a member or to continue as such; or(b)has incurred any other disqualifications as specified in the bye-laws; or(c)absents himself from three consecutive board meetings without leave of absence; or(d)[ is convicted for an offence involving moral turpitude under any law for the time being in force, or for an offence under this Act; or] [Substituted by Act 21 of 2004 w.e.f. 31.3.2004.](e)[ has been a defaulter in the repayment of any instalment of a loan taken by him or has been a surety for a borrower who has defaulted in repaying his loan continuously for three instalments.] [Inserted by Act 21 of 2004 w.e.f. 31.3.2004.](f)[] [Clause (e) has been renumbered as clause (f) by Act 21 of 2004 w.e.f. 31.3.2004.] incurs any disqualification as specified in sub-section (2).(2)All the directors shall incur disqualification for being elected as directors in a [Co-operative for a maximum period of five years] [Substituted by Act 34 of 2014 w.e.f. 06.09.2014.] from the date of incurring such disqualification and shall also be disqualified to continue as directors of that Co-operative or any other Co-operative, if during the term of office as directors of a Co-operative they,-(a)have not rendered necessary assistance to the cooperative election commission for conducting election to the board before the expiry of its term within the stipulated time [***] [Omitted by Act 34 of 2014 w.e.f. 06.09.2014.] ; or(a-1) have not submitted returns and information to the Registrar and the federal cooperative as per section 34 within a period of six months from the close of the cooperative year; or(a-2) have committed serious financial irregularities or frauds which have been detected; or(b)have not conducted the annual general meeting [within the twenty fifth day of September every year] [Substituted by Act 4 of 2013 w.e.f. 11.02.2013.] or requisitioned meeting of the general body within the time stipulated in section 30; or(c)have not placed the audited accounts for the [preceding cooperative year] [Substituted by Act 4 of 2013 w.e.f. 11.02.2013.] along with the report of the auditor before the annual general meeting.(d)[ have violated the order or direction of the Federal Cooperative or violated any order of quasi-judicial authority or court; [Inserted by Act 26 of 2016 w.e.f. 24.12.2016.](e)have opened branches without prior approval of the Federal Cooperative](3)A director or an employee who is guilty of misappropriation, breach of trust or any other omission or commission resulting in loss to the Co-operative, shall be personally liable to make good that loss without prejudice to such criminal action to which he is liable under any other law for the time being in force.(4)[ Any question as to whether a member of the board is or has become subject to any disqualification specified in this section shall be decided by the Federal Co-operative after giving the person concerned a reasonable opportunity of being heard.(5)Any person aggrieved member may prefer an appeal against the order made under sub-section (4) to the Registrar within thirty days from the date of order.] [Inserted by Act 16 of 2005 w.e.f. 1.6.2005.]
