Section 38 in Sikkim Co-Operative Societies Act, 1978
38. Nomination of members to the Committee.
(1)Notwithstanding anything contained in this Act, but subject to the provisions of section 36, where the Government has subscribed to the share capital of a society or has assisted directly or indirectly, in the formation or augmentation of the share capital of a society, or has guaranteed the repayment of principal and payment of interest on loans and advances to a society, the government or any other person authorised by it in this behalf shall have the right to nominate [Chairman and] [Inserted vide Act No. 6 of 1985, dated 28.6.1985.] members on the committee in the manner prescribed below viz.(i)where the Government shareholding is not less than one third and not more than two-thirds of the equity the number of Government nominees shall not exceed a third of the total number of members of the committee or three, whichever is less.(ii)where the Government holds more than two-thirds of the total equity, the number of Government nominees shall not exceed one-half of the total number of members of the committee or five whichever is less:Provided that in the case of societies registered after the commencement of this Act, the Government may have the power to nominate the initial committee for a period of 3 years or such extended period as may be decided by the Government.(2)A person nominated under sub-section (1 shall hold office during the pleasure of the Government.
