Section 14(4) in The Bihar Co-operative Societies Act, 1935
(4)Notwithstanding anything contained in any provision of this Act, the Rules framed thereunder or the bye-laws of any registered Society where the State Government has-(a)subscribed directly to the share capital of a registered Society; or(b)assisted indirectly in the formation or augmentation of the share capital of a registered society; or(c)given loans or made advances to a registered society or guaranteed the re-payment of principal and payment of interest on debentures issued by a registered society for or guaranteed the re-payment of principal and payment of interest on loans or advances to a registered society;In that case the State Government shall have the right to nominate on the Managing Committee of such registered society not more than two persons one of whom shall be a Government servant, but the said Government servant shall have no right to vote in the election of the office-bearers of the registered society:Provided that notwithstanding the foregoing provisions contained in subsection (4) (a), (b) and (c)-(i)Where the share of the State Government in the share capital of such registered society exceeds thirty percent but does not exceed fifty percent, the State Government shall have the right to nominate upto one third of the total number of the members of the Managing Committee including the Chairman; and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than twenty-five percent;(ii)Where the share of the State Government in the share capital of such registered society exceeds fifty per cent, but does not exceed sixty percent of the total share capital of the registered society, the State Government shall have the right to nominate such number of members of the Managing Committee including the Chairman, as is nearest up to one-half of the total, and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than forty percent;(iii)Where the share of the State Government in the share capital of such registered society exceeds sixty per cent, the State Government shall have the right to nominate upto two-third of the total number of members of the Managing Committee including the Chairman, and such right once accrued shall continue until the share of the State Government in the share capital of the registered society goes down to less than fifty-five per cent:Provided that notwithstanding anything contained in provisos (i), (ii) and (iii) of sub-section (4), the State Government shall not nominate Chairman and other members of the Managing Committee if the share capital subscribed to by the State Government in a registered society is less than fifteen lakhs of rupees:Provided further that where the bye-laws of a registered society so provide, the State Government or the Registrar, as the case may be, may nominate more than two third members including office bearers of the Managing Committee on such terms and conditions as may be prescribed in the bye-laws:Provided further also that the Government shall nominate members of the Managing Committee including the Chairman as far as possible from amongst persons-(i)having interest in co-operative movement; or(ii)having knowledge and experience of organising or managing co-operative societies; or(iii)having experience of general administration; or(iv)is the member of such registered society; or(v)is or was associated with the administration and implementation of the Bihar Co-operative Societies Act.
