Amendment status not verified — confirm the current text below against the official source.
Special general meetings :- (1) The committee of a co-operative society may, at any time call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be provided in the bye-laws. (2) If a special general meeting of a co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee. SECTION - 26 Election and nomination of members of committees :- (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 (1) Substituted by Punjab Act 14 of 2014 Ee women on the committee of every co-operative society consisting of individuals as members and having members from such class or category of persons.] 1[(1-A) 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.] ?[(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 co-terminous 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.] 3[(1-C) Each committee shall, ninety days before the expiry of its term, make arrangements for the constitution of anew committee in accordance with the provisions of this Act and rules and bye-laws made thereunder.] 4[(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 Substituted by Punjab Act 6 of 1974, section-4. Section 5 of Punjab Act No. 6 of 1974 reads as under :- validation "Nothwithstanding any judgment, decree or order of any court or other authority, any appointment, reappointment or continuance of an Administrator beyond a period of six months ordered at any time after 1st January, 1973, and before the commencement of the Punjab Co-operative Societies (Amendment) Ordinance, 1973, shall be deemed to be as valid and effective as if the same had been made under the provisions of sub-section (1-D) of section 26 as substituted by the Punjab Co-operative Societies (Amendment) Act, 1974 and accordingly no act done or order passed by such Administrator shall be called in question merely on the ground that his appointment, reappointment or continuance was not made in accordance with law." (1) Inserted by Punjab Act 26 of 1969 w.e.f. 10.9.1969 fee (2) Substituted by Punjab Act 14 of 2014 (3) Inserted by Punjab Act 26 of 1969 w.e-f. 10.9.1969 (4) Inserted by Punjab Act 6 of 1974 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 new committee in accordance with the provisions of this Act and rules and bye-laws made thereunder ;] 1[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.] [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.] 3[(1-E) The provisions of sub-section (3) and sub-section (4) of section 27 shall apply to the Administrator appointed under sub-section (1-D) as if the Administrator had been appointed under that section.] 4[(1-F) 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 a primary society, and for a period of one year extendable upto three years in 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.] (1) Substituted by Punjab Act 14 of 2014 (2) Added by Punjab Act No. 27 of 2017 7 (3) Inserted by Punjab Act 26 of 1969 (4) Substituted by Punjab Act No. 19 of 1993 (2) Notwithstanding anything contained in sub-section (1) ‘[but subject to a ceiling of twenty one members of the committee] 7[(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: Provided that where the Government has 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 °[:] “(Provided further that the condition of share capital of twenty lacs of rupees or more mentioned in the first proviso to clause (a) of sub-section (2) of section 26 of the Punjab Cooperative 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 (1) Added by Punjab Act No. 14 of 2014 (2) Substituted by Punjab Act No. 19 of 1993 ee) (3) Substituted by Punjab Act No. 1 of 2014 (4) Added by Punjab Act No. 1 of 2014 having sepcialization in the field of banking and possessing the qualifications and experience specified by the Government in this behalf;] (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 Indian Administrative Service, Punjab Civil Service (Executive Branch) or a Deputy Registrar, a Joint Registrar or an Additional Registrar, Co-operative Societies;] (c) 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. 1[(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 or Chairman as the case may be, shall be paid out of the funds of the co-operative society. ] (1) Inserted by Punjab Act 26 of 1969 w.e.f. 10th September, 1969. es (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, ina co-operative society in which shares have been subscribed for liability by way of guarantee for borrowing exceeding fifty percent 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. SECTION - 26 -A 1126-A 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 directions. (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 2[***] 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[Provided that the maximum number of members of the committee shall not exceed twenty one excluding the members co-opted under sub-section (4).] (1) Inserted by Punjab Act No. 26 of 1969 w.e.f. 10th September, 1969 fio) (2) Ommitted by 14 of 2014 (3) Added by 14 of 2014 (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. 1[(4) Notwithstanding anything contained in sub-section (1), the committee shall co-opt as members from amongst the persons having an experience in the field of banking, management and finance or having specialization in any field relating to the objects and activities undertaken by such a society: Provided that the number of such co-opted members of the committee shall not exceed two in addition to twenty-one members specified in the first proviso to sub-section (1) of section 26: Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member and shall also not to be eligible to be elected as office bearers of the committee: Provided further that the functional directors of a co-operative society shall also be the members of the committee and such members shall be excluded for the purpose of counting the total number of members specified in the first proviso of sub-section (1) of section 26.] SECTION - 26-B 26-B Restrictions on membership etc. :- (1) No individual shall, at any time, be a member of committee of - (a) more than two primary societies ; and (b) more than one central and one apex society : Provided that nothing in this sub-section shall apply to a member nominated under sub-section (2) of section 26 or to a member of the committee of an apex (1) Added by Punjab Act No. 14 of 2014 Gn or central society nominated to serve on the committee of another apex or central society, as the case may be, in accordance with the provisions of their bye-laws. 1[(2) No person shall be eligible for being elected to the committee of any co-operative society after he has served on the committee of that co-operative society for two continuous terms, unless a period of not less than one term has expired since he last so served. Explanation - For the purpose of computing the period of two terms under sub-section (2), if a person ceased to serve on the committee on account of resignation tendered by him, he shall be deemed to have so served for the full term in which resignation was tendered.] SECTION - 26-C 2[26-C- Restriction on membership of an insured bank imposed after the order of Reserve Bank of India as a consequence under Section 70-A:- In case of an insured Co-operative bank, if an order for supersession of its Committee, as per the requisition of the Reserve Bank of India, is made under sub- section (3) of Section 70A, at any time within a period of ten years before the date of incorporation of this section or at any time after such incorporation, then, no member of such Committee shall be eligible for being re- appointed, re-nominated, re-elected or re-co-opted on the Committee of such bank or, for being a member or being appointed, nominated, elected, or co-opted, as a member of Committee of such bank or any other bank, for a period of two terms of the Committee from the date of order of supersession of the Committee.] SECTION - 27 3[27 - Removal or suspension of committee or member thereof :- “{1. If, in the opinion of the Registrar, a committee or any member of a committee persistently makes default or is negligent in the performance of the duties imposed on it or him by this Act or the rules or bye-laws made thereunder, or commits any act which is prejudicial to the interests of the society or its members, or makes default in the 1, Substituted by Punjab Act No. 19 of 1993 (2) Inserted by Punjab Act No. 20 of 2021 iz (3) Substituted by Punjab Act 26 of 1969 w.e.f.10.9.1969 (4) Substituted by Punjab Act No. 14 of 2014 implementation of production or development programmes undertaken by the co-operative society, or there is stalemate in the constitution or function of the committee the Registrar may, after giving the committee or the member, as the case may be, a reasonable opportunity to state its or his objections, if any, by order in writing, - (a) remove the committee, and appoint a Government servant as an administrator, to manage the affairs of the society for a period not exceeding six months, as may be specified in the order ; and (b) remove the member and get the vacancy filled up through election for the remaining period of the outgoing member, according to the provisions of this Act and rules and bye-laws made there under: Provided that the committee of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee given by the Government: Provided further that in case of a co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply : Provided further that in case of a cooperative society carrying on the business of banking, the period of six months mentioned in clause (a) shall be one year. 1(Explanation 1)- Co-operative societies which have been allotted land at concessional rates or at reserve price by any statutory authority or Government organization shall be deemed to have taken financial assistance from the Government .} 2 (Explanation 2-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 as provided in clause (a).) (1) Explanation Clause renumbered as explanation 1 by Punjab Act No. 27 of 2017 (2) Added by Punjab Act No. 27 of 2017 (2) (3) (4) (5) (6) (7) Where the Registrar, while proceeding to take action under sub-section (1) is of opinion that suspension of the committee or member during the period of proceedings is necessary, in the interest of the co-operative society, he may suspend the committee or member, as the case may be, and where the committee is suspended, make such arrangements as he thinks proper for the management of the affairs of the society till the proceedings are completed. Provided that if the committee or member so suspended is not removed, it or he shall be reinstated and the period of suspension shall count towards its or his term. The administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers to perform all or any of the functions of the committee or of any officer of the society and take all such action as may be required in the interest of the society. The Registrar may fix the remuneration payable to the person appointed as administrator and the amount of such remuneration and other costs, if any, incurred in the management of the society shall be payable from its funds. The administrator shall, before the expiry of his term of office arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws framed thereunder. Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing bank to which the society is indebted. A member who is removed under sub-section (1) may be disqualified for being elected to any committee for such period not exceeding three years as the Registrar may fix.] EEO Ea eer el SECTION - 28