Amendment status not verified — confirm the current text below against the official source.
(1) The Registrar may, if he is satisfied, for reasons to be recorded in writing, that the board of any Co-operative society is mismanaging its affairs, under clause (a) of sub-section (1) of section 35, by order direct to call a special general meeting of the Co-operative society to dissolve the board and reconstitute it within such periods may be specified in the order. Explanation.—For the purpose of this sub-section, the expression "mismanaging its affairs" shall include any act of wilfully disobeying or failing to comply with any lawful order or direction issued by the State Government or the Registrar. (2) In any direction under sub-section (1), the Registrar may, for reasons to be recorded in writing, order that all or any of the members of the board to be dissolved shall be disqualified for election to the board or for appointment as an officer of the Co-operative society for such period, not exceeding three years, as may be specified in the order. (3) If the board is not dissolved and reconstituted in such manner and within such period as provided in the order under sub-section (1), the Registrar may, after service of a notice upon the board and giving it opportunity of stating its objections of being heard, and after being satisfied, by an order in writing stating reasons therefor, dissolve the board, the directors of which shall forthwith vacate their offices and the Registrar may appoint a board with the members of the Co-operative society as he thinks fit to manage the affairs of the Co-operative society for a period of six months at a time and may extend such period so, however, that the total period shall not exceed one year: Provided that the Registrar shall reconstitute an elected board of directors of the Co-operative society in a general meeting to be convened for the purpose in accordance with this Act, rules and by-laws within the tenure of office of the nominated board as specified in the notification so that such nominated board may vacate and the newly elected b6ard takes over before expiry of such tenure.