(1)

No person shall be eligible for being elected or nominated as a member of a board of any registered society if he -

(a) is such near relation, as may be prescribed, of a paid employee of such registered society; or

(b) is in default to such registered society or any other registered society, in respect of any loan or advance taken by him or dues under credit purchases made by him for a period exceeding three months; or

(iii) is a person against whom any decree, decision, award, order or certificate referred to in section 143 has been obtained; or a representative of the registered society against which such decree, decision, award, order or certificate has been obtained; or

(iv) is a person against whom proceedings have been initiated under sections 118, 119,120 or 144 for the recovery of any debt; or

(i) is employed as legal practitioner on behalf of the registered society or against it or on behalf of or against any other registered society which is a member of the first-mentioned registered society; or

(ii) was employed in any co-operative society or was working as Government servant engaged in administration or audit of co-operative societies and a period of two years has not elapsed from the date of his ceasing to be such employee or Government servant; or

(d) is an associate member; or

(e) is a minor or of unsound mind; or

(i) has been sentenced for any offence under this Act [x x x] [The words 'other than an offence under section 162' were omitted by section 3oftheTamil Nadu Co-Operative Societies (Second Amendment) Act, 2004 Tamil Nadu Act 18 of 2004).], such sentence not having been annulled and a period of three years has not elapsed from the date of the expiration of the sentence; or

(ii) has been sentenced for any offence involving moral turpitude punishable under any law with imprisonment for one year and upwards, such sentence not having been annulled and a period of five years has not elapsed from the date of the expiration of the sentence; or

(g) [xxx] [[Clause (g) were omitted by section .5 of the Tamil Nadu Co-Operative Societies (Second Amendment) Act, 2004 (Tamil Nadu Act 18 of 2004)

(h) has been removed or disqualified from holding the office of the member of the board of the registered society or of any other registered society under section 36; or

(i) does not know to read and write Tamil or English or such other language as the Government may notify in this behalf in relation to any particular area.

(2)

A member of the board shall cease to hold his. office as such, if he-

(a) becomes subject to any of the disqualifications mentioned in sub-section (1):

(i) sub-clause (i) of clause (b) of sub-section (1) shall not be eligible for re-election or re-nomination as a member of the board of the registered society of which he was a member or for election or nomination to the board of any other registered society;

(ii) is employed in any co-operative society or is a Government servant engaged in the administration or audit of Co-operative societies:Provided that the disqualification in sub-clause (ii) shall not apply to a person from being elected or nominated as a member of a board of any registered society composed exclusively of such employees of the co-operative society or of such Government servants; or”.

(iii) sub-clause (iii) or (iv) of the said clause (b), shall not be eligible for re-election or re-nomination as a member of that board or for election or nomination to, the board of any other registered society, for a period of three years which shall be reckoned ,-

(A) in the case of the disqualification mentioned in sub-clause (i) of the said clause (b), from the date on which the dues referred to therein have been fully cleared; and

(B) in the case of disqualification mentioned in sub-clause (iii) or (iv) of the said clause (b), from the date on which the dues involved in such decree, decision, award, order, certificate or application in respect of which proceedings have been initiated, have been fully discharged:

(b) ceases to be a member of the registered society; or

(c) purchases directly or indirectly any property of another member of the registered society brought to sale for recovery of any money due from such other member to the registered society; or

(d) absents himself from four consecutive meetings of the board or from all meetings of the board for a continuous period of three months, whichever is longer:

(3)

The board of a registered society may suo motu, and shall, on an application made by any person, consider whether any member of the board was, or has become, disqualified to hold office as such under this section and take a decision. Such a decision shall be communicated to the member and the applicant concerned, if any:

Provided that no decision shall be taken unless the member of the board is given an opportunity of making his representation:

Provided further that pending, such decision, the member of the board shall be entitled to continue as such as if he is qualified or is not disqualified.

(4)

(a) No person shall, at the same time, be a member of the boards of more than [five] [Substituted by the Tamil Nadu Co-operative Societies (Amendment) Act, 1989 (Tamil Nadu Act 36 of 1989).] registered societies.

(b) Subject to the provisions of clause (a), no person shall, at the same time, he a member of a board of more than [two apex societies or two central societies] [Substituted by the Tamil Nadu Co-operative Societies (Amendment) Act, 1989 (Tamil Nadu Act 36 of 1989).].

(c) If any person is, on the date of his election or nomination as a member of the board, already -

(d) [xxx] [Clause (d) was omitted by the Tamil Nadu Co-operative Societies (Amendment) Act, 1989 (Tamil Nadu Act 36 of 1989).]

(5)

(a) No member of a board which has been superseded under section 88 and no person who was a member of such superseded board on the date of issue of notice of supersession shall be eligible for election or nomination to any board for a period of three years from the date of expiry of the period of supersession.

(b) No member of a board in respect of whom proceeding under section 87 is pending and no member of a hoard in respect of which proceeding under section 88 is pending, shall be eligible for election or nomination to the board till the termination of such proceeding.

(6)

Whenever the Registrar has come to know that any member of the board of any registered society was, or has become, disqualified under this section to hold office as such and that the board of the registered society either suo motu or on an application made by any person has failed to give a decision under subsection (3) within one month from the date of incurring the disqualification, the Registrar may, at any time, by an order in writing decide the question and direct the removal of such member from the membership of the board, if he is found disqualified:

Provided that no member of the board shall be removed from such membership under this sub-section without such member and the board of which he is a member being given an opportunity of making his or its representation:

Provided further that pending such decision or removal, the member of the board shall be entitled to continue as such as if he is qualified or is not disqualified.

(7)

[ No person shall be eligible for being elected or nominated as President for more than three registered societies.] [Substituted by the Tamil Nadu C operative Societies (Amendment) Act 1989 (Tamil Nadu Act 36 of 1989).]

(8)

The provisions of this section shall apply also to-

(a) the members of the board who are not Government servants, whether ex-officio members or members nominated by the Registrar, the prescribed authority or the Government; and

(b) the members of the board nominated by the financing bank or the board of other registered society or other interest;