Section 41: Board of Directors

1) There shall be a Board of Directors in a Cooperative Organization elected by the General Meeting.

2) The Board referred to in sub-Section (1) shall, to the extent possible, ensure the presence of at least thirty-three percent women members.

3) No more than one person of the same family may become a candidate and be elected at the same tenure as a director and a member of the Accounts Committee.

4) No director of any Cooperative Organization can become an employee or a director of any other Cooperative Organization except the Cooperative Organization in which he/she is a director.

Provided that it shall not hinder a Director of a Cooperative Organization from having an annual turnover of less than twenty million rupees from working as an employee in the same cooperative Organization. In case any Director of a Cooperative Organization having an annual turnover of more than twenty million rupees is also working as an employee, such a Director shall give up the position of an employee within four years from the date of commencement of this Act and manage for another employee. The committee referred to in Section 51 shall specify the maximum ceiling of the amount with regard to the existing conditions of the market and the rate of inflation.

5) A person may become a director of only one Cooperative Organization at a time.

6) Notwithstanding anything contained in sub-Section (4) and (5), in case any person has become a director in more than one Cooperative Organization or an employee in the same or another Cooperative Organization, he/she shall have to be a director of only one Cooperative Organization or an employee, as the case may be within one year from the commencement of this Act.

7) The term of the office of the Board shall be as follows:-

(a) Four years in the case of an organisation or Association or Federation,

(b) Four years in the case of Cooperative Bank.

8) Other provisions relating to meetings of the Board shall be as prescribed.