Section 45: Directors may be removed from Office

1) The General Meeting may, by a resolution adopted by its majority, remove a director from the office of a director in any of the following circumstances:-

(a) In case he/she incurs loss or damage to the concerned Cooperative organisation by committing fiscal embezzlement,

(b) In case he/she discloses confidentiality of transaction of the concerned Cooperative Organization in an unauthorised manner,

(c) In case he/she is involved in the same nature of business or transaction with the concerned Cooperative Organization in a competitive manner,

(d) In case he/she commits any act against the interests of the concerned Cooperative Organization,

(e) In case he/she is physically or mentally incapable of working,

(f) In case any director does not have qualifications referred to in this Act, Rules or Byelaws framed under this Act.

2) Before adopting a resolution to remove any director from the office, such a director shall be provided with a reasonable opportunity to defend himself or herself at the General Meeting.

3) In case any director fails to submit his or her defence within the period referred to in sub-Section (2), or in case his or her defence is not satisfactory, the General Meeting may remove him or her from the office thereafter.

4) The member removed from the director pursuant to sub-Section (3) is not eligible to become a candidate for two terms of office.

5) In case any director is removed from the office pursuant to sub-Section (3), the General Meeting may elect another person as the director for the remaining term of the office.