Section 51 of The Multi-State Co-operative Societies Act, 2002
- (1)There shall be a Chief Executive, by whatever designation called, of every multi-State co-operative society to be appointed by the board and he shall be a full-time employee of such multi-State co-operative society.
- (2)The Chief Executive shall be a member of the board and of the Executive Committee and such other committees or subcommittees as may be constituted under sub-section (1) of section 53.
- (3)Where the Central Government or the State Government holds fifty-one per cent. or more of the equity share capital or of total shares of the multi-State co-operative society, the salary and allowances payable to and other terms and conditions of service including pension, gratuity and other retirement benefits of the Chief Executive shall be such as may be prescribed.
Summary
- Every multi-state co-operative society must have a full-time Chief Executive appointed by its board of directors.
- To be appointed or continue as Chief Executive, a person must be at least twenty-one years old and under seventy years old.
- A person aged seventy or older can only be appointed Chief Executive by a special board resolution passed by a three-fourths majority with written justification.
- A person is disqualified from being Chief Executive if they are an undischarged insolvent, have been convicted and sentenced to more than six months in prison, or fail to meet the fit and proper criteria.
- The Chief Executive automatically serves as a member of the board, the Executive Committee, and other designated committees.
- If the Central or State Government owns fifty-one percent or more of the society's equity shares, the Chief Executive's pay, benefits, and service conditions are officially prescribed by the government.
Practical examples
FAQ
1. Who appoints the Chief Executive under Section 51 of the Multi-State Co-operative Societies Act, 2002?
Under Section 51 of the Multi-State Co-operative Societies Act, 2002, the Chief Executive is appointed by the board of directors of the society and must be a full-time employee.
2. Is there an age limit for the post of Chief Executive under Section 51 of the Multi-State Co-operative Societies Act, 2002?
Under Section 51 of the Multi-State Co-operative Societies Act, 2002, the candidate must be between twenty-one and seventy years of age, though someone seventy or older can be appointed by a special resolution passed by a three-fourths majority of the board.
3. What level of prison sentence disqualifies someone from being Chief Executive under Section 51 of the Multi-State Co-operative Societies Act, 2002?
Under Section 51 of the Multi-State Co-operative Societies Act, 2002, any person who has been convicted of an offence by a court and sentenced to more than six months in prison is disqualified from holding the office of Chief Executive.
4. Does the Chief Executive have a seat on the board of directors under Section 51 of the Multi-State Co-operative Societies Act, 2002?
Yes, under Section 51 of the Multi-State Co-operative Societies Act, 2002, the Chief Executive is a member of the board of directors, the Executive Committee, and other committees of the board.
Test yourself
Q1.Under Section 51 of the Multi-State Co-operative Societies Act, 2002, what special voting majority is required by the board to appoint a Chief Executive who is seventy years of age or older?
Q2.Under Section 51 of the Multi-State Co-operative Societies Act, 2002, what level of government equity ownership triggers government control over the Chief Executive's salary, pension, and allowances?
Q3.Under Section 51 of the Multi-State Co-operative Societies Act, 2002, which of the following is a grounds for automatic disqualification from being appointed or continuing as Chief Executive?
Q4.Under Section 51 of the Multi-State Co-operative Societies Act, 2002, who determines the "fit and proper" criteria for the Chief Executive of a multi-state credit society?
Q5.Under Section 51 and Section 53 of the Multi-State Co-operative Societies Act, 2002, of which mandatory committee must the Chief Executive be a member?