Article 243ZL of CoI : Article 243ZL: Supersession and suspension of board and interim management.

Explanation using Example

Example 1:

Scenario: A Co-operative Society in Maharashtra

Situation: The board of a co-operative housing society in Mumbai has been found guilty of persistent default in maintaining the society's accounts and records. Additionally, the board members have been negligent in addressing the complaints of the society members regarding maintenance issues.

Application of Article 243ZL:

• The state authority decides to supersede the board due to its persistent default and negligence in performing its duties.
• An administrator is appointed to manage the affairs of the society.
• The administrator is required to arrange for elections within six months to elect a new board.
• Since the society does not have any government shareholding or financial assistance, the board cannot be kept under suspension for more than six months.

Example 2:

Scenario: A Co-operative Bank in Karnataka

Situation: A co-operative bank in Bangalore is facing a stalemate in its board's constitution, leading to a complete halt in its decision-making process. Additionally, the bank has ...

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