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13.   BOARD/MANAGING COMMITTEE

13.1     Most laws include qualifications needed for election candidacies, and regulations on removal of Board Members, as also on the question of remuneration. However, some Laws have left these issues to the cooperative rules or bye-laws. Important provisions in this regard are analyzed in the following paras, by country:

Fiji

13.2     Section 63 in detail states the power and functions of the Board. Section 64 further states that the number of Board members shall be multiple by three, and that one third of the members shall retire every year. Section 66 provides regulations for payment of honorarium within the budget, to be approved by the General Assembly. Quorum of Board Meetings is 50% (Section 69).

Sri Lanka

13.3     The laws does not have provisions for the AGA and Board, but leaves it to the cooperative rules and bye-laws.

India

13.4     The election officer is appointed by the Registrar. Votes are conducted by secret ballots only. The Board will stand for a maximum of three years. A member can be removed by a majority vote (i.e. ⅔ of the members present). Where the government is a shareholder or guarantees a repayment of loan, debentures, interest or advances, the government can nominate a set number of persons to the Board. The central registrar holds powers to resolve the Board under certain circumstances.

Indonesia

13.5     The law provides qualifications for board members: “honest in character and efficient in management of business” (under Article 23,7). Board members are obliged to maintain good cooperation among members. In addition to the Executive Board, the law also provides for a Supervision Board (under Article 27).

Philippines

13.6     Article 38 to 48 provide comprehensive regulations on quorum, functions, accountability and Board member punishment.

Thailand

13.7     Article 24 holds regulation on Executive Board activities. Executive Board is authorized to undertake all cooperative's activities in accordance with cooperative act, by-laws, regulations and registrar's orders.

Korea

13.8     Under Korean Cooperative Law (Article 46) all Board members are treated as officers, including President, six to eight directors and two auditors. They all have to be members of the cooperative. The tenure of Board members is 4 years and auditors 3 years. The functions and work regulations of the Board are controlled by Articles 45–48, issued under the Law and Articles of Incorporation.

Japan

13.9     According to Article 30 the number of directors has to be more than five and the number of auditors more than two. In Japan only 3/4 of the directors must be cooperative members. However, a director may not concurrently be auditor or employee of the cooperative, and an auditor may not be director or employee.

Malaysia

13.10   Malaysian law (Section 42 of the Cooperative Societies Act 1993) provides regulations for the Executive Board and an Internal Audit Committee. The Board shall consist of not less than six and not more than 15 members. The Audit Committee shall consist of not less than three and not more than six auditors. The directors and auditors are paid remuneration as approved by the AGA, and under consideration of the services rendered.

Nepal

13.11   Under the Nepal Cooperative Law (Article 18) if a Board fails to work satisfactorily, RCS can suspend or remove the Board or any of the members, and appoint officers to an ad-hoc Board, for management of the cooperative only.


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