(1) Notwithstanding anything contained in sub-section (1) of section 28,–
(a) where the Government has-
(i) subscribed to the share capital of a co-operative society ; or
(ii) guaranteed the principal and interest in respect of debentures issued by the society; or
(iii) guaranteed the principal and interest in respect of loans and advances to the society; or
(iv) assisted the society with loans and grants;
by not less than one lakh rupees, the Government or any person authorized by it shall have the right to nominate on the managing committee of such society not more than three members or one third of the total number of elected members of such committee, whichever is less:
** Provided that there shall not be any nominee of the Government in the committee of Primary Agriculture Co-operative Society irrespective of the fact whether the Government has contributed to the share capital or not.
(b) where the Industrial Finance Corporation, the State Finance Corporation or any other financing institution or an employer notified in this behalf by the Government has provided finance to a co-operative society the Industrial Finance Corporation, the State Finance Corporation or the other financing institution or the employer, as the case may be, shall have the right to nominate one person on the committee :
* Provided that in case of a** [ co-operative credit structure] the share capital contribution by the Government shall not exceed twenty-five percent of the paid up share capital and the nomination shall be limited to one member only :
*[omitted]
(2) A person nominated under sub-section (1) shall hold office during the pleasure of the authority who nominated him.
(3) Where a difference of opinion in respect of any matter arises between any member nominated by the Government or the Managing Director appointed under Section 31 and other members thereof, the matter shall be referred by the society to the Government whose decision thereon shall be final and deemed to be a decision taken by the committee.
*(4) In case of co-operative societies other than the Co-operative Banks, persons having experience in the field of banking, management, finance or specialization in any other field relating to the objects and activities undertaken by the co-operative societies shall be co-opted as members of the committee of such society:
Provided that in case of a co-operative bank, two professional directors having experience as specified by the Reserve Bank of India shall be co-opted in the committee, if not already elected:
Provided further that the number of such co-opted members, to be called as functional directors, shall not exceed two in addition to twenty-one directors as specified in clause (xx) of sub-section (2) of section 9A and shall be members but not have the right to vote in any election or be eligible to be elected * Section 29 marginal heading substituted by Act No. 10 of 2013.
* Section 29 - After clause (b) proviso added by Act No. 19 of 2006.
** Sub section (1) Clause (a) sub – clause iv proviso added, clause (b) in first proviso substituting words ‗cooperative banks‘ with words ‗cooperative credit structure‘ and words ‗with full voting right‘ added in 2 nd proviso after words ‗committee‘, by Act No. 18 of 2007.
* Section 29 In sub Section (1), second Proviso of clause(b) ommitted by Act No. 10 of 2013 * Section 29 –Sub section (4), added by Act No. 10 of 2013.
18 as office bearer of the committee.‖.