Duvvuri Sarveswarudu
As per bye-laws of the Ranga Reddy Co-op Urban Bank Ltd., Hyderabad, the board consists of 15 members. But in 2009, when the co-op department conducted the elections, there were only 12 nominations were there and they were declared as elected. Till date the board continues with the same 12 members.
Recently 8 MC members proposed and signed a no-confidence motion against the chairman and submitted to Registrar. The registrar fixed the meeting on 30-09-2014 at 11.00 a.m at the bank premises. At 11.00 a.m 8 committee members were present (including the Chairman on whom the no-confidence motion proposed.)
In that meeting 7 MC members voted in favour of the motion. But the Registrar passed resolution stating that the motion is failed because 2/3rd members of the committee were not voted in favour of the motion. He differed the argument of the MC members, that the 2/3rd of the MC members present in the meeting is sufficient to pass the motion. The Divisional Co-Op Officer who precided the meeting declared that the motion is failed and noted the same in the minutes.
The HANDBOOK ON COOPERATIVE LAWS IN ANDHRA PRADESH published by the Co-Op Department stated as follows:
No-confidence Motion against the President and Vice President:
The President / Vice-President will be removed from office by the Registrar if a motion of no-confidence signed by not less than half of the MC members is passed with the support of not less than 2/3rd of the total MC members in the meeting of the MC convened for the purpose by the Registrar. No-confidence motions are not allowed within one year of the assumption of office by the President / Vice- President elected by the MC.
Please advise which one is correct and if the MC members argument is correct, what they should do in this regard?
I C Naik
There are 12 members of the Board including the Chairman. Vacant seats have no influence on the issue.
8 members { 8/12=2/3 ( i.e.66.67% ] signed the requisition of No-Confidence in the Chairman.
Meeting was attended by 7 members [ 7/12 = 58.33%}
It is to be examined if the motion was passed with Support of not less than 2/3rd of the total MC members in the meeting of the MC convened for the purpose by the Registrar.
Normally a word ‘PRESENT” is used after “MC members” and before “in the meeting” to provide that 2/3 of the present members should support. In this case 8 members must vote in support. Support 7 out of 8 is 87% but the requirement is 75% of the members of the Board must support the motion. Absence of one signatory to requisition has made all the difference. In such cases majority has to be managed.