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Sections 45A to 45D of the Multi-State Co-operative Societies Act, 2002: powers of the Chairperson, removal, disclosure of interest and resignation

The Chairperson has powers of general superintendence and directions over the Authority and presides over its meetings (s.45A). The Central Government may remove the Chairperson...

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October 2, 2026
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Last updated: October 2026Verified against: Government sources

Sections 45A to 45D, all inserted in 2023, deal with the people who run the Co-operative Election Authority. They say what the Chairperson does, when and how the Central Government can remove or suspend an office-bearer, what interests they must declare and how they resign. This article states them as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.

Where these sections come from

The 2023 Amendment Act (Act 11 of 2023) came into force on 3 August 2023 by notification S.O. 3493(E). Its section 17 substituted section 45 and added sections 45A to 45L. Section 45 itself, which creates the Authority and fixes its composition, is explained in our note on the Co-operative Election Authority. Nothing in these sections existed in the principal copy, so there is no old text to compare. The sources do not say whether, or when, the Authority was established. If you are weighing how these provisions bear on an election dispute, our legal consultation team can help.

Section 45A: powers of the Chairperson

"The Chairperson of the Authority shall have powers of general superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such other powers and functions as may be prescribed."

So there are three parts: general superintendence and directions over how the Authority's affairs are conducted, presiding over meetings, and any further powers and functions that rules give. Those further powers are left to rules. Amendment rules were notified on 4 August 2023 (G.S.R. 591(E)); the consolidated Rules should be checked.

Section 45B: removal and suspension

Who can be removed and on what grounds

Under section 45B(1) the Central Government "may, by order, remove from office the Chairperson, Vice-Chairperson or Member of the Authority, other than ex officio Member" if that person:

ClauseGround
(a)has been adjudged as an insolvent
(b)has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude
(c)has been physically or mentally incapable of acting as Chairperson, Vice-Chairperson or Member
(d)has acquired such financial or other interests as is likely to affect prejudicially his function
(e)has so abused his position as to render his continuance in office prejudicial to the public interest
(f)has engaged at any time during his term of office in any other employment

An ex officio Member, that is a Government servant treated as such under section 45(4), is outside this removal power.

The inquiry safeguard in sub-section (2)

The list in sub-section (1) is not a stand-alone power to remove. Sub-section (2) says the person "shall not be removed from his office except by an order of the Central Government on the ground of his proved misbehaviour or incapacity after the Central Government has, on an inquiry, held in accordance with the procedure prescribed in this behalf by it, come to the conclusion that the Chairperson, Vice-Chairperson or Member of the Authority ought on any such ground to be removed."

The two sub-sections are drafted differently. Sub-section (1) lists six grounds, including insolvency and conviction, while sub-section (2) speaks of "proved misbehaviour or incapacity" and requires an inquiry. The Act does not say how the six grounds map to "misbehaviour or incapacity", nor whether an inquiry is needed for ground (a) or (b), where the fact is a court record. We quote both and do not reconcile them. The procedure of the inquiry is left to what the Central Government prescribes.

Suspension

Sub-section (3) allows the Central Government to suspend the person "in respect of whom an inquiry under sub-section (2) is being initiated or pending until the Central Government has passed an order on receipt of the report of the inquiry." Suspension is therefore tied to the inquiry: it begins when an inquiry is initiated or pending and lasts until the order on the report.

Section 45C: disclosure and declaration of interest

Before appointing, the Central Government "shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions" (sub-section (1)). After appointment, the Chairperson, Vice-Chairperson or Members "shall immediately after entering office and every year thereafter, make a declaration as to the extent of their interest, whether direct or indirect and whether financial or otherwise, in any co-operative society" (sub-section (2)). Sub-section (3) requires that "the declaration so made under sub-section (2) shall be placed in the public domain by the Authority."

The declaration covers "any co-operative society", not only multi-State societies, and covers direct and indirect, financial and non-financial interests. The Act does not say how "public domain" is to be done, and we say nothing further. The ground of removal in section 45B(1)(d) and this declaration duty work together: an undeclared or conflicting interest can be examined under the removal power.

Section 45D: resignation

The Chairperson, Vice-Chairperson or Members, other than ex officio Members, "may, by notice in writing of not less than thirty days under their hand addressed to the Central Government, resign their office and on such resignation being accepted by that Government, shall be deemed to have vacated their office."

The proviso keeps the person in office unless the Central Government permits an earlier release. He continues "until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest." Resignation therefore takes effect on acceptance, but the person stays on for a period that can run up to three months, subject to the earliest-of test. Filling a vacancy is dealt with in section 45E, covered in our note on vacancy, re-employment bar and meetings of the Authority.

A practical example

A Member of the Authority, Mr. Verma, takes up paid work with a firm that does business with several societies. Under section 45B(1)(f) that is a ground to examine, as is section 45B(1)(d) if the interest is likely to affect his function. The Central Government must still hold an inquiry in accordance with the prescribed procedure, and may suspend him while it is initiated or pending. Separately, his annual declaration under section 45C(2) would have to disclose any direct or indirect interest in a co-operative society, and the Authority would place it in the public domain.

What the 2023 Amendment Act changed

ProvisionBeforeAfter
Ss.45A to 45DNo such provisions; elections were the responsibility of the existing board under the old s.45Inserted: powers of Chairperson, removal and suspension, declaration of interest, resignation

A society has an interest in what the Authority can and cannot do; see our note on functions of the Authority, the returning officer and directions.

Need help understanding these provisions?

A society, a member or a candidate who wants to know what the Authority's office-bearers can and cannot do should read the sections with the rest of the election scheme. Our legal consultation team can help you map them to a specific election or dispute.

Key takeaways

  • The Chairperson has powers of general superintendence and directions, and presides over meetings.
  • Removal needs an order of the Central Government after an inquiry on proved misbehaviour or incapacity; ex officio Members are outside it.
  • Suspension is possible while an inquiry is initiated or pending.
  • Declarations of interest in any co-operative society are annual and placed in the public domain.
  • Resignation needs not less than thirty days' written notice, with a continuation period of up to three months.

Read next

Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 45A to 45D

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who can remove the Chairperson of the Co-operative Election Authority?

The Central Government, by order, under section 45B(1), after the inquiry required by section 45B(2).

Can an ex officio Member be removed under section 45B?

Section 45B(1) excludes the ex officio Member from its removal power.

Ask the question before you sign — it is always cheaper than asking it afterwards.

— TaxClue Compliance Desk

Sections 45A to 45D: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The Central Government, by order, under section 45B(1), after the inquiry required by section 45B(2).

Section 45B(1) excludes the ex officio Member from its removal power.

Not less than thirty days in writing, addressed to the Central Government. The person continues in office as the proviso to section 45D provides.

The extent of his interest, whether direct or indirect and whether financial or otherwise, in any co-operative society.

Section 45B(2) says the inquiry is held "in accordance with the procedure prescribed in this behalf by it", meaning the Central Government. No procedure is given in these sections.

No. They deal with the Authority's own Chairperson, Vice-Chairperson and Members. Disqualification of board members is in section 43.