Supersession.
Section 94
SEC. 94. Supersession.— If the Administrator, after an audit under Section eighty-six or an inquiry under Section ninety or an inspection under Section ninety-one is satisfied that the board of directors or any committee responsible to the members of a co-operative is not functioning properly or have neglected to perform their duties, he may, after giving an opportunity to the board of directors or the committee to explain its reason for such circumstances and to state its objections, if any, and after considering the reasons and objections raised, call a general assembly of members to dissolve and reconstitute the board of directors or the committee. He may order that all or any of the directors or committee members shall be disqualified from being reelected to the board of directors or to any of the committees of the co-operative for a period to be specified in the order not exceeding three years: Provided, That the Administrator may from time to time extend the period specified in such order for further periods not exceeding one year at a time, but not exceeding in the aggregate of two years. Every order issued under subsections (1) and (3) shall state the reasons for which it is made and shall be communicated by registered post to the co-operative concerned. If the members fail to elect a board of directors or a committee which, in the opinion of the Administrator, is likely to function satisfactorily or to perform their duties diligently, and the Administrator is satisfied that, under the circumstances of the case, it is undesirable to order the cancellation of the registration of the co-operative, he may, by order in writing setting forth the reasons therefor, dissolve the board of directors or" the committee, the members of which shall forthwith vacate their offices, and thereafter he shall appoint a suitable person or persons to manage the affairs of the co-operative on such conditions as may be prescribed for a specified period not exceeding two years or until a new board or committee is elected earlier than the termination of the period of appointment at the discretion of the Administrator. The person or persons so appointed under subsection (3) shall, subject to the control of the Administrator and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the board of directors or the committee or of any officer of the co-operative, as the case may be, and take all such action as may be required in the interest of the co-operative. The Administrator may fix the remuneration of the person or persons so appointed under subsection (3). The amount of such remuneration and other costs, if any, incurred in the management of the co-operative shall be payable from its funds. The person or persons so appointed under subsection (3) shall, at the expiration of the period of his or their appointment or earlier as the Administrator may direct, arrange for the election of new board of directors or committees in accordance with the by-laws of the co-operative. Before taking any action under subsections (1) and (3) in respect of any co-operative, the Administrator shall, if the co-operative is indebted to a federation of co-operatives, consult such federation regarding such action and the provision to be made for the management of the affairs of the co-operative. Any member of the co-operative may, within one month from the date of any order made by the Administrator under subsections (1) and (3), appeal from such order to the Secretary of Commerce and Industry. Nothing in this section shall be deemed to affect the power of the Administrator to order the winding.up of the affairs of a co-operative under Section ninety-five.