The Assam Agricultural Farming Corporation Act, 1973
ASSAM ACT V III OF 1973

**( Received the assent of the Governor on the 23rd April, 1973 )**

THE ASSAM AG RICU LT UR AL FA RM ING CO RP OR AT IONS

AC T, 1973

[Published in the **_Assam Gazette, Extraordinary , dated the 25th April 1973]_**

**An**

**Act**

Preamble Whereas it is expedient to provide for establishment

and working of Agricultural Farming Corporations to faci­

litate agricultural farming by organising cultivators into

corporate bodies to manage and cultivate agricultural land

and for matters connected therewith or incidental thereto in the
manner hereinafter appearing ;

It is hereby enacted in the Twenty-fourth year of the Re­

public of India, as follows:—

Short title, (1) This Act may be called the “Assam Agricultural

extent and Farming Corporations Act, 19)73”.
commence-         -

(2) It extends to the whole of the State of Assam.

(3) It shall come into force at once.

Definitions g. In this Act, unless there is anything rep ugnant in

the subject or conte xt:—

(a) “Agricultural Farming Corporation” means a

Corporation registered under Section 4 of this Act.

(b) “Agricultural Produce” means the produce of

Agriculture.

(c) “Agriculture” includes raising of seasonal crops,

horticulture, pisciculture, poultry, animal husbandry

and sericulture.

(d) “ Agriculturist” means a person who is ordinarily

engaged by himself in and whose principa l

means of livelihood is derived from tire production
of Agricultural Produce: Provided that any person

engaging members of his family or hired lab our for

some of the Agricultural operations for which such

assistance is necessary, shall also be deemed to be an
agriculturist.

(e) “Agriculturist Member” means an Agriculturist

Member as defined in sub-section (6) of Section 7

of this Act.


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(f) “ Ann ua l Ge neral Mee tin g” means the Annual

General Meetin g of a Co rporation as mentioned

in sub-sec tion (1) of Section 17 of this Ac t.

(g) “Au thorised Ord inar y Share Cap ita l” means the

authorised ordina ry share capital of a Corpo ra­

tion as mentioned un de r Section 7 of this Act.

(h) “Board” or “Board of Directo rs” means the Board

of Directors of a Coipo ratio n.

(i) “Bye-laws” means the bye-laws made un de r Section

30 of this Act.

(j) “ Cha irman ” means the Ch airm an of the Board

of Directors of a Corporatio n.

**k)** “ Contro lle r” means the officer appo inted as Con ­

tro ller by the State Go vernment under* Section

25 of this Act.

(l) “ Coipo ration ” means an Ag ric ultural Fa rm ing

Corpo ratio n .

(m) “ Dire ctor” means a mem ber of he Board

of Directors of a Corpo ratio n .

(n) “ General M ee tin g” means either an At r ual Genera l

Mee tin g or a special Meetin g of a Co rporation.

(o) “ Family ” means a family of which memb ers are

descendants fro m a comm on ancestoi and have

a comm on mess, an d shall inclu de hu sban d,

wife or bo th as the case may be, bu t shall exc lude
marrie d da ughters, marrie d sons an d their children.

(p) “ Mem be r” means a ho lder ot one or mo re ordinary

shares in a Co rporation .

(q) “ M em oran du m” or “ Mem oran du m of Associa­

tio n” means a Mem oran du m of Association of

a Co rporation as mentio ned in Section 6 of

this Act.

(r) “Act” means the Assam Ag ric ultural Farming-

Corpo ratio ns Act, 1973.

(s) “ Ord in ar y Sh are Cap ital” means the authorised

ordina ry share ca pital of a Co rporation.

(t) “ Ord inar y Sha re” means an ordina ry share of

the authorised ordina ry share capital of a

Co rporation.


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(u) “ Prescribed” means prescribed by rules made under

this Act .

(v) “ Sh are ho lder” means a person holding either

ordina ry or pre ference share or shares in a Corpo ra­
tion .

(w) “ Sh are Cap ital” inclu des the ordinary an d pr e­

ferenc e share capital of a Corpo ratio n.

(x) “ Special General Meetin g” means a Special General

Meetin g as mentio ned in Section 18 ol this Act.

F °oTaT°n 2.(1) Any fifty or more Ag riculturists approved by the

Ag ricultural State Governm ent jointly with the State Go vernment

Farm ing may form an Agricultural Fa rm ing Co rporation in the

Corpo ratio n. State: Provided th at the State Go vernment smay, in its

discretion, reduce the minim um nu mbe r of Ag riculturists

from fifty to no t less than twenty, for any Corpo ratio n

whose main objective is to engage in Dairy or Po ultry or

Fishery.

(2) The Agriculturists intending to form a Corporatio n

together with a representativ e to be no minated by the

State Governm ent in this behalf, shall in a meeting to be

held in the man ne r pre scribed, ad op t the Mem oran du m of

Association of the proposed Corporatio n an d in token thereo f,
the President of the me eting, at least on e fifth of the Ag ri­
culturists present in the meeting an d the State Governm ent’s

representativ e shall sign three copies of the M em oran du m

of Association so ad op ted in the me eting.

(3) Each Ag ric ulturist attend ing the meeting referred

to in sub-section (2) above an d intend ing to jo in th e

Corpo ratio n shall, at the tim e of the meeting, subscribe in

cash to the ordina ry share capital of the proposed Cor­

po ratio n an d pay such adm ission or othe r fees, as may be

prescribed.

(4) The am ounts collected un de r sub-section (3) shall

be in the custody of the State Gov ernm en t’s representative

attend ing the meeting un till the Corpo ratio n is reg istered

unde r sub-section (2) of Section 6 an d starts fun ction-

x ing.

4. (1) Thr ee copies of the Mem oran du m of Asso­

cia tion after being duly signed in the meeting as

requ ired un de r sub-section (2) of Section 3 shall be

forw arded by the State Go vernment’s representative present

in the meeting to the Controller.

(2) The Co ntroller may return the Mem orandum

of Association to the sender for such corrections or clari­

fications or modifications as he may deem necessary.


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(3) The controller shall, after satisfying him self th at

th e Mem oran du m of Association is in orde r and meets the

re qu irem en t of this Ac t and rules made thereu nd er and

th at the State Go vernment is willin g an d ready to pa rticipa te

in the pro posed Corporatio n, reg ister the Mem oran du m

an d in token thereo f make necessary endorse ment on the

bo dy of all the three copies of the Mem orandum.

(4) On reg istering the Mem oran du m the Co ntroller shall

also issue un de r his ha nd an d seal a certificate to this

effect an d send the certificate together with one ori­

ginal copy of the Mem oran du m to the State Governm ent’s

representativ e from whom these were received by him .

Effect of 5.(1) On an d from the da te when the Mem orandum

Registration. o [f Association is reg istered an d a ] certificate to this effect

is issued by the Co ntroller th e Co rporation shall be duly-

constituted an d will be known by a distinct nam e, as ap prov ­

ed by the Co ntroller.

(2) From such da te as referred to in sub-section (1)

the Corporatio n will be a body corporate having pe rpe­

tual succession an d a comm on seal an d shall, subject to

any restrictions or conditions as may be prescribed un de r

this Act or any othe r en ac tm en t in force, have power to

ho ld an d dispose of prop erty and to contract, an d shall by

the said name, sue or be sued an d do all othe r things

necessary for the purpose of this Act.

**_dat^ofAsso-_** 6- (1) Every Co rporation shall have a Mem orandum of

ciation. Association, containing its objectives, reg ula tions an d pro ­

cedures an d such other matters, as may be pre scribed.

A Mem oran du m will have the force of law on all mem ­

bers of the relevant Co rporation.

(2) A Mem oran du m may be altered only in the manner

prescribed an d every such alteratio n shall be duly regis­

tered in the man ne r prescribed with the Co ntroller and

will no t tak e effect un til it is so registered.

Sha[re]ai[^][ a p][ '][-] 7. (1) A Co rporation shall have an autho rised ordinary

members. share capital divided into shares of Rupees ten each.

(2) A Corporatio n may also have preference share

ca pital divided into share of Rupees ten each.

(3) The State Go vernment shall subscribe to no t less

th an fifty-one per cent of the authorised ordina ry

sh are capital of a Co rporation either in cash or by way

of the value of the land, buildings, equipm ent or machi­

nery or any other assets iransferred to the Co rporation.

(4) Each agric ulturist joining a Co rporation at the

tim e of its formation un de r Section 3 or on admission to

the Co rporation subsequent to it formation shall co ntri­

bu te in cash to one ordinary share of the Co rporation.


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(5) No Ag ric ulturist shall be allowed to hold more

than one ordinary share , in a Co rporation.

(6) The State Go vernment or an Ag ric ulturist holding

an ordina ry share in a Co rporation may also contrib ute to

the pre ference share capital of the Corporatio n either in

cash or by way of the value of the land , buildings, eq uip­

men t or machinery or any othe r assets transferred to the

Co rporation.

(7) A holder of one or more of th e Ord inary shares in

a Co rporation shall be known as “M em be r” of the Corporation.

(8 ) An Agriculturis t holding an ordina ry share in

a Corpo ratio n shall be known as an “Ag ric ulturist M em ­

ber” .

(9) No mem ber shall transfer or dispose of the shares

held by him in the Corporation except in the man ne r pres­

cribed.

(10) No twith standing anything contain ed in any other

provisions of this Act, no mem ber of a fam ily of which

an othe r mem ber is already in agric ulturis t mem ber of a

Corporatio n, shall be admitted as an agric ulturis t me mber

of either th at Corporatio n or any othe r Co rporation.

Mem bership 8. (1) After its initial formation a Corporatio n may ad mit

« righ ts, du ties.Admission, m [ore, ag ric ulturis t mem ber, in the man ne r prescribed, ]

(2) An agric ulturis t mem ber shall have such righ t

an d duties as may be prescribed in the rules or in the Mem o­

ra ndum of Association.

>;

C eas at io n of 9- (1) An agric ulturis t mem ber shall be liable to for-

Mem bersh ip. feit his membersh ip an d cease to be a mem ber of the Co r­

po ratio n an d may, accord ingly, be rem oved from such

mem bersh ip in the man ne r prescribed, if it is decided by th e
Board th at he has failed to abide by the provisons of

this Ac t or rules' made thereu nd er or the terms an d con­

ditions contain ed in the Mem oran du m of Association or

bye-laws or for reasons of misco nduct de trim ental to the

interests of th e Corpo ratio n:

Provided th at the Bo ard may, if it so desires,

instead of removing such an agric ulturis t mem ber from the

mem bersh ip of the Co rporation, allow him to continue as

an Agriculturis t mem ber, by realising a reasonable com ­

po unding fee, no t exceeding one thou sand rupees:

Provided furthe r th at an agric ulturist mem ber aggriev­

ed by a decision of the Board un de r this sub-section, may

appe al to the State Go vernment again st such decision of the

Bo ard an d th e dec ision of the State Governm ent on such

an appe al shall be final an d bind ing on th e Co rporation

'and the Ag ric ulturist mem ber concerned.


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(2) An agric ulturis t mem ber may at any tim e resign

from the membersh ip of a Corporation by giving due notice

in writing in the man ne r prescribed to the Secretary of

the Co rporation.

(3) An agric ulturis t mem ber ceasing to be a mem ber

of th e Corporatio n un de r sub-sections (1) an d (2) shall be

lia ble to be removed from the possession of the land or

other prop erty of the Corporatio n allotted for his use while

he was a mem ber of the Co rporation.

(4) An ag ricu ltu ris t mem ber ceasing to be a mem ber

of th e Co rporation shall forfeit the am ou nt invested by him

in the ordina ry shares of the Corporation bu t the am ou nt

inv ested by him in the pre ference shares will be payable

to him after realisa tion of all dues from him. The Corpo ra­

tio n shall also pay to him reasonable comp ensation for

any immovable structures created by him or crops gro wn

or anim als or birds raised by h im on the land o f the Cor­

po ratio n with du e au thority from the Corporatio n an d left

be hind by him :

Provided th at no such compensation shall be payable

in respect of structures erected , crops grow n or animals

or birds raised by the said mem ber on the land of the

Corporatio n with ou t du e au thority an d such structures,

crops or animals or birds shall be taken over by an d

forfeited to the Co rporation.

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(5) Any sums du e from any agric ulturist mem ber who

ceases to be a mem ber of the Co rporation un de r , sub- .

sections (1) an d (2) shall be realisab le as ar re ar of land

revenue from him an d for th at purpose the am ou nt du e

to such a mem ber un de r sub-section (4) may be adjusted

by the Co rporation again st the dues of the members to the
Co rporations.

(6) The am ou nt of ordina ry share capital of an agri­

cultu ris t mem ber, wh ich is forfeited un de r sub-section (4)

will be transferred to the Reserve fund of the Co rporation.

**Register**
**of Share'** 10. Each Co rporation shall maintain at its office a
**holders.** reg ister of the share-h olders an d shall en ter therein the fol­

low ing particu lars so far as they may be av ailable na mely:—

(i) The names an d address of the share-holders an d a

statem ent of th e shares held by them , distinguishing each

share by its denoting nu mbe r ;

(ii) The da te on which a person is entered as a

share-h older ;

(iii) The da te on which any person ceases to be a

share-h older ; an d

(iv) Such other particulars as may be prescribed.


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M sa ag em en t. H . ^1) Phe general superin tendence, direction and

, managem ent of the affairs of every Corpo ra tion shall vest

in a Board of Directors, which ma y, subject to the provisions
of this Act or the rules or the Mem oran du m of Association

perform all functions of the Corporatio n.

(2) The Board, in discharg ing its functions shall act

with due regard to the interest of th e Corporaton an d the

ag ricu ltu ris t members.

Board of 12. (1) The Board of Directors shall consist of the follow-

Directors ing, na mely;—

(a) No t less than one half of the total nu mbe r of

Directo rs to be nominated by the State Go vern­

ment.

(b) The remaining nu mbe r of Directors to be elected

at the an nu al general meetin g, in the man ne r

pre scribed.

(c) A Cha irm an to be elected from am ong them ­

selves by the Directo rs in the man ne r prescribed,

who shall be known as the Ch airm an of the Cor­

po ratio n :

Pr ov ided th at on the first constitution of the Board, the

Directo rs referred to in clause (b) an d the Cha irm an refer­

red to in clause (c) shall also be no minated by the State

Go vernment an d the Directo rs an d Cha irm an so nominated

shall, for the purpose of this Act, be deemed to be duly

elec ted:

Provided furthe r th at the Directors an d Cha irman so

no minated shall ho ld office un til the conclusion of the first

an nual general meeting of th e Co rporation.

(2) As soon as may be possible after a Corpo ratio n is

registered un de r sub-sections (3) and (4) of Section 4, the

State Gov ernm ent shall no minate the Directors and Cha ir­

man of the Co rporation.

(3) The nu mbe r of members of a Boa rd of Directors

shall be as prescribed in the Mem oran du m.

Te rm of 13. (1) The Directors nominated by the State Govern-

office and ment shall hold office du ring the pleasu re of th e State
retirement Go vernm ent.

of Directors.

(2) The Directors deemed to be elected un de r the Pro-

viso to sub-section (1) of Section 12 shall retire in the first

an nu al general

(3) One third of the elected Directors, or if their nu m ­

be r is n ot a multip le of three, the nu mbe r nearest to one

third, shall retire by rotatio n at every annua)

general meeting.


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(4) Th e elected Directors to retire by rotation at every

annual general meeting shall be those who have been long­
est in office since their last election and as between per­

sons who were elected Directors on the same day, those

who are to retire shall, in default of and subject to any

agreem ent among themselves , be determined by lot.

(5) Th e vacancies in the office of elected Directors

due to retirement shall be filled by elections held in an

annual general meeting.

(6) Casual vacancies in the office of elected Directors

due to resignation, death or otherwise, shall be filled within
three months from the date of such vacancies arise by election

either at an annual general meeting or at a special General
meeting, as the case may be, and a Director so elected

to fill the casual vacancy shall hold office for the unexpired
portion of the term of his predecessor.

z
(7) No elected Director who resigns or retires or is

otherwise removed due to any disqualification shall be elli-

gible for re-election as a Director either in the annual general
meeting in which he retires, or which follows his resignation
or removal or in the next five annual general meetings

following such annual general meeting :

Provided that nothing in this sub-section shall apply

to any person retiring as a Director either after having been
elected to fill a casual vacancy for less than two years

under sub-section (5) or after being deemed to be elected

under the first proviso to sub-section (1) of Section 12 . 1

**Disqualifi­** 14. No person shall be a Director who—

**cations.**

(a) is of unsound mind and stands so declared by

a com petent court; or

(b) is or has been convicted of any offence which,

in the opinion of the State Government, involves
moral turpitude.

**Vacation and** 15. (1) If. a Director other than an official nominated
**resignation of** by the State Government :—

**office by**

**Directors.**

(a) becomes subject to any disqualification men­

tioned in Section 12; or

(b) is absent without leave of the Board for more

than three consecutive meetings thereof, his seat
shall thereu pon become vacant .

(2) Any Director elected under clause (b) of sub-section

(1) of Section 12 may resign his office by giving notice

thereof in writing to the Board and on ’such resignation

being accepted shall be deemed to have vacated his office.


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Meeting of 16- (1) The Bo ard shall meet at such times **and** shall

Board, observe such rules of procedure in rega rd to the transactions
of business at its me eting, as may be pre sc ribed .

(2) A Dire ctor shall have only one vote in the meetings

of the Bo ard an d the Cha irman or in his absence the

perso n elected to the Chair shall in the event of equality

of votes on any issue have a casting vote in additio n to

his vote as a Dire ctor _cum Ch airm an._

An nual 17. (1) An an nu al general meeting of a Co rporation

Ge neral s [[]i a [jJ ] he ld every year in the mon th of Fe brua ry to tra nsac t

meeting, business as may be prescribed an d in pa rticular to—■

(a) pass th e au dited accounts of the Corporatio n for

                             - the previous fin ancial year ending on the 31st

De cember of the preceding ye ar;

(b) elect from am ong the agric ulturists mem bers per ­

sons to fill vacancies caused am ong the elected

Directors of th e Board ; z

(c) pass th e bu dg et an d approve the prog ramme of

work of the Corpo ratio n for th e y e a r.

(2) Notwith standing anything co ntaine d in sub-section (1),

the first an nu al general meeting of a Co rporation may

be held either in the mon th of Fe brua ry following the

registration of the Corporation or the mon th of Fe brua ry

of the ne xt year, as the Board may decide,

(3) The procedure to be followed in any an nu al general

meeting shall be as prescribed .

Special 18. A Corporatio n may hold a special general meeting

meeting. General t o consider such matters an d in such man ne r as pre scribed, - 1

Vo ting 19.i (1) In any ge ner al meeting of a Corpo ratio n, every

Rights, mem ber of the Corpo ratio n shall have such nu mbe r of the

vo tes, equiva lent to the nu mbe r of ordina ry share held by

th at mem ber .

(2) The State Go vernment may no minate one or more

representativ es, no t exceeding five to attend any general

meeting of a Corpo ratio n on its behalf. The nu mbe r of

votes held by each such representativ e in a general meeting
shall be de term ined by dividing the total nu mbe r of

ordina ry shares held by the State Go vernment by the nu mbe r

of repre sen tatives nominated by it to attend the general

meeting .

(3) The Cha irman of any general meeting shall have

one casting, vote, whenever equal nu mbe r of votes is east on
an y issue, in additio n to his vote.

_r_


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Quorum, 20. No business shall be transacted at any Bo ard or

General meeting unless a qu orum is present. The qu orum

necessary for the transactio n of business at any meeting

shall be one-third of the total nu mbe r of members or the

Directors, as the case may be:

Provided any meeting in wh ich no qu orum is present

with in one ho ur of .the tim e fixed for th e meeting, shall

stan d ad journe d to the sam e day in the next week at the
same tim e an d place an d in such ad journe d meetin g the

business may be tra nsacted even with ou t the presence of

a qu orum bu t subject to the conditions an d procedure uas

prescribed.

Use of lan d

and other 21. (1) A Co rporation may use its land or othe r prop erty
property. *o r the purpose of raising ag ric ultural prod uc e in such m an ne r

as may be prescribed in the Mem oran du m.

(2) A Corporatio n may use or allow use of its land

or prop erty for reside ntial, ad ministra tiv e or othe r purposes

in the man ne r an d subject to term s an d conditions prescribed
in the M em or an du m or bye-laws .

(3) No twith standing an ything contained in an y other

en ac tm en t in force no ag ricu ltu rist mem be r or person shall
ac qu ire an y right over the land or pr op er ty allowed to be

used by him or otherwise occupied or taken over by him

other th an those specifically mentioned in th e rules or Mem o­
ra ndum or ' bye-laws or the orde r or do cu men t allowing

th e use of land or pr op erty by him .

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Payment of
dues for 222.(1) Fo r providing facilities such as irrigatio n or machinery
Common or othe r comm on services for cultivation or other agric ul­
services. tu ra l use an d for administrative an d othe r costs of working

of the Co rporation, the Corporatio n may levy an d realise

from the ag ric ulturis t memb ers charges arrive d a t either

on a comm on basis or on a basis of ac tual use of such

facilities or services by an agric ulturis t mem ber, as the case

may be, an d every ag ric ulturis t mem ber shall be lia ble to

pa y such sum s as may be demande d by th e Corpo ratio n

in this rega rd .

(2) Every ag ric ulturis t mem ber shall also be lia ble to

pa y such other fees as may be levied by the Ccr pciE ticr .

Modern 23. (1) Every agric ulturis t mem ber shall follow such

Agricultural mod ern agric ultural practices as may be ordered by the

Practice to Bo ard .

**be followed**

and produce
sold through

the Corpo­

ration

I


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(2) No agriculturist member shall sell any agricultural

produce produced by him on the Corporation’s land and

specified by the Board except through the Corporation and

the Corporation shall pay to such agriculturist member such
am ount as may be due to him on the sale of the agri­

cultural produce after deducting expenses, if any, on this

account .

24. Notwithstanding anything contained in any other

enactment in force, any occupation or use of land or property
of a Corporation, without due authority from th at Corpora­
tion, by any person may, on an application received from
the Corporation, be removed by the authorities empowere

to eject persons from lan d reserved for public purposes under

sub-rule (2) of Rule 18 of the Settlement Rules under the

Assam Land and Revenue Regulation, 1886, and in the

manner prescribed therein, and for the purpose of this

section the lan d of the Corporation will be deemed to be

lan d over which no person has acq uired the rights of a

proprietor, land-holder or settlement-holder and which has

been reserved duly for public purposes as referred to in

sub-rules (1) and (2) of the said Rule 18 of the Settle­

ment Rules under the Assam Land and Revenue Regula­

tion, 1886.

Supervision, 25. (1) Th e State Government may appoint any officer
Control and

guidance. to perform the functions of the Controller under the Act.

(2) Th e Controller will be responsible for supervision

of the working of the Agricultural Farming Corporations

and providing necessary guidance to such Corporations and

will perform such other functions and will have such powers
as may be prescribed.

(3) Th e State Government may delegate all or any of

its or the Controller’s powers and functions to any official

of the State Government or anybody or organisation.

Validity of 26. Decisions of the Board or any general meeting of
decisions of the Corporation on matters prescribed shall not be valid

meetings. unless approved by the State Governm ent.

Accounts 27. (1) Th e balance-sheet and accounts of the Corpora­

an d Audit. tion shall be prepared and maintained in such form and

manner as may be prescribed .

(2) Th e Board shall cause the books and accounts of the

Corporation to be balanced and closed as on the thirty-first

day of December each year or any other date as may be

prescribed .

(3) Th e accounts of the Corporation shall be audited

by an approved auditing agency . as may be prescribed.


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Staff of the 28. (1) A Corporation shall with the approval of the

Corporation Government appoint any person as Secretary _cum_

Manager of the Corporation. He shall be a whole time

salaried officer of the Corporation and will perform all

executive and other duties of the Corporation as the Board

may from time to time decide.

(2) A Corporation may also appoint such num ber o f other

salaried staff as it considers necessary or desirable for the efficient
performance of its functions.

(3) A Corporation shall determine the terms and con­

ditions of appointment and service of the salaried staff in
consultation with the State Government.

Power to 29. (1) Th e State Government may by notification in

make rules. t ji e o [ffj]c [i]a [i Gazette make rules to carry out the purposes of]

this Act.

(2) Every Rule made under this Section shall be laid,

as soon as may be, after it is made, before the Assam

Legislative Assembly while it is in session for a total period
of fourteen days which may be comprised in one session or
in two successive sessions and if before the expiry of the
said period the Assam Legislative Assembly decide that

the rule should not be made or should be made only in

a modified form, the rule shall thereafter be of no effect or
have effect only in such modified form, as the case may

be, so however that any such annulment or modification

shall be without prejudice to the validity of anything previ­
ously done under th at rule.

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Power to 30. Th e Board may, with the previous approval of the

make State Government, make bye-law not inconsistent with the

bye-laws.

provisions of this Act to provide for all matters to carry

out the purpose of this Act the rules made thereu nder on

the Memorandum of Association.

Power to 31. (1) If in the opinion of the State Government, a

supersedes Board or a Corporation is not competent to perform or

o r th e [VE] P[e r s] istently commit default in the performance of the duties

Corporation imposed on it by or under this Act or rules thereunder

in case of or the Memorandum of Association or otherwise by law,

incompe- o r [ exceeds or abuses its powers or persistently fails to work ]

defauitT’or [a s ] a n economically viable organisation, the State Government,'

abuse of after giving the Board or the Corporation, as the case may
power. be, an opportunity for submitting an explanation in the

matter may by notification, stating the reasons for so do ing,
declare such Board or Corporation, as the case may be,

to be incompetent or in default or to have exceeded or

abused its powers and,—

(a) supersede the Board for such period as deemed

necessary and appoint an _adhoc body to carry_


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**13**

on the functions of the Board until such time as

the State Government may decide, or

(b) dissolve the Corporation:

Provided that if for emergent reasons and pending

formalities relating to supersession ol the Beard, it is necessary,
in the opinion the State Government, to sUupcrd the Board

forthwith, it may do so ar.d appoint an _ad hoc bedy to_

carry on the functions of the Board for such period as may

be determined by the State Government:

Provided further that while superseding a Ec aid the

State Government may also direct th at the elected directors

of th at Board shall not be eligible for re-electicn for such

period not exceeding six years from the date of supersession

o [f the Board.]

(2) On dissolution of the Corporation under sub-section

(1), the pro perty of the Corporation will be disposed of

in the manner prescribed.

32. (1) No suit, prosecution or oth er legal proceeding

shall lie against a Corporation or its employees or Govern­

ment Seieants for anything done or intended to be done in

good faith under this Act or Rules rfrade thereunder or die

rpemorandum of Association of the Corporation.

(2) No civil suit or legal proceedings shall he enter­

tained by any court in matters of dispute • between a Cor­

poration and its members and in all such matters the deci­

sion of the State Government shall be final ar.d binding
on the parties concerned.

33. Notwithstanding anything contained in this Act or

any other law fcr the time being in force, the liability

of the member of a Corporation as regards dues of the Cor­
poration to third parties will be limited to the extent of the

value of this ordinary or preference shares held by them in

the Corporation. Provided that each individual mem ber will

be liable to pay to the Corporation all his dues to the

Corporation.

Repeal and 34.(1) Th e Assam Agricultural Farming Corporations

Savings. Ordinance, 1973, is hereby repealed. nan««

IV of

(2) Notwithstanding such repeal anything done or [19 73]              -

any action taken under the Ordinance so repealed, shall

be deemed to have been done or taken, as the case may be

under the corresponding provisions of this Act.

**\G P4( Gau.) No. L. A. 314/73—1,500—11-6-73**


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