Procedure and the relevat for co-option

Dear Client,

If the Salary Earners’ Credit Co-operative Society is registered in West Bengal, the vacancies arising due to directors vacating their offices on account of opting for VRS may generally be treated as casual vacancies and can ordinarily be filled by co-option, subject to the provisions of the West Bengal Co-operative Societies Act, 2006, the West Bengal Co-operative Societies Rules, 2011, and the Society’s registered bye-laws. Rule 37 of the West Bengal Co-operative Societies Rules, 2011 provides that a casual vacancy in the office of an elected Director shall be filled by co-option by the remaining Directors within two months from the date of occurrence of such vacancy. In the event the Board fails to fill the vacancy within the prescribed period, the Registrar may fill the same from amongst eligible members of the Society. The co-opted Director shall hold office only until the next election or Annual General Meeting at which the vacancy is required to be filled through election.

Accordingly, where 6 out of 11 Directors have ceased to hold office due to VRS and the remaining Directors continue to satisfy the minimum quorum and Board strength prescribed under the Act and the bye-laws, the Board may, by passing an appropriate resolution in a duly convened meeting, co-opt eligible members to fill the resultant casual vacancies.

However, before undertaking such co-option, it is necessary to examine the Society’s registered bye-laws regarding the composition of the Board, quorum requirements, and any specific restrictions or conditions relating to co-option.