The Assam Agricultural Farming Corporation Act, 1973

z
ASSA M AC T V II I OF  1973
(  Rece ived the asse nt of  the Governor on the 23rd April, 1973  )
THE ASSA M AG RI CU LT UR AL  FA RM IN G CO RP OR AT IO NS  
AC T, 1973
[Published in the Ass am  Gaz ette, Ex tra ordin ary , da ted the  2 5th A pril 1973]
An
Act
Pream ble Whe reas it is exp edie nt to prov ide for esta blis hment
and work ing of  Agricu ltural Far ming Cor pora tions to fac i­
litate  agricultura l farm ing by organisin g cultivators into 
corpor ate bodies to manag e and cultiva te agr icu ltural land 
an d for mat ters  conn ected the rew ith or inc ide ntal thereto  in the 
ma nner here inafter  appea ring ;
It  is hereby  ena cted in the  Twenty-four th yea r of the R e­
public  o f I nd ia,  as follows:—
Sho rt title , (1) This Act may be called the  “Assam Agricultura l
exte nt an d Farming  Cor pora tions Act, 19 )7 3”.commence- -
(2) It  extends to the  whole of the Sta te of Assam.
(3) It  shall come into  force at  once.
Definitions g. In  this Act, unless the re is anyth ing  rep ug na nt in
the  sub jec t or co nte xt: —
(a) “Agricultura l Far min g Corpo ration ” means a
Corpo rati on registered under Sectio n 4 of this Act.
(b) “Agricu ltural Pro duce” means the  produc e of
Agriculture.
(c) “Agriculture” includes raisin g of seasonal crops,
hor ticulture , pisciculture, pou ltry , anima l husba ndry 
an d sericulture.
(d) “ Agriculturist” means a pers on who is ord ina rily  
enga ged by himself in an d whose pri ncipa l 
mea ns of livelih ood is derived from  tire pro duction 
of Agricultural Pro duc e: Provide d th at any  person  
enga ging  m embers of his family  or hir ed lab ou r for 
some of the  Agricultura l ope ration s for which such 
assistance  is necessary, shall also be deemed  to be an 
agri culturi st.
(e) “ Agricu lturist Mem ber ” mea ns an Ag ricult uri st 
Mem ber  as defined in sub-se ction (6) of Section 7 
of  this Act.

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(f) “ Ann ua l Ge ne ral  M ee tin g”  me ans  th e Ann ua l
Gen eral M ee tin g of  a Co rp or ation as men tio ne d 
in  sub-sec tio n (1) of  Section 17 of  this Ac t.
(g) “ Au thorise d O rd in ar y Sh are  C ap ita l” me ans  the 
au thor ised  or di na ry  share  ca pital of  a Cor po ra­
tio n as men tio ne d un de r Section 7 of  this  Act.
(h) “ Boa rd ” or “Bo ard  of  Di recto rs”  me ans  the Board
of  Di rec tor s of  a Coi po ratio n.
(i) “ Bye-la ws”  me ans  th e bye-law s mad e un de r Sec tion
30 of  this Ac t.
(j)  “ Cha irm an ” me ans  th e Ch airm an  of  the Board
of  Direc tor s of  a Cor po ratio n.
k) “ Con tro lle r”  me ans the offic er ap po in ted as C on ­
tro lle r by th e St at e Go ve rnmen t under* Section  
25 of  this Act.
(l) “ C oi po ra tion ” m ea ns  an Ag ric ultural Fa rm in g
Cor po ra tio n .
(m) “ Dire ctor ” me ans  a m em be r of  he Board 
of  Di rec tor s of  a C or po ra tio n .
(n) “ Gen eral M ee tin g”  me ans eith er an  At r ual  Gen era l 
M ee tin g or  a special  M ee tin g of  a Co rp or ation.
(o) “ Fa mily ” me ans a fam ily of  wh ich  me mb ers  are  
de scen da nts fro m a comm on ances toi  an d hav e 
a comm on mess, an d shall  inclu de  hu sb an d,  
wife or bo th  as the case  may  be, bu t sha ll exc lud e 
marrie d da ug hter s, m ar rie d sons an d their child ren.
(p) “ M em be r”  means a ho lder ot on e or mo re or dina ry  
share s in a Co rp or ation .
(q) “ M em or an du m ” or  “ M em or an du m  of  Asso cia­
tio n”  me ans  a M em or an du m  of  Associatio n of 
a Co rp or ation as men tio ne d in Sec tion  6 of  
thi s Ac t.
(r) “ A ct ” me ans the Ass am Ag ric ultural Farming-
Cor po ra tio ns  Ac t, 1973.
(s) “ O rd in ar y Sh are C ap ital ” me ans the au thorise d
or di na ry  sh ar e ca pi ta l of  a Co rporati on .
(t) “ O rd in ar y Sha re ” me ans an  or di na ry  share of  
th e au thor ised  or di na ry  share ca pital of a 
Co rporation.

x - 3
(u) “ Pr es cribed ” mea ns  pr es cribed  by  ru les  m ad e under  
thi s Act .
(v) “ Sh are ho ld er ” me ans a pe rson  ho lding eith er 
or di na ry  or pre fer en ce share  or sha res  in a Cor po ra ­
tio n .
(w) “ Sh are C ap ital ” inclu de s the or di na ry  an d pr e­
fer enc e share ca pital of  a Cor po ra tio n.
(x) “ Sp ecial  Gen eral M ee tin g”  me ans a Speci al Gen eral 
M ee tin g as men tio ne d in Section 18 ol thi s Ac t.
F °oTaT°n  2.(1) An y fifty or mor e Ag ric ult urist s ap pr ov ed  by  the 
Ag ric ultur al St at e Gov ernm en t jo in tly  with  th e St ate Go ve rnmen t 
Fa rm ing may  for m an  Agr icultura l Fa rm in g Co rp or ation in  th e 
Cor po ratio n.  St at e:  Prov ided  th at th e St ate Go ve rn men t smay, in  its 
discr eti on, redu ce  the m inim um  nu m be r of  Ag ric ult urist s
fro m fifty to no t less th an  twenty,  for  an y Cor po ra tio n 
who se main ob jec tiv e is to engage in D ai ry  or Po ultry  or
Fis hery.
(2) The  Ag ric ult urist s in tend ing to for m a Cor po ratio n 
toge ther with  a repr es en tativ e to be  no m in at ed  by  the 
St ate Gov ernm en t in  this beh alf, sha ll in a mee tin g to be 
he ld in th e m an ne r pre scr ibe d, ad op t th e M em or an du m  of 
Ass ociatio n of  the  prop osed  Cor po ratio n an d in tok en the reo f, 
th e Pr es iden t of  the  me eti ng , at lea st on e fifth  of  the  Ag ri­
cu ltu ris ts pr es en t in  th e meetin g an d th e State Gov ernm en t’s 
repr es en tativ e sha ll sign th re e copies of  th e M em or an du m  
of  As socia tio n so ad op te d in th e me eti ng .
(3) Eac h Ag ric ulturis t at te nd in g th e meetin g ref err ed 
to in  sub -se ction (2) abov e an d in te nd in g to jo in  th e 
Cor po ra tio n sha ll, at th e tim e of the  mee tin g, subsc rib e in 
cas h to th e or di na ry  share ca pital of  the prop osed  Cor ­
po ra tio n an d pa y suc h adm ission  or  ot he r fees, as may  be 
prescri be d.
(4) T he  am ou nts collected un de r sub-section  (3) sha ll 
be  in  th e cu sto dy of  th e St ate G ov er nm en t’s represen tativ e 
at te nd in g th e mee tin g un til l the Cor po ra tio n is reg istere d 
unde r sub-s ect ion  (2) of Section
x  ing.
6 an d sta rts fun cti on -
4. (1) T hr ee  copies of  th e M em or an du m  of  Asso­
cia tio n after  being du ly signed  in the meetin g as 
re qu ired  un de r sub -sectio n (2) of  Section 3 sha ll be 
forw arde d by  th e State Go ve rn men t’s represen tativ e pres en t 
in th e mee tin g to th e Co ntrolle r.
(2) The  Co ntrolle r ma y re tu rn  th e M em or an du m 
of Assoc iati on to th e send er for such corre ctions or clar i­
fications or  mo dif ica tio ns as he ma y de em  nec essary.

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(3) T he co ntrolle r sha ll, after sati sfying him sel f th at  
th e M em or an du m  of  Ass ociatio n is in or de r an d meets the 
re qu irem en t of  this Ac t an d rules m ad e th ereu nd er an d 
th at  th e State Go ve rnmen t is willin g an d read y to pa rti cipa te 
in  th e pro po sed Cor po ratio n, reg ister the M em or an du m  
an d in tok en th ereo f mak e necessa ry endo rse men t on the  
bo dy  of  all th e three copies of  the  M em or an du m.
(4) O n reg ist ering th e M em or an du m  th e Co ntrolle r sha ll 
also issu e un de r his ha nd  an d seal a cer tifica te to this 
effect an d sen d th e cer tifica te toge ther with  one or i­
gina l cop y of  th e M em or an du m  to th e St ate Gov ernm en t’s 
repr es en tativ e fro m wh om  the se we re rec eived by him .
Effect of  5.( 1) O n an d fro m the da te  wh en the M em or an du m
Regis tra tio n. o f Association  is reg istere d an d a cer tifica te to this effect 
is issu ed by th e Co ntro lle r th e Co rp or ation sha ll be  duly - 
co ns tit uted  an d will be  know n by  a disti nc t nam e, as ap pr ov ­
ed  by  th e Co ntrolle r.
(2) Fr om  suc h da te  as ref err ed  to in sub -sectio n (1) 
th e Cor po ratio n will be a bo dy  co rp or ate ha ving  pe rp e­
tu al  successio n an d a comm on seal an d sha ll, subject to 
an y restr ict ion s or conditions as may  be  prescri be d un de r 
this  Ac t or  an y ot he r en ac tm en t in force, ha ve  po we r to 
ho ld an d dispose of  pr op er ty  an d to co ntract, an d sha ll by 
th e sai d na me, sue  or be sued an d do all ot he r things  
nec ess ary  for th e pu rpos e of  th is Ac t.
dat^ofAsso- 6- (1) Ev ery  Co rp or ation shall ha ve  a M em or an du m of 
ciatio n. Ass ociatio n, co ntaining  its objectives, reg ula tio ns an d pro ­
cedu res  an d such ot he r m atters, as may  be  pre scr ibe d. 
A M em or an du m  will ha ve  th e forc e of  law  on all mem ­
ber s of  th e releva nt  Co rporation.
(2) A M em or an du m  may  be  altere d onl y in the m an ne r 
pr es cribed  an d eve ry suc h altera tio n sha ll be  du ly regis­
tered in th e m an ne r prescri be d wi th th e Co ntrolle r an d 
will no t tak e effe ct un til  it  is so reg iste red .
Share
ai^ a p '-  7. (1) A Co rp or ation sha ll have an autho ris ed or dina ry  
members.  sh ar e ca pital divide d in to shares of  Ru pe es ten eac h.
(2) A Cor po ratio n may  also have pre ference share 
ca pi ta l divid ed in to sh ar e of  Ru pe es ten  eac h.
(3) The  St ate Go ve rn men t sha ll subscribe to no t less
th an  fifty-on e pe r ce nt of the au thorise d or di na ry
sh ar e ca pital of  a Co rp or ation either in cash  or by  wa y 
of  the value  of  the land , build ing s, eq ui pm en t or  m ac hi­
ne ry  or an y ot he r assets ira nsferre d to the Co rporati on .
(4) Ea ch  ag ric ulturis t jo in in g a Co rp or ation at th e 
tim e of  its form ati on  un de r Section 3 or  on adm ission  to 
th e Co rp or ation subsequent to it form ati on  sha ll co nt ri­
bu te  in cash to one  or di na ry  share  of  th e Co rporati on .

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(5) No  Ag ric ulturis t shall be  allo wed to ho ld mo re 
th an  one  or dina ry  share ,  in a Co rp or ation.
(6) T he  St ate Go ve rnmen t or  an  Ag ric ulturis t holdi ng 
an  or di na ry  share  in a Co rp or ation m ay  also co nt rib ut e to 
the pre fer en ce share  ca pital of  th e Cor po ratio n either in 
cas h or by wa y of  th e va lue of  the la nd , bui ldings, eq ui p­
m en t or  m ac hine ry  or an y ot he r assets tra nsferre d to the 
Co rporation.
(7) A ho lder of  one or  more of  th e O rd in ar y shares in 
a Co rp or ation shall  be  know n as “M em be r”  of  th e Co rporati on .
(8 ) An  Agr iculturis t ho lding an  or di na ry  share  in 
a Cor po ra tio n sha ll be know n as an  “Ag ric ulturis t M em ­
be r” .
(9) No  mem be r sha ll tra nsfer  or  dispose of  the  shares 
he ld by him  in the Corpo ratio n except in th e m an ne r pre s­
cribe d.
«
> ;
(10) No tw ith stan ding  an yt hi ng  co ntain ed  in  an y othe r 
pro visi ons of  this  Ac t, no  mem be r of a fam ily of  wh ich  
an ot he r mem be r is alread y in ag ric ulturis t mem be r of a 
Cor po ratio n, shall be ad m itt ed  as an  ag ric ul turis t me mbe r 
of  eith er th at  Cor po ratio n or an y ot he r Co rp or ation.
M em be rshi p 8. (1) After  its initi al fo rm ati on  a Cor po ratio n may  ad m it
Ad mi ssi on , m or e, ag ric ul turis t mem be r, in the m an ne r prescri be d, righ ts , du ties .
(2) An  ag ric ulturis t mem be r sha ll have  suc h righ t 
an d du tie s as may  be  pr es cribed  in th e ru les or in  th e M em o­
ra ndum  of  Ass ociatio n.
C eas at io n of  9- (1) An ag ric ul turis t mem be r shall be  lia ble to for- 
M em be rsh ip. feit his  mem bersh ip an d cease to be  a mem be r of  th e Co r­
po ra tio n an d ma y, acc ord ing ly,  be  rem ov ed  fro m such  
mem be rsh ip in t he  m an ne r prescri be d, if  it is de cid ed by th e 
Bo ard  th at  he  has  failed  to ab ide by  th e proviso ns of 
this  Ac t or rules' m ad e th er eu nd er  or  th e terms  an d con­
dition s co ntain ed  in th e M em or an du m  of  Ass ociatio n or 
bye-law s or  for  reason s of  mi sco nduct de trim en tal to the
inter ests of  th e Cor po ra tio n:
Prov ided  th at  th e Bo ard  ma y, if  it  so desires, 
instea d of  remo vin g suc h an  ag ric ul turis t mem be r from th e 
mem be rsh ip of  the  Co rporation, allo w hi m  to co ntinue  as 
an  Agr iculturis t mem be r, by  rea lising  a reason ab le com ­
po un ding  fee, no t exc eed ing  one thou sa nd  rupe es:
Prov ided  fu rthe r th at  an ag ric ulturis t mem be r aggriev ­
ed by  a dec ision of  the Bo ard  un de r thi s sub -sectio n, may  
ap pe al  to th e St ate Go ve rnmen t ag ain st suc h dec isio n of  the 
Bo ard  an d th e dec isio n of  th e St ate Gov ernm en t on suc h 
an  ap pe al  shall  be  final an d bi nd in g on th e Co rporati on  
'and  th e Ag ric ulturis t mem be r concern ed.

6
Register 
o f Share'  
holders.
(2) An  ag ric ulturis t mem be r may  at an y tim e resign 
fro m th e mem bersh ip of  a Corpo ratio n by giv ing  du e notic e 
in writ in g in  th e m an ne r prescribed  to the Se cre tar y of 
th e Co rp or ation.
(3) An  ag ric ul turis t mem be r ceasing to be a mem be r 
of  th e Cor po ratio n un de r sub -sec tion s (1) an d (2) shall be 
lia ble to be remo ved fro m the possession of  the la nd  or 
ot he r pr op er ty  of  th e Cor po ratio n allotte d for his use whi le 
he  wa s a mem be r of  the Co rporation.
(4) An ag ricu ltu ris t mem be r cea sing to be  a mem be r 
of  th e Co rp or ation sha ll for feit  the am ou nt  inv est ed by h im  
in th e or di na ry  share s of  the Cor po ratio n bu t th e am ou nt  
inv est ed by hi m  in th e pre fer ence shares will be pa ya ble 
to him  af ter re alisa tio n of  all dues fro m him. The  Cor po ra­
tio n shall  also pa y to him reason ab le co mp ensatio n for 
an y im mov ab le str uc tures cr ea ted by him  or  cro ps gro wn  
or  an im als or birds raise d by h im  on th e la nd  o f the Co r­
po ra tio n with  du e au th or ity  fro m th e Cor po ratio n an d left 
be hi nd  by  hi m  :
Pr ov ided  th at  no such comp ensat ion  sha ll be pa ya ble 
in resp ect of  str uc tures erected , cro ps grow n or  anim als  
or  bi rd s raise d by  th e said mem be r on th e la nd  of  the  
Cor po ratio n with ou t du e au th or ity  an d such structures , 
cro ps or  anim als  or  birds shall  be take n over by  an d 
for feit ed to th e Co rporati on .
•
(5) An y sum s du e fro m an y ag ric ulturis t mem be r who
ceases to be  a mem be r of  th e Co rp or ation un de r , sub - .
section s (1) an d (2) sha ll be  reali sab le as ar re ar  of  land
reve nu e fro m him an d for th at  pu rpose th e am ou nt  du e
to such a mem be r un de r sub -sectio n (4) m ay  be  adjus ted
by  th e Co rp or ation ag ain st th e due s of  th e mem bers to the
Co rporati on s.
(6) The  am ou nt  of  or di na ry  share  ca pi ta l of  an  ag ri­
cu ltu ris t mem be r, wh ich is for feited  un de r sub -se ction (4) 
will be tra nsferre d to the Re ser ve fund  of  th e Co rporation.
10. Ea ch  Co rp or ation sha ll m ai nt ai n at its office a 
reg ister of  the  share-h olde rs an d shall en te r therein th e fol­
low ing  pa rti cu lars so far as t he y may  be av ailable na m ely: —
(i) T he  name s an d add res s of  the  share -ho lde rs an d a 
statem en t of  th e shares he ld by  them , dis tin guish ing  each 
share by its deno tin g nu m be r ;
(ii) The  da te  on wh ich  a per son  is en tered as a 
share-h olde r ;
(iii) The  da te  on wh ich  an y pe rson  ceases to be a
share-h olde r ; an d
(iv) Such ot he r pa rti cu lars as may  be  prescri be d.
 
 
•  t 7
M sa ag em en t. H . ^1) Ph e ge ne ral su pe rin tend en ce , di re ct io n an d 
, m an ag em en t of  th e affairs  of  every C or po ra tion  shall  vest 
in a Bo ard  of  Direc tor s, wh ich  ma y, subject to t he  provision s 
of  this  Ac t or  the rul es or th e M em or an du m  of  Ass ociatio n
pe rfo rm  all fun ctions of  the Cor po ratio n.
(2) The  Bo ard , in  dis charg ing  its fun ctions shall  ac t 
wi th du e re ga rd  to th e interest of  th e Cor po raton an d the 
ag ricu ltu ris t me mb ers .
Board of 12. (1) The  Bo ard  of  Dir ector s sha ll cons ist of  th e follow-
Direc tor s ing , na m el y;—
(a) No t less th an  one h a lf  of th e total nu m be r of 
Di recto rs to be  no minated  by the  State Go ve rn­
men t.
(b) The  remaining  nu m be r of  Dire cto rs to be  ele cte d 
at  th e an nu al  ge ne ral  mee tin g, in th e m an ne r 
pre scrib ed .
(c) A Cha irm an  to be ele cte d fro m am on g th em ­
selves by th e Di recto rs in th e m an ne r prescri be d, 
wh o shall be know n as the Ch airm an  of  th e Cor ­
po ra tio n :
Pr ov id ed  th at  on th e first constituti on  of  th e Bo ard , the 
Di recto rs ref err ed to in clause  (b) an d th e Cha irm an  refer­
re d to in  clause  (c) sh all  also be  no minated  by th e State 
Go ve rnmen t an d th e Di recto rs an d Cha irm an  so no minated  
sha ll, for th e pu rpose of  this Ac t, be deem ed to be du ly 
el ec te d:
Prov ided  fu rthe r th at th e Di rec tor s an d Cha irm an  so 
no m in at ed  shall  ho ld office un til  th e con clusion of  the first 
an nual  ge ne ral meetin g of  th e Co rporati on .
(2) As soon  as m ay  be pos sible after  a Cor po ra tio n is 
regis ter ed  un de r sub-sectio ns (3) an d (4) of  Section  4, the  
St at e Gov er nm en t sha ll no m in ate th e Di rec tor s an d C ha ir­
m an  of the Co rporation.
(3) T he nu m be r of  m em bers of  a B oa rd  of  Di rec tor s 
sh all  be as prescri be d in  th e M em or an du m.
Te rm  of 
office and 
reti rem ent 
of Directors.
Di rec tor s no minated  
office du ring  the
13. (1) The  
men t shall  ho ld 
Go vernm ent.
(2) The  Di rec tor s deem ed  to be 
viso to sub -sectio n (1) of  Section 12 
an nu al  ge ne ral
by  the 
ple asu re
St ate Go vern-  
of th e St at e
elected un de r the Pr o-  
shall re tir e in th e first
(3) O ne  th ird of  the  elected Direc tor s, or  if  th ei r nu m ­
be r is n ot  a mul tip le of  thr ee , th e nu m be r ne arest to one  
th ird,  sha ll re tir e by  ro tatio n at eve ry annu a) 
general  meetin g.

8
(4) Th e electe d Dire ctors to retire by rot ation at  every 
an nu al general mee ting  shall be those  who hav e been long­
est in office since their  last election and as betw een per­
sons who were electe d Dire ctors on the  same day, those 
who are  to ret ire  shall, in default  of an d subje ct to a ny 
agr eem ent amo ng themselves , be det erm ined by lot.
(5) Th e vacan cies in the  office of elected Directors 
due to retireme nt shall be filled by elections held in an 
an nu al gen eral meeting.
(6) Casual vacancies in the office of elected Directors 
due  to resignation , death  or otherw ise, shall be filled w ithin 
three  mon ths from  the date of such vacan cies arise by election 
either at  an an nu al general mee ting or at  a special Gener al 
mee ting , as the  case may be, an d a Director so elected 
to fill the  casual vacanc y shall hold office for the une xpired  
portio n of the  term of his predecessor.
z(7) No elected Dir ect or who  resigns or ret ire s or is 
othe rwise removed due  to any disq ualificatio n shall be elli- 
gible for re-electio n as a Director either in the  annual general 
meetin g in which he retir es, or which follows his resig nation 
or removal or in the  next five annual gen eral meetings 
following such an nu al gen era l mee ting :
Provide d th at  nothing in this sub-se ction shall app ly 
to any pers on retirin g as a Director eith er after hav ing been  
elected to fill a casual vac ancy for less th an  two years 
un de r sub-se ction (5) or afte r bein g deem ed to be elected 
un de r the  first proviso to sub-se ction (1) of Sectio n 12  . 1
Disq ualifi­
cations.
Vacation and  
resignation o f  
office by
Directors.
14. No person shall be a Director who —
(a) is of uns oun d mi nd  and stan ds so decla red  by 
a com petent court ; or
(b) is or has been convicted of an y offence which, 
in the  opin ion of the  Sta te Government, involves 
mo ral tur pit ud e.
15. (1) If. a Dir ect or oth er than  an official nomin ated 
by the  Sta te Gover nment :—
(a) becomes subject to any  disq ualificatio n me n­
tioned  in Section 12; or
(b) is absen t witho ut leave  of the  Board  for more 
th an  thr ee consecutive meetings there of, his sea t 
shall the reu po n become vacant .
(2) Any Director electe d un de r clause  (b) of sub-section 
(1) of  Section 12 may resign  his office by giving notice 
thereo f in writing  to the  Board and on ’such resig natio n 
being  acc ept ed shall be deem ed to have vac ate d his office.

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Meetin g of  16- (1) T he  Bo ard  sha ll meet at such  tim es and  shall  
Board, obs erve such rul es of  pr oc ed ur e in re ga rd  to th e tra nsactio ns 
of  business at  its me eti ng , as may  be  pre sc ri bed .
(2) A Dire ctor  shall  ha ve  onl y on e vo te in th e me etin gs 
of  th e Bo ard an d th e Cha irm an  or in his absen ce the 
pe rso n ele cte d to th e Cha ir shall  in th e ev en t of  eq ua lity 
of  votes on an y issue  ha ve  a casting vote in ad ditio n to 
his vote as a Dire ctor  cum Ch airm an .
An nu al 17. (1) An an nu al  ge ne ral mee tin g of  a Co rporati on
Ge ne ral  s [i a jJ he ld  every ye ar  in  t he  m on th  of  Fe br ua ry  to tra ns ac t 
me eting, business as may  be prescribed  an d in  pa rtic ul ar  to—■
(a) pass  th e au di te d ac co un ts of  th e Cor po ratio n for
•  th e pre vio us fin an cial ye ar  en ding  on th e 31st
De cembe r of  th e pr ec ed ing ye ar ;
(b)  ele ct fro m am on g th e ag ric ulturis ts mem be rs per ­
sons to fill va ca nc ies ca us ed  am on g th e ele cte d 
Di rec tor s of  th e Bo ard  ; z
(c) pass  th e bu dg et  an d ap pr ov e th e pr og ra m me of  
wo rk of  th e Cor po ra tio n for th e y e a r .
(2) Not with stan di ng  an yt hi ng  co nt ai ne d in  sub-s ect ion  (1) , 
th e firs t an nu al  ge ne ral meetin g of  a Co rp or ation ma y 
be  held eith er  in  th e m on th  of  Fe br ua ry  following th e 
registr ation of  th e Corpo ratio n or the mon th  of  Fe br ua ry  
of  the  ne xt  ye ar, as the Bo ard  may  deci de,
(3) The  pr oc ed ur e to be  followe d in an y an nu al  g en eral 
meetin g shall  be as prescri be d .
Spe cial 18. A Cor po ratio n ma y ho ld a special ge ne ral  meetin g
Gen eral t o  con sid er such m atters an d in  suc h m an ne r as pre scrib ed , me etin g. - 1
Vo tin g 19.i (1) In  an y ge ner al  meetin g of  a C or po ra tio n,  every
Rights, mem be r of  th e Cor po ra tio n sh all  ha ve  such  nu m be r of  the 
vo tes, eq ui va le nt  to th e nu m be r of  or di na ry  sh ar e he ld by
th at  m em be r .
(2) T he  St at e Go ve rnmen t may  no m in at e on e or mor e 
repr es en tativ es , no t ex ce ed ing five to at te nd  an y ge ne ral 
meetin g of  a Cor po ra tio n on its  behalf. T he  nu m be r of  
votes  he ld by  ea ch  such  repr es en tativ e in a  ge ne ral  meetin g 
sha ll be  de te rm ined  by dividing  th e to ta l nu m be r of  
or di na ry  sha res  he ld by  th e St ate Go ve rnmen t by  th e nu m be r 
of  repre sen tat ive s no minated  by  it  to at te nd  the gene ral  
mee tin g .
(3) T he  Cha irm an  of  an y ge ne ral meetin g shall  have  
one casting, vot e, wh en ev er eq ua l nu m be r of  votes is eas t on 
an y issue, in  ad di tio n to his vote.
r

10
Quorum, 20. No  business sh all  be  tran sa cted  a t an y Bo ard or  
Gen eral mee tin g unle ss a qu or um  is pr es en t. The  qu or um  
nec ess ary  for  th e tra ns ac tio n of  business at  any me eti ng 
sh all be  on e- third  of  th e total nu m be r of me mb ers  or the 
Di rectors, as th e case may  b e :
Prov ided  an y meetin g in  wh ich  no  qu or um  is presen t 
with in  on e ho ur  of  .the tim e fixed  for th e me eti ng, shall  
st an d ad jo ur ne d to th e sam e day in the ne xt wee k at  the 
same tim e an d plac e an d in such ad jo ur ne d mee tin g the 
business may  be tra ns ac ted eve n with ou t th e pre sen ce of  
a  qu or um  bu t su bject to the conditions an d pr oc ed ur e uas 
pre scr ibe d.
Use o f lan d 
and other 
prop erty. * o r
as
21. (1) A Co rp or ation may  use its  la nd  or ot he r pr op er ty  
th e pu rpos e of  r ais ing  ag ric ul tura l pr od uc e in suc h m an ne r 
may  be prescri be d in th e M em or an du m .
(2) A Cor po ratio n may  use  or  allo w use  of  its land  
or  pr op er ty  for re side ntia l, ad m in istra tiv e or  ot he r pu rposes 
in  th e m an ne r an d subject to term s an d conditions pr es cribed  
in  th e M em or an du m  or  bye -la ws  .
(3) No tw ith stan ding  an yt hi ng  co ntaine d in  an y othe r 
en ac tm en t in  for ce no  ag ricu ltu rist  m em be r or  pe rson  shall 
ac qu ire an y ri ght ov er the la nd  or pr op er ty  all ow ed to be 
us ed  by  him  or  otherw ise  oc cu pied  or  take n over by  him 
oth er  th an  tho se specifi cally men tio ne d i n th e rul es or  M em o­
ra ndum  or  ' bye -laws or th e or de r or  do cu m en t all ow ing  
th e use  of  la nd  or  pr op er ty  by hi m  .
1
Payment of 
dues for 
Comm on 
services.
222 .(1) Fo r pr ov iding facilities such as irriga tio n or  mac hine ry  
or  ot he r comm on services for cu ltiva tio n or  ot he r ag ric ul ­
tu ra l use  an d for ad minist rativ e an d ot he r costs of  wo rki ng 
of  th e Co rp or atio n, th e Cor po ratio n may  levy an d rea lise  
from  th e ag ric ul turis t me mb ers  charges ar rive d a t ei th er  
on  a comm on basis or on a basi s of  ac tu al  use  of  suc h 
fac ilit ies  or  services by  an  ag ric ul turis t m em be r, as th e case  
m ay  be, an d every  ag ric ul turis t m em be r sh all be  lia ble to 
pa y such sum s as may  be  de m an de d by  th e Cor po ra tio n 
in this re ga rd  .
(2) Ev ery ag ric ul turis t m em be r shall  also be  lia bl e to 
pa y such othe r fees as may  be  levied by th e C cr pciE ti cr .
Modern
Agricultural
Practice to 
be followed 
and produ ce 
sold throu gh
the Corpo­
ration
23.
m od ern
Bo ard .
(1) Ev ery ag ric ulturis t mem be r shall follow such 
ag ric ultura l practic es as may  be or de red by the
I

11
Supervision, 
Control and  
guida nce.
Validity of 
decisions of 
meetings.
Accounts 
an d A udit.
(2) No agriculturist member shall sell any agr icu ltural 
produc e pro duc ed by him  on the  Co rpo ration ’s land  and  
specified by the Board except thr ough the  Corpo ration  and 
the  Corpo ration  shall pa y to such agriculturist memb er such 
am ou nt as ma y be due to him  on the  sale of the  agri­
cultu ral  pro duce after ded ucting  expenses, if any , on this 
accou nt .
24. No twithstanding anyth ing  con tain ed in any  oth er 
enact me nt in force, any  occ upation  or use of lan d or p roperty  
of a Corpo rati on, wi tho ut due  autho rity from  th at  Co rpora­
tion , by any pers on may, on an  app lica tion received from 
the  Corpo rati on, be rem oved by the  auth orities  empowere 
to eject persons from  lan d reserved for pub lic purposes un de r 
sub-rul e (2) of Ru le 18 of the  Settlem ent Rule s un de r the  
Assam La nd  an d Reven ue Regulati on, 1886, and in the  
manne r prescribed therein, and for the  purpose of this 
section the  lan d of the Corpo rati on will be deem ed to be 
lan d over  whi ch no pers on has acq uir ed the  righ ts of  a 
pro prieto r, land-h old er or sett lem ent-holder an d which has 
been  reserved dul y for public  purposes as referred  to in 
sub-rules (1) an d (2) of the  said Ru le 18 of the  Settle­
me nt Rul es un de r the Assam La nd  an d Reven ue Re gu la­
tion , 1886.
25. (1) Th e Sta te Gover nment may appo int  any  officer 
to perform the  func tions of the  Con troller un de r the  Ac t.
(2) Th e Controlle r will be responsible for supe rvision 
of  the working of the Agricultura l Farm ing  Cor poratio ns 
an d pro viding necessary guidan ce to such Cor poratio ns an d 
will perform  such oth er functions an d will hav e such powers 
as ma y be prescribed.
(3) Th e Sta te Gover nment may dele gate  all or an y of 
its or the  Controlle r’s powers an d functions to any  official 
of  the  Sta te Gover nment or any bod y or organis ation.
26. Decisions of the Board or any  gen eral  meetin g of 
the  Corpo ration  on ma tters pres crib ed shall no t be valid 
unless app rov ed by the  Sta te Gov ernm ent.
27. (1) Th e bala nce -sheet an d acco unts  of the  Co rpo ra­
tion shall be prepare d an d ma intain ed in such form  and 
manne r as ma y be prescribed .
(2) Th e Board shall cause the  books an d accounts of the 
Co rpo ration  to be bal anced an d closed as on the  thirty-firs t 
day  of De cem ber each yea r or any oth er date as ma y be 
pres crib ed .
(3) Th e acco unts  of  the  Corpo ration  shall be audited 
by an app roved au dit ing  agen cy . as may  be pres crib ed.

12
Staff of the 28. (1) A Corpo rati on shall with the appro val of the
Corpo rati on Gover nment appo int  any person as Secretary cu m
Man ager of the  Corpor atio n. He shall be a whole time  
sal aried officer of the Corpo rati on an d will perform all 
executive an d oth er duties of th e Corpo rati on as the  Board 
may from  time to tim e decide.
(2) A Corpo rati on ma y also appoint such num ber  o f other 
salaried sta ff as i t considers necessary or desirable for the  efficient 
perf orm ance of its functions.
(3) A Corpo rati on shall determ ine the terms and con­
ditions of appointme nt and service  of the  sala ried  staff in 
con sult atio n with  the  Sta te Governm ent.
Power to 29. (1) Th e Sta te Gov ern ment ma y by notification in
mak e rules. t ji e  o ffjc ia i Ga zette mak e rules to carry out the  purposes of
this Act.
(2) Every Ru le made under this Sectio n sha ll be laid , 
as soon as may be, after it is made, before the  Assam 
Legislative Assem bly whi le it is in session for a total period 
of fourtee n days which may be comprised in one session or 
in two  successive sessions an d if before the  expiry of the 
said perio d the  Assam Legislative Assembly decid e th at  
the  rule should not be ma de or should be ma de only in 
a modified form, the  rule shall thereafter  be of no effect or 
hav e effect only in such mod ified  form , as the case may  
be, so howe ver th at  any such annu lm ent or modification 
shall be wi tho ut prejudice to the val idit y of anyth ing  previ­
ously done under th at  rule .
Power to 
make
bye-laws.
30. Th e Board may , with the  previous appro val  of the  
Sta te Gov ernmen t, make bye-law no t inconsistent with the 
provisions of this Act to provide for all matters to carry 
out th e pur pose of this Act the  rules ma de the reu nd er on 
the  Me mo ran dum of Association.
1
Power to 31. (1) If  in the  opin ion of the Sta te Government, a
supersedes Board or a Corpo rati on is no t com petent to perfo rm or 
o r  th e VE Pe r sistently  com mit  default in the  performance of the  duties 
Corporatio n impo sed on it by or un de r this Act or rules the reu nder 
in case of or the  Mem ora ndum  of Association or otherwise by law, 
incompe- o r  exceeds or abuses its powers or persisten tly fails to work 
defa uitT ’or a s  a n  economically viable orga nisa tion , the  Sta te Government,' 
abuse of after giving the  Board or the  Co rpo rati on, as th e case ma y 
power. be, an  oppo rtu nit y for sub mit ting  an exp lan atio n in the 
matter ma y by notifica tion , stating the reasons for so do in g,  
dec lare  such Board or Corpo rati on, as the  case may be, 
to be  inc om peten t or in defau lt or to hav e exceeded or
abu sed its powers an d,—
(a) supersede the  Board for such per iod  as deem ed 
necessary an d ap po int an ad ho c bod y to carry

13
on the  functions of  the Board un til  such time as 
the  Sta te Gover nment may  decide, or
(b) dissolve the  Co rpo ration :
Pro vided th at  if for emergent reasons an d pen ding 
form aliti es relating to supersession ol the Beard , it is necessary, 
in the opin ion the  Sta te Gov ernmen t, to sUupcrd the  Board 
forth wi th,  it may  do so ar.d appoint an ad ho c be dy  to 
carry  on the  functions of the Board for such period as ma y 
be det erm ined by the  Sta te Gov ernment:
Provide d furth er th at  while supe rseding a Ec aid the  
Sta te Gov ern ment may also direct th at  the  elected directors  
of  th at  Board shall no t be eligible for re-electicn for such 
period no t exceeding six years from  the  da te of supersession 
o f the  Board.
(2) On  dissolution of  the  Corpo rati on under sub-se ction 
(1),  the  pro perty  of the  Cor por atio n will be disposed of 
in the  ma nn er pres crib ed.
32. (1) No suit, prosecution  or oth er legal proc eeding 
shall lie aga inst a Corpo rati on or its employees or Gover n­
me nt Sei ean ts for anyth ing  done or inte nde d to be done in 
good faith un de r this Act or Rules rfrade the reu nder or die 
rpe morandum  of Association of the  Corporation.
(2) No civil suit or legal proce edings shall he enter ­
tained by any court  in matters of disp ute •  between a Co r­
poration  an d its mem bers an d in all such matters the  deci­
sion of the  Sta te Go ver nment shall be final ar.d bin din g 
on the  par ties conc erned.
33. Notwi thstan din g anyth ing  con tain ed in this Act or 
any oth er law fcr the  time  bein g in force, the  liab ility  
of the  member of  a Corpo rati on as regards dues of the Cor­
poration  to third  partie s will be limited to the extent of the 
valu e of this ord ina ry or prefe rence shares held  by them  in 
the  Co rpo rati on. Provide d th at  each individ ual mem ber will 
be liab le to pay to the  Corpo rati on all his dues to the 
Corpo rati on.
Repea l an d 34 .(1 ) Th e Assam Ag ricultural Far ming Cor pora tions 
Savings. Ordin anc e, 1973, is hereby  repeale d. nan««
IV of
(2) Not withstand ing such rep eal  any thing don e or 19 73 ■  
any  acti on take n un de r the  Or din ance so repealed, shall 
be deem ed to have been don e or taken, as th e case may  be 
under the  correspo ndin g provisio ns of this Act.
\G P 4( Gau.) No. L. A. 314/73— 1,500—11-6-73

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