Promotion and Management of Companies

Promotion and Management of Companies.—No Government servant shall, except in course of duty take part in the promotion, registration or management of any Bank or Company: Provided that a Government servant may in accordance with the provisions of any general or special order of Government, take part in the promotion, registration or management of a Co-operative Society registered or deemed to be registered under the Co-operative Societies Act. No Government servant shall serve or accept paid employment in any Company, Mutual Benefit Society or Co-operative Society or act as an agent, whether paid by salary or commission, to any Insurance Company or Society. Where, however, no remuneration is accepted, there is no objection to a Government servant's taking part in the management of a mutual benefit society if he has first obtained the sanction of the Head of his Department and a certificate to the effect that the work undertaken will be performed without detriment to his official duties. • Explanation:—For the purpose of this rule "Mutual Benefit Society" shall mean a Society registered under a statute other than the Kerala Co-operative Societies Act, 1969 for the mutual benefit of its members, without any profit motive. 12 Note:—The sitting fees accepted by Government servants who are elected or nominated to the Board of Directors or Committee of a Co-operative Society in accordance with the bye-laws of the Society shall not be treated as remuneration for the purpose of this rule. Government servants shall be at liberty to take part in the promotion of Co-operative Societies but no Government servant shall except in the course of duty or as provided for in the Service Regulations,, hold office in any Co-operative Society or serve on any committee appointed for the management of its affairs unless the Society is composed wholly of Government servants or partly of Government servants and partly of employees of local bodies.