Paragraph 14: Composition of board of trustees

14. Composition of board of trustees. —(1) The board of trustees of an establishment granted exemption shall consist of not less than two and not more than six representatives, each of the employers and the employees: Provided that in case of a common provident fund for a group of two or more establishments, there shall be at least one representative from each participating establishment. (2) The employer shall nominate representatives on the board of trustees from among the officers employed in managerial capacity. (3) The representatives of employees on the board of trustees shall be nominated or elected in the following manner namely: — (a) where a union is recognised by the employer under the Code of Discipline in industry or under any other Act, such union shall nominate the representatives of employees; (b) where more than one trade union is recognised by the employer, the representatives of employees shall be elected by members of the unions in an election held for the purpose on a working day; (c) where no union is recognised but more than one registered union functions in the establishment, the union having the largest membership, subject to a minimum of fifteen per cent, shall have the right to nominate representatives; and (d) where there is only one registered union, it shall have the right to nominate representatives provided it has a minimum of fifteen per cent membership. (4) The employer shall be the Chairperson of the board of trustees and in the event of equality of votes, the Chairperson shall exercise a casting vote. (5) The term of office of a trustee shall be five years from the date of election or nomination. (6) An outgoing trustee shall be eligible for re-election or re-nomination and a trustee elected or nominated to fill a casual vacancy shall hold office for the remainder of the term of the trustee in whose place the election or nomination was made. (7) A person shall be disqualified from being a trustee, if such person— (i) is declared to be of unsound mind by a competent court; (ii) has been convicted of an offence involving moral turpitude; (iii) is an undischarged insolvent; or (iv) is an employer of an exempted or un-exempted establishment that has defaulted in payment of any dues under the Code. (8) A person shall cease to be a trustee, if such person— (i) ceases to be an employee of the establishment; (ii) ceases to be a member of the provident fund of the establishment; (iii) represents a union which ceases to be recognised by the employer; or (iv) fails to attend three consecutive meetings of the board without obtaining leave of absence from the Chairperson, unless the Chairperson is satisfied that reasonable grounds existed for such absence. (9) The procedure for election or nomination of trustee, quorum at meetings, records of business transactions and other matters not specifically provided for in this Scheme shall be regulated by the approved provident fund rules of the establishment and by guidelines for the functioning of board of trustees of exempted establishments as may be specified by the Commissioner. (10) Where any dispute or doubt arises, the matter shall be referred to the Regional Provident Fund Commissioner having jurisdiction over the head office of the establishment, whose decision shall be final and binding.