Sri Lanka Consolidated Acts

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Agrarian Services (Amendment) Act (No. 4 of 1991) - Sect 33

Insertion of new sections 86A and 56B in the principal enactment

33. The following new sections are hereby inserted immediately after section 56 of the principal enactment and shall have effect as sections 56A and section 56B respectively of the principal enactment : "
56A.
(1) There may be established one or more Farmers' Organizations of owner cultivators and occupiers of agricultural land in each area determined by the Commissioner for that purpose.
(2) Each Farmers' Organization shall consist of at least twenty five owner cultivators or occupiers or one fourth of the total number of owner cultivators and occupiers of agricultural land in such area.
(3) The Commissioner may register any Farmers' Organization if an application in that behalf is made to him by the Organization.
(4) The purposes of any Farmers' Organization registered under this section shall include
(a) the formulation and implementation of the agricultural programme for the area;
(b) carrying out village level construction work and effecting repairs to irrigation works;
(c) marketing of produce and distribution of: seed, fertilizer and agro-chemicals ;
(d) promoting of cooperation between, and the co-ordination of agricultural activities of government organizations and the farmers of the area ; and
(e) engaging in any other activity approved by the Commissioner as being beneficial to the farming community.
(5) Regulations may be made in respect of the election of office bearers of Farmers' Organizations registered under this section the procedure for the transaction of business by such organization power of such to be maintained by such organizations and the audit of such accounts by the Commissioner or an officer authorized by him in that behalf.
56B.
(1)Notwithstanding anything in section 56A, the Commissioner may, upon application made in that behalf by any Farmers' Organization in any area, on being satisfied such Farmers' Organization has-
(a) actively promoted agricultural activities in its area, or has the ability to promote such activities in such area ;
(b) enjoys the trust and confidence of the farming community of such area; and
(c) the financial viability and the resources to undertake repairs of irrigation works,
(2) From and after the date of registration of a Farmers' Organization under subsection (1), such Organization shall be a body corporate with perpetual succession and a common seal and may sue and be sued by the name by which it is registered.
(3) The Commissioner shall publish a notification in the gazette of every registration of Farmers' Organization made under this section.
(4) The purpose of every farmers' Organization registered under this section shall be the purpose specified in subsection (4) of section 56A.
(5) Regulations may be made in respect of the election of office bearers of Farmers Organizations registered under this section, procedure for transaction of business by such organizations, powers of such organization accounts to be maintained by such organization and the audit of such accounts by the Commissioner or an officer authorized by him in that behalf.
(6) The Commissioner may, by notification published in the Gazette, cancel the registration of any Farmers' Organization registered under this section if he is satisfied that the Farmers' Organization has been inactive for a period of two years or has so conducted itself that it is in the public interest to cancel its registration under this section.
(7) The commissioner shall, where he cancels the registration of a Farmers Organization under this Act appoint a person to be the liquidator of the Corporation who shall have the power to-
(a) take possession of the books, documents and assets of the corporation
(b) sell the property of the corporation;
(c) decide any question of priority among the creditors of the corporation,
(d) compromise any claim by or against the corporation with the prior approval of the Commissioner; and
(e) arrange for the distribution of the assets of the corporation in the prescribed manner
(8) In the liquidation of the corporation its funds shall be applied first to the cost of liquidation and then to the discharge of its liabilities. Any surplus remaining after the closure of the liquidation shall be credited to the Agrarian Services Fund established under section 60."


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