(1) The Government may after consulting the municipal council, for the purpose of undertaking and executing under this Chapter improvement schemes in any ¹ [municipal area], direct the establishment of an Improvement Board in accordance with the provisions of this Chapter.

(2) When the Government directs the establishment of an Improvement Board under sub-section (1) a Board called the Improvement Board shall be constituted consisting of ² [seven] members as follows:--

(a) The Chairman of the Board to be appointed by the Government:

³ [(b) x x x]

(c) The Municipal Commissioner or Chief Officer for the time being ofthe municipal council;

² [(d) the Executive Engineer concerned and the nominee of the Director of Town Planning specified by the Government;]

(e) ² [Two] members to be appointed by the Government;

(f) ² [Two] members to be elected by the municipal councillors of the ¹ [municipal area] from among themselves in the prescribed manner, or in default of election as aforesaid, to be appointed by the Government from among the municipal councillors of the ¹ [municipal area].

(3) Every Improvement Board constituted under this section shall, untildissolved under sub-section (15), be a body corporate and shall have perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract and may by the said name sue and be sued.

(4) The names of the Chairman and members, other than ex-officio members, of the Improvement Board shall be notified in the official Gazette.

(5) The term of office of the Chairman and other members, not beingex-officio members, of an Improvement Board shall be three years from the date of publication of their names in the official Gazette and shall include any further period which may elapse between the expiration of the said period of three years and the date of publication in the official Gazette of the names of the Chairman and other members of the succeeding Board.

(6) Any casual vacancy in the office of a member occasioned by thedeath, resignation or removal of such member shall be filled up as soon as may be, in the same manner, by the same authorities, and subject, as far as may be, to the same provisions as are applicable in the case of original appointments and elections of the members of the Board:

Provided that the members so chosen shall hold office so long only as the vacating member would have held the same, if such vacancy had not occurred.

(7) The Chairman and other members, not being ex-officio members, shall be entitled to receive such allowances as may be prescribed and the allowances shall be paid from the funds of the Improvement Board.

(8) A person, other than a person who is an ex-officio member, shall be disqualified for being chosen as, or for being, a member of an Improvement Board, if he, -

(a) holds any office of profit under the Board or the Municipal council or the Government; or

(b) is of unsound mind and stands so declared by a competent court; or

(c) is an undischarged insolvent or has applied for being adjudged insolvent; or

(d) has been convicted of an offence, which involves, in the opinion of the Government, moral turpitude; or

(e) has directly or indirectly by himself, by his wife or son or any other near relative dependent on him, or by any partner, any share or interest in any subsisting contract or employment with, by, or on behalf of, the Improvement Board; or

(f) is a secretary or manager or other salaried officer of any body corporate which has any share or interest in any contract or employment with, by or on behalf of, the Improvement Board:

Provided that a person shall not be disqualified under clause (e) or be deemed to have any share or interest in any contract or employment with, by, or on behalf of, the Improvement Board, by reason only of his being a share-holder of a body corporate which has entered into any contract with the Board, if he has disclosed to the Government the nature and extent of the share held by him from time to time.

(9) The Government may after such inquiry as it deems necessary, remove from office the Chairman or any other member, not being an ex-officio member, if he, --

(a) refuses to act; or

(b) has become incapable of acting; or

(c) has, in the opinion of the Government, abused his position in the Board so as to render his continuance on the Board detrimental to its interest; or

(d) fails, without such reason as may in the opinion of the Government be sufficient, to attend three consecutive meetings of the Board; or

(e) ceases to reside within the limits of the ¹ [municipal area] in respect of which the Improvement Board is established; or

(f) has since his appointment incurred, in the opinion of the Government, any of the disqualifications specified in sub-section (8); or

(g) is otherwise, in the opinion of the Government unsuitable to continue on the Improvement Board:

Provided that no order of removal under this sub-section shall be made, unless the member concerned has been given an opportunity to submit his explanation to the Government.

(10) The Improvement Board shall meet at the office of the Board andshall observe such rules of procedure in regard to transaction of business as may be prescribed.

(11) No act of an Improvement Board shall be deemed to be invalid byreason of any defect in the constitution of the Board or on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his appointment or election or by reason of any such act having been done during the period of any vacancy in the office of any member of the Board.

(12) Such members of the staff of an Improvement Board as may beprescribed shall be appointed by the Commissioner from members of the ⁴ [Karnataka Municipal Administrative Service]. The Board may, with the sanction of the Government appoint such other members of its staff as it deems necessary.

(13) The Improvement Board may enter into and perform all suchcontracts as it may consider necessary or expedient for carrying out any of the purposes of this Chapter and every contract shall be made on behalf of the Board by the Chairman and shall be entered into after complying with such conditions and in such manner as may be prescribed; and a contract not executed in the manner provided in this sub-section and the rules made in this behalf shall not be binding on the Board.

(14) It shall be the duty of the Improvement Board to prepare improvement schemes, and execute them and perform such other functions for purposes of the improvement of the ¹ [municipal area] as the Government may direct from time to time.

(15) When the Government is satisfied that all such improvement schemes as it deems necessary have been executed by the Improvement Board, and that such further measures as may be necessary for the improvement of the ¹ [municipal area] may conveniently be undertaken by the municipal council, the Government may by notification declare that the Improvement Board shall stand dissolved with effect from such date as shall be specified in such notification. Every such notification shall include provisions relating to the devolution of the assets and liabilities of the Board, the disposal or management of property vested in the Board, the completion of incomplete works, and all other matters incidental to the dissolution of the Board and the winding up of its affairs:

Provided that all immovable properties vested in the Board on the date of its dissolution and not expressly reserved to Government in the said notification shall thereafter vest in the municipal council.

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1. Substituted by Act 36 of 1994 w.e.f. 1.6.1994.

2. Substituted by Act 83 of 1976 w.e.f. 8.12.1976.

3. Omitted by Act 83 of 1976 w.e.f. 8.12.1976.

4. Adapted bythe Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.