Act Info:
(1) The Board of Directors may, subject to the sanction of the 1[Provincial Government], make and, from time to time, add to, vary or rescind by-laws for the regulation and control of transactions in cotton.
(2) In particular and without prejudice to the generality of the foregoing provision such bye-laws may provide for -
(a) the admission of various classes of members of a recognised cotton association and the exclusion, suspension, expulsion and re-admission of such members;
(b) the opening and closing of markets in cotton and the times during which such markets shall be opened or closed and Regulating the hours of trade;
(c) a clearing house for the periodical settlement of contracts or differences thereunder and for the passing on of delivery orders and for any purpose in connection with options in cotton, and the regulation and maintenance of such clearing house;
(d) the number and classes of contracts in respect of which settlements shall be made or differences paid through the clearing house;
(e) fixing, altering or postponing settling days;
(f) determining and declaring the market rates for cotton of any and every description;
(g) the terms, conditions and incidents of contracts and the forms of such contracts as are in writing;
(h) Regulating the making performance and cancellation of contracts, including contracts between a commission agent and his constituent, or between a broker and his constituent, or between a jethawala or muccadum and his constituent, or between a member and a non-member of a recognised cotton association, and the consequences of insolvency on the part of a seller or buyer or intermediary, the consequences of a breach or omission by a seller or buyer and the responsibility of commission agents, muccadum and brokers not parties to such contracts;
(i) the prohibition of specified classes or types of dealings in cotton by a member of a recognised cotton association;
(j) the settlement of claims and disputes by arbitration and appeals against awards;
(k) the levy and recovery of subscriptions, fees, fines and penalties;
(l) disciplinary measures against members of a recognised cotton association, including suspension, expulsion, fines and non-monetary penalties, for breach of any bylaw made by the Board of Directors;
(m) Regulating the course of business between parties to contracts in any capacity;
(n) the institution, maintenance and control of certified godowns; and
(o) Regulating the making, performance and cancellation of option in cotton.
(3) If any person committing a breach of any by-law of a recognised cotton association is a company, every director and officer of such company shall also be deemed to have committed such breach, unless he proves that the breach was committed without his knowledge and control.
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1. The words "Provincial Government" were substituted for the words "Governor in Council" by the Adaptation of Indian Laws Order in Council.