3. (1) The Government may, by notification, establish an Authority to be known as the Khulna Development Authority for carrying out the purpose of this Ordinance. (2) The Authority shall be a body corporate, shall be entitled to acquire and hold property, shall have perpetual succession and common seal, and shall by the said name sue and be sued.

4. (1) The Authority shall consist of- (a) a Chairman to be appointed by the Government; Chairman. (b) the Deputy Commissioner, Khulna, ex-officio; Member. ¹[(c) the Mayor of the Corporation, ex-officio;] Do. (d) a representative of the ²[Bangladesh] Railway to be nominated by the Government, ex-officio; Do.(e) a representative of the Khulna Port Trust to be nominated by the Port Trust; Member. (f) Superintending Engineer, Public Health Engineering, ex-officio; Do. (g) a representative of the Chamber of Commerce and Industry to be appointed by Government from among a panel of three names to be nominated by the Khulna Chambers of Commerce; Do. ³[(h) two Commissioners of the Corporation to be elected by Commissioners of the Corporation;] Do. (i) not more than four Members to be appointed by the Government: Do. Provided that if at any time ⁴[the Corporation is superseded under section 145 of the Khulna City Corporation Ordinance, 1984 (Ord. No. LXXII of 1984)], the seats allotted to it under clauses (c) and (h) of this sub-section shall be deemed to have fallen vacant, and such vacancies shall be filled by the Government by appointment, by notification, and the persons so appointed shall hold office until the re-constitution of the ⁵[Corporation] under the provisions of the said Ordinance: Provided further that at least two of the persons so appointed shall be tax-payers of the ⁶[Corporation]. (2) The term of office of the Chairman shall be not more than five years and that of a Member except ex-officio Members three years, at a time: Provided that the Government may by notification in the official Gazette remove the Chairman or a Member at any time during the term of his Office. (2A) [Omitted by section 3 and the Second Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973) which was inserted by section 2 of the Khulna Development Authority (Amendment) Act, 1964 (East Pakistan Act No. VIII of 1964).] (3) Any person ceasing to be the Chairman or Member by reason of the expiry of the term of his office may be reappointed for another term or for such shorter period as the Government may decide. (4) The Chairman may be either a whole-time or a part-time officer.

5. (1) The Chairman shall receive such monthly salary and allowances as may be fixed by the Government and be subject to such conditions of service as may be prescribed and shall perform such duties as are assigned to him under this Ordinance or rules made under it. (2) Every Member shall be entitled to receive such fee or allowance for attending the meetings of the Authority, as may be prescribed.

6. The Chairman or any Member may at any time resign, provided that his resignation shall not take effect until accepted by the Government.

7. (1) A person shall be disqualified for being appointed Chairman or Member of the Authority; if he- (a) has been declared insolvent; or (b) has been declared to be disqualified for employment in, or has been dismissed from the service of ⁷[Bangladesh], or has been convicted of an offence involving moral turpitude; or (c) has knowingly acquired or continued to hold, without the permission in writing of the Government, directly or indirectly or through a partner any share or interest in any contract or employment with or by or on behalf of the Authority, or in any land or property which, in his knowledge, is likely to benefit him or has benefited him as a result of the operation of the Authority. (2) No person shall be disqualified as aforesaid, or be deemed to have any share or interest in such contract or employment as aforesaid, by reason only of having a share or interest in- (i) any sale, purchase, lease, or exchange of land or any agreement for the same; or (ii) any agreement for the loan of money, or any security for the payment of money only; or(iii) any newspapers in which any advertisement relating to the affairs of the Authority is inserted; or (iv) the occasional sale to the Authority, to a value not exceeding two thousand taka in any one financial year, of any article in which he trades; or by reason only of his having a share or interest, otherwise han as director, secretary, manager or other salaried officer, in any incorporated company which has any share or interest in any contract or employment with, by, or on behalf of, the Authority.

8. If the Chairman or any Member is granted leave or any one of them dies, resigns, or is removed from office, the Government may appoint a Chairman, or Member, as the case may be, for the period of absence or remainder of the term, as the case may be.

9. (1) The Authority shall meet at such time and place and in such manner, as may be prescribed: Provided that until rules are made in this behalf such meetings shall be convened by the Chairman. (2) The Chairman, or in his absence, a Member authorised by the Chairman, and two other Members shall be present to constitute a quorum at a meeting of the Authority.

10. (1) The Authority may associate with itself any person whose assistance or advice it may desire in carrying out any of the provisions of the Ordinance or rules thereunder. (2) Any person associated with itself by the Authority for any purpose shall have a right to take part in the discussions of the Authority but shall exercise no vote. An associate Member may be given such fee or allowance, as may be prescribed.

11. No act done or proceeding taken under this Ordinance shall be questioned on the ground merely of -(a) the existence of any vacancy in, or any defect in the establishment of the Authority; or(b) any omission, defect or irregularity not affecting the merits of the case.

12. The Authority may enter into and perform all such contracts as they may consider necessary or expedient for carrying out any of the purposes of this Ordinance.

⁸[13. (1) Every such contract shall be made by the Chairman on behalf of the Authority: Provided that a contract involving expenditure exceeding Taka five lakhs shall not be made by the Chairman without the previous sanction of the Authority. (2) Every estimate for expenditure of a sum for carrying out the purposes of this Ordinance, all specifications of work and of the material or goods to be supplied and the conditions of the contract shall be approved,- (a) where the expenditure involved does not exceed Taka five lakhs, by the Chairman; and (b) in other cases, by the Authority. (3) Sub sections (1) and (2) shall apply to every variation or abandonment of a contract or estimate as well as to an original contract or estimate.]

14. (1) Every contract made by the Chairman on behalf of the Authority shall be entered into in such manner and forms as would bind the Chairman if such contract were made on his own behalf, except that the common seal of the Authority shall be used; and every such contract may in the like manner and form be varied or discharged. (2) Every contract for the execution of any work or the supply of any materials or goods shall be in writing and shall be sealed. (3) The common seal of the Authority shall remain in the custody of the Secretary to the Authority and shall not be affixed to any contract or other instrument except in the presence of a Member (other than the Chairman), who shall attach his signature to the contract or instrument in token that the same was sealed in his presence. (4) The signature of the said Member shall be in addition to the signature of any witness to the execution of such contract or instrument. (5) A contract not executed as provided in this section shall not be binding on the Authority.

⁹[15. (1) No contract shall be made for execution of any work or for supply of any material or goods without inviting tenders in respect thereof by notice published in local newspapers. (2) The time to be stipulated in the notice for submission of a tender under sub-section (1) shall be,-(a) in a case where the work to be executed or the material or goods to be supplied involves an expenditure not exceeding Taka ten thousand, not less than seven days; and(b) in all other cases, fourteen days. (3) A tender submitted under sub-section (1) may be accepted by the Chairman but, in a case where the expenditure involved in the work to be executed or the material or goods to be supplied exceeds Taka five lakhs, the tender shall not be accepted by him without the prior approval of the Authority. (4) The provisions of this section shall not be construed as requiring the acceptance by the Chairman or approval by the Authority of a tender; and the Chairman, where necessary with the approval of the Authority, may-(a) accept any tender which appears to him, in consideration of all circumstances, to be the most advantageous, or(b) reject all the tenders submitted to him.]

16. The Chairman shall take sufficient security for the due performance of every contract involving an expenditure exceeding one thousand taka.

17. (1) The Chairman shall forward to the Government a copy of the minutes of the proceedings of each meeting of the Authority, within ten days from the date on which the minutes of the proceedings of such meeting were signed. (2) If the Government so directs in any case, the Chairman shall forward to it a copy of all papers which were laid before the Authority for consideration at any meeting. (3) The Government may require the Chairman to furnish it with-(a) any return, statement, estimate, statistics or other information regarding any matter under the control of the Authority, or(b) a report on any such matter, or(c) a copy of any document in the charge of the Chairman. (4) The Government at any time, cause an investigation to be made by an officer appointed in this behalf into the affairs of the Authority.