Section 404 · Dissolution of Corporation

(1) If, in the opinion of the Government, the Corporation is not competent to perform, or persistently makes default in the performance of the duties imposed on it by or under this Act or any other law or exceeds or abuses its powers the Government may by an order published, together with a statement of the reasons therefor, in the Official Gazette, declare the Corporation to be incompetent or in default or to have exceeded or abused its powers, as the case may be and dissolve the Corporation: Provided that before making an order of dissolution as aforesaid, reasonable opportunity shall be given to the Corporation to be heard and to show cause why such order of dissolution should not be made. (2) When the Corporation is dissolved by an order under sub-section (1),- (a) all 2[XXX) XXXXXXX Councillor] shall on such date as may be specified in the order vacate their offices without prejudice to their eligibility for election under clause (d); 1. Section 402-A inserted vide H.P. Act No. 32 of 2011, effective from 20th February, 2012. 2. For the word "Councilor" the words "Mayor, Deputy Mayor and Councillor" substituted vide H.P. Act No. 11 of 2010 and the words "Mayor, Deputy Mayor and" omitted vide H.P. Act No. 48 of 2013, effective from 27th July, 2013. (b) on the dissolution of the Corporation, all powers and duties conferred and imposed upon the Corporation by or under this Act or any other law shall be exercised and performed by such officer or authority as the Government may appoint in that behalf; (c) all property vested in the Corporation shall until is reconstituted, vest in the Government; and (d) election shall be held for the purpose of reconstituting the Corporation within a period of six months. CHAPTER-XXIV MISCELLANEOUS