Transfer of interest on death of member

On the death of member, a co- operative society may transfer the share or interest of the deceased member to the person so nominated in accordance with the rules made in this behalf, or if, there is no person so nominated , to such person as may appear to the committee to be the heir on legal representative of the deceased member, or pay to such nominee, heir of legal representative, as the case may be, a sum representing the value of such member’s share or interest as ascertained in accordance with the rules or bye-laws: Provided that- (i) in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid; (ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with rules and bye-laws for membership of the society, or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified; and (iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be. (2) A co-operative society shall subject to the provisions of section 31 and unless, within six months of the death of the member prevented by an order of a competent court, pay such nominee heir or legal representative, as the case may be, all other moneys due to the deceased member from the society. (3) All transfers and payments made by a co-operative society in accordance with the provisions of this section be valid and effectual against any demand made upon the society by any other person. (5) The Registrar or the person authorised by him under sub-section (1) to audit the accounts of a co-operative society shall have power, where necessary – (a) to summon at the time of his audit any officer, agent, servant or member of the society, past or present, who , he has reason to believe, can give valuable information in regard to transactions of the society or the management of its affairs ; and (b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to, the society by any officer, agent, servant or member of the society in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody. (6) If at the time of audit the accounts of a society are not complete, the Registrar or the person authorised by him under sub-section (1) to audit, may cause the accounts to be written up at the expense of the society. (7) Audit fee, if any, due from any co-operative society shall be recoverable in the same manner as is provided in section 67. No member of a co-operative society shall participate in the general meeting of the co-operative society or vote in the election to the committee, unless he has made all such payments to the co-operative society as are due from him.