Provided that the members without holding any agricultural land in the Agricultural Credit Societies be treated as associate members.

Disqualification for membership of society Disqualification for membership of society:— [Rule 21B]

1. (1) A person shall be disqualified for being admitted as, and for being, a member, he -
   • (a) is an applicant to be adjudicated, an insolvent or is an undischarged insolvent ; or
   • (aa) is not eligible for membership under Section 19;] or
   • (b) has been sentenced for any offence involving more turpitude, such sentence not having been reversed and a period of three years has not elapsed from

the date of expiration of the sentence; or

1. (c) is a paid employee of the society or of its financing bank or of any society for which it is the financing bank ; or
2. (d) has been expelled from membership under this Act and a period of one year has not elapsed from the date of such expulsion; or
3. (e) is carrying on business of such kind as the Registrar may by general or special order, declare to be a business which is in conflict with the objects or interests of the society ; or
4. (f) as such member fails to transact such minimum business or utilise minimum services or facilities in a year as may be specified- in the bye-laws; or
5. (g) fails to attend two consecutive General body meetings in two years without leave of absence; or
6. (h) fails to give information relevant to him to the society as specified in the bye- laws.]

1. (2) The provisions of clause
   • (b) of sub-section
2. (1) shall not apply to a person seeking admission to, or to a member of, a society exclusively formed for the reclamation of such class of persons as may from time to time be notified by the Government in the Andhra Pradesh Gazette. The provisions of clause
   • (c) of sub-section
3. (1) shall not apply to a person seeking admission to, or to a member of—
   • (i) a society which has as its principal object the provision of employment to its members ; or
   • (ii) such other society as may be prescribed.]
4. (3) Where any person, who is not eligible for being admitted as member has been admitted as member or where the member who is disqualified to continue as such under sub-section
   • (I) is continued as member, he shall be removed by the General body on its own motion or on a representation made to it by any member of a society or its federal society or its financing bank: Provided that no member shall be removed under this sub-section unless he had an opportunity of making a representation against the proposed action. A copy of the resolution removing the member shall be communicated to such person and on such communication, he shall be deemed to have ceased to be a member of the society.