Restrictions on transfer of charge on share of interest.

(1) Subject to the provisions of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, a transfer of, or charge on the share or interest of the member in the share capital of a society shall be subject to such conditions as may be prescribed. (2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless – (a) he has held such share or interest for not less than one year; (b) the transfer is made to a member of the society or to a person whose application for membership has been accepted by the society. (3) Notwithstanding anything contained in sub-section (1) and (2), where a member is allowed to resign or is expelled, or cease to be a member on account of his being disqualified by this Act or by the rules made there- under or by the bye-laws of the society, the society may acquire the share or interest of such member in the share capital by paying for it at the value determined in the manner prescribed, provided that the total payment of share capital of a society in any financial year for such purpose does not exceed ten percent of the paid-up share capital of the society on the last day of the financial year immediately preceding. Explanation – The right to forfeit the share or interest, of any expelled member in the share capital by virtue of any bye-laws of the society, shall not be affected by the aforesaid provisions. (4) Where the Government is a member of a society the restriction contained in this section shall not apply to any transfer made by its share or interest in the capital of the society; and the Government may, notwithstanding anything in this Act, withdraw from the society its share capital at any time, after giving to the society notice thereof not less than three months.