Chapter IV Chapter IV

Rights and Liabilities of Members of Registered Societies

Member not to exercise rights till due payment made. – No member of a registered society shall exercise the rights of a member unless or until he has made such payment to the society in respect of membership as may be prescribed by the rules of bye-laws: Provided that notwithstanding any thing contained in any provisions of this Act, the member of a registered Society shall exercise the right to vote at the election of members of the managing committee of society only after acquiring such interest in the society, as may be prescribed by the rules of bye-laws.]

Votes of members. -

1. (1) Subject to the provisions of sub-section
2. (2) of this section and of sub-section
3. (4) of Section 14 each member of a registered society shall have one vote only as a member in the affairs of the society, provided that in the case of an equality of votes, the Chairman shall have a casting vote.
4. (2) A registered society which is a member of any other registered society shall have as many voters as may be prescribed by the bye-laws of such other society, and may, subject to such bye-laws, appoint any number of its members, not exceeding the number of such votes, to exercise its voting power, provided that no member who is disqualified for such appointment under any rule shall be so appointed.
5. (3) Save as provided in sub-section (2), voting by proxy shall not be allowed except with the general of special sanction of the Registrar for any society or class of societies.

Restriction on holding of members. – No member of a registered society other than the State Government of another registered society, shall have or claim any interest in the capital of a registered society exceeding one- fifth of the total capital or such smaller proportion as may be prescribed by the rules.

Share or interest not liable to attachment. – Subject to the provisions of section 22, the share or interest of member in the capital of, or contribution to, a registered society shall not be liable to attachment or sale under any decree or order of a Court of justice in respect of any debt or liability incurred by such member and neither the Official Assignee under the Presidency-towns insolvency Act, 1909 (3 of 1909) nor a Receiver under the Provincial Insolvency Act, 1920 (5 of 1920) shall be entitled to, or have any claim on, such share, interest or contribution.

Restrictions on transfer of share or interest. –

1. (1) The transfer or charge of the share or interest of member in the capital of registered society shall be subject to such conditions as to maximum holding as may be prescribed by this Act or by the Rules.
2. (2) in case of society registered with unlimited liability, a member shall not transfer any share held by his interest in the capital or property of the society or any part there of unless -
   • (a) he has held such share of interest for not less than one year; and
   • (b) the transfer or charge is made to the society or to a member of society or to a person whose application for membership has been accepted by the society.

Liability of a past member and of the estate of a deceased member. – The liability of a past member or of the estate of a deceased member for the debts of a registered society as they existed on the date of his ceasing to be a member or of his decease, as the case may be, shall continue for a period of two years from such date.