Chapter II REGISTRATION OF CO-OPERATIVE SOCIETIES

(1) No amendment of any bye-law of a co-operative society shall be valid unless approved by the resolution of a general meeting and registered under this Act for which purpose three copies of the amendment shall be forwarded to the Registrar as prescribed. (2) On receipt of an application for amendment of bye-laws of a co-operative society, the Registrar shall enter the particulars of the application in the Register of applications to be maintained either manually or electronically; and give a serial number to the application and thereafter may register the amendment in the bye-laws if- (a) the proposed amendments are not contrary to the provisions of this Act and the rules made there under; and (b) the proposed amendments are not inconsistent with the principles of the social justice, as may be prescribed. (3) When the Registrar registers an amendment, he shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered. (4) Where the Registrar refuses to register an amendment of the bye-laws, of a co-operative society, he shall communicate the order of refusal together with the reasons therefor to the society. (5) Any amendment which is not disposed of by the Registrar within 90 days of its receipt, shall be deemed to have been registered under this Act and the provisions of sub-section (3) of this section shall apply to such amendment. (6) An amendment of the bye-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.

(1) A co-operative society may, by an amendment of its bye-laws, change its name. (2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in the place of the former name and shall amend the certificate of registration accordingly. (3) The change of name of a co-operative society shall not affect any rights or obligations of the co-operative society, or of any of its members or past members or deceased members; and any legal proceedings pending may be continued by or against the society under its new name.

(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability. (2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of 3 months from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change. (4) An amendment of a bye-law of a co-operative society changing the form or extent of its liability shall not be registered or take effect until, either- (a) the assent thereto of all members and creditors has been obtained, or (b) all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full.

(1) A co-operative society may, with the previous approval of the Registrar and by resolution passed by a three-fourth majority of the members present and voting at a special general meeting of the society- (a) transfer its assets and liabilities in whole or in part to any other society; (b) divide itself into two or more co-operative societies and form as such new societies; (c) convert itself into any other class of society and form as such a new class of society: Provided that in case of an insured co-operative bank, no resolution under this sub-section shall be passed without the prior approval in writing of the Reserve Bank of India. (2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a three-fourth majority of the members present and voting at a special general meeting of each such society, amalgamate themselves and form a new society. (3) The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division, conversion or amalgamation, as the case may be. (4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-laws or contract to the contrary, any member or creditor shall during the period of three months of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the resolution. (6) A resolution passed by a co-operative society under this section shall not take effect until, either- (a) the assent thereto of all the members and creditors has been obtained, or (b) all claims of members and creditors who exercise the option referred to in sub-section (4) within the period specified therein, have been met in full. (7) When a resolution passed by a society under this section involves transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.

(1) When the whole of the assets and liabilities of a co-operative society are transferred to another society in accordance with the provisions of section 14, the registration of the first mentioned society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (2) When two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each such society shall be deemed to have

(1) Any two or more societies may, with the prior approval of the Registrar, by resolution passed by three-fourth majority of the members present and voting at a special general meeting of each such society, enter into partnership for carrying out any specific business or businesses provided that each member has had clear ten days' written notice of the date of the meeting. (2) Nothing in the Indian Partnership Act, 1932 (9 of 1932), shall apply to such partnership.

No person shall be admitted to membership of a co-operative society except the following, namely:- (a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872); (b) any other registered society (except a society under liquidation proceedings); (c) State Government; and (d) such class or classes of persons or associations of persons as may be notified by the State Government in this behalf.

(1) Notwithstanding anything contained in section 17, a society may also have the following kinds of members:- (a) nominal members; and (b) associate members. (2) (a) A person with whom the co-operative society has or proposes to have business dealings may be admitted as a nominal member. (b) In the school stores or any other such societies, a minor may be admitted as an associate member. (c) A nominal or an associate member shall have no right to share in the profits of the society, nor shall he be eligible for the membership of the committee, nor shall he be entitled to such privileges and rights as may be specified in the bye-laws of the society in preference over a member. (3) Save as provided in this section, a nominal or an associate member shall have such privileges and rights of a member, as may be specified in the bye-laws of the society.

No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society as may be prescribed by the rules or the bye-laws of such society.

Every member of a society shall have one vote, in the affairs of a society: Provided that- (a) nominal or associate member shall not have right of vote; (b) in the case of equality of votes, the Chairman shall have a casting vote; (c) where the Government is a member of the society, each person nominated under section 35 or appointed as Managing Director under section 35-B by the Government on the committee shall have one vote; (d) where a share of a society is held jointly by more than one person, only the person whose name stands first in the share certificate and in its absence, in the member register shall have the right to cast one vote; and (e) save as otherwise provided in the bye-laws, a minor to whom the share of a deceased member is transferred under section 23 shall not be entitled to vote.

(1) Every member of a society shall exercise his vote in person and no member shall be permitted to vote by proxy. (2) Notwithstanding anything contained in sub-section (1), the society which is a member of another society, may appoint such number of its members as may be prescribed, to vote in the affairs of such other society.

(1) The transfer of a share or interest in the capital of a society shall be subject to such conditions and restrictions, as to the maximum holding as are specified in section 6. (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 the society or to a member of the society or to a person whose application for membership has been accepted by the society; and (c) the committee has approved such transfer.

(1) On the death of a member of a society, the society shall transfer the share or interest of the deceased member to a person or persons nominated in accordance with rules or if no person has been nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member: Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society: Provided further that nothing in this sub-section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a co-operative society. (2) Notwithstanding anything contained in sub section (1), any such nominee heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules. (3) A Society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be. (4) All transfers and payments made by a society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.

When a member of a society is expelled or resigns in accordance with the rules or the bye-laws, or when a member becomes insane,- (a) his share or interest shall be transferred to another person qualified to be the transferee in accordance with the provisions of section 22, and the value thereof determined in accordance with the rules, shall be paid to such member or, if he is insane, to any person appointed to manage his properties under the Indian Lunacy Act, 1912 (4 of 1912); or (b) in case of a society with unlimited liability if the bye-laws so provide, the value of his shares or interest determined in accordance with the rule, shall be paid to him, or, if he is insane, to any person appointed to manage his properties under the Indian Lunacy Act, 1912 (4 of 1912).

All sums calculated in accordance with the rules to be due from a society to a member, other than payments in respect of the share or interest of such member of the society, shall, subject to the provisions of section 22, be paid:- (a) in the case of a member who has been expelled or has resigned from a society, to him; and (b) in the case of a member who has become insane, to any person appointed to manage his properties under the Indian Lunacy Act, 1912 (4 of 1912).

(1) Every society shall keep open to inspection for its members or non-members free of charge, at all reasonable times, at the registered address of the society- (a) a copy of this Act; (b) a copy of the rules; (c) a copy of the bye-laws of the society; and (d) a register of members. (2) All registers and records of a society except books and other documents relating to accounts other than one's own shall be open to inspection in the office of the society by any member of such society on payment of such fees as may be specified in the bye-laws. (3) Subject to such conditions and payment of such fees as may be specified in the bye-laws, the society shall, on an application made by any member thereof, grant him a certified copy of such records or registers or extracts thereof.

Subject to the provisions of section 42, the share or interest or contribution of a member in the capital of a registered society shall not be liable to attachment or sale under any decree or order of a court, in respect of any debt or liability incurred by such member, nor shall a receiver under the Provincial Insolvency Act, 1920 (5 of 1920), be entitled to have any claim on such share or interest or contribution.

The members of a society shall, upon the winding up of the society, be jointly and severally liable to contribute towards any deficiency in the assets of the society- (a) in the case of a society with unlimited liability, without limit; and (b) in the case of a society with limited liability, subject to such limitation of amount as may be provided in the bye-laws.

(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a co-operative society for the debts of the society as they existed- (a) in case of a past member, on the date on which he ceased to be a member; (b) in the case of a deceased member on the date of his death; shall continue for a period of two years from such date. (2) Where a co-operative society is ordered to be wound up under section 78, the liability of a past member or of the estate of deceased member who ceased to be a member or died within 2 years, immediately preceding the date on which the order of winding up takes effect, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member or death, as the case may be.

(1) A full, true and accurate statement of his assets and liabilities shall be furnished- (a) by an applicant for membership of a society with unlimited liability, with his application; (b) by a member of a society with unlimited liability when required to do so by the Registrar or any person authorised by him by a general or special order or by the financing bank; and (c) by a member of any other society, with an application for a loan or for acceptance as a surety. (2) A member of a society shall, before the completion of each such transaction, furnish to the society of which he is a member, full, true and accurate information regarding any sale, mortgage, or transfer in any form whatsoever of his immovable property or any portion or share thereof and regarding any debt proposed to be incurred on the security of such property.