Restrictions on holding of shares

In any co-operative society, no member other than the State Government or any other co-operative society shall- (a) hold more than such portion of the total share capital of the society not exceeding one-fifth thereof as may be prescribed, or (b) have or claim any interest in the shares of such society exceeding Rs. 1,00,000: Provided that the State Government may, by notification in Official Gazette, specify, in respect of any co-operative society, a higher maximum than one-fifth of the share capital or a higher amount than Rs. 1,00,000, as the case may be: Provided further that no individual member of a primary co-operative bank shall hold more than five percent of the total paid up share capital of such bank. Explanation.- For the purpose of this section “primary co-operative bank” means a bank as has been defined in the Banking Regulation Act, 1949 (10 of 1949).