Persons who may be admitted or continued members

Persons who may be admitted or continued members. (1) Subject to the provisions of this Act, no person shall be admitted or continued as a member of a Co-operative,-

(a) unless he needs the services of the Co-operative and accepts the responsibility of membership and is competent to contract under the Contract Act, 1872 (Central Act IX of 1872);

(b) if he conducts any business, such business being in conflict or competition or if he is a member of another Co-operative having same objectives with the business of the Co-operative as specified in the bye-laws; and

(c) unless he fulfills such other conditions as may be specified in the bye-laws of the Co-operative:

(d) is in default regarding any payment to be made to the co-operative exceeding an amount and for a period specified in the bye-laws;

(e) has applied to be adjudicated an insolvent or is an un-discharged insolvent; or

(f) has been sentenced for any offence, involving moral turpitude, such sentence not having been reversed or the offence pardoned and a period of five years has not elapsed from the date of the sentence; or

(g) is a paid employee of the co-operative or of its financing bank or of its union or of its federal co-operative.

Provided that after the registration of a Co-operative, the members shall be admitted only by the elected board.

(2) XXX

(2A) No cooperative shall, without sufficient cause in writing, refuse admission to membership to any person under the provisions of this Act or the Rules and the bye-laws made there under The board of the cooperative shall send a written communication of its decision to such person within sixty days from the date of receipt of his application

(3) If a question arises as to the eligibility or otherwise of a person to become a member or to continue as a member, the board shall decide the question after giving such person an opportunity of being heard. The decision of the board shall be final. In section 20 of the principal Act,- (i) in sub-section (1), after the words “shall be admitted” the words “or continued” shall be inserted. (ii) after clause (c) the following shall be inserted, namely:- “(d) is in default regarding any payment to be made to the co-operative exceeding an amount and for a period specified in the bye-laws; (e) has applied to be adjudicated an insolvent or is an un-discharged insolvent; or (f) has been sentenced for any offence, involving moral turpitude, such sentence not having been reversed or the offence pardoned and a period of five years has not elapsed from the date of the sentence; or (g) is a paid employee of the co-operative or of its financing bank or of its union or of its federal co-operative.” (iii) sub section (2) shall be omitted. In the Principal Act, in section 54, in sub-section (2) after third proviso, the following shall be inserted, namely:- "(2-A) The provisions of section 24 related to the Maximum number of board members and reservation of seats in the Board shall mutatis-mutandis apply to the Federal Co-operative."