Chapter I Chapter I

(1)This Act may be called the Kerala Co-operative Societies Act, 1969. (2)It extends to the whole of the State of Kerala. (3)It shall come into force on such date as the Government may, by notification in the Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

In this Act, unless the context otherwise requires— (a) “apex society” means a society having the whole of the State as its area of operation and having as its members only other societies with similar objects and declared as such by the Registrar; (aa)“assisted society” means a co-operative society which has received the Government assistance in the form of share capital, loan, grant or any other financial assistance or any guarantee by the Government or from Boards constituted by the Government for repayment of loan, interest or deposits; (ab)“auditing of accounts of Co-operative Societies” means a close examination of financial transactions, overdue debts, if any, maintenance of books of accounts, documents and other records of a business, preparation of audit report and includes an inquiry into the affairs of the society and subsidiary institutions in order to ascertain the correctness of accounts and the extent to which its activities were useful in promoting the economic welfare of the members in accordance with the co-operative principles; (b) “bye-laws” means the registered bye-laws of a co-operative society for the time being in force; (c) “circle co-operative union” means a circle co-operative union constituted under section 88; (d) “central society” means a society having jurisdiction over one or more Revenue Districts but not the whole of the State as its area of operation, and having as its members only other societies and declared as such by the Registrar or the Government; (da) “chief executive” means any employee of a co-operative society by whatever designation called and includes an officer of the State Government or an employee of any other institution or co-operative society, who discharges the functions of a chief executive under the Act, the Rules or the Bye-laws; (e)“committee” means the governing body of a co-operative society by whatever name called, to which the management of the affairs of the society is entrusted; (ea) “ Co-operative Arbitration Court” means a court constituted under section 70A ; (eb) “Consortium Lending Scheme” means the Consortium Lending Scheme framed under section 57C; (ec) “Co-operative Development and Welfare Fund” means the Co- operative Development and Welfare Fund established under section 57A; (ecc) “Co-operative Ombudsman” means the person or persons appointed under sub-section (2) of section 69 A; (eccc) “co-operative principles” means the co-operative principles listed in Schedule II appended to this Act; (ed) “Co-operative Service Examination Board” means the Co-operative Service Examination Board constituted under section 80B; (f)“co-operative society” or “society” means a co-operative society registered or deemed to be registered under this Act; (g)“co-operative society with limited liability” means a society in which the liability of its members for the debts of the society in the event of its being wound up is limited by its bye-laws: (i)to the amount, if any, unpaid on the shares respectively held by them; or (ii)to such amount as they may, respectively, undertake to contribute to the assets of the society; (h)“co-operative society with unlimited liability” means a society, the members of which are, in the event of its being wound up, jointly and severally liable for and in respect of all its obligations and to contribute to any deficit in the assets of the society; (ha) “Deposit Guarantee Scheme” means the Deposit Guarantee Scheme framed under section 57 B; (hb) “Director of Co-operative Audit” means the Director of Co-operative Audit appointed under sub-section (1) of section 63 and any officer to whom all or any of the powers of the Director of Co-operative Audit may be delegated by the Government by general or special order under sub-section (3) of section 63 ; (i)“dispute” means any matter touching the business, constitution, establishments or management of a society capable of being the subject of litigation and includes a claim in respect of any sum payable to or by a society, whether such claim be admitted or not; (ia) “District Co-operative Bank” means a Central Society having jurisdiction over one revenue district and having as its members Primary Agricultural Credit Societies, Urban Co-operative Banks and the principal object of which is to raise funds to be lent to its members, including nominal or associate members, which existed under this Act, immediately before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2019 and which has ceased to exist after the commencement of the said Amendment Act.” (ib) “Federal Co-operative Society” means a society having more than one district as its area of operation and having the Government, individuals and other co-operative societies as its members; (j)“financing bank” means a co-operative society having as its members only other co-operative societies and the main object of which is to raise money and lend the same to its members; (k)“general body meeting” means a meeting of the members who are entitled to vote in the affairs of the society; (ka) “Kerala State Co-operative Bank “ means an apex society having Primary Agricultural Credit Societies and Urban Co-operative Banks as its members including nominal or associate members of the District Co-operative Banks who shall continue as nominal or associate members of the Kerala State Co-operative Bank.” (l)“member” means a person joining in the application for the registration of a co-operative society or a person admitted to membership after such registration in accordance with this Act, the rules and the bye-laws, and includes a nominal or associate member; (la)“miscellaneous societies” means such societies, as may be prescribed, and which accept deposits from their members only and no deposits shall be accepted from nominal or associate members, and shall undertake business activities for the welfare of its members as per the bye-laws and shall issue loans only to members: Provided that no agricultural loans or schematic loans shall be issued to the members except the loans for welfare activities; (m)“nominal or associate member” means a member who possesses only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in the bye-laws; (n)“officer” means the president, vice-president, chairman, vice chairman, secretary, manager, member of committee or treasurer and includes a liquidator, administrator and any other person empowered under the rules or the bye-laws to give directions in regard to the business of a co- operative society; (o)“prescribed” means prescribed by rules made under this Act; (oa) “prescribed period” means the period of limitation specified in Schedule III appended to this Act; (oaa) “Primary Agricultural Credit Society” means a Service Co-operative Society, a Service Co-operative Bank, a Farmers’ Service Co-operative Bank and a Rural Bank the principal object of which is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate of interest on such loans and advances shall be the rate fixed by the Registrar and having its area of operation confined to a Village, Panchayat or a Municipality: Provided that the restriction regarding the area of operation shall not apply to societies or banks in existence at the commencement of the Kerala Co-operative Societies(Amendment) Act, 1999(1 of 2000): Provided further that if the above principal object is not fulfilled, such societies shall lose all characteristic of a Primary Agricultural Credit Society as specified in the Act, Rules and Bye-laws except the existing staff strength; (ob) “primary credit society” means a society other than an apex or central society which has as its principal object the raising of funds to be lent to its members; (oc) “Primary Co-operative Agricultural and Rural Development Bank” means a society having its area of operation confined to a taluk and the principal object of which is to provide for long term credit for agricultural and rural development activities: Provided that no Primary Co-operative Agricultural and Rural Development Bank shall be registered without the bifurcation of assets and liabilities of the existing societies having the area of operation in more than one taluk and the societies shall restrict their operation in the area of the respective society on such bifurcation; (od) “Primary Co-operative Society” means a society having jurisdiction over a revenue district as a whole or over any specified area within such revenue district and having individual or individuals and other Co-operative Societies as its members; (oe) “Primary Tourism Co-operative Society” means a society having its area of operation confined to a taluk and the principal object of which is to promote, organize and assist tourism activities: Provided that those societies in existence on the 5th day of July, 2018 having more than one taluk as its area of operation shall restrict such area of operation to the taluk where the headquarters of the society is situated, within a period of one year from that date.” (p)“Registrar” means the Registrar of Co-operative Societies appointed under sub-section (1) of section 3 and includes any person on whom all or any of the powers of the Registrar under this Act are conferred; (q)“rules” means the rules made under this Act; (qa)“Scheduled Castes” means the Scheduled Castes in relation to the State of Kerala as specified in the Constitution (Scheduled Castes) Order, 1950; (qb) “Scheduled Tribes” means the Scheduled Tribes in relation to the State of Kerala as specified in the Constitution (Scheduled Tribes) Order, 1950; (qc) “Special Officer” means an officer, not below the rank of an Assistant Registrar, appointed by the Registrar to take into custody the assets and liabilities of the society which secured registration without bifurcating the area of operation of an existing society and to register new societies and to constitute committees as provided in section 28 of the Act; (r) “State” means the State of Kerala; (ra) “State Co-operative Agricultural and Rural Development Bank” means an apex society having only Primary Co- operative Agricultural and Rural Development Banks as its members and functioning in accordance with the provisions contained in the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (20 of 1984); (rb) Omitted by Act 1 of 2019; (rc) “State Co-operative Election Commission” means the State Co-operative Election Commission constituted under section 28B; (s) “State Co-operative Union” means the State Co-operative Union established under section 89; (sa) “Transferee Bank” the Kerala State Co-operative Bank; (sb) ‘Transferor Bank’ means the District Co-operative Bank as defined under clause (ia) of the Section; (t)“Tribunal” means the Tribunal constituted under section 81; (ta) “Urban Co-operative Bank” means a society registered under this Act having its area of operation in the Urban areas and which undertakes banking business with the license obtained from Reserve Bank of India; (taa) “Urban Co-operative Societies” means a co-operative society the principal object of which is to undertake non-agricultural credit activities and to raise funds to be lent to its members with its area of operation confined to a municipality or a corporation: Provided that the restriction regarding the area of operation shall not be applicable to the existing urban co-operative societies; (tb)“Vigilance Officer” means the Vigilance Officer appointed under section 68A; (u)“year” means the period commencing on the first day of April of any year and ending with 31st of March of the succeeding year or in the case of any registered society or class of registered societies, the accounts of which are made up to any other date with the previous sanction of the Registrar, the year ending with such date.

(1)The Government may appoint a person to be the Registrar of Co-operative Societies for the State. (2)The Government may by general or special order confer on any person all or any of the powers of the Registrar under this Act.

Subject to the provisions of this Act, a co-operative society which has as its object the promotion of the economic interests of its members or of the interests of the public in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act: Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which have an adverse effect on development of co-operative movement.

(1)A co-operative society shall be registered only with limited liability: Provided that this sub-section will not affect the rights and liabilities of societies with unlimited liability which are in existence at the time of commencement of this Act. (2)The word ‘limited’ or its equivalent in any Indian language shall be the last word in the name of a society registered under this Act with limited liability.

(1)An application for the registration of a co-operative society shall be made to the Registrar in such form as may be prescribed and the applicant shall furnish to him such information about the society as he may require. (2)Every such application shall conform to the following requirements, namely:- (a) the application shall be accompanied by three copies of the proposed bye-laws of the society; (b) where all the applicants are individuals, the number of applicants shall not be less than twenty-five, each of such persons being a member of a different family. Explanation.-For the purposes of this clause, the expression “member of a family” means wife, husband, father, mother, grand- father, grand- mother, step-father, step-mother, son, daughter, step- son, step-daughter, grand-son, grand-daughter, brother; sister, half- brother, half-sister and wife of brother or half brother; (c) the application shall be signed by every one of the applicants who is an individual as specified under clause (a) of sub-section (1) of section 16 and by a person duly authorized on behalf of the Government or any society or other body of persons which is an applicant.

(1)If the Registrar is satisfied— (a)that the application complies with the provisions of this Act and the rules; (b)that the objects of the proposed society are in accordance with section 4; (c)that the area of operation of the proposed society and the area of operation of another society of similar type do not overlap; (d)that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and (e)that the proposed society complies with the requirements of sound business, he may register the society and its bye-laws within a period of ninety days from the date of receipt of the application. (2)Where the Registrar refuses to register a society, he shall communicate the order of refusal together with the reasons therefore within seven days of such order to such of the applicants as may be prescribed. (3)An application for registration of a society shall be disposed of by the Registrar within ninety days from the date of receipt of the application. (4)Where an application for registration of a society is not disposed of within the time specified in sub-section (3), the applicant may make a representation,-- (a)before the Registrar, if the application for registration is made to a person on whom the powers of the Registrar is conferred under sub-section (2) of section 3; or (b)before the Government, if the application for registration is made before Registrar, and the Registrar or the Government, as the case may be, shall, within sixty days from the date of receipt of such representation, issue directions to the authority concerned to take appropriate decision on the application for registration and the authority concerned shall

(1) Where a co-operative society is registered under this Act, the Registrar shall issue a certificate of registration signed and sealed by him, which shall be conclusive evidence that the said society is duly registered under this Act. (2) Notwithstanding anything contained in sub-section (1), where the Registrar is satisfied that the original registration certificate is irrecoverably lost and a duplicate certificate could not be issued as the files or records regarding the registration of the co-operative society was lost, after registration, the Registrar shall issue a certificate stating the registration number and date of registration of a co-operative society, on the basis of the details available in the audit certificate and the records available with the Registrar, signed and sealed by him, which shall be conclusive proof that the said society is duly registered and it shall be treated as a certificate of registration.

(1) Every Primary Co-operative Society or Central Co-operative Society may, within such time and in such manner, as may be prescribed, apply for affiliation to the concerned apex society or Central Society, as the case may be. (2) Where the apex society or central society does not, within sixty days from the date of receipt of the application for affiliation, determine whether such affiliation should be given or not, such affiliation shall be deemed to have been given to the applicant society from the date on which the said period of sixty days expires. (3) When the apex or central society, as the case may be, rejects an application for affiliation under sub-section (1), the aggrieved society may file an appeal before the Registrar against such rejection within thirty days from the date of receipt of the order of rejection and the Registrar shall dispose of the appeal within sixty days from the date of appeal.

The registration of a society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal, and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted: Provided that the Government and the Registrar shall have power to regulate the working of a society for the economic and social betterment of its members and the general public.

Every co-operative society,- (a) shall paint or affix its name, register number and the address of its registered office and keep the same painted or affixed in conspicuous position, in letters easily legible to members in vernacular language and in English language, on the outside of every office or place in which its business is carried on; (b) shall have its name engraved in legible characters on its seal with common emblem; and (c) shall have its name and address of its registered office, mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundis, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the co-operative society.

(1) A society may, by an amendment of its bye-laws, change its name. (2) Where a society changes its name, the Registrar shall enter the new name in 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 society shall not affect any rights or obligations of the society or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.

(1) Subject to the provisions of this Act and the rules, a society may, by an amendment of its bye-laws, change the form or extent of its liability. (2) When a 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 the provisions of section 24 or any bye-law or contract to the contrary, any member or creditor shall, during a period of two 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 given his assent to the change. (4) An amendment of the bye-laws of a 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 given or deemed to have been given; 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) No amendment of any bye-law of a society shall be valid unless such amendment has been registered under this Act. (2) The provisions of section 7 specifying the conditions to be satisfied before registration of the bye-laws of a society by the Registrar shall mutatis mutandis, apply also to the registration of amendments to bye-laws: Provided that the Registrar shall before registering an amendment of any bye-law consult- (a) the State Co-operative Union if the bye-laws to be amended are that of an apex society or a central society; or (b) the circle co-operative union if the bye-laws that are to be amended are that of any other society; and (c) the financing bank if the society is indebted to the financing bank. (3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate of registration signed and sealed 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 society, he shall communicate the order of refusal, together with the reasons thereof, within seven days of the order to the society. (4A) An application to register an amendment of the bye-laws of a society shall be disposed of by the Registrar within ninety days from the date of receipt of the same. (4B) Where an application to register an amendment of the bye-laws of a society is not disposed of within the time specified in sub-section (4A), the society may make a representation,- (a) before the Registrar of Co-operative Societies, if the application to register the amendment of the bye-laws is made to a person on whom the powers of the Registrar is conferred under sub-section (2) of section 3; or (b) before the Government if the application for registration of the amendment of the bye-laws is made before the Registrar, and the Registrar or the Government, as the case may be, shall within sixty days from the date of receipt of such representation, issue directions to the authority concerned, to dispose of the same. (5) [Omitted] (6) [Omitted] (7) [Omitted]

An amendment of the bye-laws of a 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.

Every co-operative society shall make its bye-laws consistent with the provisions of this Act and rules and no provision in the bye-laws of a co-operative society shall be contrary to the provisions of the Act and the Rules.

(1) A society may, by a resolution passed by a two-third majority of the members present and voting at a general body 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 societies (2) Any two or more societies may, by a resolution passed by a two third majority of the members present and voting at a general body meeting of each such society, amalgamate themselves and form a new society. (3) The resolution of a society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be. (4) When a society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding the provisions of section 24 or any bye-law or contract to the contrary, any member or creditor shall, within a period of two 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. (5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have given his assent to the proposals contained in the resolution. (6) A resolution passed by a society under this section shall not take effect until either— (a) the assent thereto of all the members and creditors has been given or deemed to have been given; 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) Where a resolution passed by a society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance. (8) [Omitted] (9) [Omitted]

(1) Any two or more Co-operative Societies with prior permission of the Registrar, may by resolution passed by the majority of the members present and voting at a general body meeting of each of such co-operative societies, may enter into partnership to carry out any one or more specific business. Written notice of the general body meeting shall be given to each member before fifteen clear days of such meeting. (2) The partnership shall be in the interest of the members of the co-operative society or the co-operative societies or shall be in the public interest or shall be in the interest of the co-operative movement in general and it does not mean to be a partnership firm registered under Indian Partnership Act, 1932 (Central Act 9 of 1932)

(1) Where the whole of the assets and liabilities of a 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) Where two or more societies are amalgamated into a new 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 amalgamating society shall be deemed to have been dissolved and shall cease to exist as a corporate body. (3) Where a society is divided into two or more societies in accordance with the provisions of section 14, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(1) No person shall be admitted as a member of a society except the following, namely:- (a) an individual— (i) who has attained the age of eighteen years: Provided that this sub-clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college; (ii) who is not of unsound mind; (iii) who is a resident within, or is in occupation of land in, the area of operation of the society; (b) any other society; (ba) a local self government; (c) the Government; and (d) any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order: Provided that in a society formed for the promotion of the economic interests of members through a specified activity no person other than one who is likely to be benefited directly by such activity may be admitted as a member of such society unless such admission is permitted specifically by rules: Provided further that where a society is formed exclusively for the benefit of persons engaged in any particular industry, no person who is not an actual worker in the industry shall be admitted in excess of such percentage of the total membership of the society as may be prescribed: Provided also that the Coffee Board, the Rubber Board and any other statutory or non-statutory Board, Committee or Corporation constituted for the purpose of the development of an industry, may be admitted as a member of a society engaged in marketing and processing of the products of the industry concerned and formed for the workers and growers of such industry, so however that no such Board, Committee or Corporation shall be admitted as a member of a co-operative credit society. Provided also that in the case of hospital co-operative societies, industrial and commercial establishments and other organizations registered under any other law may be admitted as members. Explanation:- For the purpose of this sub-section ‘hospital co-operative society’ means a society, the main object of which is to run a hospital or to conduct medical or paramedical courses or to run medical shops; (2) Membership in any society other than a society formed for the benefit of the Scheduled Castes or the Scheduled Tribes shall not be refused merely on the ground that a person belongs or does not belong to a particular religion, race, community, caste, sect or denomination. A decision on an application for membership shall be taken within two months from the date of receipt of the application. (2A) Where an application for membership in a society is not disposed of within the time specified in sub-section (2), the Registrar shall be bound, on the written request of the applicant, to determine whether such membership shall be given or not; (2B) Where the Registrar does not, within one month of the date of receipt of such written request, determine whether such membership should be given or not, the applicant may make a representation,- (a) before the Registrar if the request referred to in sub-section (2A) is made to a person on whom, the powers of the Registrar is conferred under sub-section (2) of section 3; or (b) before the Government, if the request referred to in sub-section (2A) is made to the Registrar, and the Registrar or the Government, as the case may be, shall, within thirty days from the date of receipt of such representation determine whether such membership should be given or not. (3) Where a person is refused admission as a member in a society, the decision refusing admission together with the reasons therefor shall be communicated by the society to that person within a period of fifteen days from the date of the decision.

(1) Any member of a society, who has acted adversely to the interests of the society, or has failed to comply with the provisions of the bye-laws may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of members present and voting at the meeting. (2) No member shall be expelled under sub-section (1) without being given an opportunity of making his representation. (3) A copy of the resolution expelling a member shall be communicated to the member within a period of fifteen days from the date of passing of the resolution. (4) The expulsion from membership may involve forfeiture of shares held by the member.

(1) A society may admit any individual as a nominal or associate member: Provided also that a Hospital Co-operative Society may admit any other society as nominal or associate member. Explanation.-The term ‘hospital co-operative society’ shall have the same meaning as in the Explanation to the fourth proviso to sub-section (1) of section 16. (2) A nominal or associate member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to be elected to the committee of a society. (3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities 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.

Every society shall keep open to inspection for its members, free of charge, at all reasonable times, at the registered address of the society,- (a) an up-to-date copy of the Kerala Co-operative Societies Act,1969; (b) an up-to-date copy of the Kerala Co-operative Societies Rules,1969; (c) an up-to-date copy of the bye-laws of the society; (d) a register of members; (e) the latest audited balance sheet of the society; and (f) the accounts of the society in so far as they relate to his or her transaction.

(1) Every member of a society shall exercise his vote in person. (2) Notwithstanding anything contained in sub-section (1), a society or corporation or a statutory or non-statutory Board, Committee or other body of persons which is a member of another society may, subject to any rules made under this Act, appoint one of its members to vote on its behalf in the affairs of that other society.

In any society, no member other than the Government, any statutory or non- statutory Board, Committee or Corporation approved by the Government in this behalf or any other society, shall hold more than such portion of the total share capital of the society, not exceeding one fifth thereof, as may be prescribed: Provided that the Government may, by notification in the Gazette, specify in respect of any class of societies a higher maximum than one fifth of the share capital.

(1) The transfer of a share or interest of a member in the capital of a society shall be subject to such conditions and restrictions as to the maximum holdings as are specified in section 22. (2) No transfer by a member of his share or interest in a society shall be valid unless- (a) the member has held such share or interest for not less than three years; and (b) the transfer is approved by the committee of the society.

Subject to the other provisions of this Act, no withdrawal by a member of his share in a society shall be valid unless- (a) the member has held such share for not less than three years; and (b) such withdrawal is in accordance with the bye-laws of the society.

(1) On the death of a member of a society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or the bye-laws or, if no person has been so 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 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 or the bye-laws and the society shall pay the amount to the nominee, heir or legal representative, as the case may be, on receipt of such requisition. (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.

(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 society for the debts of the society as they existed- (a) in the 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 society is ordered to be wound up under section 71, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceeding the date of the order of winding up, 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.