Provided that a member shall have to be a member for at least one full financial year, before being eligible to cast his/her vote except the case of promoters.

Liability of members

1. (1) A Co-operative may be registered with limited or unlimited liability.
2. (2) Where a Co-operative amends its articles of association to change the form and extent of its members' liability, it shall give notice thereof together with a copy of the amendment to its members and creditors and notwithstanding any provision in the articles of association or contract to the contrary, any member other than one who voted in favour of the proposed change, or creditor shall, during a period of thirty days from the date of issue of the notice, have the option of withdrawing his/her shares, deposits or loans, as the case may be, subject to the discharge of his/her obligations to the Co-operative.
3. (3) Any member or creditor who does not exercise his/her option within the period specified under sub-section
4. (2) shall be deemed to have assented to the resolution.
5. (4) An amendment passed under sub-section
6. (2) shall not take effect until-
   • (a) all claims of the members and creditors of the Co-operative, who have exercised the option under sub-section
7. (2) have been met in full or otherwise satisfied; and
   • (b) notice of the amendment of the articles of association of the Co-operative has been received by the Registrar in accordance with this Act.
8. (5) Subject to the provisions of sub-section
9. (6) the liability of a member or of the estate of a deceased member for the debts of the Co-operative as they existed-
   • (a) in the case of a past member, on the date on which the person ceased to be a member; and
   • (b) in the case of a deceased member, on the date of his/her death; shall continue for a period of two Co-operative business years from such date.
10. (6) Where a Co-operative is ordered to be dissolved, the liability of a past member, who ceased to be a member, or of the estate of a deceased member, who died, within two Co-operative business years immediately preceding the date of order of dissolution, shall continue until completion of the liquidation proceedings, but such liability shall be limited only to the debts of the Co-operative as they existed on the date of cessation of membership or death, as the case may be. Explanation-I- "Co-operative with limited liability" means a Co-operative in which the liability of its members for the debts of the Co-operative is limited by its articles of association, to such form and such extent as they may undertake to contribute to any deficit in the assets of the Co-operative, in the event of its being wound up. Explanation-II- "Co-operative with unlimited liability" means a Co-operative in which its members are jointly and severally liable for the debts of the Co-operative and to contribute to any deficit in the assets of the Co-operative, in the event of its being wound up.