Disqualifications for membership of society

(1) No person shall be eligible for admission as a member of a society, if he- (a) is an applicant to be adjudicated an insolvent or is an undercharged insolvent; or (b) has been sentenced for any offence involving moral turpitude, such sentence not having been reversed and a period of five years has not elapsed from the date of the expiration of the sentence; or (c) is a paid employee of the society or of its financing bank or of any registered society for which it is the financing bank; or (d) has been expelled from membership under this Act and a period of three years has not elapsed from the date of such expulsion; or (e) is engaged directly or indirectly in a business or industry or activity similar to that of the society or inconsistent with or prejudicial to the work of the society; or (f) has resigned from the membership of the society and a period of two years has not elapsed from the date of such resignation; or (g) is already a member of a society of the same class except as prescribed in the rules. (2) A member of a registered society shall cease to be a member of the society, if he- (a) applies to be adjudicated, or is adjudicated an insolvent; or (b) is sentenced for any such offence as is described in clause (b) of sub-section (l): Provided that where a person ceases to be a member under this clause, he shall be restored to membership if and when the sentence is annulled on appeal or revision; or (c) becomes a paid employee of the society or of its financing bank or of any registered society for which it is the financing bank; or (d) is expelled from membership under this Act; or (e) undertakes directly or indirectly any business or industry or activity similar to that of the society or inconsistent with or prejudicial to the work of the society; or (f) is also a member of another society of the same class: Provided that if at the commencement of this Act, any person is a member of more than one society of the same class, then at the expiry of a period of ninety days from such commencement, he shall cease to be a member of all such societies, unless he has previously resigned his membership of all but one society. (3) (a) The provisions of clause (b) of sub-section (1) and clause (b) of sub-section (2) shall not apply to a person seeking admission to, or to a member of, a society exclusively formed for the reclamation of such class of persons as may be prescribed; (b) The provisions of clause (c) of sub-section (1) and clause (c) of sub-section (2) shall not apply to a person seeking admission to, or to a member of a society which has as its principal object the provision of employment to its members or which is composed exclusively of the employees of the financing bank: Provided that a member of the society composed exclusively of the employees of the financing bank shall not be eligible for election to the committee of the financing bank.