Chapter III MEMBERS OF CO-OPERATIVE SOCIETIES AND THEIR

No person shall be admitted as member of a co-operative society except the following, namely :-(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872);(b) any other co-operative society;(c) the Government ; and(d) such class or classes of persons or associations of persons as may be notified by the Government in this behalf.

(1) Notwithstanding anything contained in clause (d) of section 15, a co-operative society may admit any person as a nominal or associate member in accordance with its bye-laws.(2) A nominal or associate member shall not be entitled to any share in any from whatsoever, in the assets or profit of the co-operative 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 co-operative 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 specified in the bye-laws.

Every member of a co-operative society shall have one vote in the affairs of the society. Provided that :-(a) in the case of an equality of votes, the chairman shall have a second or casting vote;(b) a nominal or associate member shall not have the right of vote;(c) where the Government is a member of the co-operative society, each person nominated by the Government on the committee shall have one vote.

(1) Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy.(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another co-operative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that other society.

The transfer of the share or interest of a member in the capital of a co-operative society shall be subject to such conditions as to maximum holding as are specified in section 6.

(1) On the death of a member a co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules, made in this behalf, or, if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member’s share or interest as ascertained in accordance with the rules or bye-laws : Provided that -(i) In the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid;(ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society, or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified; and(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.(2) A co-operative society shall, subject to the provisions of section 31 and unless within six months of the death of member prevented by an order of competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.(3) All transfers and payments made by a co-operative 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 the estate of a deceased member of a co-operative 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 ; and(b) in the case of deceased member, on the date of his death; shall continue for a period of two years from such date.(2) Where a co-operative society is ordered to be wound up under section 57, the liability of a past member or of the estate of a deceased member who ceased to be member or died within two years immediately preceding 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.