Chapter III MEMBERS OF CO-OPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES

1. (1) The following may be admitted as members of a cooperative society, namely :-
   • (a) Any citizen of India, who -
     • (i) has attained age of 18 years;
     • (ii) is of sound mind;
     • (iii) is not disqualified from contracting by any law for the time being in force and applicable to him;
     • (iv) is desirous to utilize the services of the society; and
     • (v) is ready to accept the responsibilities and liability associated with such memberships;
   • (b) any other co-operative society;
   • (c) the State Government; or
   • (d) any other person, body or local authority, as may be prescribed: Provided that an individual shall not be eligible to the membership of a financing bank other than a Land Development Bank or such class of co-operative society as may be prescribed in this behalf : Provided further that in a society exclusively formed for the benefit of students of a school or a college, the condition regarding the age shall not apply : Provided also that the bye-laws of a society, which is exclusively formed for the benefit of women, may restrict the membership of male individuals.
2. (2) An application for admission as a member of a co-operative society shall lie to the committee of that co-operative society. Such committee shall decide the application and communicate its derision to the applicant within a period of thirty days from the receipt of the application, and where the application is refused, it shall also be necessary for the committee to communicate to the applicant, the reasons for such refusal, within the said period.
3. (3) If the committee -
   • (i) refuses the application for admission as a member, an appeal shall lie against such refusal to the Registrar, who may after giving the society a reasonable opportunity of being heard, decide the application in accordance with the provisions of this Act and the rules and bye-laws and his decision shall be final and binding on the society;
   • (ii) fails to communicate its decision or the reasons of refusal under sub-section (2), within the time specified therein, the applicant may, within a period of sixty days from the expiration of such time, move the Registrar for the decision on his application, which shall be disposed of in the same manner, as if it is an appeal under clause (i). (4)11x x x

1. (1) A person shall cease to be a member of a society on his resignation from the membership thereof being accepted or on his death, removal or expulsion from membership or on his incurring any of the disqualifications specified in this Act, the rules or the bye-laws of the society. On such cessation of the membership the society may acquire the share or interest of such member in the share capital of the society by paying for it at the value determined in the manner as may be prescribed.
2. (2) A member whose business is in conflict or competition with the business of the society, or who has not attended the general body meeting without any reasonable excuse for three consecutive years or who has been persistently defaulting payment of his dues or has been failing to comply with the provisions of the bye-laws 12x x x. regarding minimum essential utilization of the services of the society or regarding other dealings with the society or who, in the opinion of the committee, has brought disrepute to the society or has done other acts detrimental to the interests or proper working of the society, may after giving him an opportunity or representing his case before the general body called for the purpose, be removed or expelled from membership by a special resolution passed in such general body meeting in the prescribed manner.

1. (1) Notwithstanding anything contained in section 15, a cooperative society may admit -
   • (i) a prescribed class of persons or a prescribed local authority or a self help group, as a nominal member; or
   • (ii) the spouse of a member in a prescribed class of society, as an associate member.
2. (2) A nominal or an associate member shall neither be entitled to any share in any form whatsoever in the assets or profits of the society nor have any right to vote in the affairs of the society; but shall have such other rights of a member and be subject to such liabilities of a member as may be specified in this Act, rules or the bye-laws of the society and all the provisions of this Act, rules and the bye-laws relating to membership, shall apply to him.

No member of a co-operative society shall exercise the rights of a member 13[unless he has made payments in respect of all dues to the society including the payment in respect of membership or availed such minimum level of services or] has acquired such interest in the society, as may be specified in the bye-laws.

Every member, other than a nominal and an associate member, of a co-operative society, shall be entitled to cast one vote.

1. (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. (2) Notwithstanding anything contained in sub-section (1), where -
   • (a) a co-operative society is a member of another co-operative society, its Chairperson or, in his absence Vice-Chairperson 14[or an Administrator appointed 15under this Act]] shall, subject to any rules made under this Act, represent to cast vote on its behalf in the affairs of that another society;
   • (b) the Government or a local authority or a body is a member of a co-operative society, it may nominate a representative to cast vote on its behalf, in the affairs of such society.

16An individual member in a co-operative society shall hold such number of shares as may be prescribed in the bye-laws of the society, or to a maximum of the one-fifth of the total share capital of the society, whichever is less: Provided that an individual member of an Urban Co-operative Bank shall hold such number of shares as may be prescribed in the byelaws of the society, or to a maximum of the one twentieth of the total share capital of the society, whichever is less.

1. (1) On the death of a member of a co-operative 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 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 and where there is any dispute of succession between two or more persons, the committee may require the claimants to produce the succession certificate: 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 co-operative society.
2. (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 him the value of the share or interest of the deceased member ascertained in accordance with the rules.
3. (3) Where such nominee, heir or legal representative, as the case may be is not admitted as a member of the society under sub-section (1), the society shall pay him all other moneys due to the deceased member from the society.
4. (4) All transfer 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. (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 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 a deceased member, on the date of his death, shall continue for a period of two years.
2. (2) Where a co-operative society is ordered to be wound up under section 61, 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 preceding the date of order or 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 the date of his death, as the case may be.