(Referred to in Rule 8)

1. General Conditions :-(i) Subject to the provisions of Clause (d) of Sub-section (2) of Section 6, the number of ordinary members joining an application for registration shall be such as would satisfy the Registrar suitability of the registration proposal and that the area of operation is in the opinion of the Registrar appropriate with reference to the membership and business of the society. (ii) The bye-laws of a society shall restrict a member of its Committee of Management from voting in meeting on any matter in which he has personal interest. 1. Conditions in respect of particular class of societies :-(i) Credit Societies -(a) Where more than one person from a family is eligible for the membership of a co-operative society, the bye-laws shall, except in the case of salary earner co-operative credit society, restrict advancement of loan only to one member of such family and provide for other conditions subject to which loans may be granted provided that where land is held jointly by more than one member of a family as co-sharers, all such co-sharers may be eligible for loans according to their requirements. (b) The bye-laws of such a society shall contain safeguard against grant to unproportionately theavy loans to the members of the Committee of Management for themselves or for the societies they represent, as the case may be. (ii) Credit and thrift Societies -The bye-laws of such a society provide for raising of compulsory deposits from every member or members of such a society. (iii) Production and Sale Society -The bye-laws of such a society shall contain a condition that every ordinary member if himself a producer, shall sell whole or at least a specified portion of his marketable surplus to or through the society and if the ordinary member is another society, the latter shall impose a similar obligation on its members to ensure disposal to or through the former society. (iv) Consumers' Societies -(a) The-laws of such a society shall cost an obligation on the members to patronize their society in respect of such of their requirement as and members' disloyalty in this regard shall be punishable with denial of bonus or dividend or restriction on transaction with the society or with such other disqualifications as may be provided in the bye-laws. (b) Bye-laws shall prohibit sales to members, except where members are salary earners and agreement has been got executed from the members for deduction from their salary or wages in accordance with Section 40 or where trade deposits have been obtained from members in advance to cover up subsequent credit sales. (v) Housing Societies -(a) Bye-laws of such a society shall contain provision to ensure equitable distribution of plots amongst members as far as possible and shall provide restriction against allotment of land or sale of land or house to a member who already owns a plot of land or house in an ubban locality within the area of operation of the society except where otherwise permitted in special circumstances as laid down in the bye-laws of the society. (b) The bye-laws shall contain conditions restricting transfer, sale or mortgage of land or conversion of residential house into shops, godowns or workshop for trade or business except with the permission of the society subject to the conditions laid down in the bye-laws. (c) The bye-laws contain a condition :-(i) whereby the society shall be entitled to get a specific percentage of profit earned by a member on re-sale of the plot which he had purchsed from the society; (ii) as so the period within which, after the purchase of the plot from the society or from a member of the society, the construction shall be raised and the consequences arising out of non-compliance of such requirement. (vi) Industrial Societies -The bye-laws of such a society shall provide restriction against membership of a person who is already a member of another society with same objects. (vii) Farming Societies -The bye-laws of a society shall provide that no person shall be a member thereof unless he-(a) agrees to participate in the farm operations or other approved activities of the society in accordance with the plan and programme derawn up by the society from time to time; (b) is a landholder who agrees to pool his land for joint cultivation and joint management by the society; or (c) is a landless labourer and agrees to participate in farm operations or other approved activities of the society; or (d) is a person engaged in any agro-industrial occupation.