The ARUNACHAL PRADESH CO-OPERATIVE SOCIETIES ACT, 1978 (Act No. 3 of 1979)

THE ARUNACHAL PRADESH CO-OPERATIVE SOCIETIES ACT, 1978 (Act No. 3 of 
1979) 
(Received the assent of the Lt. Governor on 301h June, 1979) published in AP EOG No 36 
part 111 Vol-I I Dtd 17/07/1979 
i.As amended bythe Arunachal Pradesh Co-operative Societies (Amendment) 
Act, 1989(Received the assent of the Governor on 30/03/1989 published in AP EOG No 
110 Vol IV Dtd 12/04/1989 
ii.As amended by the Arunachal Pradesh Co-operative Societies (Amendment) 
Act, 1992(Act no 2 of 1993)Received the assent of the Governor on 01/02/1993 and 
published in AP EOG No 11 Vol VIIDtd 23/2/1993. 
iii.As amended by the A runachal Pradesh Co-operative Societies (Amendment) 
Act,201 O(Act no 7 of 2010) Received the assent of the Governor on 20/04/2010 and 
published in AP EOG No 41 Vol XVII Dtd 11/5/2010. 
iv.As amended by the Arunachal Pradesh Co-operative Societies (Amendment) 
Act,2013(Act no 5 of 2013) Received the assent of the Governor on 01/05/2013 and 
published in AP EOG No 82 Vol XVIIIDtd 14/5/2013. 
AN 
ACT 
To provide for the proper management of the Co-operative movement in the State 
of Arunachal Pradesh. 
WHEREAS with a view to providing for the orderly development of the 
Cooperative movement in the State of Arunachal Pradesh in accordance with the relevant 
directive principles of state policy enunciated in the Constitution of India, it is expedient to 
frame adequate legislation relating to co-operative societies in that territory ; it is hereby 
enacted by the Legislative Assembly of Arunachal Pradesh in the Twenty-ninth Year of 
the Republic of India as follows: 
CHAPTER- I 
Preliminary 
1. (1) This Act may be called the Arunachal Pradesh Cooperative Societies Act, 1978. 
(2) It extends to the whole of the State of Arunachal Pradesh. 
(3) It shall come into force on such date as the Government of Arunachal Pradesh may by 
notification in the Official Gazette, appoint. 
2. In this Act, unless the context otherwise requires : 
(1) "Agricultural Marketing Society" means a society : 
(a) The object of which is the marketing of agricultural produce and the supply of 
implements and other requisites for agricultural production, and 
(b) Not less than three-fourth of the members of which are agriculturist or societies formed 
by agriculturist ; 
(2) " Arbitrator" means a person appointed under this Act, to decide disputes referred to 
him by the Registrar and includes the Registrar's nominees or Board of nominees ; 
(3) "Apex Bank" means the Arunachal Pradesh State Cooperative Apex Bank Limited; 
(4) "Auditor" means a person appointed by the Registrar of by a society to audit the 
accounts of the society ; 
(5) "Bonus" means payment made in cash or kind out of the profits of a society to a 
member, or to a person who is not a member, on the basis of his contribution (including 
any contribution in the form of labour or service) to the business of the society. And in the 
Short title, 
extent and 
commence 
ment. 
Definitions. 

case of a farming society, on the basis both of such contribution and also the value or 
income or, as the case may be, the area of the lands of the members brought together for 
joint cultivation, as may be decided by the society ; 
(6) "Bye-laws" means by-laws registered under this Act and for the time being in force, 
and includes registered amendment of such bye-laws ; 
(7) "Central Bank" means a Cooperative Bank, the objects of which include the creation of 
fund to be loaned to other societies ; 
(8) "Committee" means the committee of management, or other directing body, to which 
the management of the affairs of a society is entrusted ; 
(9) "Company" means a company as defined in the company's Act, 1956 and includes a 
Banking Company and also any board, corporation or other corporate body constituted or 
established by any Central, or State Act for the purpose of the development of any 
industry; 
(10)" Consumers Society" means a society the object of which is- 
a) The procurement, production or processing and distribution of goods to, or the 
performance of other services for, its members as also other customers, and 
b) The distribution among its members and customers, in the proportion prescribed 
by rules or by the bye-laws of the society of the profits accruing from such 
procurement, production or processing and distribution ; 
(11) "Co-operative bank" means society registered under this Act and doing the business 
of Banking as defined in clause (b) of sub-section (1) of section 5 of the Banking 
Companies Act, 1949 ; 
1 [(12) "Cooperative year" means the 12 months period beginning on 1st April and ending 
on 31st March]. 
(13) "Dividend" means the amount paid, out of the profits of a society, to a member in 
proportion to the shares held by him ; 
(14) "farming society" means a society in which the object of increasing agricultural 
production, employment and income and the better utilization of resources, land are 
brought together and jointly cultivated by all the members, such lands 
a) being owned by or leased to the members (or some of them), or 
b) coming in possession of the society in any other manner whatsoever ; 
(15) "federal society" means by a society 
a) (a) Not less than five members of which are themselves societies, and 
b) In which the voting rights are so regulated that the members which are societies 
have not less than four-fifth of the total number of votes in the general meeting of 
such society ; 
(16) "firm" means a firm registered under the Indian PartnershipAct, 1932; 
( 17) "general society" means a society not falling in any of the class of societies defined 
by other clauses of this section ; 
(18) "Government" means the Government of Arunachal Pradesh ; 
(19) "Housing society" means a society the object of which is providing its members with 
dwelling houses ; 
(20) "Liquidator" means a person appointed as liquidator under the Act; 
(21) " Local authority" includes a school board and an agricultural produce market 
committee constituted by or under any law for the time being in force ; 
(22) (a) "member" means a person joining in an application for the registration of a 
cooperative society which is subsequently registered or a person duly admitted to 
membership of a society after registration, and includes a nominal, associate or 
sympathizer member ; 
IX of 1949 
IX of 1932 
... 

(b) "associate member" means a member who holds jointly a share of a society with 
others, but whose name does not stand first in the share certificate ; 
(c) "nominal member" means a person admitted to membership as such after 
registration in accordance with the bye-laws ; 
(d) "sympathizer member" means a person who sympathizes with the aims and 
objects of the society and who is admitted by the society as such member; 
(23) "officer" means a person elected or appointed by a society to any office of such 
society according to its bye-laws; and includes a Chairman, Vice-Chairman, President, 
Vice-President, Managing Director, Manager, Secretary, Treasurer, member of the 
committee, and any other person elected or appointed under this Act, the rules or the bye­ 
laws, to give directions in regard to the business of such society ; 
(24) "Official Gazette" means the Arunachal Pradesh Gazette ; 
(25) "Prescribed" means prescribed by rules ; 
(26) "Processing society" means a society the object of which is the processing of goods ; 
(27) "Producers society" means a society the object of which is the production and 
disposal of goods or the collective disposal of the Labour of the members thereof ; 
4
A[(28) "Registrar" means, in relation to the multi-State Co-operative Societies, the Central 
Registrar appointed by the Central Government and in relation to State Co-operative 
Societies, the Registrar appointed by the State Government under the law made by the 
Legislature of the State ; J 
(29) "resource society" means a society the object of which is the obtaining for its 
members of credit, goods or services required by them ; 
(30) "rules" means rules made under this Act ; 
48
[(31) "Co-operative Society" means a society registered or deemed to be registered 
under any law relating to Co-operative Societies for the time being in force in any State ; J 
(32) " society with limited liability" means a society having the liability of its members 
limited by its bye-laws ; ] 
(33) "society with unlimited liability" means a society the members of which are in the 
event of its being wound up, jointly and severally liable for and in respect of its obligations 
and to contribute to any deficiency in the assets of the society ; 
(34) "working capital" means funds at the disposal of a society inclusive of paid up share 
capital, funds build out of profits, and money raised by borrowing and by other means. 
4
C [(35) "Authorized person' means a person referred to assuch in article 2432Q of the 
Constitution of India: 
(36) "Board' means the Board of Directors of the governingbody of a Co-operative 
Society, by whatever name called to which the direction and control of the management of 
the affairs of a Society is entrusted to; 
(37) "Multi-State Co-operative Society means a Society with objects not confined to one 
State and registered or deemed to be registered under any law for the time being in force 
relating to such Cooperatives ,· 
(38) "Office bearer' means the President, Vice-President. Chairperson, Vice-Chairperson, 
Secretary or Treasurer of a Co-operative Society and includes any other person to be 
elected by the Board of any Co-operative Society. 
(39) "State Act" means the Arunachal Pradesh CooperativeSocieties Act, 1978 (Act No. 3 
of 1979) or any other related laws made by the Legislature of the State: 
(40) "State level Co-operative Society" means a CooperativeSociety having its area of 
operation extending to the whole of the State and defined as such in any other law made 
by the Legislature of the State".} 

CHAPTER- II 
Registration 
3. The Government may appoint a person to be the Registrar of Cooperative Societies for 
the State; and may appoint one or more persons to assist such Registrar, and may, by 
general or special order, confer on and such person or persons all or any of the powers of 
the Registrar under this Act. The person or persons so appointed to assist the Registrar 
and on whom any powers of the Registrar are conferred, shall work under the general 
guidance, superintendence and control of the Registrar. 
4. A society, which has as its objects are promotion of the economic interest or general 
welfare of its members, or of the public, in accordance with cooperative principles, or a 
society established with the object of facilitating the operations of any such society, may 
be registered under this Act ; 
Provided that no society shall be registered if it is likely to be economically unsound, or 
the registration of which may have an adverse effect on development of the cooperative 
movement. 
5. A society may be registered with limited or unlimited liability. 
6. (1) No society, other than a federal society, shall be registered under this Act, unless it 
consists of at least ten persons (each of such persons being a member of a different 
family), who are qualified to be members under this Act, and who reside in the area of 
operation of the society. 
2[Provided that no society shall be registered unless 80% of its members are 
bonafidetribals of Arunachal Pradesh holding minimum 51% of the share capital of the 
Society.] 
(2) No society with unlimited liability shall be registered unless all persons forming the 
society reside in the same town or village, or in the same group of village. 
(3) No federal society shall be registered unless it has at least five societies as its 
members. 
(4) Nothing in this Act, shall be deemed to affect the registration of any society made 
before the commencement of this Act. 
(5) The word "limited" or "unlimited" shall be the last word in the name of every society 
with limited or unlimited liability, as the case may be, which is registered or deemed to be 
registered under this Act. 
Explanation - For the purpose of this section and section 8, the expression "member of a 
family" means a wife, husband, father, mother, grand-father, grand-mother, step-father, 
step-mother, son, daughter, step-son, step-daughter, grand-son, grand-daughter, brother, 
sister, half-brother, half-sister and wife of brother of half-brother. 
7. Notwithstanding anything contained in this Act the Government may, by special order in 
each case, exempt, subject to such conditions, if any, as it may impose, any society from 
any of the requirements of this Act as to registration. 
Registrar. 
Societies 
which may be 
registered. 
Registration 
with limited or 
unlimited 
liability. 
Conditions of 
registration. 
Power to 
exempt 
societies frorr 
conditions as 
to registration 
Application fo 

registration. 
8. (1) For the purpose of registration, an application shall be made to the Registrar in the 
prescribed form, and shall be accompanied by four copies of the proposed bye-laws of 
the society. The person by whom or on whose behalf, such application is made shall 
furnish such information in regard to the society, as the Registrar may require. 
(2) The application shall be signed - 
(a) in the case of a society, other than a federal society, by atleast ten persons (each 
of such persons being a member of a family), who are qualified under this Act, 
and 
(b) in the case of a federal society, by at least five societies. 
No signature to an application on behalf of a society shall be valid, unless 
the person signing is a member of the committee of such a society, and is 
authorized by the committee by resolution to sign on its behalf the application for 
registration of society and its bye-laws, and a copy of such resolution is appended 
to the application. Registration. 
9. (1) If the Registrar is satisfied that a proposed society has complied with the provisions 
of this Act and the rules, and that its proposed byelaws are not contrary to this Act or to 
the rules, he may, within six months from the date of receipt of the application register the 
society and its bye-laws. 
(2) If the Registrar is unable to dispose of an application for registration within the period 
mentioned in the foregoing sub-section, he shall make a report to the Government stating 
therein the reasons therefore; and he shall thereafter act in accordance with such 
directions as may be issued to him by the Government. 
(3) Where the Registrar refuses to register a proposed society, he shall forthwith 
communicate his decision, with the reasons therefore, to the person making the 
application and if there be more than one to the person who has signed first thereon. 
(4) The Registrar shall maintain a register of all societies registered or deemed to be 
registered under this Act. 
10. A certificate of registration, signed by the Registrar, shall be conclusive evidence that 
the society therein mentioned is duly registered unless it is proved that the registration of 
the society has been cancelled. 
11. When, for the purpose of the formation, or registration or continuance, of a society, 
any question arises whether a person is an agriculturist or not or whether any person 
resides in the area of operation of the society or not, such question shall be decided by 
the Registrar. 
12.(1) The Registrar shall classify all societies into one or other classes of societies 
defined in section 2, and also into such sub-classes thereof, as may be prescribed by 
rules. 
(2) The Registrar may for reasons to be recorded in writing alter the classification of a 
society from one class of society to another, or from one sub-class thereof to another and 
may, in the public interest and subject to such terms and conditions as he may think fit to 
impose allow and society so classified, to undertake the activities of a society belonging to 
another class. 
(3) A list of all societies so classified shall be published by the Registrar every three years 
in such manner as the Government may, from time to time, direct. 
13.(1) No amendment of the bye-laws of the society shall be valid until registered under 
this Act. For the purpose of registration of an amendment of the bye-laws, a copy of the 
amendment passed in the manner prescribed, at a general meeting of the society shall be 
forwarded to the Registrar. 
(2) When the Registrar registers an amendment of the bye-laws of a society, he shall 
Evidence of 
registration. 
Power of 
Registrar to 
decide 
questions. 
Classification 
of societies. 
Amendment 
of bye-laws of 
society. 

issue to the society a copy of the amendment certified by him, which shall be conclusive 
evidence that the same is duly registered. 
(3) Where the Registrar refuses to register an amendment of the byelaws of a society, he 
shall communicate the order of refusal, together with his reasons therefore the society. 
14.(1) If it appears to the Registrar that an amendment of the bye-laws of a society is 
necessary or desirable in the interest of such society, he may call upon the society, in the 
manner prescribed, to make the amendment within such time as he may specify. 
(2) If the society fails to make the amendment within the time specified the Registrar may, 
after giving the society an opportunity of being heard and after consulting such federal 
society as may be notified by the Government, register such amendment and issue to the 
society a copy of such amendment, certified by him. With effect from the date of the 
registration of the amendment in the manner aforesaid, the bye-laws shall be deemed to 
have been duly amended accordingly; and the bye-laws as amended shall, subject to 
appeal, if any, be binding on the society and its members. 
15. (1) A society may, by resolution passed at a general meeting, and with the approval of 
the Registrar, changes its name; but such change shall not affect any right or obligation of 
the society, or any of its members, or part members, or deceased members; and any legal 
proceedings pending before any person, authority or court may be continued by or 
against the society, under its new name. 
(2) Where a society changes its name, the Registrar shall enter the new name in its place 
in the register of societies, and shall also amend the certificate of registration accordingly. 
16.(1) Subject to the provisions of this Act and the Rules, a society may by amendment of 
its bye-laws, change the form of extent of its liability. 
(2) When a society has passed a resolution to change the form of extent of its liability, it 
shall give notice thereof in writing to all its members and creditors and, notwithstanding 
anything in any byelaw or contract to the contrary, any member or creditor shall during a 
period of one month from the date of service of such notice upon him have the option of 
withdrawing his shares, deposits or loans. 
(3) Any member of creditor who does not exercise his option within the period specified in 
sub-section (2), shall be deemed to have assented to the change. 
(4) An amendment of bye-laws of a society, changing the form or event of its liability, 
shall not be registered or take effect until, either - 
a) all members and creditors have assented, or deemed to have assented, thereto as 
aforesaid; or 
b) all claims of members and creditors who exercise the option, given by sub-section 
(2), within the period specified therein, have been met in full or otherwise satisfied. 
17. (1) A society may, with the previous approval of the Registrar, by resolution passed by 
two-thirds majority of the members present and voting at a special general meeting held 
for the purpose, decide 
a) To amalgamate with another society ; 
b) To transfer its assets and liabilities, in whole or in part to any other society ; 
c) to divide itself in to two or more societies ; or 
d) to convert itself into another class of society ; 
Provided that when such amalgamation, transfer division or conversion, aforesaid, 
involves, a transfer of the liabilities of a society to any other society, no order on the 
resolution shall be passed by the Registrar, unless he is satisfied that 
(i) the society, after passing such resolution has given notice thereof in such 
manner as may be prescribed to all its members creditors and other persons 
whose interest are likely to be affected (hereinafter, in this section referred 
to as "other interested persons") giving them the option, to be exercised 
within one month from the date of such notice of becoming members of any 
of the new societies, or containing their membership in the amalgamated or 
converted society, or demanding payment of their share or interest or dues, 
Power to 
direct 
amendment 
of bye-laws. 
Change of 
name. 
Change of 
liability. 
Amalgamatio 
n, transfer, 
division or 
conversion of 
societies. 

as the case may be. 
(ii) all the members and creditors and other interested persons, have assented 
thereto, by virtue of any member or creditor, or any other interested person 
failing to exercise his option within the specified period in clause (i) 
aforesaid, and 
(iii) all claims of members and creditors and other interested persons, who 
exercise the option within the period specified have been met in full or 
otherwise satisfied. 
(2) Notwithstanding anything contained in the Transfer of property Act, 1882, or 
the Indian Registration Act, 1908, in the event of division or conversion, the 
registration of the new societies or, as the case may be, of the converted society, 
and in the event of amalgamation on the amalgamation, the resolution of the 
societies concerned with amalgamation, shall in each case be sufficient 
conveyance to vest the assets and liabilities of the original society or amalgamating 
societies in the new societies or converted or amalgamated society, as the case 
may be, 
(3) The amalgamation of societies or division or conversion of a society shall not 
affect any rights or obligations of the societies so amalgamated, or society so 
divided or converted, or render defective any legal proceedings which might have 
been continued or commenced by or against the societies which have been 
amalgamated, or divided or divided or converted ; and accordingly such legal 
proceedings may be continued or commenced by or against the amalgamated 
society, or, as the case may be, the converted society, or the new societies. 
(4) Where two or more societies have been amalgamated or a society has been 
divided or converted the registration of such societies or society shall be cancelled 
on the date of registration of the amalgamated society, or the converted society or 
the new societies between which the society may have been divided. 
18.(1) Where the Registrar is satisfied that it is essential in the public interest or in the 
interest or the cooperative movement, or for the purpose of securing the proper 
management of any society, that two or more societies should amalgamate or any society 
should be divided to form to or more societies or should be reorganized, then 
notwithstanding anything contained in the last preceding section, but subject to the 
provisions of this section, the Registrar may, after consulting such federal society as may 
be notified by the Government, by the order published in the Official Gazette, provide for 
the amalgamation, division or reorganization of those societies, into a single society, or 
into societies, with such constitution, property, rights interests and authorities and with 
such liabilities, duties and obligations, as may be specified in the order. 
(2) No order shall be made under this section, unless - 
a) a copy of the proposed order has been sent in draft to the society or each of the 
societies concerned; and 
b) the Registrar has considered and made such modifications in the draft order as 
may seem to him desirable in the light of any suggestions and objections which 
may be received by him within such period (not being less than two months from 
the date on which the copy of the order as aforesaid was received by the society) 
as the Registrar may fix in that behalf, either from the society, or from any member 
or class of members thereof, or from any creditor or class of creditors. 
(3) The order referred to in sub-section (1) may contain such incidental consequential 
and supplemental provisions as may, in the opinion of the Registrar, be necessary to 
give effect to the amalgamation, the division or the reorganization. 
(4) Every member or creditor of each of the societies to be amalgamated divided or 
reorganized, who has objected to the scheme of amalgamation, division or 
reorganization within the period specified, shall be entitled to receive, on the issue of 
the order of amalgamation, division or reorganization, his share or interest if he be a 
member, and the amount in satisfaction of his dues if he be a creditor. 
Power to 
direct 
amalgamation 
, division and 
reorganization 
in public 
interest etc. 

(5) On the issue of an order under sub-section (1 ), the provisions of sub- Section (2), 
(3) and (4) of section 17 shall apply to the societies so amalgamated, divided or 
reorganized as if they were amalgamated divided or reorganization under that section, 
and to the society amalgamated, divided or reorganized. 
19. Where a proposal for a compromise or arrangement - 
a. between a society and its creditors, or 
b. between a society and its members, is approved at a special general meeting 
called for the purpose, the Registrar may, on the application of the society, or of 
any member or of any creditor of the society of in the case of society which is 
being wound up, of the Liquidator, order reconstruction in the prescribed manner, 
of the society. 
20.(1) Any two or more societies may, with the prior approval of the Registrar, by 
resolution passed by three-fourth majority of the members present and voting at a general 
meeting of each such society, enter into partnership for carrying out any specific business 
or businesses provided that its members has had clear thirty days written notice of the 
resolution, and the date of the meeting. 
(2) Nothing in the Indian partnership Act, 1932 shall apply to such partnership. 
21.The Registrar shall make an order cancelling the registration or a society if it transfers 
the whole of its assets and liabilities to another society or amalgamates with another 
society, or divides itself into two or more societies or if its affairs are would up, or it has 
not commenced business within a reasonable time of its registration, or has ceased to 
function of if he is satisfied, after making such inquiry as he thinks fit, that the society no 
longer has genuinely as its objects one or more of the objects specified in section 4, and 
its registration ought, in the interests of the general public, be cancelled. The society shall, 
from the date of such order of cancellation, be deemed to be dissolved, and shall cease to 
exist as a corporate body. 
CHAPTER - Ill 
Members and their Right and Liabilities 
22.(1) Subject to the provisions of section 24, no person shall be admitted as a member of 
a society except the following, that it is to say, 
a. an individual, who is competent to contract under the Indian Contract Act, 1872 ; 
b. a firm, company or any other body, corporate constituted under any law for the 
time being in force, or a society registered under the societies registration Act 
1860; 
c. a society registered, or deemed to be registered under this Act; 
d. the Government ; 
e. a local Authority ; 
f. a public trust registered under any law for the time being in force for registration of 
such trusts ; 
Provided that, the provisions of clause (a) shall not apply to an individual seeking 
admission to society exclusively formed for the benefit of students of a school or 
college; 
Provided further that, subject to such terms and conditions as may be laid down 
by the Government by general or special order, a firm or company may be 
admitted as member only of a society which is a federal or urban society or which 
conducts or intends to conduct as industrial undertaking ; 
Provided also that, any firm or company which is immediately before the 
commencement of this Act a member of a society deemed to be registered under 
this Act, shall have, subject to the other provisions of this Act, the right to continue 
to be such member on and after such commencement. 
Reconstruction 
of societies. 
Partnership of 
societies. 
X of 1932. 
Cancellation 
of registration. 
Person who 
may become 
member. 
IX of 1872. 
XXI of 1860. 

Explanation - For the purpose of this section an "urban society" means a society 
the business of which mainly falls within the limits of a municipal corporation, 
municipality, cantonment or notified area committee. 
(2) Where a person is refused admission as a member of a society, the decision, 
together with the reasons therefore, shall be communicated to that person within 
fifteen days of the date of the decision or within three months from the date of the 
application for admission, whichever is earlier. 
23.(1) No society shall, without sufficient cause, refuse admission, to membership to any 
person duly qualified therefore, under the provisions of this Act and its bye-laws. 
(2) Any person aggrieved by the decision of a society, refusing him admission to its 
membership, may appeal to the Registrar. 
(3)The decision of the Registrar in appeal shall be final and the Registrar shall 
communicate his decision to the parties within fifteen days from the date thereof. 
24.(1) Notwithstanding anything contained in section 22 a society may admit any person 
as a nominal, associate or sympathizer members. 
(2) A nominal member or sympathizer member shall not be entitled to any share in any 
form whatsoever in the profits or assets of the society as such member. A nominal or 
sympathizer shall ordinarily not have any of the privilege and rights of a member, but such 
a member or an associate member, may subject to the provisions of sub- section (8) of 
section 27, have such privileges and rights and be subject to such liabilities, of a member, 
as may be specified in the bye-laws of the society. 
25.· A person shall cease to be a member of a society on his resignation from the 
membership thereof being accepted, or on the transfer of the whole of his share or 
interest in the society to another member or on his death, removal or expulsion from the 
society. 
26. No person shall exercise the rights of a member of a society, until he has made such 
payment to the society, in respect of membership, or acquired such interest in the society, 
as may be prescribed by the rules or the bye-laws of such society. 
27.(1) No member of any society shall have more than one vote in its affairs provided that, 
in the case of an equality of votes, the chairman shall have a casting vote. 
(2) Where a share of a society is held jointly by more than one person, only the person 
whose name stands first in the Share Certificate, shall have the right to vote. 
(3) A society, which has invested any part of its funds in the shares of another society, 
may appoint one of its members to vote on its behalf in the affairs of that other society, 
and accordingly such member shall have the right to vote on behalf of the first society. 
(4) A company or any other body corporate constituted under any law for the time being in 
force which has invested any part of its funds in the shares of society may appoint any 
one of its directors to vote on its behalf in the affairs of such society; and accordingly such 
director or officer shall have the right to vote on behalf of the company or body corporate. 
(5) Where a firm has invested any part of its funds in the shares of a society, any one of 
its partners shall be entitled to vote in the affairs of the society on behalf of the firm. 
(6) The Government, a local authority or public trust which has invested any part of its 
funds in the shares of a society, may appoint any of its officers, members or trustees to 
such persons shall have the right to vote on behalf of the Government, local authority or 
Open 
membership. 
Nominal, 
associate and 
sympathizer 
member. 
Cessation of 
membership. 
No rights of 
membership 
to be 
exercised till 
due payments 
are made. 
Voting powers 
of members. 

the public trust as the case may be. 
(7) In the case of a federal society, the voting rights of individual members thereof shall be 
such as may be regulated by the rules made under this Act and by the bye-laws of the 
society. 
(8) No nominal, associate, or sympathizer member shall have the right to vote. 
28. In any society, no member other than the Government or any other society, shall : 
a. Hold more than such portion of the total share capital of the society (in no case 
exceeding one-fifth thereof) as may be prescribed, or 
b. Have or claim any interest in the shares of the society exceeding five thousand 
rupees: 
Provided that the Government may, by notification in the Official Gazette specify in 
respect of any class of societies a higher or lower maximum than one fifth of the share 
capital or, as the case may be, a higher or lower amount than five thousand rupees. 
29.(1) Subject to the provisions of the last preceding section as to the maximum holding 
of shares and to any rules made in this behalf, a transfer of, or charge on the share or 
interest of the member in the share capital of a society shall be subject to such conditions 
as may be prescribed. 
(2) A member shall not transfer any share held by him or his interest in the capital or 
property of any society, or any part thereof, unless - 
a. he has held such share or interest for not less than one year; 
b. the transfer is made to a member of the society or to a person whose application 
for membership has been accepted by the society. 
(3) Notwithstanding anything contained in sub-section (1) and (2), where a member is 
allowed to resign or is expelled, or cease to be a member on account of his being 
disqualified by this Act or by the rules made there- under or by the bye-laws of the society, 
the society may acquire the share or interest of such member in the share capital by 
paying for it at the value determined in the manner prescribed, provided that the total 
payment of share capital of a society in any financial year for such purpose does not 
exceed ten percent of the paid-up share capital of the society on the last day of the 
financial year immediately preceding. 
Explanation - The right to forfeit the share or interest, of any expelled member in the 
share capital by virtue of any bye-laws of the society, shall not be affected by the 
aforesaid provisions. 
(4) Where the Government is a member of a society the restriction contained in this 
section shall not apply to any transfer made by its share or interest in the capital of the 
society; and the Government may, notwithstanding anything in this Act, withdraw from the 
society its share capital at any time, after giving to the society notice thereof not less than 
three months. 
30.(1) On the death of a member of a society the society shall transfer the share or 
interest of the deceased member to a person or persons nominated in accordance with 
the rules, or, if no person has been so nominated, to such persons as may appear to the 
Committee to be the heir or legal representative of the deceased member : 
Provided that such nominee, heir or legal representative, as the case may be, is duly 
admitted as a member of the society ; 
Provided further that, nothing in this sub-section or in section 22 shall prevent a minor or a 
person of unsound mind from acquiring by inheritance or otherwise, any share or interest 
of deceased member in a society. 
(2) Notwithstanding anything contained in sub-section (1 ), and such nominee, heir or legal 
representative, as the case may be, may require the society to pay him the value of share 
or interest of the deceased member, ascertained in accordance with the rules. 
Restrictions 
on holding of 
shares. 
Restrictions 
on transfer of 
charge on 
share of 
interest. 
Transfer of 
interest on 
death of 
member. 

(3) A society may pay all other moneys due to the deceased member from the society to 
such nominee, heir or legal representative, as the case may be. 
(4) All transfer and payments, duly made by a 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. 
31. The share or interest of a member in the capital of a society, or the loan stock issued 
by a housing society, or in the funds raised by a society from its member by way of 
savings deposit, shall not be liable to attachment or sale under any decree or order of a 
Court for or in respect of any debt or liability incurred by the member. 
32.(1) Every member of a society shall be entitled to inspect, free of cost, at the society's 
office during office hours, or any time fixed for the purpose by the society, a copy of the 
Act, the rules, and the byelaws, the last audited annual balance sheet, the profit and loss 
account, a list of the members of the committee, a register of members the minutes of 
general meetings minutes of committee meetings and those portions of the books and 
records in which his transaction with the society have been recorded. 
(2) A society shall furnish to a member, on request in writing and on payment of such fees 
as may be prescribed thereof, a copy of any of the documents mentioned in the foregoing 
sub-section within one month from the date of payment of such fees. 
33.(1) Subject to the provisions of sub-section (2) the liability of a past member or the 
estate of a deceased member of a society for the debts of society as they stood - 
a) in the case of a past member, on the late 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 from such date. 
(2) Where a society, is ordered to be wound up under any provision of this Act, 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 the order of winding 
up shall continue until the entire liquidation proceedings are completed but such they 
stood on the date of his ceasing to be a member of death, as the case may be : 
Provided that provisions of sub-section (1) and (2) shall not apply in the case of a minor 
who succeeds the deceased. 
34.Notwithstanding anything contained in any law for the time being in force, the dues of 
society from a member, in insolvency proceedings against him, shall rank in order or 
priority next to the dues payable by him to Government or to a local authority. 
35.(1) A society may, by resolution passed by three-fourths majority of the members 
entitled to vote who are present at general meeting held for the purpose, expel a member 
for acts which are detrimental to the interest or proper working of the society : 
Provided that, no resolution shall be valid, unless the member concerned is given an 
opportunity or representing his case to the general body and no resolution shall be 
effective unless it is approved by the Registrar. 
(2) No member of a society who has been expelled under the foregoing sub-section shall 
be eligible for re-admission as a member of the society, or for admission as a member of 
any other society, for a period of one year from the date of such expulsion ; Provided that 
Registrar may, on an application by the society and in special circumstances, sanction the 
re-admission or admission, within the said period, of any such member as a member of 
the said society or of any other society, as the case may be. 
36.(1) Every member of a society shall exercise his vote in person and no member shall 
be permitted to vote by proxy. 
(2) Notwithstanding anything contained in sub-section (I) ; a society which is a member of 
another society may, subject to the Rules, appoint one of the members to vote on its 
behalf in the affairs of that other society. 
Share interest 
not liable to 
attachment. 
Rights of 
member to 
see books 
etc. 
Liability of 
past member 
and estate of 
deceased 
member. 
Insolvency of 
members. 
Expulsion of 
members. 
Manner of 
exercising 
vote. 

CHAPTER- IV 
Incorporation, Duties and Privilege of Societies 
37 .The registration of the society shall render it a body corporate by the name under 
which it is registered, with perpetual succession and a common seal and with power to 
acquire, hold and dispose of property, to enter into contracts, to institute and defend suits 
and other legal proceedings, and to do all such things as are necessary for the purpose 
for which it is constituted. 
38.Every society shall have an address, registered in accordance with the rules to which 
all notices and communications may be sent and the society shall send notice in writing to 
the Registrar of any change in the said address within thirty days thereof. 
39.(1) Every society shall keep a register of its members and enter therein the following 
particulars, that is to say : 
a. the name, address and occupation of each member; 
b. in the case of a society having share capital, the share held by each member; 
c. the date on which each person was admitted as a member ; 
d. the date on which any person ceased to be a member; and 
e. such other particulars as may be prescribed : 
Provided that where a society has, by or under this Act, permitted a member to 
transfer his share or interest on death to any person, the register shall also show 
against the member concerned the name of the person entitled to the share or 
interest of the member and the date on which the nomination was recorded. 
(2) The register shall be prima facie evidence of the date on which any person was 
admitted to membership, and of the date on which he ceased to be a member. 
40. Every society shall keep, at the registered address of the society, a copy of this Act 
and the rules and of its bye-laws and a list of members, open to inspection to the public 
free of charge, during office hours or any house fixed by the society thereof. 
41.(1) A copy of any entry in any book, register of list, regularly kept in the course of 
business and in the possession of a society, shall, if duly certified in such manner as may 
be prescribed be admissible in evidence of the existence of the entry, and shall be 
admitted as evidence of the matters and transactions therein recorded in every case 
where, and to the same extent to which, the original entry would if produced, have been 
admissible to prove such matters. 
(2) In the case of such societies, as the Government may by general or special order, 
direct, no officer of a society shall in any legal proceedings to which the society is not a 
party, be compelled to produce any of the society's books the contents of which can be 
proved under the foregoing sub-Section or to appear as witness to prove the matters 
transactions and accounts therein recorded, unless required to do so by order the Court 
or a judge made for any special reason. 
42.Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian Registration 
Act, 1908, shall apply - 
a. To any instrument relating to shares in a society, notwithstanding that the assets of 
the society consist in whole or in part of immovable property ; or 
b. To any debentures issued by any society and not creating, declaring, assigning, 
limiting or extinguishing any right, title or interest to or in immovable property, 
except in so far as it entitles the holder to the security afforded by a registered 
instrument whereby the society has mortgaged, conveyed or otherwise transferred 
the whole or part of its immovable property or any interest therein to trustees upon 
trust for the benefit of the holders of such debenture ; or 
c. To any endorsement upon, or transfer of, any debentures issued by any society. 
Societies 
bodies to be 
corporate. 
Address of 
societies. 
Register of 
members. 
Copy of Act 
etc. to be 
open to 
inspection. 
Admissibility 
of copy of 
entry as 
evidence. 
XVI of 1908 
Exemption 
from 
compulsory 
registration 
and 
instruments 
relating 
shares ar 
debentures 

43.The Government, by notification in the Official Gazette, may in the case of any society 
or class of societies, remit, 
a. The stamp with which under any law relating to stamp duty for the time being in 
force, instruments executed by or on behalf of a society by on officer or member 
thereof and relating to the business of the society or any class of such 
instruments or awards of the Registrar or his nominee or b

Excerpt shown. Open the full act in Lexace.

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