The ARUNACHAL PRADESH COOPERATIVE SOCIETIES ACT

APCS ACT  1978
1
THE ARUNACHAL PRADESH CO-OPERATIVE SOCIETIES ACT, 1978
(Act No. 3 of 1979)
       (Received the assent of the Lt.Governor on 30th June, 1979)
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) ThisAct may be called theArunachal 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 ofArunachal
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
Short title,
extent and
commence-
ment.
Definitions.
APCS ACT  1978
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basis of his contribution (including any contribution in the form of
labour or service) to the business of the society. And in the 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 ;
(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 ;
1 of 1956
X of 1949
APCS ACT  1978
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(15)  “federal society” means by a society -
(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 ;
(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 ;
IX of 1932
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(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 ;
(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 ;
(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 ;
(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 ;
(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.
(35) “Authorized person” means a person referred to as such in article
243ZQ of the Constitution of India.
(36) “ Board” means the Board of Directors of the governing body 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
Co-operatives.
APCS ACT  1978
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(38) “Office bearer” means the President, Vice-President, Chairman, Vice-
Chairman, 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 theArunachal Pradesh Co-operative Societies
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 Co-operative Society
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.
Societies
which may be
registered.
Registrar.
Conditions of
registration.
Registration
with limited or
unlimited
liability.
APCS ACT  1978
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No society shall be registered unless 80% of its members are
bonafide Tribals 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 thisAct, 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 thisAct 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.
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.
Power to
exempt
societies from
conditions as
to registration.
Application for
registration.
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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 bye-
laws 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 canceled.
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.
Registration.
Evidence of
registration.
Power of
Registrar to
decide
questions.
Classification
of societies.
Amendment
of bye-laws of
society.
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(2) When the Registrar registers an amendment of the bye-laws of a
society, he shall 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 bye-
laws 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 bye-
law 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.
Power to
direct
amendment of
bye-laws.
Change of
name.
Change of
liability.
APCS ACT  1978
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(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, 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
Amalgamation,
transfer,
division or
conversion of
societies.
APCS ACT  1978
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(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 theTransfer of propertyAct,
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.
Power to
direct
amalgamation,
division and
recoganization
in public
interest etc.
IV of 1882
XVI of 1908.
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(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.
(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.
Reconstruction
of societies.
Partnership of
societies.
IX  of 1932.
APCS ACT  1978
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(2) Nothing in the Indian p artnership 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 – III
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 ;
Cancellation
of registration.
Person who
may become
member.
XXI  of 1860.
IX  of 1932.
IX  of 1872.
APCS ACT  1978
13
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.
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.
Open
membership.
Nominal,
associate and
sympathizer
member.
Cessation of
membership.
APCS ACT  1978
14
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 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
No rights of
membership
to be exercis-
ed till due
payments are
made.
Voting powers
of members.
Restrictions
on holding of
shares.
APCS ACT  1978
15
(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.
Restrictions
on transfer of
charge on
share of
interest.
APCS ACT  1978
16
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.
(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 bye-
laws, 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.
Transfer of
interest on
death of
member.
Rights of
member to
see books
etc.
Share interest
not liable to
attachment.
APCS ACT  1978
17
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.
Liability of
past member
and estate of
deceased
member.
Insolvency of
members.
Expulsion of
members.
Manner of
exercising
vote.
APCS ACT  1978
18
(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.
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 therefore.
Societies
bodies to be
corporate.
Address of
societies.
Register of
members.
Copy of Act
etc. to be
open to
inspection.
APCS ACT  1978
19
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.
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 board of nominees
under this Act are respectively chargeable.
Admissibility
of copy of
entry as
evidence.
Exemption
from
compulsory
registration
and instru-
ments relating
to shares and
debentures of
society.
Power to
exempt from
taxation.
XVI of 1908
APCS ACT  1978
20
(b) Any fee payable by or on behalf of a society under the relating to
the registration of documents and to court fees for the time being
in force, and
(c) Any other tax or fee or duty (for any portion thereof) payable or
on behalf of a society under any law for the time being in force,
which the Government is competent to levy.
44. A Society shall receive deposits and loans from members and other
persons, only to such extent, and under such conditions as may be
prescribed, or specified by the Bye-laws of the society.
45. (1) No society shall make a loan to any person other than a member,
or on the security of its own shares or on the security of any person
who is not a member.
      Provided that with the special sanction of the Registrar, a society
may make loans to another society :
(2) Notwithstanding anything contained in the foregoing sub-s

Excerpt shown. Open the full act in Lexace.

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