LexThe Goa Co-operative Societies Act, 2001
Goa · state statute
Open in Lexace · Ask the AI about this actThe Goa Co-operative Societies Act, 2001
(Goa Act 36 of 2001) [18-5-2001]
AN
ACT
to consolidate and amend the law relating to the Co-operative Societies in the State of Goa.
Whereas with a view to providing for the orderly development of the co-operative societies as
people’s institutions based on self-help and mutual aid in the State of Goa, in accordance with the Co-
operative principles, it is expedient to consolidate and amend the law relating to Co-operative
Societies in the State.
It is hereby enacted in the Fifty-second Year of the Republic of India as follows:—
CHAPTER-I
Preliminary
1. Short title, extent and commencement.— (1) This Act may be called the Goa
Co-operative Societies Act, 2001.
(2) It shall extend to the whole of the State of Goa.
(3) It shall come into force on such date as the Government may, by notification in the Official
Gazette, appoint.
2. Definitions.— 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-fourths of the members of which are agriculturists, or societies formed by
agriculturists;
(2) “agricultural service co-operative society” means an agricultural co-operative society, the
primary object of which is to render assistance, financial or otherwise, to farmers, rural artisans and
agricultural labourers;
1[“(2a) “apex co-operative bank” means a federal co-operative bank having
jurisdiction over the whole of the State of Goa and recognized as such by the
State Government for the purpose;”]
(3) “apex society” means a society, the area of operation of which extends to the whole of the State
of Goa, and the main object of which is to promote the principal objects of the societies affiliated to it
as members and provide for the facilities and services to them and which has been classified as an
apex society by the Registrar;
(4) “area of operation” means the area from which the membership is drawn or specified in the
bye-laws;
(5) “auditor” means a person appointed by the Registrar or by a society, to audit the accounts of the
society;
2[(5a) “Auhtorised Person” means a person authorized under the provisions of this Act;]
(6) 3[“Board” means the board of Directors or the governing body of a society, to which the
direction and control of the management of the affairs of a society is entrusted to;]
(7) “bye-laws” means bye-laws prescribed under the Rules and registered under this Act and
include registered amendments of such bye-laws;
(8) “central bank” means a co-operative bank, the object of which includes the creation of funds to
be loaned to other societies but does not include the urban co-operative bank;
(9) “chief executive” with whatever designation called, means an individual, who, subject to the
superintendence, control and direction of the board of directors, has been entrusted by the board, with
the management of the affairs of the society;
4[(9a) “Committee” means the managing committee or other body, to which the management of
the affairs of a society is entrusted;]
5[9(b) “Co-operative Society” means a society registered or deemed to be registered under this
Act;]
(10) “co-operative farming society” means a co-operative society the principal object of which is to
organise cultivation of lands held by it or by its members, jointly or otherwise, with a view to
increasing agricultural production and employment by proper utilisation of land, labour and other
resources;
(11) “consumers co-operative society” means a co-operative society the primary object of which is
the procurement and distribution of goods to, or the performance of other services for its members as
also other customers;
(12) “co-operative tribunal” means the Goa Co-operative Tribunal constituted under section 114 of
this Act;
(13) “co-operative housing society” means a society as defined in section 102 of
this Act;
(14) “co-operative bank” means a society registered under this Act and doing the business of
banking as defined in clause (b) of section 5 of the Banking Regulation Act, 1949 (Central Act X of
1949);
(15) “co-operative credit society” means a co-operative society the primary object of which is to
create funds for lending money to its members;
(16) 6[ ]
(17) “co-operative year” means a year or period ending on the thirty-first day of March;
(18) “director” means a member of the board of directors;
(19) “dividend” means the amount paid, out of the profits of a society, to a member in proportion to
the shares held by him;
7[(19a) “Executive Magistrate” means an Executive magistrate appointed by the Government;]
(20) “federal society” means 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-fifths of the total number of votes in the general meetings of such society;
8[(20a) “Financing Bank” means a cooperative bank, the objects of which includes the creation of
funds to be lent to other co-operative societies;]
9[(20b) “firm” means a firm registered under the Indian Partnership Act,1932
(Central Act 9 of 1932);]
(21) “general body” in relation to a primary society, means all the members of the primary society
and in relation to a federal society and apex society, means all the delegates of the member societies
and includes a representative general body constituted under section 69 of this Act;
(22) “general meeting” means a meeting of the general body of a society;
10[(22a) “general society” means a society not falling in any of the class of societies as defined in
section 2 of the Act;]
(23) “Government” means the Government of Goa;
(24) “industrial co-operative society” means a co-operative society, the object of which includes
manufacture, processing and marketing of goods by or with the help of its members and providing
supplies and services to them;
(25) “joint member” means a member who holds jointly a share of a society with another but
whose name does not stand first in the share certificate;
(26) “lift irrigation society” means a society, the object of which is to provide water supply by
motive power or otherwise to its members for agriculture, horticulture and other purposes;
11[(26a) “Limited Liability Partnership” means a firm registered under the Limited Liability
Partnership Act, 2008; (Central Act 6 of 2009);]
(27) “Liquidator” means a person appointed as liquidator under section 93 of the Act;
(28) “member” means an individual or entities mentioned in section 21 joining in the application
for the registration of a co-operative society which is subsequently registered, or duly admitted to
membership of a society after registration and includes a joint member;
(29) 12[“Multi-State Co-operative Society” means a co-operative 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;]
(30) “mutually aided society” means a society which does not have any share capital, loans or any
financial assistance from the State or the Central Government except with a Memorandum of
Understanding with the Government;
13[{(30a)} “nominal member” means a person admitted to membership as such after registration in
accordance with the bye-laws;]
14[(30b) “office bearer” means a President, Vice-President, Chairperson, Vice-
-Chairperson, Secretary, Treasurer, of a Co-operative society and includes any other person to be
elected by the board of any co-operative society;]
15[(31) “Officer” means the person empowered under this Act or under the rules or under the bye-
laws to give directions in regard to day to day business of a co-operative society.
(32) “Official assignee” means a person appointed by the Registrar to act as an Official assignee
under section 20 of the Act;
(33) “Official Gazette” means the Official Gazette of the Government;
(34) “patronage refund’ means annual refund to members in proportion to their transactions with
the society during the year;
(35) “prescribed” means prescribed by rules;
(36) “primary society” means a society whose membership is available only to individuals;
(37) “processing society” means a society the object of which is the processing of goods;
(38) “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;
16[(38a) “Recovery officer” means any person empowered to exercise in any district, the powers
specifically delegated by the Registrar in relation to the recovery of debts under this Act;]
(39) “resource society” means a society, the object of which is the obtaining for its members of
credit, goods or services required by them;
(40) “Registrar” means a person appointed under section 4 of this Act and includes any other
person on whom all or any of the powers of the Registrar under this Act are conferred;
(41) “rules” means rules made under this Act;
17[(41a) “Sale Officer” means any person empowered by the Registrar by general or special order,
to attach and sell the property of defaulters or to execute any decree by attachment and sale of
property;]
18[(41b) “ section” means a section of this Act;]
(42) “State” means the State of Goa.
19[(42a) “State Level Co-operative Society” means a Co-operative society having its area of
operation extending to the whole of a State and defined as such in any law made by the Legislature of
a State;]
(43) “society” means a co-operative society registered or deemed to be registered under this Act;
(44) “society with limited liability” means a society having the liability of its members limited by
its bye-laws;
(45) “state aided society” means a society which is not a mutually aided society;
20[(45a) “surety” – means a guarantor to the principal debtor of the society who may or may not be
a member of the society;]
(46) “surplus” means the net excess of income over the expenditure;
21[(46a) “Surplus Fund Account” means the account maintained by the Registrar;]
22[(46b) “Working Capital” means funds at the disposal of a society inclusive of paid–up share
capital, funds built-up out of profits, and money raised by borrowing and/or by other means;]
(47) “year” means a Co-operative year as defined in this Act;
3. Co-operative principles and bye-laws.— Individuals or co-operatives intending to form into a
co-operative society under this Act shall frame bye-laws conforming to the following principles of
co-operation, namely:—
(a) Membership of a co-operative society shall be voluntary and available without restriction of
any social, political, racial or religious discrimination, to all persons who can make use of its
services and are willing to accept the responsibilities of membership;
(b) Co-operative societies are democratic organizations.
Their affairs shall be administered by persons elected or appointed in a manner agreed to by the
members and accountable to them. All members of co-operative societies shall enjoy equal rights of
voting in the principle of one member, one vote and participation in decisions affecting their Co-
operative Societies. Their administration shall be conducted on a democratic basis in a suitable form;
(c) Share capital shall receive a limited rate of dividend, if any;
(d) The economic results, arising out of the operations of a co-operative society, belong to the
members of that co-operative Society and shall be distributed in such a manner as would avoid one
member gaining at the expense of others, which shall be achieved,—
(i) by provision for development of the business of the co-operative society;
(ii) by provision of common services; or
(iii) by distribution among the members in proportion to their transactions with the co-
operative society;
(e) all co-operative societies shall make provision for the education of their members, office-
bearers and employees and of the general public, in the principles and techniques of co-operation,
both economic and democratic;
(f) all co-operative societies, in order to best serve the interest of their members and their
communities, shall actively co-operate in every practical way with other
co-operatives at local, national and international levels having as their aim the achievement of unity
of action by co-operators throughout the world.
CHAPTER-II
Registration
4. Registrar and his subordinates.— (1) The Government may appoint a person to be the
Registrar of Co-operative Societies for the State and may appoint one or more persons to assist such
Registrar with such designation, and in such local areas or throughout the State, as it may specify in
that behalf and may, by general or special order, confer on any 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. They shall be subordinate to the Registrar and
subordination of such persons amongst themselves shall be such as may be determined by the
Government.
(2) The person appointed under sub-section (1) as the Registrar, shall not, during the course of his
service, serve in any capacity with any society.
5. Societies which may be registered.— (1) Only such society may be registered as a co-operative
society under this Act which provides in its bye-laws for the social and economic betterment of its
members through self help and mutual aid in accordance with the co-operative principles.
(2) A Society shall be registered with limited liability.
6. Conditions of registration.— (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 or carry on business
or profession in the area of operation of the society:
Provided that a co-operative housing society consisting of at least five such persons who are
residing or intend to reside in the area of operation of the society may be registered under this Act:
Provided further that, a lift irrigation society consisting of five or more such persons may be
registered under this Act.
(2) No federal society shall be registered unless it has at least five societies as its members.
(3) Nothing in this Act shall be deemed to affect the registration of any society made before the
commencement of this Act.
(4) The name of the society shall not have any reference to any caste or religious denomination.
(5) The word “limited” or its equivalent in any language shall be the last word in the name of every
society which is registered or deemed to be registered under this Act.
Explanation.— For the purposes of this section and section 7, the expression “member of a family”
means wife, husband, father, mother, unmarried son and unmarried daughter.
7. Application for registration.— (1) For the purposes of registration; an application shall be
made to the Registrar in the form prescribed and shall be accompanied by four copies of the proposed
bye-laws of the society and such registration fee as may be determined by the Registrar. Different
registration fees may be determined for different classes of societies, regard being had to the service
involved in processing an application for registration.
(2) The application shall be signed,—
(a) in the case of a society other than a federal society, by at least ten persons (each of such
persons being a member of a different family), who are qualified under this Act; and
(b) in the case of a co-operative housing society, by at least five such persons:
Provided that in case where a co-operative housing society consists of more than five persons in
accordance with the scheme of housing on the plot of land mentioned in the objects of the society, the
application shall be signed by at least fifty one percent of the total number of the expected members;
(c) in the case of lift irrigation society, by at least five such persons; and
(d) in the case of a federal society, by at least five societies.
(3) No signature to an application on behalf of a society shall be valid, unless the person signing is
a member of the Board of Directors of such society, and is authorised by the Board by a resolution to
sign on its behalf, the application for registration of the society and its bye-laws, and a copy of such
resolution is appended to the application.
23[7A. Power of the Registrar to decide certain questions.— Where any question arises at the
stage of registration whether a person resides in the area of operation of a
co-operative society or not, or whether a co-operative society is of same type as another co-operative
society or of different type, such question shall be decided by the Registrar whose decision shall be
final.]
8. Registration.— (1) If the Registrar is satisfied that a proposed society has complied with the
provisions of sections 5, 6 and 7 of this Act, and the rules made thereunder, he may register the
society.
(2) Where the Registrar refuses to register a proposed society, he shall communicate his decision,
with the reasons therefor, to the person making the application, within forty five days from the date of
receipt of the application. 24[ ]
(3) An appeal against the order of refusal of registration under sub-section (2) shall be filled before
the co-operative tribunal within a period of sixty days from the date of such refusal. 25[ ]
(4) The Registrar shall maintain a register of all societies registered under this Act.
9. Evidence of registration.— A certificate of registration signed by the Registrar or a certified
copy of the entry in the register maintained under sub-section (3) of section 8 of the Act 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.
10. Classification of Societies.— (1) The Registrar shall classify all societies into one or other of
the classes of societies defined in section 2 of this Act and also into such subclasses thereof as may be
prescribed.
(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 interest
of the co-operative movement and on such terms and conditions as he may think fit to impose, allow
any 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.
26[10A. Bye-laws of Co-operative Society. — (1) Every Co-operative Society may make its bye-
laws in accordance with the provisions of this Act and the Rules made thereunder.
(2) In particular and without prejudice to the generality of the foregoing provision, such bye-laws
may provide for all or any of the following matters, namely:—
(a) the name, address and area of operation of the society;
(b) the objects of the society;
(c) the services to be provided to its members;
(d) the eligibility for obtaining membership;
(e) the procedure for obtaining membership;
(f)the conditions for continuing as member;
(g) the procedure for withdrawal of membership;
(h) the transfer of membership;
(i) the procedure for expulsion from membership;
(j) the rights and duties of the members;
(k) the nature and amount of capital of the society;
(l) the manner in which the maximum capital to which a single member can subscribe;
(m) the sources from which the funds may be raised by a society;
(n) the purpose for which the funds may be applied;
(o) the manner of allocation or disbursement of net profits/surplus of society;
(p) the constitution of various reserves;
(q) the manner of convening general meetings and quorum thereof;
(r) the procedure for notice and manner of voting in general body meetings and other meetings;
(s) the procedure for amending the bye-laws;
(t) the number of elected members of the Board not exceeding twenty one;
(u) the term of office of elected members of a Board not exceeding five years;
(v) the qualification and disqualification for member of Board of the society;
(w) the procedure for removal of members of the Board and for filling of vacancies;
(x) the manner of convening Board meetings, its quorum, number of such meetings in a year and
venue of such meetings;
(y) the frequency of Board meetings;
(z) the powers and functions of the Chief Executive;
(za) the manner of imposing the penalty;
(zb) the appointment, rights and duties of Internal Auditors and procedure for conducting audit;
(zc) the authorisation of officers to sign documents, operate bank accounts
and to institute and defend suits and other legal proceedings on behalf of the society;
(zd) the terms on which a co-operative Society may deal with persons other than members;
(ze) the terms on which a co-operative Society may associate with other
co-operative society;
(zf) the terms on which a co-operative society may deal with organizations other than co-
operative societies;
(zg) the procedure and manner for transmission of shares and interest in the name of a nominee
in case of death of a member;
(zh) the educational and training programme to be conducted by the
co-operative society;
(zi) the principal place and other places of business of the co-operative society;
(zj) the minimum level of services to be used by its members;
(zk) any other matter which may be specified by the Registrar from time to time.]
11. Amendment of bye-laws of society.— (1) No amendment of the bye-laws of a 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 by a majority of not less than two third of the members entitled to
vote who are present at a general meeting of the society shall be forwarded to the Registrar27[alongwith the prescribed fee], 28[within a period of forty-five days from the date of such meeting.]
(2) Every application for registration of an amendment of the bye-laws shall be decided and
communicated to the society by the Registrar within a period of forty five days from the date of its
receipt.
(3) In case of refusal of amendment, if the decision is not communicated to the society, with the
reasons therefore, within the said period of forty five days, the said amendment of the bye-laws shall
be deemed to have been registered.
(4) Where the Registrar registers an amendment of the bye-laws of a society or where the
amendment of the bye-laws is deemed to have been registered, 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.
29[(5) An appeal against a decision to refuse to register amendment of the bye-laws of a society
which has been communicated to the society under sub-section (2) shall lie before the Co-operative
Tribunal within a period of 60 days from the date of communication of such decision.]
12. Power to direct amendment of bye-laws.— (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.
30[(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, register such amendment and issue to the society a
copy thereof certifying that the bye-laws shall be deemed to have been duly amended with effect from
the date of such registration and the same shall be binding on the society and its members subject to
the appeal made to the Tribunal, if any.]
13. Change of name.— (1) A society may, by resolution passed at a general meeting and with the
approval of the Registrar, change its name; but such change shall not affect any right or obligation of
the society, or any of its members, or past 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.
14. Change of liability.— (1) Subject to the provisions of this Act and the rules, a society may, by
amendment of its bye-laws, change the form or extent of its limited liability.
(2) When a society has passed a resolution to change the form or 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.
(3) Any member or 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 the bye-laws of a society, changing the form or extent 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.
15. Amalgamation, transfer, division or conversion of societies.— (1) A society may, by a
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 into two or more societies, or
(d) to convert itself into another class of society.
(2) Such decision shall take effect after the approval of the Registrar who shall pass the necessary
order to that effect.
(3) When such amalgamation, transfer, division or conversion as 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 interests 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 continuing 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 to the decision, or
deemed to have assented thereto by virtue of any member or creditor or any other interested person
failing to exercise his option within the period specified 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.
(4) Notwithstanding anything contained in the Transfer of Property Act, 1882 (IV of 1882) or the
Registration Act, 1908 (XVI of 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, 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].
31[(4A) Where any society is found to be degenerating in it’s operation and the share value of such
society has come down below it’s face value as on the last day of the year immediately preceding it’s
revaluation, the Registrar may, in the interest of members, suo-motu, direct the society to,—
(a) amalgamate with another society;
(b) transfer it’s assets and liabilities, in whole or in part, to any other society;
(c) divide itself into two or more societies; or
(d) convert itself into another class of society.
In case the society fails to complete the process of amalgamation, transfer, division or conversion,
as the case may be, within 45 days from the date of such direction, the Registrar shall order the
amalgamation, transfer, division or conversion, as the case may be, of such degenerating society. All
claims of members, creditors and other interested persons of such society as on the date of such order
shall stand transferred to the society with which such degenerating society may have been
amalgamated, or to the society to whom assets and liabilities have been transferred or to the society
formed after division or conversion, as the case may be].
(5) The amalgamation of societies, or division or conversion of a society shall not affect any rights
or obligation 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 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.
(6) 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.
16. Re-construction of societies.— 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, or in the case of a society which is being wound up, of the liquidator, order re-
construction of the society in the prescribed manner.
17. Partnership of societies and subsidiary.— (1) Any two or more societies may, by resolution
passed by three-fourths 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 each
member has had clear ten days written notice of the resolution and the date of the meeting.
(2) Nothing in the Partnership Act, 1932 (9 of 1932) shall apply to such partnership.
(3) The annual reports and accounts relating to specific business or businesses of
each such society shall be placed before the annual general meeting of each such
society.
(4) Any society may, by resolution passed at general meeting by three-fourths majority of members
present and voting, promote one or more subsidiary organisations for the furtherance of its stated
objectives and such organisations may be registered under any law for the time being in force as
agreed to by the general body.
(5) The annual reports and accounts of such subsidiary organisations shall be placed before the
general meeting of the promoting co-operative society every year.
(6) Any subsidiary organisation created under sub-section (4) shall exist only as long as the general
body of the co-operative society deems its existence necessary.
(7) The concerned society shall intimate to the Registrar about such partnership or subsidiary
within a month of its formation or dissolution.
18. Collaboration by societies.— Any society may, by resolution passed in a general meeting by
three-fourth majority of members present and voting, enter into collaboration with any Government
undertaking or any undertaking approved by the Government for carrying on any specific business or
businesses, including industrial investment, financial aid or marketing and management expertise.
19. Cancellation of registration.— The Registrar shall make an order cancelling the registration
of 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 wound up, or it is de-
registered under the provisions of sub-section (1) of section 20, or winding up proceedings in respect
of the society are closed or terminated under section 99. 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.
20. De-registration of Societies.— (1) If the Registrar is satisfied that any society is registered on
misrepresentation made by applicants, or where the work of the society is completed or exhausted or
the purposes for which the society has been registered are not served, he may, after giving an
opportunity of being heard to the chief promoter, the Board of Directors and the members of the
society, de-register the society:
Provided that, where the number of members of the society is so large and it is not possible to
ascertain the correct addresses of all such members from the records in the office of the Registrar and,
in the opinion of the Registrar it is not practicable to serve a notice of hearing on each such individual
member, a public notice of the proceedings of de-registration shall be given in the prescribed manner
and such notice shall be deemed to be notice to all the members of the society including the chief
promoter and the members of the Board of Directors of the society, and no proceedings in respect of
the de-registration of the society shall be called in question in any court merely on the ground that
individual notice is not served on any such member.
(2) When a society is de-registered under the provisions of sub-section (1), the Registrar may,
notwithstanding anything contained in this Act or any other law for the time being in force, make such
incidental and consequential orders including appointment of Official assignee as the circumstances
may require.
(3) The official assignee shall realise the assets and liquidate the liabilities within a period of one
year from the date he takes over the charge of the property, assets, books, records and other
documents, which period may, at the discretion of the Registrar, be extended from time to time, so
however, that the total period does not exceed three years in the aggregate.
(4) The Official assignee shall be paid such remuneration and allowances as may be prescribed,
and he shall not be entitled to any remuneration whatever beyond the prescribed remuneration or
allowance.
32[[(5)]
33[(6) Surplus remained after the process of de-registration shall be transferred to “Surplus Fund
Account” of the Registrar.
Explanation:— For the purpose of this sub-section, “Surplus Fund Account” means account
maintained for the purpose of surplus referred to in this sub-section].
34[20A. Liability of a co-operative bank to the Deposit Insurance and Credit Guarantee
Corporation.— Notwithstanding anything contained in section 15 or any other provision of this Act,
where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and
Credit Guarantee Corporation Act, 1961
(47 of 1961), is amalgamated or re-organised and the Deposit Insurance and Credit Guarantee
Corporation has become liable to pay to the depositors of the insured
bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is
amalgamated or the new co-operative bank formed after such amalgamation,
or as the case may be, the insured bank or the transferee bank, shall be under
an obligation to repay to the Deposit Insurance and Credit Guarantee Corporation
in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance
and Credit Guarantee Corporation Act, 1961 (47 of 1961)].
CHAPTER –III
Members and their Right and Liabilities
21. Person who may become member.— (1) Any person, who needs the services of the society,
accepts the responsibilities of membership and fulfills such other conditions as may be specified in
the bye-laws of the society, may be admitted as a member.
(2) No person shall be admitted as a member of a society except the following, that is to say: —
(a) an individual, 35[ ] who is competent to contract under the Contract Act, 1872 (9 of 1872);
(b) a firm, 36[limited liability partnership], 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 (XXI of 1860);
(c) a society registered, or deemed to be registered, under this Act or any other
Co-operative Societies Act;
(d) a public trust registered under any law for the time being in force for the registration of such
trusts;
37[(e) Any Self Help Group formed by women for mutual assistance or with an objective to avail
any type of assistance from the Government or any organization for their social, economic, cultural
and educational improvement].
(3) Admission of members may be made only by an elected board of directors or by the general
body where such a board does not exist;
38[ ]
(4) A person admitted as a member may exercise the rights of membership, including the right to
vote, only on fulfillment of such conditions as may be laid down from time to time in the bye-laws.
22. Open membership.— (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) Where a person is refused admission as a member of a society, the decision, with the reason
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.
(3) Any person aggrieved by the decision of a society refusing him admission of its membership,
may appeal to the 39[Registrar].
(4) Where a society refuses to accept the application from an eligible person for admission as
member, or the payment made by him in respect of membership, or having accepted the membership
application, a society does not convey its decision within three months from the date of receipt of
application, the membership shall be deemed to have been refused and the person aggrieved may
appeal to the 40[Registrar].
(5) An appeal under sub-section (3) shall be filed within two months of the date of communication
of refusal and under sub-section (4) within two months of deemed refusal.
(6) Every such appeal under sub-section (3) or (4) shall, as far as possible, be disposed of by the41[Registrar] within a period of three months from the date of its receipt.
23. Joint member.— (1) Subject to the provisions of section 21, a society may admit any person
as a joint member. A joint member shall hold jointly a share of the society with another but his name
shall not stand first in the share certificate.
(2) A member of a society may appoint not more than one joint member.
(3) When a person whose name stands first in the share certificate ceases to be a member, the
person admitted as joint member shall automatically be the first member. In the event of the cessation
of membership of the first member by death, the joint member shall be the first member and the
nominee, if any, of the deceased member shall be the joint member.
(4) The joint member shall have equal right in the capital and property of the society with the first
member.
(5) The joint member shall have the right to vote only in the absence of the member whose name
stands first in the share certificate.
42[Provided that, the joint member shall not be eligible for being chosen as a director.]
43[23A. Nominal member .−(1)Notwithstanding anything contained in section 21, a society may
admit any person as nominal member on payment of entrance fee as specified in the bye-laws.
(2) A nominal member shall not be entitled to any share, in any form whatsoever, in the profits or
assets of the society and shall ordinarily not have any of the privileges and rights of a member.]
24. Cessation of membership.— 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, or removal or expulsion from the society or
ceasing to hold the qualification for the membership under the bye-laws of the society or where a
firm, company, any other corporate body, society or trust is a member, on its dissolution or ceasing to
exist.
25. Removal of member.— A society may, by a resolution passed in a general meeting held for
the purpose, remove a member on the ground that,—
(1) he carries on business which is in conflict and in competition with the business of the society as
specified in the bye-laws of the society;
(2) he has not used for 44[five] consecutive years the service of a society to a minimum level as
specified in the bye-laws;
(3) he has not attended 45[five] consecutive annual general meetings of the society;
(4) he is in default regarding any payment to be made to the society exceeding an amount and for
the period as specified in the bye-laws:
Provided that no such resolution shall be valid unless the member concerned is given an
opportunity of representing his case to the general body.
46[Provided further that the provisions of clauses (2) and (3) above shall not apply to the members
elected to the representative general body in accordance with section 69. However, the representative
elected to the representative general body shall be deemed to have been disqualified in case he fails to
attend two consecutive general meetings and the resulting vacancy shall be filled by conducting bye-
election within a period of six months from the date of such disqualification. The term of the
representative elected in the bye-election shall be co-terminus with other elected representatives].
26. Expulsion of member .— (1) A society may, by resolution passed by a majority of not less
than three-fourths of the members entitled to vote who are present at a 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 such resolution shall be valid, unless the member concerned is given an
opportunity of representing his case to the general body. If the member is aggrieved by the decision
of the society expelling him from its membership, he may appeal to the 47[Registrar] within two
months of the date of the communication of such decision.
(2) No member of a society who has been expelled under the foregoing
sub-sections shall be eligible for re-admission as a member of that society, for a period of one year
from the date of such expulsion.
27. Rights of membership.— No person shall exercise the rights of the 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 specified in the bye-laws of such society.
28. Voting powers of members.— (1) Save as otherwise provided herein and in
sub-sections (2) to (7), no member of any society shall have more than one vote in its affairs and
every right to vote shall be exercised personally and not by proxy:
Provided that a member who is in the employment of the Defence Services shall be entitled to vote
by proxy through any other member of the society if he is unable to exercise his riExcerpt shown. Open the full act in Lexace.