The Manipur Co-Operative Societies Act, 1976

THE MANIPUB COOPERATIVE SOCIETIES ACT, 1975
(MANIPUR ACT N0. 14 OF 1976)
An
Act
to eomolidate and amend the law relating to Co-operative Societies.
BE it enacted by the Legislature of the State of Manipur'1n the
Twentyseventh year of the Republic of India. as follow:——
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Manipur Co-operative Societies
Act, 1976.
(2) It extends to the whole of Manipur.
(3) It shall come into force on such date the Manipur Govern-
ment may, by notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires—
(1) “Agricultural Marketing! Society” means a. society.
(9.) 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) “Arbitrator” means a person appointed under this Act to
decide disputes referred to him by the Registrar or Registrar’a nominee
or Board of Nominees.
(3) “Auditor” means a. person appointed by the Registrar or
by a. society to audit the accounts of the society,
(3)A. “Board” means the Board of Management ofva society.
Short title,
extent
and oomi
monument .
Definitions;
(4) “Bonus” means payment made in cash or kind, out of the
profits of a. society to a, member, or to :1. 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
case of a farming society, on the basis both of such contribution and
also the value or income 01-, as the cn.an may be, the area of the
lands of the members brought twrcther for joint cultiVation as may
be decided by the society ;
(5) “Bye-laws” means bye-luws registered under this Act and
for the time being in force, and includes registered amendments of
such bye-Iaws ;
(6) “Central Bank” means a. Co-operative Bank, the objects of
Which include the creation of funds to be loaned to other Societies ;
(7) “Committee” means the Committee of management, or other
directing body, to which the management of the affairs of a society
is entrusted.
(8) “Company” means a. company as defined in the Companies
Act, 1956, and includes 3. Banking Company and also any Board,
corporation or other corporate body, constituted or established by any
Central, State or Provincial Act for the purpose of the development
of any industry- ;
(9) “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 33180 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, pro-
duction or processing; and distribution ;
(10) “Co-operative Bank” means a. 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 ; ,
(11) "‘C’o-operative Year” means the year ending on the M
day of June or in case of any Society or clase of societies the accounts
of which are with the previous sanction of the Registrar, balanced on
any other day, the year ending on such day.
(12) "Dividend” means the amount paid, out of the profits of a.
soeiety, to a. member in proportion to the shares held by him -
(l3) “Farming Society” means a society in Which, with the object
of increasing agricultural production, employment and income and
the better utilisation of resources, lands are brought together and jointly
eultivated by .5111 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; ‘
(14‘) “Federal Society” means a. society—
(a) not lesa than five members of Which are themseiyes Societies ;
and ’
(b) in Which the voting rights are so regulated that the: mem-
bers which are societies have not less than four fifths of
the total number of votes in the general meeting of‘ such
soeiety ; ,
(15) “Firm” means a firm registered under the Indian Partnership
Act, 1932 ; K '
(16) “General Society” means a society not falling, inlany of the
classes of societies defined by the other clauses of this section ;
(17) “Housing Society” means a society the object of. whichis
providing members with dwelling houses ;
(18) “Liquidator” means a personapjpointed‘ as liquidator under
this Act ;
(19) "goeal Authority” means Municipality, Town Committee or
Uram Panehayztt :
(20) (a) “Member” means a person joining in an application for
the registration of a Oo-operative Society which is subse-
quently registered, or a,- person duly admitted to member-
ship of a society after registration, and includes a nominal,
associate or sympathiser member ;
(11) “Associate Member” means a member Who holds jointly a
share of a. society with others, but whose name does not
stand in the share certificate ; '
(c) “Nominal Member” means a person admitted to member-
ship as such after registration in accordance With bye-
1aws ;
(d) “SympathiSer Member” means a person who sympathises
the aims and objects of the society and who is admitted
by the society as such member ;
(21) “Officer” means a person elected or appointed by a. society .
to {my office of such society according to its bye-laws ; and includes a
Chairman, Viee-Chairman, President, Vice-President, Managing Director,
Manager, Secretary, Treasurer, member ofthe Board and any other '
person elected or appointed under this Act, the» rules and the
bye-laws, to give directions in regard to the business of such society.
(22) “Prescribed” means prescribed by trules ;
(23) “Processing Society” means a society the objects of which is
the processing of goods ;
(2L) “Producers’ Society” means a society the objects of Which
is the production and disposal of goods or the colleetive disposal of
the labour of the members thereof ;
(25) “Registrar” means a person appointed to be the Registrar
of Qo-opemtive Societies under this Act ; ’ '
. _, (26) “Resources Society” means a society, the'object of which. is
the obtaining; for its members of credit, goods or services required
by them ;
(27) “ 11.11108” means rules made under this Act ',
(28) “Society” means a‘Co-operetive Society registered, or deemed
to be registered, under this Act ;
,__.._-.,.,--
Registrar.
Societies
which may
be registered
under this
Act.
Registration
with limited
or unlimited
liabilities.
Conditions
of registrar
tion.
(29) “Society with limited liability” means a society having th
liability of its members limited by its bye-laws ;
(30) “Society With unlimited liability” means a society the men-
bers 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 ;
(31) “State” means State Govei'hment of Manipur ;
. (32) “Tribunal” means the Manipur Co-operative Tribunal cona-
tituted under this Act ;
. (33) “Working capital” means funds at the disposal of a. society
inclusive of paid up share capital, funds, built out of profits, and
money raised by borrowing and by deposits.
CHAPTER II
REGISTRATION
3. The State 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, 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, superintendenee and control of
the Registrar.
4. A society, which has as its objects the promotion of the
economic interests or general Welfare of its members or of the public, in
accordance with Co-Operative principles, or a society established with
the object of facilitating the operations of any such society, may be
registered. . '
Provided that, no society shall be registered if it is likely to be
economically unsound, or the registration of which may have an
adverse efl'eet on the development of the Co-operative 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 difl'erent family ), who are qualified
to be members under this Act and who reside in the area of operation
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 villages.
(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 effect 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, stepdaughter,
grandson, granddaughter, brother, sister, half—brother,
half-sister, and Wife of brother or half-brother.
7. Notwithstanding anything contained in this Act the State
Govamment 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 persons
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
at least ten persons (each of such persons being a member
of a difi'erent 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 peracn signing is a member of the committee of
such a. society, and is authorised by the committee by 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.
9, (1) (a) If the Registrar is satisfied that a 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, if he thinks
fit register the society and its bye-laws within six months from the date
of the receipt of the application.
(b) If the Registrar is unable to dispose of an application for
registration within the period mentioned in the foregoing Sub-section,
he shall make report to the State Govt. Stating therein the reasons
thereof ; and he shall thereafter act in accordance with such direction
as may be issued to him by the State Government.
Powers to
exempt Io-
cieties from
conditions
as to regis~
tration.
Application
for registra-
tion.
Registration
Evidence of
Registration.
Power of
Registrar. to
decide cer-
tain question,
Classification
of societies.
Amendment
of bye-laws
of society.
shall forthwith communicate his decision with reason thereof te-
person making the application and if there be more than one, If-
person who has signed first thereon.
(0) Where the Registrar rerSQS to register a proposed society q
1%
(2) On the registration of a society, the Registrar shall issue tn “1
a certificate of Registration signed by him. ’
(3) A certificate of registration issued under sub-Section (2)5511
be conclusive evidence that the society therein mentioned is M3
registered unless it is provided that the registration has been canceliai
(4) The Registrar shall maintain a register of all societies reg!»
tered under this Act.
10. A certificate of registration signed by the Registrar, std"
be conclusive evidence that the society therein mentioned, is (1;?)
registered, unleSS it is proved that the registration of the society ha
been cancelled.
11. When, for the purpose of the formation, or continuance. ii
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 at
not, Such question shall be decided by the Registrar.
12. (1) The Registrar shall classify all societies into one or otha'
of the 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, after
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 may thinkfit 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 Manipur Government,
may from time to time direct.
13. (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 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-iaws 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 therefor, to the society.
14. (1) If it appears ‘to the Registrar that an amenament of
the bye-laws of the 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 register such amendment, and i3sue 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 S0 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. change its name; but such
change shall not affect any right or obligation of the society, or of
any of its members ; and any legal proceedings pending before any
person, authority or court may be continued by or against the society,
under its new name.
('4) Where a Society changes its name, the Registrar shall enter
the name in its place in the register of societies and shall also amend the
certificate of registration accordingly.
16. (1) Subject to the provision of this Act and the Rules, a
society may by amendment of its bye-laws, change the form or extent
of its 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
member 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 serving of such notice upon him, have
the option of withdrawing his shares, deposits or loans.
(3) (a) 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.
(b) An amendment of the bye-laws of a society, changing the
form or extent of its liability, shall not be registered or take efi'ect
until, either 2——
(i) all members and creditors have assented, or deemed
to have aSSented, thereto as aforesaid, or
(ii) 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
Reglstrar, by resolution passed by two-thirds majority of the members
present and Voting at a Special general meeting held 'for the 'pur-
pose, decide :— ‘
7
Power to di-
rect amend-
ment of
bye-laws.
Change of
name .
Change of
liability.
Amalgama-
tion, transfer,
division or
conversion of
societies,
(a) to amalgamate with another society ;
(b) to transfer its assets and liabilities, in Whole or part, toany other society ;
(o) to divide itself into two or more societies, or(d) to convert itself into another class of society ;
Provided that when such amalgamation, transfer, division or con-version, aforesaid, inVOlves, a transfer of the liabilities of a. Society toany other society, no order on the resolution shall be passed by theRegistrar, unless he is satisfied that :—-
(i) the society, after passing such resolution, has given noticethereof in such manner as may be prescribed, to all itsmembers, creditors and other persons whose interestare likely to be affected (hereinafter, in this Sectionreferred to as “other interested perSOns” ), giving themthe option, to be exercised within one month from thedate of Such notice, of becoming members of any ofthe new societies, or continuing their membership inthe amalgamated or converted society, or demandingpayment of their share or interest or dues, as thecase may be,
(ii) all the members and creditors and other interestedperson, have asswted to the decision, or deemed to haveassented thereto by virtue of any member or creditoror any other interested persons, have assented to the .decision, or deemed to have assented thereto by virtueof any member or creditor or any other interestedperson failing to exercise his option within the periodspecified in clause (i) aforesaid, and
(iii) all claims of members and creditors and other inte-rested persons, who exercise the option within theperiod specified, have been met in full or otherwisesatisfied.
(2) Notwithstanding anything contained in the Transfer of Pro-perty Act, 1882,, or the Indian Registration Act, 1908, in the event ofdivision or conversion, the registration of the new societies or, asthe case may be, of the converted society, and in the event of .amalgamation, on the amalgamation the reSolutions of the societies con- ;cerned with amalgamation, shell in each case be sufficient conveyance fto vest the assets and liabilitiesSof the original Society or amalgama-ting 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 3a. society shall not affect any rights or obligation of the societies so
by or against the amalgamated society, or, as the case may be, theconverted 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 stand 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 of the OO-operative 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 two or more societies or should be reorganised then
not withstanding anything contained in the last preceding section but
subject to the provisions of this section, the Registrar may after con-
sulting such federal society as he thinks necessary provide for the
amalgamation, division or reorganisation of these societies into a single
society with such constitution, property, rights. interests and autho-
rities, and 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 ;
(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 subsection (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,
division or re-organisation.
(4) Every member or creditor of each of the societies to be
amalgamated, divided or re-organised, Who has objected to the scheme
of amalgamation, division or reorganisation, within the period specified,
shall be entitled to receive on the issue of the order of amalgamation
or reorganisation 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
in subsections (2), (3) and (4) of section 1'7 shall apply, to the societies
so amalgamated, divided or re-organised as if they were amalgamated,
divided or re-organised under the section, and to the society amalga-
mated,divided or re-organised.
19. Where a proposal for a compromise or arrangement :—
(a) between a society and its creditors, or
Power to
direct amal-
gamation,
division and
re-organisa-
tion in pu-
blic interest
etc,
Reconstruc-
tion of
societies.
10
Partnership
of societies.
Cancellation
of registra-
tio n,
Person who
may become
member.
(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 whiehiis
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-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, provided
that each member has had clear ten days’ written notice of their
re301ution, 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
of a society if it transfers the whole of its assets and liabilities to
another society or amalgamated, with another society, or divides itself
into tWo or more societies or if its afi'airs are wound up, or it has not
commenced business within a reasonable time of its registration, or has
ceased to function if :— he is satisfied, after making such enquiry as
he thinks fit that the society no longer has genuinely as its object one
or more of the objects Specified in section 4 and its registration ought.
in the interest of the general public, be cancelled. :The society shall,
from the date of such order of cancellation, be deemed to be dissolved,
andishall cease to exist as a corporate body.
CHAPTER III
Members and their rights and liabilities
22. (1) Subject to the provision of section 24, no person 3113,11
be admitted as a member of a society except the following that is i
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 State Government ;
(e) a local authority ;
(f ) a public trust registered under any law for the time being
in force for the registration of such trusts.
Provided that, the provisions of clause (a) shall not apply to an
individual seeking admission to a. 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 State Government by general or special order, a.
firm or company may be admitted as a member only of a. society Which
is a. federal or urban society or Which conducts or intends to conduct
an 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.
Explanation :——-For the purposes of this section, an ‘urban society’
means a society the business of which mainly falls within the limits of
a municipal corporation, municipality eantonment or notified area
committee.
(2) Money-lenders, traders and other persons Whose interests
conflict with the interest of the Co-operative Institution shall not be
:wlmittcd ms member.
(3) In the case of Agricultural Credit Co-operative Institutions,
where a farm holding is in possession of a. Hindu Joint Family, only
manager of such joint family and Where such holding is in the possession
of Co-tenants, only one such Co-tenant shall be eligible for membership
of such society and of a cultivating household only one adult member
of the household shall be eligible for admission as member.
(4) Where a person is refused admission as a member of a, society
the decision (With the reason therefor) shall be communicated to that
person Within fifteen days of the date of the decision, or Within three
months from the date of receipt of the application for admission,
whichever is earlier.
Provided that Where no decision is communicated Within the
specified period, it shall be deemed that the admission has been refused.
23. (1) No society shall, Without sufficient cause, refuse admission
to membership to any person duly qualified therefor 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.
, (3j 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. (i) Notwithstanding anything contained in section 22, a. society
may admit any person as a nominal, associate or sympathiser member.
(ii) A nominal or sympathiser member shall not be entitled
to any share In any form whatsoever in the profits or assets of the
11
Person! Who
may not be
member.
Restriction
of member-
ship,
Communica-
tion of deci-
sion re fusing
admission,
Open mem—
bersbip.
Nominal,
associate and
sympathiser
member.
1‘2
No rights of
membership
to be exer-
cised till due
payments
are made,
Voting
powers of
members.
Restrictions
on holding of
shares.
society as Such member. A nominal or sympathiser member shall ordi-narily not have any of the privileges and rights of a member, but such
a member, or an associate member, may, subject to the provisions of
sub-seetion (8) of section 27,‘ have such p=~ivileges and rights and besubject 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 hisresignation from the membership thereof being accepted, or on thetransfer 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.
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 membor of any society shall have more than onevote in its affairs provided that, in case of an equality of Votes the
Chairman shall have a casting vote.
(2) Where a share of society is held jointly by more than oneperson, 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 theshares of another society, may appoint one of its members to vote onits 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 anylaw for the time being in force which has invested any part of its funds
in the shares of a society may appoint any one its directors or officersto vote on its behalf in the affairs of such society; accordingly suchdirector 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 sharesof a. society, any one of its partners shall be entitled to vote in the afiairs
of the society on behalf of the firm.
(6). A local authority or public trust Which has invested any part ofits funds in the shares of a sceiety, may appoint any of its members or
trustees, to vote on its behalf in the affairs of that society ; and accor-
dingly such person shall have the right to vote on- behalf of that local
authority or the public trust, as the case may be.
(7) In the case of a federal society, the Voting rights of individualmembers thereof shall be such as may b0 regulated by the rules madeunder this Act and the bye-laws, of the society.
(8) ‘I'x'o nominal, associate or sympathiser member shall havethe right to vote.
28. In any society, no member other than the State Government
or any other society and agencies that may be authorised by theState Government 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 State Government may, by notification in the()ll‘icial Gazette, specify in respect of any class of societies :1. higher
or lower maximum than one-fifth of the share capital or, as the case maybe, a higher or lower amount than five thousand rupees.
29. (1) Subject to the proviSion of the last preceding section asto the maximum holding of shares and to any rules made in this behalf,
3. transfer of, or charge on, the share or interest of a 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 hisinterest 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 appiication for membership has been
accepted by the society.
(3) Notwithstanding anything contained in sub~Seciions (I) and(2), where a. member is allowed to resign, or is expelled, or ceases to be amember on account of his being disqualified by this Act or by the rulesmade thereunder or by the bye-Iaws of the society, the society mayacquire the share or interest of such member in the share capia’al bypaying for it at the Value determined in the manner prescribed, providedthat the total payment of share capital of a society in any financialyear for such purposes does not exceed ten per cent of the paid up sharemLpital of the society on the last day of the financial year immediatelypreceding.
Explanation :— The right to forfeit the share or interest of anyexpelled .nember in the share capital by virtue of any bye-laws of theHmsicty, shall not be affected by the aforesaid provision.
(1) Where the State Government is a member of a society the
wmriutions contained in this Section shall not apply to any transfernm'lu by it nfits share or interest in the capital of the society ; andHum, Howrnment may, notwithstanding anything contained in this Act,wil iulmw from the society its share capital at any time, after giving toHm mmiety notice thereof not less than three months.
:m, (1) On the death of a member of a society, the societyshall trzuzehn- the share or interest of the deceased mem her to a personor peramm n: minated in accordance With the rules, or, if no person hasbeen so nominated, to such person as may appear to the eommitee, to bethe heir or legal representative of the deceased member :
Restriction:
on transfer
or charge 0 I)
share or
interest.
Transfer of
interest on
death of
member.
lzt
Provided that, such nominee, heir or legal represwtetive as the can
may be, is duly admitted as a member of the society ; ‘
Provided further that, nothing in this sub-section or in Section 2!
shall prevent a minor or a person of unsound mind from acquiring l.
inheritance or otherwise, any share or interest of a deceased member i
a society. .
(2) Notwithstanding anything contained in Snb-section (I), an
such nominee, heir or legal repreSentative, a=- the cafe may be, mu
require the society to pay to him the value of the share or interest 0
the deceased member, ascertained in accordance With the rules.
(3) A society may pay all other moneys due to the decease
member from the society to such nominee, heir or legal representatiw
as the case may be.
(4) All transfers and payments duly made by a society in accor
dance With the provisions of this section, shall be valid and efiectu
against any demand made upon the society by any other person.
 
U . 31. The share or interest of a member in the capital of a societwhere or In-ter.“ not or in the loanstoek, issued by a housing society, or in the funds, raise
liable to by way of savings deposit, shall not be liable to attachment or sale nndeBWRChmOM- any decree or order of a Court for or in respect of any debt or liabilit
incurred by the member ; and accordingly .no person or authority unde
any law for the time being in force, shall be entitled to or have any
claim on, such share or interest. i
Rights of
n; embers to
I 32. (1) Every member of a society shall be entitled to inSpect,i
see books etc”?
free of cost, at the Boeiety’s office during office hours, or any time fixedlfor the purpose by the society, a copy of the Act, the Rules and thei
i bye-Iaws, the last audited annual balance sheet, the profit and loss
J account, a list of the memb era of the committee, a register of members“!
=the minutes of general meetings, minutes of committee meetingsi'and thosa portions of the books and resurds in which his transactions3g with the society have been :60 nded.
 
(2‘ A society shall furnish to a member, on request in writing
and on payment of such fees as may be prescribed therefor, a copy ofany of the documents mentioned in the foregoing snb-section within onemonth from the date of payment of such fees.
33. (1) Subject to the provisions of Subsection (2), the liabilityLia‘bflity 0' of a past member. or of the estate of a deceased member of a seeietypast membetand “ta“ for the debts of the society as they stood,—
i d d . .?mm‘fxse (a) 1n the case of a past member, on the date on Which he
ceased to be a member, and
(b) in the case of a deceased member,on the date of his death,
shall, continue for a period of four yeats from such date.
(2) Where a. society is ordered to be wound np under any
provision of this Act, liability of a past member or of the 
estate of a deceased member Who ceased to be aZmember 01' 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 liability shall extend only to the debts of the
society as they stood on the date of his ceasing to be a member or
death, as the case be.
34. Notwithstanding anything contained in any law for the time
being in force, the dues of a society from a member, in insolvency
proceedings against him, shall rank in order of 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 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, 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 readmission as a member
of that Society, or for admission as a member of any other society
for a period of one year from the date of Such expulsion ;
Provided, the Registrar may, on an application by the society
and in special circumstances, sanction the re-admission 0r admiseion,
within the said period, of any such member as amember of the said
society 01‘ of any other society, as the case may be.
CHAPTER IV
INCORPORATION, DUTIES AND PRIVILEGES OF
SOCIETIES
36. The registration of 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, held and dispose of pro-
perty, 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.
37. 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.
38. (1) Every society shall keep a register of its members, and
enter therein the following particulars, viz.
(3,) the name, address and occupation of each member ;
(b) in the case of a Society having share capital, the share held
by each member ;
15
Insolvency
of members,
Expulsion
of members.
Societies to
‘be bodies
corporate.
Address of
societies.
Register 0!
members;
16
Copy of
Act etc. to
be open to
inspection.
Admissibi-
lity of copy
of entry as
evidence.
Exemption
from comv
pulsory re-
gistration of
instruments
relating to
shares and
debentures
of society.
(0) the date on Which each person was admitted as member ;
(d) the date on Which any person ceased to be a member ;
(e) such other particulars as may be prescribed ;
Provided that, where a society has by or under this Act, per-
mitted 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 members, 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.
. 39. Every society shall keep, at the registered address of the
Scele’oy 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 hours fixed by the society thereon,
40. (l) A copy of any entry in any book, register or 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) ln the ease of such societies, as the State 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 a witness to prove the
matters, transactions and accounts therein recorded, unless by order of
the Court or a Judge made for special cause.
41, Nothing in elauSe (b) and (c) of sub-section (1) of section 17
of the Indian Registration Act, 1903, shall apply-
(a) to any insti'ument relating to shares in a society, notwith-
standing 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
deelaring, assigning, limiting or extinguishing any right, title
01‘ interest to or in immovable property, except in so far as
it entitles the holder to the Security afi'orded by a registered
instrument whereby the society has'mortgaged, conveyed or
otherwise transferred the whole or part or its immovable
property, or any interest therein to trustees upon trust for
the benefit of the holders of such debentures ; or
(c) to any endorsement upon, or transfer of any debentures
issued by any society.
42. The State Government, by notification in the Official Gazette
may, in the case of any society or class of societies, remit-
(a) the stamp duty With which, under any law relating to stamp
duty for the time being in force, instruments executed by
or on behalf of a society or by an officer or member
thereof, and relating to the business of the societymy
class oi such instruments, or awards of the Registrar or his
nominee or board of nominees under this Act are respectively,
chargeable.
(b) any fee payable by or on behalf of a society under the law
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 ( or any portion thereof )
payable by or on behalf of a society under any law for
the time being in force, Which the State Government is
competent to levy.
43. A society shall receive deposits and loans from members
and other persons, only to such extent, and under such conditions, as
r‘: ay be prescribed or specified by the bye-laws of the society.
44. (1) A cO-operative society shall not make a loan to any person
other than a member ; provided that with a general or Special sanction
of the Registrar, 3, Co-operative Society may make a loan to another
co-operatiVe society.
(2) Notwithstanding anything contained in sub-Section (1), a co-
operative society may make a loan to a depositor Within his deposit on
its sec urity.
45. Save as is provided in this Act, the transactions of a society
with persons other than members, shall be subject to such restrictions,
if any, as may be prescribed.
46. A Society shall have a charge upon the share or interest in
the capital and on the deposits, of a member or deceased member, and
upon any dividend, bonus or profits, payable to any such member in
respect of any debt due from Such member or his estate to the society ;
and the soeiety may set off any sum credited or payable to such
member in or towards payment of any such debt:
Provided that, no co-operative bank shall have a charge upon
any sum instead with it by a society out of the provident fund
established by it under section 71, or its reserve fund ; and no co-
operative bank shall be entitled to set off any such sum towards any
debts due from the society.
47. (1) Notwithstanding anything (contained) in any other law
for the time being in force, but subject to any prior claim of Govern.
‘ment in respect of land, revenue or any money recoverable as land
revenue and to the provisions of sections 60 and 61 of the Code of
Civil Procedure, 19089
17
Power to
exempt from
taxation.
Restrictions
on borrow-
insS.
Restrictions
on loans.
Restrictions
gon other tran-
sactions with
non-mem—
bets.
Charge and
of share or
interest of
member.
Prior claim
of society .
18
Charge on
immovable
property of
members
borrowing
from certain
societies,
(8.) any debt or outstanding demand, owing to a society by
any member or past member or deceased member shall be
a first charge,—
(i) upon to crop or other agricultural produce raised in
Whole or in part Whether with or without a loan taken
from the society by such member or past member or
deceased member,—— ,
(ii) upon any cattle, fodder for cattle, agricultural or indus-
trial implements or machinery, or raw materials for
manufact

Excerpt shown. Open the full act in Lexace.

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