The Meghalaya Co-operative Societies Act, 2015 (Act No. 11 of 2015)

Postal Registration No. N. E.—771/2006-2008
The Gazette of Meghalaya
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 137 Shillong, Wednesday, October 7, 2015 15th  Asvina, 1937 (S. eJ~
PART-IV
GOVERNMENT OF MEGHALAYA  
LAW (B) DEPARTMENT  
ORDERS BY THE GOVERNOR
NOTIFICATION
The 7th October, 2015.
No.LL(B).3/2001/337. —The Meghalaya Co-operative Societies Act, 2015 (Act No. 11 of 2015) is  
hereby published for general information.
MEGHALAYA ACT NO. 11 OF 2015
(As passed by the Meghalaya Legislative Assembly)
Received the assent of the Governor on 7th October, 2015.
Published in the Gazette of Meghalaya Extra-Ordinary issue dated 7th October, 2015.
THE MEGHALAYA CO-OPERATIVE SOCIETIES ACT, 2015.
An
Act
to facilitate the formation and working of Co-operative Societies as accountable, 
competitive, self reliant, business enterprises based on thrift, self-help and mutual aid 
and owned, managed and controlled by members for their economic and social 
betterment and in accordance with the relevant Directive Principles of State Policy of 
the Constitution of India and for matters connected therewith and incidental thereto.
Be it enacted by the Legislature of the State of Meghalaya in the Sixty-fifth Year 
of the Republic of India as follows:-

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Short title, 
extent and
commencement.
Definitions.
CHAPTER-I
PRELIMINARY
1. (1) This Act may be called the Meghalaya Co-operative Societies 
Act, 2015.
(2) It extends to the whole of Meghalaya.
(3) It shall come into force on such date as the State Government 
may, by notification in the official Gazette, appoint.
2. In this Act, unless there is anything repugnant in the subject or 
context, -
(a) “Act” means the Meghalaya Co-operative Societies Act, 
2015;
(b) “Administrative Council” or “Board of Directors” means 
an intermediate body between a Managing body or 
Executive Committee by whatever name called and 
include the General Assembly of a registered Co­
operative Society;
(c) “Affiliating Cooperative Society” means the registered Co­
operative Society of which a particular Cooperative 
Society is a member;
(d) “Affiliated Co-operative Society” means the particular Co­
operative Society which is a member of the affiliating 
Cooperative Society;
(e) “Apex Society” means a Cooperative Society whose area 
of operation extends to the whole State of Meghalaya and 
which has, as its principal object, and the provision of 
facilities for the operation of other Co-operative Societies 
affiliated to it and classified as an Apex Society by the 
Registrar;
(f) “Area of operation” means the area from which the 
membership is drawn or as specified in the bye-laws of 
the Co-operative Society;
(g) “Assistant Registrar” means an Assistant Registrar of 
Co-operative Societies appointed under this Act;
(h) “authorized person” means a person referred to as such 
in provision of section 10(2)(b);

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY)  OCTOBER 7, 2015 807
(i) “board” means the board of directors or 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;
(j) “Bye-law” means the registered bye-law under this Act 
and includes a registered amendment of such bye-law;
(k) “Capital to Risk Weighted Assets Ratio” means the 
Capital adequacy norms stipulated by the Reserve Bank 
from time to time ;
(l) “Chartered Accountant” means a member of the Institute 
of Chartered Accountants under Chartered Accountant 
Act, 1949 (38 of 1949);
(m) “Co-operative Demand Certificates” means a 
Certificate as defined under this Act;
(n) “Co-operative Officer” means a person appointed under 
the provision of this Act for the purpose of supervision, 
inquiry, inspection, audit of the accounts of a Registered 
Co-operative Society and any other matter that may be 
delegated by the Registrar;
(o) “Co-operative Society” means a Co-operative Society 
registered or deemed to be registered under this Act 
relating to Co-operative Societies for the time being in 
force;
(P) “Co-operative Union” means a registered Apex Co­
operative Society which has its principal object the 
undertaking of Cooperative education, propaganda, 
training and extension of co-operative services;
(q) “Co-operative Year” means the period beginning and 
ending on such dates as may be fixed by the Registrar 
for the purpose of drawing up the balance sheet of a 
registered Co-operative Society;
(r) “Delegate” means a person elected by a group of 
individual members to represent in the general body by 
the Co-operative Society in accordance with the bye-laws 
of the Co-operative Society;
(s) “Deputy Registrar” means a Deputy Registrar of Co­
operative Societies appointed under this Act;
(t) “Deposit Insurance Corporation” means the Deposit

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Insurance Credit Guarantee Corporation established
under Section 3(1) of the Deposit Insurance and Credit 
Guarantee Corporation Act, 1961(47 of 1961);
(u) “Dividend” means the amount paid, out of the profits of a 
co-operative society, to a member in proportion to the 
shares held by him in accordance with the bye-laws of 
the co-operative society;
(v) “Employee” means a person, not being an office-bearer, 
employed by a registered co-operative society oh a salary 
or similar form of remuneration other than advance 
patronage dividend or payment for goods sold or through 
such co-operative society;
(w) “Family” means a person, his spouse, his children, 
dependent on him and his other relatives dependent on 
him and jointly residing with him;
(x) “Farming Society” means a co-operative society formed 
with the object of promoting development of land and 
better methods of cultivation, and includes farming 
society, tenant farming co-operative society, collective 
farming co-operative society, joint farming co-operative 
society, irrigation co-operative society and a crop 
protection co-operative society;
(y) “Financing Institution” means a National or State level 
co-operative institution or organization, which provides 
financial assistance or advance or loan to a co-operative 
society or an individual;
(z) “General Assembly” means the supreme body of a 
registered co-operative society as defined in Section 30
.  (i);
(za) “Housing Society” means a co-operative society, the 
object of which is to provide its members with open 
plots for housing, dwelling houses or flats; or if open 
plots, dwelling houses or flats are already acquired to 
provide to its members with common amenities and 
services;
(zb) “Industrial Society” means a co-operative society formed 
with the objects of promoting development of small scale 
industries, such as carpentry, blacksmitheiy, 
goldsmithery, producing finished goods and products 
from raw materials of any kind;
(zc) “Joint Registrar” means a Joint Registrar of Co-operative

PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 809
Societies appointed under this Act;
(zd) “Joint Liability Group” means an informal group 
comprising of four to ten individuals coming together for 
the purpose of availing bank loan on individual basis or 
through group mechanism through co-operative 
societies against mutual guarantee;
(ze) “limited liabilities” means a liability of the member
limited by the bye-laws of co-operative society to the 
amount, if any, unpaid on the shares respectively held 
by the member or to such amount as they may, 
respectively, undertake to contribute to the assets of the 
society in the event of its being wound up;
(zf) “liquidator” means a person appointed as liquidator 
under this Act;
(zg) “Managing Body” or “Board of Directors” means an 
elected body to which the management of the affairs of a 
registered co-operative society is directly entrusted and 
does not include the Administrative Council;
(zh) “Marketing Society” means a co-operative society formed 
for the marketing and procurement of agricultural or 
other produce and including among its objects, the 
supply of the requisites of such production;
(zi) “Member” means a person admitted to membership after
registration of a co-operative society in accordance with 
the bye-laws and rules of the co-operative society and 
includes a promoter and the State Government when it 
subscribes to the Share Capital of a co-operative 
society;
(zj) “Multipurpose Society” means a primary co-operative 
society, the object of which is to provide various services 
including services related to credit, business, industry 
and consumer durables to its members;
(zk) “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-operative;
(zl) “National Bank” means the National Bank for
Agricultural and Rural Development established under 
Section 3 of the National Bank for Agricultural and 
Rural Development Act, 1981 (Central Act No. 61 of
1981);

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(zm) ' “Nominal Member” means a person admitted to 
membership as such after registration in accordance
with the bye-laws;'
(zn) “office bearer” means a member duly elected by the 
General Assembly of a registered co-operative society, 
according to its bye-law, to any office of such co­
operative society, including the office of the President or 
Chairman, Vice-President or Vice-Chairman, Managing 
Committee members or Member of Board of Directors 
and Treasurer;
Provided that any officer appointed by Government of 
Meghalaya to hold charge of any office of registered co­
operative society shall be deemed to be an office bearer 
unless specifically stated to the contrary;
(zo) “prescribed” means prescribed by rules made under 
this Act;
(zp) “Primary Agricultural Credit Society” means a co­
operative society as defined under clause(cciv) of Section 
5 of the Banking Regulation Act, 1949 (Central Act 10 of 
1949) and includes a Multipurpose Co-operative 
Society;
(zq) “Processing Society” means a co-operative society 
formed with the object of producing goods by 
mechanical or manual process and an industrial co­
operative society and a co-operative society for the 
processing of agricultural commodities;
(zr) “Promoter” means an eligible person or a registered co­
operative society signing the application for registration 
of a co-operative society;
(zs) “Primaiy Society” means a co-operative society whose
membership consists exclusively of individuals and self 
help groups;
(zt) “A Self Help Group” is a homogeneous group of rural
poor comprising of not more than twenty members 
formed voluntarily to save small amounts out of their 
earnings and to form a Corpus to be lent to the 
members of such group;
(zu) “Registered Society” means a co-operative society 
registered or deemed to have been registered under this 
Act and includes a society formed after amalgamation of 
such two or more cooperative societies or division of 
such an existing co-operative society;

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 811
(zv) “Registrar” means a person appointed to perform the
duties of the Registrar of Co-operative Societies under 
this Act;
(zw) “Representative” means a member of the society to 
represent the co-operative society in other co-operative 
societies;
(zx) “Reserve Bank” means the Reserve Bank of India
established under Section 3 of the Reserve Bank of 
India Act, 1934 (Central Act 2 of 1934);
(zy) “Reserve Fund” means funds created by the co-operative
society out of its net profit every year as provided under 
this Act;
(zz) “rules” means rules made or deemed to be made under
this Act;
(zza) “State Level Co-operative Society” means a co-operative 
society having its area of operation extending to the 
whole of a state;
(zzb) “Society” means a co-operative society registered or 
deemed to be registered under this Act;
(zzc) “State Act” means any law made by the Legislature of a 
State;
(zzd) “State Cooperative Bank” means an Apex Co-operative 
Society engaged in the business of banking;
(zze) “State Government” means the Government of 
Meghalaya unless expressed otherwise;
(zzf) “State” means the State of Meghalaya;
(zzg) “Tribunal” means a body of officials appointed by the 
State Government to arbitrate or settle disputes 
involving recovery of overdue loans;
(zzh) “Urban Bank” means the primary Co-operative Urban 
Bank engaged in the business of banking under the 
Banking Regulation Act, 1949 (Central Act 10 of 1949) 
as applicable to co-operative societies; and
(zzi) “Working Capital” means funds at the disposal of a co­
operative society inclusive of paid up Share Capital, 
deposits, funds built out of profits, and money raised by 
borrowing and by other means;

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 812
The Registrar.
Co-operative 
Societies which 
may be 
registered.
Age,
qualification 
of a member.
Conditions of 
registration.
CHAPTER-II
REGISTRATION OF CO-OPERATIVE SOCIETIES
3 (1) The State Government may appoint a person to be the 
Registrar of Co-operative Societies for the whole state of Meghalaya 
or any portion of it for the registration, supervision, assistance, 
counsel and control of registered co-operative societies and for 
development of the co-operative movement and control over co­
operative education, incorporation, regulation and winding up of co­
operative societies based on the principles of voluntary formations, 
democratic member control, member economic participation, 
autonomous functioning and with such other powers and 
responsibilities as may be provided under this Act or rules or bye­
laws framed thereunder.
(2) The State Government may also appoint persons to assist the 
Registrar and may by-general or special order, in writing, delegate 
to any such persons d r to any other Government officer all or any 
of the powers of the Registrar under this Act.
4. (1) A co-operative society's objective is to promote the economic 
interest or general welfare of its members or of the public through 
self help and mutual aid in accordance with co-operative principles 
or a co-operative society established with the object of facilitating 
the operations of any co-operative society may be registered under 
this Act with limited liability.
(2) No co-operative society shall be registered if in the opinion of 
the Registrar, its declared objects are unlikely to be achieved or it is 
likely to be economically unsound or it may have an adverse effect 
upon any registered co-operative society or the Co-operative 
Movement as a whole.
5. No person shall be an individual member of a registered co­
operative society unless he is eighteen years of age and above; 
provided that the bye-laws of a co-operative society may prescribe a 
higher minimum age.
6 (1) No co-operative society, other than a co-operative society of 
which a member is a registered co-operative society shall be 
registered under this Act which does not consist of at least fifteen 
eligible persons and in cases where the primary objects of the co­
operative society includes the raising of funds to be lent to its 
members, and where all the applicants are individuals, the 
applicants shall reside or own immovable property in the same 
town, village or group of villages or belong to the same class or 
pursue the same occupation.
(2) The word “limited” shall be the last word in the name of every 
co-operative society with limited liability registered under this Act.

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 813
Restrictions on 
acquisition of
Share in a Co-
operative
Society.
Power of 
Registrar 
to decide 
certain 
questions.
Liability.
Application for 
Registration.
Registration.
7. (1) No member of a registered co-operative society shall hold 
more than such portion of the Capital of the co-operative society as 
may be prescribed by the rules, or the bye-laws of the co-operative 
society.
(2) No member shall be allowed to acquire an additional share 
until he has paid in full the value of the whole or that portion of his 
shareholding which he is required to pay in accordance with the 
bye-laws of the co-operative society.
8. All disputes regarding membership for the purpose of the 
formation, registration or continuance of a co-operative society 
under this Act shall be decided by the Registrar.
9. (1) Theo  liability of a member of any co-operative society shall be 
limited.
10. (1) An application for registration shall be made to the Registrar.
(2) The application shall be signed -
(a) in the case of co-operative society of which no promoter 
is a registered Cooperative Society, by at least fifteen 
eligible persons; and
(b) in the case of co-operative society, of which at least one 
promoter is a registered co-operative society, by a duly 
authorized person on behalf of such registered co­
operative society and at least one other individual 
promoter or one other duly authorized person on behalf 
of another registered co-operative society.
(3) The application shall be accompanied by four copies of the 
proposed bye-laws of the Cooperative Society signed on behalf of the 
promoters by the President of the inaugural General Meeting. 
Promoters by whom or on whose behalf such application is made 
shall furnish such information in regard to the co-operative society 
as the Registrar may require and they shall be liable to the full 
extent of the share money which they have undertaken to subscribe 
with effect from the date of registration of the co-operative society.
11. (1) The Registrar shall decide all questions as to whether the 
application complies with the provision of this Act and rules made 
thereunder and whether the objects of the co-operative society are 
in accordance with section 4.
(2) When he is satisfied that the application is in order under 
sub-section (1) and the proposed bye-laws are not contrary thereto, 
he may register the co-operative society and its bye-law:

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 814
Evidence of 
registration.
Amendment of
the Bye-laws of 
a registered co­
operative 
society.
Provided that the Registrar shall have powers to register the 
bye-laws with such modifications as he thinks necessary to bring 
about uniformity in the main bye-law with provisions of the bye­
laws of other co-operative society which have similar objects or 
functions.
(3) The Registrar shall endorse the bye-laws in token of 
registration. Each Cooperative Society shall have a copy of its bye­
law so endorsed.
(4) If the Registrar refuses to register a co-operative society or 
an amendment of the bye-laws of a registered co-operative society 
he shall record his reasons in writing and communicate these 
reasons and his decisions to the promoters or the Secretary of a 
registered co-operative society within three months from the date of 
receipt of the application for registration by a registered letter to 
their office. The Registrar may at any time review his orders in this 
respect:
Provided that if the application for registration is not disposed 
of within the specified period of three months or the Registrar fails 
to communicate the order of refusal within that period, the 
application shall be deemed to have been accepted for registration.
12. A certificate of registration signed by the Registrar shall be 
issued to the co-operative society and shall be conclusive evidence 
that the co-operative society therein mentioned is a co-operative 
society duly registered under this Act and that its bye-laws are as 
attached to the Certificate, unless it is proved that the registration 
of the co-operative society has been cancelled or that amended bye­
laws have been registered or that the copy of the certificate of Co­
operative Society or bye-laws has been tampered with.
13. (1) No amendment of the bye-law of a registered co-operative 
society, whether by way of addition, alteration, omission, rescission 
or change of name shall be valid until such amendments has been 
registered under this Act.
(2) Every proposal for such amendment shall have to be 
approved by a resolution at a meeting of the General Assembly in 
accordance with the bye-laws of the co-operative society and be 
forwarded within a month from the date of adoption of the 
resolution to the Registrar and if the Registrar is satisfied that the 
proposed amendment is not contrary to the provision of this Act or 
rules or any law for the time being in force, he shall, unless for 
reasons to be recorded in writing he considers fit to refuse, register 
the amendment.
(3) When the Registrar registers an amendment of the bye-laws 
of a registered co-operative society, he shall issue to the co­

PART - N] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 815
operative society a copy of the amendment certified by him, which 
shall be conclusive evidence that the same has been duly 
registered, unless it is proved that the registration of the co­
operative society has been cancelled or that further amendments 
has been registered or that the co-operative society's copy of the 
amendment has been tampered with.
(4) The amendment shall be binding upon the co-operative 
society with effect from the date of registration.
14. (1) When it appears to the Registrar that an amendment of the 
bye-laws of a registered Cooperative Society is necessary in the 
interest of such Co-operative Society or of the Co-operative 
movement as a whole or for the purpose of bringing about 
uniformity bye-laws in the main with the provisions of the bye-laws 
of other Co-operative Societies which have similar objects or 
functions, he- may by an order in writing, direct the Co-operative 
Society to “am6nd its bye-laws in accordance with the amendment 
drafted and forwarded to the Co-operative Society by him within 
such time as he may specify in the order.
(2) If the co-operative society fails to make such amendment 
within the time specified the Registrar shall after giving the co­
operative society an opportunity of representing its case, make such 
amendment himself and register the same. The Registrar shall then 
forward a copy thereof to the co-operative society together with a 
certificate signed by him which shall be effective as prescribed in 
section 13 (3).
(3) The Registrar shall not register any amendment of the bye­
laws of a co-operative society, whether under this section or section 
13 of this Act, without the consent of the State Government if the 
effect of such amendment is to lessen the degree of control of the 
State Government or of the Registrar as already provided for in the 
bye-laws.
(4) The Registrar may require any registered co-operative 
society to frame rules of procedure under its bye-laws to govern any 
part of its business and to send such rules to him for approval.
(5) When it appears to an affiliating co-operative society that 
an amendment of the bye-laws of a registered co-operative society 
which is a member and debtor of such co-operative society is 
necessary in the interest of such affiliating co-operative society, it 
may suggest to the affiliated co-operative society that it makes the 
amendment within such time as it may specify. The affiliating co­
operative society shall forward to the affiliated co-operative society a 
draft of the suggested amendment of the bye-laws.
(6) If the co-operative society fails to implement the suggestion
Power of 
Registrar or 
affiliating co­
operative 
society to direct 
amendment of 
bye-laws or 
adoption of 
rules of 
procedure. ■

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 816
within the time specified, the affiliating co-operative society may 
forward to the Registrar the amendment which it considers 
necessary, and the Registrar, if satisfied that the amendment is 
necessary and not contrary to the provisions of this Act or the rules, 
may thereupon register the amendment and forward to the co­
operative society a copy thereof together with a certificate signed by 
him. The certificate shall be conclusive evidence that the 
amendment has been registered and such amendment shall there 
upon be binding upon the co-operative society and its members.
(7) In the interest of co-operative movement, the Registrar may 
with the approval of the State Government amend any clause of the
bye-laws of a co-operative society.
15. (1) Any registered co-operative society may, at a meeting of its 
General Assembly specially called for the purpose of resolving the 
matter to divide Go-pperative Society into two or more Co-operative 
Societies, at least fifteen clear days' notice of such meeting with the 
agenda shall be given to its members together with a copy of the -  
proposed resolution.
(2) Such a resolution shall contain the proposal as to how to 
divide the assets and liabilities of the co-operative society among 
the newly proposed co-operative society, their areas of operation 
and those who would constitute each of the newly proposed co­
operative society with draft new bye-laws.
(3) A copy of the resolution shall be sent to the Registrar within 
thirty days of its adoption and subject to the Registrar's non­
interference within thirty days of the dispatch to him of the 
resolution, the resolution shall be circulated among the members 
and creditors of the co-operative society.
(4) Notwithstanding any bye-laws to the contraiy, any member 
of the co-operative society and notwithstanding any agreement to 
the contrary, any creditor of the co-operative society, may by notice 
given to the co-operative society within thirty days of the receipt of 
the resolution, intimate in case of a member his intention not to 
become a member of any of the co-operative societies and in case of 
a creditor his intention to demand a return of the amount due to 
him.
Division and 
amalgamation
of co-operative 
societies*
(5) After the expiry of ninety days from the passing of the 
aforesaid resolution a meeting of the General Assembly shall be 
convened for deciding the final resolution. At least fifteen clear days’ 
notice with the agenda of the meeting shall be given to all members 
of the co-operative society.
(6) If the General Assembly decides by a three-fourth majority 
finally to divide the Co-operative Society and if the Registrar

PART - IV] THE GAZETTE OF MEGHALAYA, {EXTRAORDINARY) OCTOBER 7, 2015 817
approves of the decision, the members, who will constitute each of 
the newly proposed co-operative society subscribing to the newly 
drafted bye-laws shall apply to the Registrar under section 10 of the 
Act for registration of the new co-operative society and the Registrar 
shall register the co-operative societies under section 11 of the Act.
(7) The Registrar shall not register the new co-operative 
societies if the application for registration is not accompanied by a 
certificate of repayment of Share Capital to members and certificate 
of satisfaction of claims to creditors referred to in sub-section(4) of 
this section.
(8) From the date which the new co-operative societies were 
registered under sub-section (6) of this section the registration of 
the old co-operative society shall be deemed to have been cancelled.
(9) The registration of the new co-operative societies shall be a 
sufficient conveyance to vest the assets and liabilities of the original 
co-operative society according to the aforesaid resolution in the new 
co-operative societies.
(10) Two or more registered co-operative societies may at a 
meeting of their respective General Assemblies specially convened
for the purpose, by giving at least fifteen clear days’ notice to the 
respective members of the co-operative societies resolve to 
amalgamate into one cooperative society by adopting common bye­
laws.
(11) A copy of such resolution of each co-operative society shall 
be circulated forthwith among all members and creditors thereof. .
(12) Notwithstanding any bye-laws to the contrary, any member 
of any such Cooperative Societies and notwithstanding any 
agreement to the contrary, any creditor of any such co-operative 
societies, may within a period of thirty days from the receipt of the 
aforesaid resolution, intimate his intention not to become a member 
of the new co-operative society, and to demand a return of the 
amount due to him, in the case of a creditor.
(13) After the expiry of ninety days from the date of-the 
aforesaid resolution, a joint meeting of the members of such co­
operative societies shall be convened to decide finally the aforesaid
resolution. '
(14) At least fifteen clear days’ notice shall be given to all 
members of the co-operative societies. If at such meeting the 
aforesaid resolution is confirmed by a majority of three - fourth of 
the members of each co-operative societies present and the common 
bye-law are accepted with or without any alterations, the Registrar 
shall be moved by an application under section 10 of the Act for

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 818
registration and he shall register the new co-operative society under 
section 11 of the Act if he approves.
(15) The Registrar shall not register the new co-operative society 
if the application for registration is not accompanied by a certificate 
of repayment of share capital to members and a certificate of 
satisfaction of claims of creditors referred to in sub-section (12) of 
this section.
(16) From the date the new co-operative society was registered 
the registration of the old co-operative societies shall be deemed to 
have been cancelled.
(17) The registration of the new co-operative society shall be a 
sufficient conveyance to vest in it all the assets and liabilities of the 
original co-operative societies.
(18). Notwithstanding anything contained in sub-sections (1) to 
(17) of this section if the Registrar is of the opinion that for reasons 
of ensuring economic viability of any registered co-operative society 
or co-operative societies or avoiding overlapping or conflict of
jurisdictions of registered co-operative societies in any area or in
order to secure proper management by any co-operative society or 
in the public interest or in the interest of the cooperative movement 
in the State as a whole, it is necessary to divide, amalgamate or 
merge fully or partially any such co-operative society or cooperative 
societies with any specific co-operative society, he may, by an order 
published in the Official Gazette make a scheme for division or
amalgamation or merger with prior approval of the State
Government.
CHAPTER-III
RIGHTS AND LIABILITIES OF MEMBERS OF A REGISTERED  
CO-OPERATIVE SOCIETY.
Members not to 
exercise rights 
till due payment  
made and 
conditions 
fulfilled.
Vote of  
members.
16. No member of a registered co-operative society shall exercise the 
rights of a 'member unless or until he has made such payment to 
the co-operative society or acquire such interest in the co-operative 
society, as may be prescribed by the rules or bye-laws.
17. (1) Irrespective of the shares he holds in the co-operative society 
and subject to any temporary disqualifications from voting which 
may be prescribed in the bye-laws and to the provisions of section 
30(3) of the Act related to voting by representatives a member of a 
registered co-operative society shall have a single vote in the affairs 
of the co-operative society:
Provided that in case of an equality of votes the Chairman at 
any meeting shall have a second or casting vote:

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 819
Loan to be
utilized for the 
purpose for 
which advanced.
Restriction on 
transfer of share 
or interest.
Liability of past 
member and his 
estate.
Share or 
interest not 
liable to 
attachment.
Nomination of
transferee.
Provided further that the byelaw of a co-operative society may 
provide for more than one vote in the case of an affiliated co­
operative society:
(2) A registered co-operative society which is a member of 
another registered co-operative society may appoint one of its 
members qualified under any rule or bye-laws to vote in the affairs 
of such other co-operative society as its representative.
(3) Voting by proxy shall not be allowed except as prescribed in 
a registered co-operative society’s bye-laws:
Provided that in registering the bye-law of a co-operative society 
the Registrar shall not permit voting by proxy except in cases, such 
as those involving a wide area of operation, where it would be 
difficult for members to exercise “their rights” if voting by proxy 
were not permitted.
18. The Loan advanced by a registered co-operative society to a 
member thereof shall be utilized by him for the purpose for which it 
was advanced and for no other purpose. The co-operative society 
shall have power to recover the advance as prescribed if the 
member does not so utilize it.
19. The transfer or charge of the share or interest of a member in 
the capital of a registered co-operative society, shall be subject to 
such conditions as to maximum holding as may be prescribed by 
this Act or by the rules.
20. The liability of a past member and the estate of a deceased 
member for the debts of a registered co-operative society as they 
existed at the date of his ceasing to be a member or of his death, as 
the case may be, shall continue for a period of four years from the 
said date.
21. Notwithstanding anything contained in any law for the time 
being in force but subject to the provision of section 45 of this Act, 
the share or interest of a member in the capital of a registered co­
operative society or any fund under section 54 of the Act shall not 
be liable to attachment or sale under any decree or order of a court 
in respect of any debt or liability incurred by such member nor be 
subjected to any claim by a receiver under the Provincial Insolvency 
Act, 1920(ActVof 1920).
22. If the bye-laws of a registered cooperative society so permit, any 
member of the co-operative society may, in accordance therewith 
nominate a person or persons in whose favour the co-operative 
society shall dispose of the shares or interest of such member on 
his death.

PART - S V ] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 820
Transfer of
interest on 
death, of 
members.
Disposal of 
Shares
or interest of 
ceased
members.
Liability of
members
on winding up of
Co-operative
Society with
limited
Liability.
Restriction on 
Transfer of 
Possession of 
Land held 
Under a Co­
operative 
Society.
23. If a member of a registered co-operative society dies, his shares 
and interest in the co-operative society shall, subject to the 
provision of this Act, be transferred:-
(a) to the person, if any, nominated in accordance with the 
provision of section 22 of the Act;
(b) if there be no such nominee or if the nominee is not 
available or is difficult to be ascertained by the 
managing body, or if for any other cause such transfer 
cannot be made without unreasonable delay or 
difficulty, to the person as may appear to the managing 
body to be the heir or legal representative of the 
deceased member provided that ninety days have 
elapsed from the date of the member’s death. No new 
claim shall be entertained after the said period of 
ninety days.
24. If a member of a registered co-operative society is expelled or 
withdrawn or otherwise ceases to be a member under this Act, rules 
or bye-laws his share of interest shall be transferred to another 
eligible person, and the value thereon, determined in accordance 
with the rules, shall be paid to such ceased member if his share or 
interest is not forfeited under the provisions of this Act, rules or 
bye-laws or if he is insane, to any person appointed to manage his 
properties under the Indian Lunacy Act,1912:
Provided that if there is no eligible transferee and if the bye-laws 
of the co-operative society so provide the value of his share or 
interest determined in accordance with the bye-laws shall be paid to 
him or, if he is insane, to any person appointed to manage his 
properties under the Lunacy Act,1912(Act IV of 1912).
25. The members of a registered cooperative society shall in the 
winding up of the co-operative society be jointly and severally liable 
to contribute towards any deficiency in the assets of the co­
operative society, subject to such limitation of amount as may be 
provided in the bye-laws.
26. Notwithstanding anything in any law for the time being in- 
force,-
(iii) a member of a registered co-operative society, the object 
of which is to develop co-operative or collective farming, 
shall not be entitled to transfer his possession or 
interest in any land held by him under the cooperative 
society, except to the co-operative society or with the 
previous approval of the managing body and in 
accordance with its bye-law to a member thereof or to a

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 821
person who will be admitted as a member of the co­
operative society;
(iv) on the death of such a member, his possession of an 
interest in, any such land held by him under the co­
operative society shall come to his nominee in 
accordance with the provisions of Section 22 or to the 
first eligible heir willing to become a member of the 
Cooperative Society;
(v) if no nominee or heir becomes a member the possession 
of an interest in such land of the deceased shall vest in 
the co-operative society, which shall pay to the nominee 
or the heir a sum equivalent to the value of the share 
and interest of the deceased member and any other sum 
due from the co-operative society as determined in 
accordance with this Act or rules framed thereunder 
after deducting all dues which the deceased member 
owed to the co-operative society;
(vi) if there is no person qualified to succeed to the share or 
interest of the deceased member, the co-operative 
society shall pay to his heir, executor or the legal 
representative, as the case may be, a sum equivalent to 
the value of the share and interest of the deceased 
member as determined in accordance with the rules 
after deducting the dues of the deceased to the co­
operative society;
(vii) if a member ceases to be a member of such a society 
under this Act, rules or bye-laws, his possession of an 
interest in any such land held by him under the co­
operative society shall come to the co-operative society, 
if the bye-laws allow and if the share and interest of the 
member is not forfeited under this Act or rules framed 
thereunder, the co-operative society shall pay to the 
ceased member a sum equivalent to the value of the 
share and interest of such member and any other sum 
due to him from the co-operative society after deducting 
his debts to the co-operative society, if any;
(viii) no land held under a registered cooperative society 
specified in clause (a) by a member, thereof, or vested 
under clause (b) in the nominee or heir of such member, 
shall be attachable in any suit or proceeding for the 
recovery of any debt other than a debt due to the co­
operative society or to a member thereof; and
(ix) no land shall vest in such a co-operative society by 
reason of the provision of this section unless it is owned

PART - IV] THE GAZETTE OF MEGHALAYA, ( EXTRAORDINARY)  OCTOBER 7, 2015 822
Right of a  
registered 
Cooperative 
Society to pay  
prior
Debts of a 
mortgagor.
Restriction on
Mortgaged
Property.
by the co-operative society or has been leased to the co­
operative society and if the co-operative society holds the 
land by lease or contract, the land shall vest in the co­
operative society only during the pendency of the lease 
or contract.
27. (1) Where a mortgage is executed in favour of a registered co­
operative society for payment of prior debts or part thereof, of the 
mortgagor secured on the mortgaged property, the registered co­
operative society may by notice in writing and served by registered 
post with due acknowledgement, require any person to whom any 
such debt is due to receive payment of such debt or part thereof 
from the co-operative society at its registered office within such 
period as may be specified in the notice.
(2) The person on whom such notice is served shall be bound to 
receive payment of-the amount offered by the co-operative society, 
but where there" is disagreement or dispute between the mortgagor 
and such person as regards the amount of the debt, or where the 
co-operative society tenders less than the agreed amount of debt, 
the receipt of the sum offered by the co-operative society shall not 
debar such person from enforcing his right to recover the balance 
claimed by him.
(3) If any such person refuses to receive such notice or such 
payment, such debt or part thereof as the case may be, shall cease 
to cany interest from the expiration of the period specified in the 
notice and the property mortgaged under sub-section (1) shall be 
deemed to have been freed from the encumbrance ’ of such prior 
mortgage.
(4) No co-operative society shall advance a loan on a mortgage 
without taking a declaration from the prospective mortgagor as to 
the names of prior mortgages of the property in question, if any.
28. Where land is mortgaged to a registered co-operative society , -
(a) the mortgagor shall not be entitled without the approval 
of the co-operative society to transfer or mortgage his 
equity of redemption or to create a charge upon or lease 
out such property for a period exceeding three years;
(b) if the mortgaged property at any time is wholly, or 
partially destroyed or the security is rendered 
insufficient due to fall in value or for any other reason 
and the mortgagor having been given a reasonable 
opportunity by the co-operative society of providing for 
further security sufficient to cover the loan or of 
repaying the loan with interest or such portion of the 
loan as may be determined by the supervisory ,

PART - IV] THE GAZETTE OF MEGHALAYA, (EXTRAORDINARY) OCTOBER 7, 2015 823
managing or controlling body and the mortgagor having 
failed to provide such security or repay such portion of 
the loan, the whole of the loan or such, uncovered 
portion shall be deemed to fall due at once and 
recoverable through a co-operative demand certificate;
(c) the mortgaged property, in case of default of payment 
of mortgage money or any part thereof, may be sold by 
the co-operative society as prescribed by rules in 
addition to any other remedy available to it, without the 
intervention of the court, if a power of sale without the 
intervention of court, is expressly conferred by the 
mortgage deed:
Provided the co-operative society serves a notice in 
writing by registered post demanding payment of the 
»mortgage money with interest, or part thereof, upon the 
mortgagor or, any person having an interest in or 
charge upon the mortgaged property or the equity of 
redemption who has previously notified the co-operative 
society such interest or charge in writing or any surety, 
and if default has been made in payment of the loan or 
part thereof for three months after such service of 
notice:
Provided further that any party aggrieved by an 
action taken by a registered co-operative society under 
this section may prefer an apj eal to the Registrar within 
thirty days from the date of v  he sale and his decision 
shall be final:
Provided also that all transfer of land under this 
Act shall be in accordance with the provisions of the 
Meghalaya Transfer of Land (Regulation) Act, 1971.
Bar to certain 29. All payments and transfer made by a registered co-operative
claim. society under this chapter, shall be valid and effectual against any 
demand made upon the co-operative society by any other person.
General
Assembly.
CBAPTBIMV
MANAGEMENT
30. (1) The General Assembly of a registered co-operative society 
shall consist of all those who are eligible to vote at general meetings
of the co-operative society.
(2) Every member of a registered co-operative society and every 
ex-officio member of the Administrative Council or Managing Body 
of such co-operative society, unless under some temporary

PART - IV] THE GAZETTE OF MEGHALAYA, ( EXTRAORDINARY)  OCTOBER 7, 2015 824
disqualification shall have the right to attend any general meeting of 
the co-operative society and to exercise his vote at such meeting 
provided that the bye-laws of a registered co-operative society may 
so prescribe-
(a) that a registered co-operative society affiliated to such co­
operative society may have more than one representative 
entitled to vote at a general meeting of the co-operative 
society; and
(b) that

Excerpt shown. Open the full act in Lexace.

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