LexThe UTTARAKHAND CO-OPERATIVE SOCIETIES ACT, 2003
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THE UTTARAKHAND CO-OPERATIVE SOCIETIES ACT, 2003
(Uttarakhand Act No. 05 of 2003)
AN
ACT
Be it enacted in the Fifty -fourth year of the Republic of India a replacing bill of Uttar Pradesh
Co-operative Societies Act, 1965 enacted to provide for Co-operative Society in the state of Uttarakhand.
It is hereby enacted in the Fifty-Fourth year of the Republic of India as follows:-
CHAPTER -1
PREIMINARY
Short title,
extent and
Commencement
1. (1) This Act may be called the Uttarakhand Co-operative Societies Act, 2003.
(2) It extends to the whole of the State of Uttarakhand.
(3) It shall come into force from such date as the State Government may by
notification in the Gazette, appoint in this behalf :
Provided that while appointing such date the State Government may
declare that any provisions to be specified in the declaration shall not come
into force from the date so appointed and in that case such provisions shall
come into force from such date or dated as the State Government may
similarly appoint in that behalf.
Definition 2. In this Act, unless the context otherwise requires,
(A) “Co-operative society” means a society registered or deemed to be registered
under this Act;
(B) Primary Society is a Co -operative Society of which no member is a
registered society;
(B-1) “Credit Society” means a society which has as its primary object the
raising of funds to be lent to its members :
Provided that;
(i) a co-operative marketing society, the area of operation whereof is only
a part of a district or part of more than one d istrict shall be deemed to
be a primary society whether or not any other co -operative society is
its ordinary member,
(ii) a primary co -operative society any share whereof has been purchased
under Chapter VI, by a central or apex society shall continue to be a
primary society notwithstanding the purchase of such shares;
(iii) a co-operative society, the area of operation whereof is only a part of a
district and the primary object whereof is to arrange for the storage and
distribution of seeds, fertilizers, pesticides , agricultural appliances or
consumer goods to its ordinary members and the membership whereof
includes any other co -operative society notwithstanding the
membership of other co-operative society in it.
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(B-2) “Central Society” or Central co -operative Society” means a co -operative
society, which has any other co -operative society as its ordinary member and is not a
primary co-operative society;
(C) “Apex Society” Apex level society” or State level Co-operative society” means;
(i) the area of operation of which extends to the whole State of Uttarakhand.
(ii) the main object of which is to promote the principal objects of societies
affiliated to it as members & to provide for the facilities & services to
them.
(iii) which has been classified as an apex society by the Registrar.
(D) “Agricultural society” means a co -operative society the majority of the ordinar y
members whereof are primarily engaged in agricultural occupation which shall
include production, processing or marketing of agricultural crops, horticulture,
tea, sericulture and animal husbandry which includes piggery, Pisciculture,
poultry farming and dairying;
(E) “Arbitrator” means a person appointed under this Act to decide disputes referred
to him by the Registrar;
(E-1) “Board of Arbitrators” means a body appointed under this Act to decide
disputes referred to it by the Registrar;
(F) “Bye-laws” means the registered bye-laws of a co-operative society for the time
being in force;
(G) “Co-operative soc iety with limited liability means a co -operative society in
which the liability of its members for the debts of the society in the event of its
being wound up is limited by its bye-laws;
(H) “Co-operative society with unlimited liability” means a co -operative society the
members of which are, in the event of its being wound up, jointly and severally
liable for in respect of all its obligations and to contribute to any deficit in the
assets of the society;
(I) “Committee of management” means the committee of a co -operative society, by
whatever name called, to which the management of the affairs of the society is
entrusted;
(J) “Co-operative year” means the year commencing on the first day of April and
ending on the thirty-first day of March next following;
(K) Dividend means the amount paid out of the profits of a society, to a member in
proportion to the shares held by him;
(L) Financing Bank” means a Co -operative society, the main object of which is to
assist any affiliated or other co -operative societ y by giving loans or advancing
money & includes any scheduled bank as defined in the Reserve Bank of India,
Act 1934 & such other body corporate or financial institution as may be notified
by the Govt. from time to time, which gives financial or othe r aid to a co -
operative society;
(L-1) “Co-operative bank” means a society which is doing the business of banking as
defined in clause of sub section (1) of section 5 of the Banking Regulation Act,
1949.
(L-2) “Urban co -operative Bank” means a primary co -operative bank other than
a primary agricultural credit society;
(i) The primary object of which is the transaction of banking business;
(ii) The paid up share capital and reserves of which are not less than one
lacs rupees, and
(iii) The bye -laws of which do not permi t admission of any other co -
operative society as a member.
(M) “Liquidator” means a person appointed by the Registrar under this Act to
wind up the affairs of a co-operative society;
(N) “Maximum liability” means the maximum amount that can be borrowed b y
a co-operative society. It does not include share capital;
(O) “Member” means a person who joined in the application for registration of a
society or a person admitted to membership after such registration in
accordance with the provisions of this Act, the rules and the bye -laws for
the time being in force but a reference to “members” anywhere in this Act
in connection which the possession or exercise of any right of power or the
existence or discharge of any liability or duty shall not include reference to
any class of members who by reason of the provisions of this Act do not
possess such right or power or have no such liability or duty;
(P) “Officer of a co -operative society” means the President, Vice -president,
Chairman, Vice -Chairman, Secretary, mem ber of Committee, of
Management, Treasurer, Liquidator, Administrator or any other person
employed by a co -operative society whether with or without remuneration
to carry on the business of the society or to supervise its affairs;
(Q) “Ordinary member” me ans a member of a co -operative society having a
right to vote in the affairs of the society in accordance with the provisions
of this Act, the rules and the bye-laws;
(R) “Prescribed” means prescribed by rules;
(S) “Registrar” means the person appointed as Registrar of co -operative
societies under sub -section (1) of section 3 and includes any person
appointed under sub-section (2) of that section when exercising all or any of
the powers of the Registrar;
(T) “Rules” means rules made under this Act;
(U) “State Government” means the Government of Uttarakhand;
(V) “Tribunal” means a co-operative Tribunal under this Act;
(W) “The State Co -operative council” means the council constituted for
Uttarakhand State under chapter XIII-A of this Act.
[(X) Election Authority means the Co -operative Election Authority constituted
by the State Government.]1
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1- Add. by section 2 of Uttrakhand Act no 10 of 2015.
CHAPTER-II
REGISTRAR AND REGISTRATION
Registrar and
other officers
and their powers
3. (1) For carrying out purposes of this Act, the State Govt. may appoint a person
to be the Registrar of co-operative societies for the State.
(2) To assist the registrar in his function under this Act, the State Govt. may
appoint such number o f Additional Registrars, Joint Registrar, Dy .
Registrars, Assistant Registrars and other persons with such designation as
it may think.
(3) (a) the State Govt. may by general or special order, confer on a person or
persons appointed under section 2 all or a ny of the powers of Registrar
under this Act;
(b) every person appointed under sub section (2) shall work under the
general guidance and the superintendence and control of the Registrar;
(c) where any order has been made under sub section (2) conferring on any
person all or any of the powers of the Registrar under any provision of
this Act such order shall be deemed to confer on him al l the powers
under that provision as may be amended from time to time.
Societies which
may be
registered
4. Subject to the provisions of this Act, a society which has as its objects the
promotion of the economic interest of its members or their general welfare
in accordance with co -operative principles’ or a society established with
the object of facilitating the operations of such a society, may be registered
under this Act :
Provided that it shall not be registered, if in the opinion of the
Registrar, it is economically unsound, or its registration may have an
adverse effect upon any other society, or it is opposed to, or its working is
likely to be in contravention of public policy;
Co-operative principles shall include:
(1) Voluntary and open membership;
(2) Democratic member control;
(3) Member economic participation;
(4) Autonomy & independence;
(5) Education, training & information;
(6) Co-operation amongst co-operatives;
(7) Concern for community.
Registration
with limited or
unlimited
liability
5. (1) A society may be registered as a co -operative society with limited or
unlimited liability:
Provided that a society having another co -operative society as its
ordinary member shall be registered only with limited liability.
(2) The word or its equivalent in English” Limited” shall be the last word in
the name of a society registered under this Act with limited liability.
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Application for
registration
6. (1) An application for the registration of a society shall be made in the manner
prescribed by the Registrar in such forms as the Registrar may from time to
time specify; and the applicants shall furnish to him all such information’s
about the society as he may require.
(2) Every such application shall conform to the following requirements namely-
(a) That it is accompanied by three copies of the proposed bye -laws of the
society;
(b) That the applicants are eligible for membership under section 17.
(c) That the application is duly signed by every applicant himself, if he is
an individual, and by a duly authorized person if the applicant is any of
the persons mentioned in any of the clauses (b) to (g) lf section 17;
(d) That the number of applicants, who are to be ordinary members of the
society, is not less than ten, if all the applicants are individuals, and is
not less than five in all other cases;
(e) That where the objects of the society include the creation of funds to be
lent to its members, all the applicants who are to be the ordinary
members of society, if individuals reside in the same town or village or
a group of contiguous villages, or belong to the same class.
Explanation: - For the purposes of this clause any two or more persons shall be
deemed to belong to the same class, if they pursue the same
occupation or are under a common employers.
Registration 7. (1) If the Registrar is satisfied-
(a) that the application complies with the provisions of this act and the
rules;
(b) that the object of the proposed society are in accordance with section
4;
(c) that the proposed bye -laws are not inconsistent with the provisions of
this Act and the rules; and
(d) that the proposed society complies with the requirements of rules in
regard to the existence of any condi tions in general or for the class of
societies to which the particular society belongs and with the
requirements of sound business and has reasonable chances of success:
The Regist rar shall resister the society and its by -laws.
However, if the Registrar d oes not pass final orders thereon either
registering the society or refusing its registration within two months
from the date of the receipt of the application by him, the applicants
may make a representation to the authority competent to hear under
section 98 appeals against after calling for a report from the Registrar,
passes an order for registration of society, the society shall be deemed
to have been duly registered from the date of communication of such
order to the Registrar.
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(2) Where the Registrar refuses to register a society, he shall communicate the
order of refusal together with the reasons to such applicant as has been
named in the application for this purpose and in default of such naming, t o
any one of the applicant.
Registration
certificate
8. (1) Where a society is registered under this Act or deemed to be registered under
the provision to sub section (1) of section 7, the Registrar shall issue a
certificate of registration signed by him which, unless the registration is
proved to have been cancelled, shall be conclusive evidence that the society
therein mentioned is a co-operative society duly registered under this Act.
(2) No person or society shall commence business in the name of, or professing
to be, a co -operative society unless a certificate of registration has been
obtained under sub-section (1) for such society and every person or member
of society carrying on business in contravention of this sub section, shall be
personally liable for all liabilities incurred in such business.
Co-operative
societies to be
bodies
corporate
9. The registration of a society shall render it a body corporate by the name
under which it is registered, having perpetual succession and a common seal,
and with power to hold property, enter into contracts, institute and defend
suits and other legal proceedings and to do all things necessary for the
purpose for which it was constituted.
Change of name
of co -operative
society
10. (1) A co-operative society may, by amending its bye-laws, change its name,
(2) Where a co-operative society changes its name, the Registrar shall enter the
new name on the register of co -operative societies in place of the former
name and shall amend the certificate of registration accordingly.
(3) The change of name of a co -operative society shall not affect any rights or
obligations of the society or of a ny of its members, past members, officers,
past officers, of the heirs of any of them, if deceased, or render defective
any legal proceeding by or against the co -operative society and any legal
proceedings which might have been continued or commenced by or against
the society by its former name, m ay be continued or commenced by its new
name.
Change of
liabilities
11. (1) Subject to the provisions of this Act and the rules, a co -operative society
may be an amendment of its bye -laws, change the form or extent of its
liability.
(2) When a co -operative 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 any bye -law or contract to the contrary,
any member or creditor shall, during a period of three months from the date
of service of the notice upon him, have the option of withdrawing, subj ect
to the provisions of section 41, his shares, deposits or loans as the case may
be.
(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.
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(4) An amendment of the bye-laws of a co -operative society changing the form
or extent of its liability shall not be registered until, either--
(a) it has been assented to or deemed to have been assented to by all the
members and creditors; or
all claims of members and creditors who exercise the option referred to in
sub-section (2) within the period specified therein have been met in full.
Amendment of
bye-laws of a
co-operative
society
12. (1) A co -operative society may, subj ect to the provisions of this Act and the
rules, amend its bye-laws in the manner prescribed :
Provided that no such amendment shall be valid and operative
unless it has been registered under this Act.
(2) The proposal for an amendment of the bye -laws shall be forwarded to the
Registrar and if the Registrar is satisfied that the proposed amendment-
(i) is not contrary to the objects specified in section 4 of the Act; and
(ii) is not contrary to the other provisions of the Act or the rules, he may
register the amendment.
(3) Where the Registrar refuses to register an amendment of the bye -laws of a
co-operative society, he shall communicate the order of refusal, together
with the reasons thereof, the society.
When
amendments of
bye-laws come
into force
13. An amendment of the bye -laws of a co -operative society shall, if it is
expressed to come into operation on a particular day after registration, come
into force on that day, but in all other cases on the day on which it is
registered.
Power to direct
amendments in
bye-laws
14. (1) Where the Registrar is of the opinion, whether on the representation of a
member of a co -operative society, or otherwise, that an amendment in the
bye-laws of a co-operative society is necessary or desirable in the interests of
such society or in pu blic interest, he may, under such circumstances as may
be prescribed, by order in writing issued to the society by registered post,
require the society to make the amendment within such time as he may
specify in the order.
(2) If the society fails to make the amendment with in the time specified, the
Registrar may, after giving the society an opportunity of being heard, register
such amendment and issue to the society by registered post a copy of the
amendment certified by him which shall be conclusive evidence that the
amendment has been duly made and the bye -laws as amended shall, subject
to appeal (if any) be binding on the society and its members.
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Amalgamation
and merger of
co-operative
societies
15. (1) Any two or more co -operative societies may, after duly informing the
Registrar, at their respec tive ordinary general meetings, called for the
purpose, of which at least fifteen clear days notice shall be given to their
respective members, resolve, by a m ajority of at least two -thirds of the
members present, to amalgamate into one society or to merge into any of
them, the Resolution (hereinafter called preliminary resolution) shall contain
all particulars of amalgamation or merger, as the case may be, incl uding the
transfer of assets and liabilities to the new society in case of amalgamation
and to the continuing society in case of merger and also the bye -laws of such
a society.
(2) Notwithstanding any other provision of this act or of any bye -laws of any
society, notices of any meeting referred to in sub section (1) or sub section
(4) shall be given to the members of the societies concerned, and copies of
the preliminary resolution shall be served on the members and creditors of
such societies in any one or more of the following manners, namely—
(a) By delivery in person under acknowledgement in writing, or
(b) Except in respect of any person who has acknowledged receipt in writing
under clause (a), by post under certificate of posting at the address of
each such pe rson as noted in the society’s records, and also by
publication in a newspaper having circulation in the area of operation of
the society.
(3) (i) Any member of any such society may, notwithstanding any bye -law to the
contrary, by notice of the society of which he is a member (within a
period of thirty days from the date of receipt of the copy of the
preliminary resolution under clause (a) of sub -section (2) or, as the case
may be, from the date of its publication in a newspaper under clause (b)
of that sub-section) intimate his intention not to become a member of the
new society in case of amalgamation, or to be a member of the continuing
society in case of merger.
(ii) Any creditor of any such society may, notwithstanding any agreement to
the contrary, b y notice given to the society of which he is a creditor
within the said period, intimate his intention to demand a return of the
amount outstanding to his credit.
(4) After the expiry of [the period referred to in clause (i) of sub section(3)] a
joint meeting of the members of such societies of which at least fifteen clear
days, notice shal l be given to them , shall be convened for considering the
preliminary resolution, if, at such meeting, the preliminary resolution is
confirmed by a resolution passed by a majority of not less than two thirds of
the members, present, either without changes or with such changes as in the
opinion of the Registrar, are not material which shall be final, he may –
(i) in the case of amalgamation, subject to the provisions of sub -section
(5) and (6) and section 7, register the new society and the bye -laws
thereof; and
(ii) in the case of merger, give subject to the provisions of sub -section (5)
and (6), his sanction thereto.
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Explanation:- for the purpose of this sub -section the term “members” shall
include any delegates of members selected for the purpose in accordance
with rules, made in this behalf.
(5) While confirming the preliminary resolution under sub-section (4), provision
shall be made by another resolution for—
(i) the repayment, subject to the provision of section 41, of the share
capital of all the members who have given notice under clause (i) of sub
section (3); and
(ii) the satisfaction of the claims of all the creditors who have gi ven notice
under clause(ii) of sub section (3).
(6) If, within such time the Registrar considers reasonable, the share capital of
the members, referred to in sub-section (5) is not repaid or the claims of the
creditors referred to in that sub -section are not satisfied, the Registrar may
refuse to register the new society or to sanction the merger, as the case may
be.
(7) The registration of a new society or the sanction of merger under sub-section
(4) shall be a sufficient conveyance to vest in the new s ociety in the case of
amalgamation and in the continuing society in the case of merger, all the
assets and liabilities of the amalgamated societies or merged society or
societies, as the case may be, anything contained in any other law for the
time being in force to the contrary notwithstanding; and on such registration
of a new society or sanction or merger, as the case may be the registration
of the amalgamated societies or of the society or societies which has or have
merged into another society, shall be deemed to have been cancelled.
Division co-
operative
societies
16. (1) Any co -operative society may, after duly informing the Registrar, at a
general meeting called for the purpose of which, at least fifteen clear days
notice shall be given to its members , resolve to divide it self into two or
more societies. The resolution (hereinafter in this section referred to as the
preliminary resolution) shall contain proposals for the division of the assets
and liabilities of the society among the new societies int o which it is
proposed to divide it and may prescribe the area of operation of and specify
the members who will constitute each of the new societies.
(2) Notwithstanding any other provision of this Act or of any bye -law of such
society, notice of any meeting referred to in this section shall be given to the
members of the society and a copy of the preliminary resolution shall be
served on the members and creditors of the society in any one or more of the
manners specified in sub section (2) of section 15, whic h shall mutatis
mutandis apply.
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(3) (i) any member of the society may, notwithstanding any bye -law to the
contrary, by notice given to the society [ within a period of thirty days from
the date of receipt of a copy of the preliminary resolution under clause (a) of
sub section (2) of section 15 as applicable by virtue of sub section (2) of this
section, or as the case may be, from the date of its publication in a newspaper
under clause (b) thereof], intimate his intention not to become a member of
any of the new societies.
(ii) any creditor of the society may, notwithstanding any agreement to the
contrary, by notice given to the society within the said period, intimate his
intention to demand return of the amount outstanding to his credit.
(4) After the expiry of [the period referred to in clause (i) of sub section (3)] a
general meeting of which at least fifteen clear days notice shall be given to
its members, shall be convened for considering the preliminar y resolution.
If, at such meeting, the preliminary resolution is conformed by a resolution
passed by a majority of not less than two -thirds of the members pre sent,
either without changes or with such changes, as in the opinion of the
Registrar are not mate rial, he may, subject to the provisions of sub sec tion
(5) and (6) and section 7, register the new socie ties and the bye -laws
thereof, on such registration , the registration of the old society shall be
deemed to have been cancelled.
(5) While confirming th e preliminary resolution under sub -section (4),
provisions shall be made by another resolution for;
(i) The repayment, subject to the provisions of section 41, of the share
capital of all the members who have given notice under clause (i) of sub
section (3); and
(ii) The satisfaction of the claims of all the creditors who have given notice
under clause (ii) of sub-section (3).
(6) If, within such times as the Registrar considers reasonable, the share capital
of the members, referred to in sub section (5) is not re paid or the claims of
the creditors referred to in that sub -section are not satisfied, the Registrar
may refuse to register the new societies.
(7) Notwithstanding any thing in any other law for the time being in force, the
registration of the new societie s shall be a sufficient conveyance to vest the
assets and liabilities of the original society in the new societies in the
manner specified in the preliminary resolution as confirmed under sub -
section (4).
Powers of
Registrar to
direct amalgam-
mation or
merger of co -
operative socie -
ties
16.A (1) Where in the opinion of the Registrar amalgamation or merger of two or
more co -operative societies is necessary or desirable for increasing their
strength or usefulness, he may, notwithstanding anything to the contrary
contained in this Act, after consulting the financing bank, if any, to which
the societies are indebted, call upon such societies by order in by writing, to
amalgamate or merge, within such time as may be specified by him, into
one society, and thereupon t he societies shall take all such steps, as may be
necessary for that purpose in accordance with the provisions of section 15.
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(2) On the failure of the societies to amalgamate or merge in accordance
with the order pass ed under sub section (1) the Registrar may, by order
in writing, direct amalgamation or merger of the societies into one
society.
The direction of the Registrar under sub -section (2) shall be deemed to
be a preliminary resolution of the societies concerned for the purpose of
sub-section (2) and (3) of section 15, and the Registrar shall take such
further steps as required by that section.
(3) After the expiry of thirty days from the date of receipt of the copy of the
preliminary resolution under clause (a) of sub section (2) of section 15
or, as the case may be, from the date of its publication in a newspaper
under clause (b) of that sub section, the Registrar shall, from the funds of
the societies concerned, repay, subject to the provisions of section 41,
the share capital of all the members, and satisfy the claims of all the
creditors, who have given notice under clause (i) and clause (ii)
respectively of sub section (3) of section 15 and thereafter declare the
amalgamation or merger, as the case may be, of the societies and in the
case of amalgamation register the new society so formed and its bye -
laws.
(4) A declaration of merger or registration of the new society under sub
section (4) shall be deemed to be a merger or registration under section
15 and the provisions of sub section (7) of that section shall apply to it.
Power of
Registrar to
direct division of a
co-
operative society
into two or more
co-
operative societies
16.B (1) Where in the opinion of the Registrar it is essential in public interest or in
the interest of the co -operative movement, or desirable for the purpose of
securing better management of a co -operative society, that any co -
operative society should be divided to form two or more societies, he
may, notwithstanding anything to the contrary contained in this Act, after
consulting the financing bank, if any, to which the society is indebted,
call upon such society by order in writing to divide itself into two or more
societies with such constitutions, assets, liabilities, rights, duties and
obligations as may be specified in the order, and thereupon the society
shall take all such steps as may be necessary for that purpose in
accordance with the provisions of section 16.
(2) On the failure of the society to divide itself in accordance with the orde r
passed under sub section (1), the Registrar may by order in writing,
direct division of the society into two or more societies.
(3) The direction of the Registrar under sub section (2) shall be deemed to
be a preliminary resolution of the society concerned f or the purpose of
section 16, and the Registrar shall take such further steps as are required
by that section.
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(4) After the expiry of thirty days from the date of receipt of the copy of the
preliminary resolution under c lause (a) of sub section (2) of section 15, or
as the case may be, from the date of its publication in a newspaper under
clause (b) of that sub -section the Registrar shall, from the funds of the
society concerned repay subject to provision of section 41, t he share capital
of all the members, and satisfy the claims of all the creditors who have
given notice under clause (i) and clause(ii) respectively of sub section (3) of
section 16, and thereafter register the new societies and the bye -laws
thereof. On suc h registration the registration of the old society shall be
deemed to have been cancelled.
(5) The registration of the new societies under sub-section (4) shall be deemed to
be registration under section 16 and the provisions of sub -section (7) of that
section shall apply to them.
CHAPTER-III
Members of Co-operative societies and their rights and liabilities
Person, who may
be members of a
co-operative
society
17. (1) No person shall be a member of a co -operative society except the following
namely—
(a) an individual, who is competent to contract under the Indian Contract
Act, 1872 excepting the provisions contained in section 18 (3) (a)
section 80 and sub-section 2 of section 81 & in respect of an
individual seeking admission to a society exclusively form ed for the
benefit of students of a school, college or University;
(b) any other co-operative society;
(c) the State Government;
(d) the Central Government;
(e) the state Warehousing corporation established or deemed to be
established under the Warehousing Corporation Act , 1962 (Act L
VIII of 1962);
(f) a firm registered under the Indian partnership Act, 1932;
(g) a body corporate not covered by any other clause and approved by the
Registrar, for ordinary or nominal membership of co -operative
societies in general or any particular co-operative society or class of
co-operative societies on the ground of its being useful in the
development of such societies, society or class of societies;
(h) self help groups which fulfill the parameters approved by NABARD
National Bank of Agriculture & rural Development);
(i) there shall be no restriction as to minimum age limit in societies
constituted for the benefit of students.
(2) Notwithstanding any thing contained in sub -section (1) a joint -stock
company or an individual shall not be admitted as an ordina ry member in
such co-operative society or societies or class of a co -operative societies as
may be prescribed.
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Classes of
members
18. (1) A co -operative society may, in addition to ordinary members, have the
following kinds of members—
(a) Nominal members;
(b) Associate members;
(2) (a) a person with whom the co -operative society has or proposes to have
business dealing may be admitted as a nominal member;
(b) a nominal member shall have no right to share in the profits of t he society
nor shall be eligible for the membership of the committee of management.
(3)(a) any individual including a minor who is a seasonal or temporary worker or
apprentice in the business of the society or who is otherwise interested in
such business may be admitted as an Associate member;
(b) an Associate member shall not be eligible for the membership of the
committee of management nor have a right to share in the profits otherwise
than as wages and bonus.
(4) Save as provided in this section or e lsewhere in this Act, a nominal or
Associate member shall have such privileges and rights of a member and be
subject of such liabilities of a member, as may be specified in the bye -laws
of the society, or the rules.
Member not to
exercise right
till due payment
made
19. No member of a co -operative society shall exercise the rights of a member
unless he has made such payment to the society in respect of membership or
has acquired such interest in the society as may be specified in the rules or
the bye-laws of the society.
Vote of
members
20. A member of a co -operative society shall, notwithstanding the quantum of
his interest in the capital of the society, have one vot e in the affairs of the
society :
Provided further that—2
(a) no nominal or associate member shall have the right of vote;
(aa) a member shall have no right of vote if-
(i) he is defaulter and has been a defaulter f or a period of not less
than six months; or
(ii) he is a delegate of a society which is such defaulter as is referred
to in sub-clause (i)
Explanation—
(1) for the purpose of this clause, the word “defaulter” means-
(i) a member (whether individual or body corporate) who has failed
to pay any dues of the society concerned on the due date; or
(ii) a member co -operative society which has failed to pay not less
than 75 percent of the total dues on the due date.
(2) In the case of a transaction between a society and its members where
there is no documents evidencing the transaction in which the due date
is specified the expression due date, for the purposes of the preceding
explanation shall mean the date of expiration of six months from the
date of transaction.
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(3) A member shall cease to be treated as defaulter if he pays th e sum for
non-payment of which such member became defaulter—
(i) in the case of an election, on or before the date fixed under the rules
for deciding objections against the provisional voters, list;
(ii) in any other case before the commencement of the meeting;
(b) Where a co-operative society, the State Warehousing Corporation or a body
corporate is a member of such society, each delegate of such co -operative
societies, State Warehousing corporation or body corporate, (appointed in
the prescribed manner) to the general body of such society shall have one
vote;
(c) Where the State Government or the Central Government is a member of such
society, each person nominated according to the laws by the State
Government or the Central Government on the committee of manag ement or
the general body of the co-operative society shall have one vote;
(d) The rules or the bye -laws may provide for a group of members or any class
of members partaking in the affairs of the society through a delegate or
delegates, each delegate having one vote.
Manner of
exercising vote
21. Every individual member, every delegate and every nominee shall exercise
his vote in the affairs of a co -operative society in person and no member,
delegate or nominee shall be permitted to vote by proxy.
Restriction on
holding of
shares
22. A member who is an individual shall-
(a) neither hold more than such portion of the total share capital of the society,
nor exceeding one-fifth thereof, as may be prescribed;
(b) nor have or claim any interest in the shares of the society exceeding (such
amount as may be prescribed) in nominal value.
Restriction on
transfer of
shares or interest
23. (1) The transfer of a share or interest of a member in the capital of a co -
operative society shall be subject to such conditions and restrictions as to
the maximum holding as are specified in section 22.
(2) No transfer by a member of his share or interest in the capital of a co -
operative society shall be valid unless—
(a) the member has held such share or interest for not less than one year;
(b) the transfer is made to the society or a member of the society; and
(c) the transfer is approved by the committee of management of the
society.
(3) Notwithstanding anything contained in sub -section (2) a co -operative
society may, subject to such conditions as may be prescribed, permit the
transfer of, acquire or retain the share or interest of any member in the
capital of the society.
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Transfer of
interest on death
of member
24. (1) On the death of a member of a co - operative society, the society shall
transfer the share or interest of the deceased member to the person or
persons nominated in the manner prescribed, or if no person has been so
nominated, to such person as may appear to the Committee of
Management to be the heir or legal representative of the deceased member;
(2) Notwithstanding anything contained in sub -section (1), any such nominee,
heir or legal representative, as the case may be, may require the society to
pay to him the value of the share or interest of the deceased member
ascertained in the manner prescribed and the society shall pay the amount
due within three months from the expiry of the period provided in section
25 for the continuance of liability.
(3) A co-operative society shall pay all other moneys which may be found due
to the deceased member from the society to such nominee, heir or legal
representative, as the case may be.
(4) All transfers and payments made by a co -operative society in accordance
with the provisions of this section shall be valid and eff ectual against any
demand made upon the society by any other person :
Provided that nothing herein shall effect the right of the rightful
heir or legal representative to make any claim against the persons to whom
any transfer or payment has been made under this section.
(5) Nothing contained in sub -section (2) and (3) shall prejudice the right of
society under this Act to realize its outstanding claims against the deceased
member out of the value of share or interest of, or other mon eys due to, the
deceased member.
Liability of past
member and
estate of
deceased
member
25. (1) Subject to the provisions of sub-section (2) the liability of a past member or
of the estate of a deceased member of a co-operative society for the debts of
the society as they existed—
(a) in 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 two years from such date.
(2) Where a co -operative society is ordered to be wound up under section 72,
the liability of a past member or of the estate of a deceased member who
ceased to be a member or died within two years immediately preceding the
date of the order of winding up, shall continue until the entire winding up
proceedings are completed, but such liability shall extend only to the debts
of the society as they existed on the date of his ceasing to be a member or
death, as the case may be.
Admission to
and withdrawal
from
membership
26. (1) A person may be admitted as a member o f a co-operative society subject to
the provisions of this Act, the rules and the bye-laws.
(2) Where a person is refused admission as a member in a co- operative society,
the decision refusing admission shall be communicated by the society to
that person within seven days of the date of the decision.
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(3) A member of a cooperative society if he is not in debt to the society or is not a
surety for any unpaid debt, may withdraw from the membership of the society
after giving at least one month’s notice to the society :
Provided that he has put in such minimum period of membership, if any,
as may be laid down in the bye laws of the society which may also provide for
a longer period of notice not exceeding six months. After the expiry of the
period of notice of withdrawal he shall be deemed to have withdrawn and after
the expiry of the period specified under section 25, he shall be entitled to
repayment of his dues outstanding against the society in respect of his shares as
ascertained in the manner prescribed.
Universal
membership
for primary
agricultural
credit society
26.A (1) Any individual who is qualified for admission to membership under the
provision of this Act, the rules and the bye laws and makes an appli cation in
the manner prescribed, for membership of a primary agricultural credit society
shall be deemed to have been admitted to the membership of such society from
the date of receipt of such application in the office of the society.
(2) If at any time after the date of admission of the individual under sub -section
(1), it is discovered that the individual concerned is not qualified, under this
Act, the rules or the bye laws, to become a member of such society, the
Registrar may, notwithstanding anything cont ained in this Act, either suomoto
or on the application of the concerned society within a period of three months
from the date of such discovery give notice to such individual to show cause
why he should not be removed from the membership of the society, a nd upon
an order of the Registrar made in this behalf such individual shall, from the
date of the order, cease to be the member of such society.
Removal or
expulsion of a
member by a
society or the
Registrar
27. (1) A co-operative society may, by resolution, remove, or expel a person from its
membership in accordance with such procedure and for such causes and
within such period as may be prescribed.
(2) The Registrar may also remove or expel a person from the membership of a
co-operative society—
(a) if the person has ceased to fulfill the qualifications required for
membership, or is disqualified to be a member under this Act, or the
rules or the bye -laws of the society, and the co -operative society, even
when required by the Registrar by order in writing, fails to remove or
expel him, accordance with the provisions of sub section (1) within
thirty days from the receipt of the order of the Registrar; or
(b) if the person was admitted to the membership of the society in
contravention of the provisions of this Act, the rules or the bye-laws of
the society.
(3) No resolution under sub -section (1) and no order under sub -section (2), shall
be passed unless the member concerned has been afforded reasonable
opportunity of being heard in respect of the grouExcerpt shown. Open the full act in Lexace.