Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Members of Cooperative Societies and their Rights and Liabilities

20. Persons who many become members.
  1. No person shall be admitted as member of a cooperative society except the following namely:
    1. An individual competent to contract under section 11 of the Indian Contract Act., 1872.

    2. Any other co-operative society.

    3. Central Government; and

    4. Such class or classes of person or association of persons as may be notified by the Lieutenant-Governor in be behalf.

    5. 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.

  2. Notwithstanding anything contained in sub-section (1), the Lieutenant Governor may, having regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with the objects of any society or class of societies by general or special order, published in the with the objects of any society or class of societies by general or special order, published in the Delhi Gazette, declare that any person or class of persons engaged in or carrying on any profession; business or employment shall be disqualified from being admitted, or for continuing as member or shall be eligible for membership only to a limited extent of any specified society or class of societies, so long as such person is or such persons are engaged in or carrying on that profession business or employment, as the case may be.
21. Nominal or associate member.
  1. Notwithstanding anything contained in clause (d) of section 20, a cooperative society may admit any person as a nominal or associate member in accordance with its bye-laws.

  2. A nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profits of the co-operative society.

  3. Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye/laws of the society.
22. Member not to exercise rights till due payment made Votes of Members.
  1. No member of a co-operative society shall exercise the right of a member unless he has made such payment to the society in respect of membership or has acquired such interest in the society in the society as may be specified in the bye-laws.
23. Votes of Members.
  1. Every member of a co-operative society shall have one vote in the affairs of the society, Provided that -
  1. in the case of an equality of votes, the chairman shall have a second or casting vote.

  2. a nominal or associate member shall not have the right of vote.

  3. where the Central Government is a member of the co-operative society, each person nominated by the Central Government on the committee shall have one vote.
24. Manner of exercising vote.
  1. Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy.

  2. Not withstanding anything contained in sub-section (1), a co-operative society which is a member of another cooperative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that other society.
25. Restriction on transfer of shares or interest.
  1. The transfer of the share or interest of a member in the capital of a co-operative society which is a member of another cooperative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that other society.

  2. The transfer of the share or interest of a member in the capital of a co-operative society shall be subject to such conditions as to maximum holding as are specified in section 6.
26. Transfer of interest on death of member.
  1. On the death of a member, a co-operative society may transfer the share or interest of the deceased member, to the person nominated in accordance with the rules made in this behalf, or, if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules or bye-laws.Provided that -

    1. in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid.

    2. in the case of a co-operative society with limited, liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society, or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified.

    3. no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.

  2. A co-operative society shall, subject to the provisions of section 36 and unless within six months of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.

  3. All transfers and payments made by a co-operative society in accordance with the provisions of the section shall be valid and effectual against any demand made upon the society by any other person.
27. Liability of past member and estate of deceased member.
  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 cooperative society for the debts of the society as they existed,

    1. in case of a past member, on the date on which he ceased to be a member.

    2. in the case of 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 63, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order of winding up shall continue until the entire liquidation proceedings are completed but such 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.

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Last Updated : 23 Mar,2014