MEMBERS AND THEIR RIGHTS AND LIABILITIES
|
22.
|
||
(1)
|
Subject to the provisions of section 24, no person
shall be admitted as a member of society except the following, that is to
say-
|
|
(a)
|
an individual; who is competent to contract under the
Indian Contract Act, 1872,
|
|
(b)
|
a firm, company or any other body corporate constituted
under any law for the time being in force, or a society registered under the
Societies Registration Act, 1860;
|
|
(c)
|
a society registered, or deemed to be registered under
this Act;
|
|
(d)
|
the State Government or the Central Government;
|
|
(e)
|
a local authority;
|
|
(f)
|
a public trust registered under any law for the time
being in force for the registration of such trusts :
|
|
(g)
|
The depositor or the financial services user:
|
|
Provided that, the provisions of clause (a) shall not
apply to an individual seeking admission to a society exclusively formed for
the benefit of students of a school or college:
|
||
Provided further that, subject to such terms and
conditions as may be laid down by the State Government by general or special
order, a firm or company may be admitted as a member only of society which is
a federal or urban society or which conducts or intends to conduct an
industrial undertaking:
|
||
Provided also that, any firm or company, which is
immediately before the commencement of this Act, a member of a society deemed
to be registered under this Act, shall have, subject to the other provisions
of this Act, the right to continue to be such member on and after such
commencement.
|
||
Explanation: For the purpose of this section an “urban
society” means a society the business of which mainly falls within the limits
of a municipal corporation, municipality, cantonment or notified area
committee.
|
||
(1 A)
|
Not withstanding anything contained in sub section (1)
the State Government may, having regard to the fact that the interest of any
person or class of persons conflicts or likely to conflict with the objects
of any society or class of persons conflicts or likely to conflict with the
objects of any society or class of societies, by general or special order,
published in the Official 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 members or
shall be eligible for membership only to a limited extent of any specified
society or class of societies, so long as such person or persons are engaged
in or carry on that profession, business or employment (as the case may be;
and the question whether a person is or is not so engaged in or carrying on
any profession business or employment or whether a person belongs or does not
belong to such class of persons as declared under this sub section and has or
has not incurred a disqualification under this sub section shall be decided
by the Registrar under section 11.
|
|
(1-B)
|
Notwithstanding anything contained in sub section (1)
where the Registrar has decided under Section 11 that a person has incurred a
disqualification under sub section (1-A), the Registrar or the person not
below the rank of District Deputy Registrar of Co-operative Societies,
authorized by him in this behalf, may, by order, remove such person from membership
of the society; and such person shall cease to be a member of the society on
expiration of a period of one month from the date of receipt of such order by
him.
|
|
(2)
|
Where a person Is refused admission as a member of
society, the decision (with the reasons therefore) shall be communicated to
that person within fifteen days of the date of the decision, or within three
months “from the date of receipt of the application for admission,” whichever
is earlier. If the society does not communicate any decision to the applicant
within three months from the date of receipt of such application, the
applicant shall be deemed to have been admitted as a member of the society.
If any question arises whether a person has become a deemed member or
otherwise, the same shall be decided by the Registrar after giving a
reasonable opportunity of being heard to all the concerned parties.
|
|
23.
|
||
(1)
|
No society shall, without sufficient
cause, refuse admission to membership to any person duly qualified therefore
under the provisions of this Act and its bye-laws.
|
|
(1-A)
|
Where a society refuses to accept the
application from an eligible person for admission as a member, or the payment
made by him in respect of membership, such person may tender an application
in such form as may be prescribed together with payment in respect of
membership, if any, to the Registrar, who shall forward the application and
the amount, if any so paid, to the society concerned within thirty days from
the date of receipt of such application and the amount; and thereupon if the
society fails to communicate any decision to the applicant within sixty days
from the date of receipt of such application and the amount by the society,
the applicant shall be deemed to have become a member of such society. If any
question arises whether a person has become a deemed member or otherwise, the
same shall be decided by the Registrar after giving a reasonable opportunity
of being heard to all the concerned parties.
|
|
(2)
|
Any person aggrieved by the decision of a
society, refusing him admission to its membership, may appeal to the
Registrar. “Within a
period of sixty days from the date of the decision of the society” [* Was
inserted By MAH. XXIV of 1961] Every
such appeal, as far as possible, be disposed of by the Registrar within a
period of three months from the date of its receipt:
|
|
Provided that, where such appeal is not
so disposed of within the sand period of three months, the Registrar shall
record the reasons for the delay.
|
||
(3)
|
The decision of the Registrar in appeal,
shall be final and the Registrar shall communicate his decision to the
parties within fifteen days from the date thereof:
|
|
(4)
|
Without prejudice to the foregoing
provisions of this section, in the case of agro-processing societies or any
other society for which a definite zone or an area of operation is allotted
by the State Government or the Registrar, it shall be obligatory on the part
of such society to admit, on an application made to it, every eligible person
from that zone or the area of operation, as the case may be, as a member of
such society, unless such person is already registered as a member of any
other such society, into the same zone or the area of operation.
|
|
24.
|
||
(1)
|
Notwithstanding anything contained in
section 22, a society may admit any person as a “nominal or associate member” [*
Was Substituted By MAH. XXIV of 1961]
|
|
(2)
|
A nominal member or “sympathizer member” [* was deleted By MAH. XXIV of 1961]
shall not be entitled to any share in any form whatsoever in the profits or
assets of the society as such member. A nominal or “sympathizer member” [* was deleted By MAH. XXIV of 1961] shall
ordinarily not have any of the privileges and rights of a member, but such a
member, or an associate member, may, subject to the provisions of sub-section
(8) of section 27, have such privileges and rights and be subject to such liabilities,
of a member, as may be specified in the bye-laws of the society.
|
|
24-A
|
Co-operative education and training
to members, etc; - [* Was inserted By MAH. XXIV of 1961]
|
|
(1)
|
Every society shall organize
co-operative education and training, for its members, officers and employees
through such State federal societies or the State Apex Training Institutes,
as the State Government may, by notification in the Official Gazette,
specify. Such education and training shall, - [* Was
inserted By MAH. XXIV of 1961]
|
|
(i)
|
Ensure the
effective and active participation of the members in the management of the
society; [* Was inserted By MAH. XXIV
of 1961]
|
|
(ii)
|
Groom talented employees for
leadership position; [* Was inserted
By MAH. XXIV of 1961]
|
|
(iii)
|
Develop professional skills through
co-operative education and training. [*
Was inserted By MAH. XXIV of 1961]
|
|
(2)
|
Every member
of the committee, whether elected or co-opted, shall undergo such
co-operative education and training for such period and at such intervals as
may be prescribed. [* Was inserted By
MAH. XXIV of 1961]
|
|
(3)
|
Every society
shall contribute annually towards the education and training fund of the
State federal societies or State Apex Training Institutes, notified under
sub-section (1), at such rates as may be prescribed and different rates may
be prescribed for different societies or classes of societies. [* Was inserted By MAH. XXIV of 1961]
|
|
25.
|
||
A
person shall cease to be a member of a society on his resignation from the membership
thereof being accepted, or on the transfer of the whole of his share or
interest in the society to another member, or on his death, or removal or
expulsion 'from the society, or where a firm, company, any other corporate
body, society or trust is a member on its dissolution or ceasing to exist.
|
||
25-A.
|
||
The
committee of a society shall remove from the register of its members the name
of a person who has ceased to be a member or who stands disqualified by or
under the provisions of this Act for being the member or continuing to be the
member of a society:
|
||
Provided
that, if the society does not comply with the requirement of this section,
the Registrar shall direct such society to remove the name of such person,
and the society shall be bound to comply with such direction.
|
||
26.
|
Rights and Duties of Members: - [* Was Substituted By
MAH. XXIV of 1961]
|
|
(1)
|
A member shall be entitled to
exercise such rights as provided in the Act, rules and by-laws: [* Was
Substituted By MAH. XXIV of 1961]
|
|
Provided that, no member shall
exercise the rights, until he has made such payment to the society in respect
of membership, or acquired such interest in the society, as may be prescribed
and specified under the by-laws of the society, from time to time: [* Was Substituted By MAH. XXIV of 1961]
|
||
Provided
further that, in case of increase in minimum contribution of member in share
capital to exercise right of membership, the society shall give a due notice
of demand to the members and give reasonable period to comply with. [* Was Substituted By MAH. XXIV of 1961]
|
||
(2)
|
It shall be the duty of every
member of a society, - [* Was
Substituted By MAH. XXIV of 1961]
|
|
(a)
|
to attend at
least one general body meeting within a consecutive period of five years: [* Was Substituted By MAH. XXIV of 1961]
|
|
Provided that, nothing in this
clause shall apply to the member whose absence has been condoned by the
general body of the society; [* Was
Substituted By MAH. XXIV of 1961]
|
||
(b)
|
to utilize
minimum level of services at least once in a period of five consecutive years
as specified in the by-laws of the society: [* Was Substituted By MAH. XXIV of 1961]
|
|
Provided that,
a member who does not attend at least one meeting of the general body as
above and does not utilize minimum level of services at least once in a
period of five consecutive years, as specified in the by-laws of such society
shall be classified as non active member:
[* Was Substituted By MAH. XXIV of 1961]
|
||
Provided
further that, when a society classifies a member as a non-active member, the
society shall, in the prescribed manner communicate such classification, to
the concerned member within thirty days from the date of close of the
financial year : [* Was Substituted By
MAH. XXIV of 1961]
|
||
Provided also
that, a non-active member who does not attend at least one meeting of the
general body and does not utilize minimum level of services as specified in
the by-laws, in next five years from the date of classification as a
non-active member, shall be liable for expulsion under section 35 : [* Was Substituted By MAH. XXIV of 1961]
|
||
Provided also
that, a member classified as non-active member shall, on fulfillment of the
eligibility criteria as provided in this sub-section be entitled to be
re-classified as an active member: [*
Was Substituted By MAH. XXIV of 1961]
|
||
Provided also
that, if a question of a member being active or non-active member arises, an
appeal shall lie to the Registrar within a period of sixty days from the date
of communication of classification :
[* Was Substituted By MAH. XXIV of 1961]
|
||
Provided also
that, in any election conducted immediately after the date of commencement of
the Maharashtra Co-operative Societies (Amendment) Act, 2013, all the
existing members of the society shall be eligible for voting, unless
otherwise ineligible to vote. [* Was
Substituted By MAH. XXIV of 1961]
|
||
27.
|
||
(1)
|
Save
as otherwise provided in subsections (2) to (7), both inclusive, no member of
any society shall have more than one vote in its affairs; and every right to
vote shall be exercised personally, and not by proxy:
|
|
Provided
that, in the case of an equality of votes the Chairman shall have a casting
vote.
|
||
“Explanation.
- For the purposes of this sub-section, “votes to more than one candidate
from the panel” shall be treated as one vote." [* Was inserted By MAH. XXIV of 1961]
|
||
(1A)
|
Notwithstanding
anything contained in sub-section (1), an active member who subsequently
fails to participate in the affairs of the society and to use the services up
to the minimum level as specified, from time to time, in the bye-laws, shall
cease to be an active member and shall not be entitled to vote. [*
Was inserted By MAH. XXIV of 1961]
|
|
(2)
|
Where
a share of a society is held jointly by more than one person, the person,
whose name stands first in the share certificate, if present, shall have the
right to vote. But in his absence the person whose name stands second, and in
the absence of both, the person whose name stands next, and likewise, in the
absence of the preceding persons the person whose name is next on the share
certificate, who is present and who is not a minor, shall have the right to
vote.
|
|
(3)
|
A
society, which has invested any part of its funds in the shares of any
federal society, may appoint one of its “active” [* Was
inserted By MAH. XXIV of 1961] members to vote on its behalf in the affairs of that
federal society; and accordingly such member shall have the right to vote on
behalf of the society:
|
|
Provided
that, any new member society of a federal society shall be eligible to vote
in the affairs of that federal society only after the completion of the
period of three years from the date of its investing any part of its fund in
the shares of such federal society:
|
||
Provided
further that, where the election is to elect a member or members of the
committee of a District Central Co-operative Bank including the reserved
seats on such committee, as provided under this Act, all the elected members
of such Primary Agricultural Credit Societies which have invested any part of
their funds in the shares of such District Central Co-operative Bank, shall
have a right to vote on behalf of that societies; so however that the
Registrar shall, as provided in sub-section (2) of section 73, by general or
special order published in the Official Gazette, fix the maximum number of
members on the committee of such society or class of such societies: [* Was substituted By MAH. XXIV of 1961]
|
||
Provided
also that, for contesting the election for the members of the committee of a
District Central Co-operative Bank, all the elected, co-opted and appointed
members on the committees of such Primary Agricultural Credit Societies,
which have invested any part of their funds in the shares of such District
Central Co-operative Bank, shall be eligible from their respective
constituencies us specified in the bye-laws: [* Was substituted By MAH. XXIV of 1961]
|
||
Provided
also that, except in the election to the committee of a District Central
Co-operative Bank, in case of any other society where the election is as
provided under this Act, no person shall have more than one vote. [* Was substituted By MAH. XXIV of 1961]
|
||
(3-A)
|
An
individual member of a society shall not be eligible for voting in the
affairs of that society for a period of two years from the date of his
enrollment as a member of such society.
|
|
Provided
that, nothing in this sub-section shall apply in respect of a co-operative
housing society and a co-operative premises society. [* Was inserted By MAH. XXIV of 1961]
|
||
(4)
|
A
company or any other body corporate, constituted under any law for the time
being in force, which has invested any part of its funds in the share of a
society, may appoint any of its directors or officers to vote on its behalf
in the affairs of such society; and accordingly, such director or officer
shall have the right to vote on behalf of the company or body corporate.
|
|
(5)
|
Where
a firm has invested any part of its funds in the shares of a society, any one
of its partners appointed by the firm shall be entitled to vote in the
affairs of the society on behalf of the firm.
|
|
(6)
|
A
local authority or public trust which has invested any part of its fund in
the shares of a society, may appoint any of its members or trustees, to vote
on its behalf in the affairs of that society; and accordingly such person
shall have the right to vote on behalf of the local authority or the public
trust, as the case may be.
|
|
(7)
|
In the
case of a federal society, the voting rights of individual members thereof
shall be such as may be regulated by the rules made under this Act and by the
bye-laws of the society.
|
|
(8)
|
No
nominal “or sympathizer” [* Was
deleted By MAH. XXIV of 1961] member shall have the right to vote and no
such member shall be eligible to be a member of a committee or for
appointment as a representative of the society on any other society.
|
|
(9)
|
No
nominee of the Government or any financing bank on the committee of any
society shall be entitled to vote at any election of officers of such
committee such as, the President, Vice-President, Chairman, Vice-Chairman,
Secretary, Treasurer or any other officer by whatsoever designation called,
who holds the office by virtue of his election to that office.
|
|
(10)
|
“If a member
has taken a loan from the society, such member shall, whenever he is a
defaulter, as provided in the Explanation to clause (i) of sub-section (1) of
section 73CA, have no right to vote in the affairs of the society.”; [* Was substituted By MAH. XXIV of 1961]
|
|
Provided
that, a member shall not be deemed to be a defaulter, if 'he has discharged
his obligation to deliver his marketable produce to the marketing or
processing society and the value of such produce is not less than the amount
Of his dues, even if the actual settlement of his dues, either in whole or in
part, takes place at a later stage.
|
||
(11)
|
The
agricultural credit society may, issue suitable orders for the purpose of
carrying out the provisions of sub-section (10).
|
|
28.
|
||
In any
society, “no member other than the Government, or any other society, or with
the previous sanction of the State Government, a Zilla Parishad constituted
under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961, shall”
|
||
(a)
|
hold
more than such portion of the total share capital of the society (in no case
exceeding one-fifth thereof) as may be prescribed; or
|
|
(b)
|
have
or claim any interest in the shares of the society exceeding twenty 2thousand
rupees:
|
|
Provided
that, the State Government may, by notification in the Official Gazette,
specify in respect of any class of societies a higher or lower maximum than
one fifth of the share capital or, as the case may be, a higher or lower
amount than twenty thousand rupees.
|
||
29.
|
Restrictions on transfer or charge on
share or interest.—
|
|
(1)
|
Subject
to the provisions of the last preceding section as to the maximum holding of
shares and to any rules made in this behalf, a transfer of, or charge on, the
share or interest of a member in the share capital of a society shall be
subject to such conditions as may be prescribed.
|
|
(2)
|
A
member shall not transfer any share held by him or his interest in the
capital or property of any society, or any part thereof, unless-
|
|
(a)
|
he has
held such share or interest for not less than one year;
|
|
(b)
|
the
transfer is made to a member of the society or to a person whose application
for membership has been accepted 3by the society, or to a person whose appeal
under section 23 of the Act has been allowed by the Registrar or to a person
who is deemed to be a member under sub-section (1A) of Section 23.
|
|
(3)
|
Notwithstanding
anything contained in sub-sections (1) and (2), where a member is allowed to
resign, or is expelled, or ceases to be a member on account of his being
disqualified by this Act, or by the rules made there under or by the bye-laws
of the society, the society may acquire the share of interest of such member
in the share capital by paying for it at the value determined in the manner
prescribed, provided that the total payment of share capital of a society in
any financial year for such purposes does not exceed ten percent of the
paid-up share capital of the society on the last day of the financial year
immediately preceding.
|
|
Explanation
I - The right to forfeit the share or interest of any expelled member in the
share capital by virtue of any bye-laws of the society, shall not be affected
by the aforesaid provision.
|
||
Explanation
II - In this section, the expression "financial year" means the
year ending on the 31st day of March or in the case of any society or class
of societies the accounts of which are with the previous sanction of the
Registrar balanced on any other day; the year ending on such day.
|
||
(4)
|
Where
the State Government is a member of a society, the restrictions contained in
this section shall not apply to any transfer made by it of its share or
interest in the capital of the society; and that Government may,
notwithstanding anything in this Act, withdraw from the society its share
capital at any time, after giving to the society notice thereof of not less
than three months.
|
|
30.
|
Transfer of interest on death of member.
|
|
(1)
|
On the
death of a member of a society, the society shall transfer the share or
interest of the deceased member to a person or persons nominated in
accordance with the rules or, if no person has been so nominated, to such
person as may appear to the committee to be the heir or legal representative
of the deceased member:
|
|
Provided
that, such nominee, heir or legal representative, as the case may be, is duly
admitted as a member of the society;
|
||
Provided
further that, nothing in this sub section or in section 22 shall prevent a
minor or person of unsound mind from acquiring by inheritance or otherwise,
any share or interest of a deceased member in a society.
|
||
(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
accordance with the rules.
|
|
(3)
|
A
society may pay all other moneys 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 duly made by a society in accordance with the
provisions of this section shall be valid and effectual against any demand
made upon the society by any other person.
|
|
31.
|
||
The
share or interest of a member in the capital of a society, or in the loan
stock issued by a housing society, or in the funds raised by a society from
its members by way of savings deposit, shall not be liable to attachment or
sale under any decree or order of a Court for or in respect of any debt or
liability incurred by the member; and accordingly, neither the Official
Assignee under the Presidency towns Insolvency Act, 1909, nor a Receiver
under the Provincial Insolvency Act, 1920, nor any such person or authority
under any corresponding law for the time being in force, shall be entitled
to, or have any claim on, such share or interest.
|
||
32.
|
||
(1)
|
Every
member of a society shall be entitled to inspect, free of cost, at the
society's office during office hours, or any time fixed for the purpose by
the society, a copy of the Act, the rules and the bye-laws, the last audited
annual balance sheet, the profit and loss account, a list of the members of
the committee, a register of members, the minutes of general meetings,
minutes of committee meetings and those portions of the books and records in
which his transactions with the society have been recorded.
|
|
(2)
|
A
society shall furnish to a member, on request in writing and on payment of
such fees as may be prescribed therefore, a copy of any of the documents
mentioned in the foregoing sub-section within one month from the date of payment
of such fees.
|
|
32-A.
|
||
(1)
|
A society
which gives loans to its members, or a society or class of societies which
the State Government may notify in the Official Gazette, from time to time,
shall furnish each member with a pass book, which shall contain an account of
the transactions with the member, such as, the date of the transaction, the
amount of loan advanced, the rate of interest, the repayment made by the
member, the amount of the principal and interest due and such other
particulars as may be prescribed. The necessary entries shall be made in the
pass book, from time to time, which shall be counter-signed by such
office-bearer of the society as may be authorised in this behalf by the
committee. For this purpose, the member shall be bound to present the pass
book to such office-bearer and if the pass book is required to be kept for
some time, for making the necessary entries, the member shall be granted a
receipt therefore, by such office-bearer.
|
|
(2)
|
The
entries in the pass book duly made shall, until the contrary be proved, be prima
facie evidence of the account of transactions of the society with the member.
|
|
33.
|
||
(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 society for the debts of the society as
they stood;
|
|
(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 society is ordered to be wound up under any provisions of this Act, 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 stood on the date of his ceasing to be a member or
death, as the case may be.
|
|
34.
|
||
Notwithstanding
anything contained in the Presidency-towns Insolvency Act, 1909, the
Provincial Insolvency Act, 1920, or any corresponding law for the time being
in force, the dues of a society from a member, in insolvency proceeding against
him, shall rank in order of priority next to the dues payable by him to
Government or to a local authority.
|
||
35.
|
||
(1)
|
A
society may, by resolution passed “by a majority of not less than
three-fourths” of the members entitled to vote who are present at a general
meeting held for the purpose, expel a member for acts which are detrimental
to the interest or proper working of the society :
|
|
Provided
that, no resolution shall be valid, unless the member concerned is given an
opportunity of representing his case to the general body and no resolution
shall be effective unless it is approved by the Registrar.
|
||
(2)
|
No
member of a society who has been expelled under the foregoing sub-section,
shall be eligible for re-admission as a member of that society, or for
admission as a member of any other society, for a period of one year from the
date of such expulsion :
|
|
Provided
that, the Registrar may, on an application by the society and in special
circumstances, sanction the re-admission or admission, within the said
period, of any such member as a member of the said society or of any other
society, as the case may be.
|
.jpg)
.jpg)
.png)
.png)