The Multi-State Cooperative Societies Rules, 1985

CHAPTER III: MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES

11. Conditions to be complied with for admission for membership-

(1) No person shall be admitted as a member of a multi-State cooperative society unless:

(a) he has applied in writing in the form, if any, laid down by the multi-State cooperative society or in the form specified by the Central Registrar, if any, for membership;

(b) his application is approved by the board of the multi-State cooperative society;

(c) he has purchased the minimum number of shares and paid the value thereof in full or in part in such calls as may be laid down in the bye-laws of the multi-State cooperative society;

(d) he has fulfilled all other conditions laid down in the Act, the rules and the bye-laws;

(e) in the case of a multi-State cooperative society or a cooperative society or the national cooperative society or any other corporation owned or controlled by the Government or any Government or any Government company or body of persons whether incorporated or not, the application for membership shall be accompanied by a resolution authorising it to apply for such membership.

(2) No person shall be eligible for admission as a member of a multi-State cooperative society if he:

(a) has not attained the age of 18 years;

(b) has been adjudged by a competent court to be an insolvent or an undischarged insolvent;

(c) has been sentenced for any offence, other then offence of a political character or an offence not involving moral turpitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence.

(3) Notwithstanding anything contained in these rules or the bye-laws of the multi-State cooperative society, if a member becomes or has already become subject to any disqualifications specified in sub-rule (2) he shall be deemed to have ceased to be a member of the society from the date when the disqualification was incurred.

(4) No individual being a member of a primary level multi-State cooperative society or a multi-State credit society, or a multi-State urban cooperative bank, shall be the member of any other multi-State cooperative society or cooperative society of the same class without the general or special permission of the Central Registrar and where an individual has become a member of two such cooperative societies aforesaid, than either or both of the societies shall be bound to remove him from membership on written requisition from the Central Registrar to that effect.

(5) No multi-State cooperative society shall admit members within thirty days prior to the date of the meeting of its general body.

12. Individual members in the National Cooperative Union of India-

The ex-presidents of the National Cooperative Union of India Limited, New Delhi who have served their full term of office and other individuals not exceeding 15 in number with the knowledge and experience in the field of cooperation may be admitted as members of the National Cooperative Union of India Limited, New Delhi, provided that:

The ex-President and other individuals admitted as members shall not be eligible to vote or contest in any election in the National Cooperative Union of India Limited.

13. Refund of shares-

The total refund of share capital of a multi-State cooperative society in any cooperative year shall not exceed 10 per cent of the paid-up share capital of the multi-State cooperative society on the last day of the cooperative year immediately preceding.

14. Nomination of heir-

(1) For the purpose of transfer of his share or interest under sub-section (1) of section 27, a member of a multi-State cooperative society may nominate a person to whom in the event of his death, his share or interest shall be transferred. Such member may, from time to time, revoke or vary such nomination.

(2) A nomination made by a member shall not be valid and shall not in the event of death of the member have effect unless:

(a) it is made in writing and is signed by the member in the presence of two witnesses attesting the same;

(b) it is recorded in the books of multi-State cooperative society, kept for the purpose.

15. Procedure of ascertaining the value of share or interest of a member-

Where the member of a multi-State cooperative society ceases to be a member thereof, the sum representing the value of his share or interest in the capital of the multi-State cooperative society to be paid to him or his nominee, or heir or legal representative, as the case may be shall be ascertained in the following manner, namely:

(i) In the case of a multi-State cooperative society with unlimited liability, it shall be the actual amount received by the multi-State cooperative society in respect of such share or interest;

(ii) In the case of a multi-State cooperative society with limited liability, it shall be the amount arrived at by the valuation based on the financial position of such society as shown in the last audited balance sheet preceding cessation of membership;

Provided that the amount so ascertained shall not exceed the actual amount received by the multi-State cooperative society in respect of such share or interest.

16. Restriction on holding of shares-

No member referred to in clauses (a)and (b) of sub-section 1 of section 19 shall hold more than one-fifth of the share capital of the multi-State cooperative society or have or claim any interest in the shares of the multi-State cooperative society exceeding ten thousand rupees, whichever is less.

17. Share not to be hypothecated-

The shares of a multi-State cooperative society shall not be hypothecated to that society or any other multi-State cooperative society by the members as a security for a loan.

18. Prohibition on admission of members and transfer of shares on the eve of general meeting-

(1) No multi-State cooperative society shall admit members or approve the transfer of shares within thirty days prior to the date fixed for the general body meeting.

(2) Any person addressed as member and any person in whose favour the transfer of share have been approved in contravention of this rule shall not have the right to vote at the said general meeting.

19. Disqualification of a defaulting member-

A member of a multi-State cooperative society or a representative of defaulting member society shall not be eligible to seek election to any office in, or continue, as a member of the board of such multi-State cooperative society if he or the society of which he is the representative, commits default in the payment of annual subscription or other sums due to such multi-State cooperative society. A member, or a representative of a defaulting member society, if holding any office in a multi-State cooperative society, shall forfeit the right to hold such office with effect from the date on which he, or the society of which he is the representative, becomes defaulter as per bye-laws

of the multi-State cooperative society or as determined by the board of directors of the multi-State cooperative society.