Co-Operative Societies - Rights And Liabilities Of Members (Ss 28-40)

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[Ch4204s28]28. Definition of member


The first members of a society shall be those persons who sign the application

for registration and have agreed to become and become members on the

registration of the society.


Every other person whose application for membership has been accepted by the

committee and who has signed the register of members shall be a member of the


(3) A

person whose application for membership has been rejected by the committee may

appeal to the next general meeting of the society and if such application is

accepted by a two-thirds majority of the members present and voting at that

meeting, such person shall be a member of the society.

[Ch4204s29]29. Qualifications for membership


To be qualified for membership of a primary society a person must-

(a) have attained the age of-

(i) five years in the case of a school

society; or

(ii) eighteen years in the case of any other

society; and

(b) be resident or employed within or be in

occupation of land within the society's area of operation as described in its



No society, company or other association, incorporated or not, shall be a

member of a primary society.


Membership of secondary societies is restricted to societies registered under

this Act.

[Ch4204s30]30. Minor's contracts with societies


a person, who has attained the age of 18 years but has not yet attained the age

of majority, becomes a member of a society, he shall for the purpose of

contracting with the society be taken to be of full legal capacity in so far as

age is concerned:


that in the case of a school society no pupil shall be registered as a member

without the prior written consent of his parent or guardian and the head of the

school and in that case this section shall apply as if 5 were substituted for


[Ch4204s31]31. Members not to exercise rights till payment



member of a society shall exercise the rights of a member unless he has paid

such membership fee and acquired such share in the capital of the society as

may be set out in its bye-laws.

[Ch4204s32]32. Maximum size of share holding


member of a primary society shall hold more than one-fifth of the share capital

of that society.

[Ch4204s33]33. Restrictions on membership in a society


with the written consent of the Commissioner, no person shall be a member of

more than one society which has as one of its objects the granting of loans to

its members.

[Ch4204s34]34. Voting


Each member of a primary society shall have one vote in the affairs of the

society and shall vote in person and not by proxy.


Each member of a secondary society shall have such voting rights as may be

prescribed by the secondary society's bye-laws and may, subject to such

bye-laws, appoint any number of delegates not exceeding the number of votes

allocated to exercise its voting rights.


In the case of an equality of votes, the Chairman of the meeting shall have a

casting vote in addition to his original vote.

[Ch4204s35]35. Restrictions on transfer of shares


The transfer of the share of a member, past member or deceased member in the

capital of a society shall be subject to the conditions of maximum holding in

section 32.


In the case of a society registered without limited liability a member shall

not transfer any share held by him in the society unless-

(a) he has held such share for not less than

one year; or

(b) the transfer is made to the society, or to

a member of the society or to a person whose application for membership has

been accepted by the society.

[Ch4204s36]36. Liability of past members or estate of

deceased members


liability of a past member or the estate of a deceased member shall be limited

to those liabilities which existed at the date of termination of membership and

shall cease on the expiry of one year commencing on that date.

[Ch4204s37]37. Withdrawal from membership


member may withdraw from a society by giving such notice as may be prescribed

by its bye-laws.

[Ch4204s38]38. Removal of persons ceasing to qualify for



a resolution of the committee the name of a member who ceases to qualify for

membership under section 29 shall be struck from the register of members, and

he shall cease to be a member from that date.

[Ch4204s39]39. Expulsion


The bye-laws of a society may provide for the expulsion by special resolution

of a member who has persistently contravened the provisions of this Act, any

regulations or the bye-laws.


Any bye-law authorized by this section shall require any complaint against a

member to be made to the committee in writing; and the committee may resolve to

accept the complaint and recommend to the general meeting that the member be

expelled. Special notice of at least 14 days must be given to the member

concerned containing-

(a) the time, date and place of the general


(b) a copy of the complaint against him and the

recommendation of the committee;

(c) details of his right to attend the general

meeting and state any reason or make any submission as to why he should not be


[Ch4204s40]40. Nominations


On admission to a society a member may nominate one person to whom his

membership and shares or other interests in the capital of the society may be

transferred on his death.

(2) A

member may at any time cancel the nomination made under subsection (1) or

substitute another person as nominee in place of the person nominated under

subsection (1).


Any nomination or change in nomination shall be in writing and signed by the

member in the presence of two attesting witnessess, and shall be recorded in

the register of members.