(1) Subject to the provisions hereinafter contained, a society which has as its ol,ject the promotion of the economic interests of its whicii Societies members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society. be regismay be registered under this Regulation with or without limited tered.
liability:
Provided that, un!ess the Chief Commissioner by general or special arder otherwise directs, the liability of the society of which a co-operafive societ,y is a member shall be linlited.
(2) V,Ticther the liabilitv of the members of any CG-operative society IS limited 01- uljlillljied 1 , ~ sl~:.rcs, tlrc liahilltv of ti!<> Goirc~-n!nent or' of - - a clcGi? a::ellcy wrhich I?'>.- t?l;('-r, s1larcs I R s!l.~li co opo-ati\lc soclt'ty, shall be limited t o ihc sllarc cs;)lt;il s~tbscljbcri '03' thi. Govcr,r~rn~i~t or such crcdit apency as the C R F P ma:)' b?
be suffixed to the name of every society registered under this 6egulation with limited liability.
5. No society, other than a society of which a member is a codoperative society, shall be registered under this Regulation unless it consists of at least ten persons (each of such persons being a member of a different family), above the age of eighteen years and residing in the area of operation of the society.
Explanation.-For the purposes of this section, the expression "mernbex of a family" means wife, husband, father, mother, grandfather, grandmother, step-father, step-mother, son, unmarried daughter, unmarried step-daughter, step-son, grandson, unmarried grand-daughter, .unmarried sister, unmarried half-sister, brother, half-brother and wife of brother or half-brother.
6. No member, other than ,the Government or a co-.operative society, shall hold more than such portion of the share capital of a co-operative society, subject to a maxim~lrn of one-fifth, as may be prescribed or have or claim any interest in the shares of su.cl~ society exceeding ten thousand rupees.