(1) Irrespective of the shares he holds in the society and subject to any temporary disqualification from voting which may be prescribed in bye-laws and to the provisions* of section27 relating to voting by representatives, a member of a registered society shall have one vote only in the affairs of the society:
Provided that in the case of an equality of votes the President or Chairman at any meeting shall have a second or casting vote subject to the provision as laid down in section 44 :
Provided further that the bye-laws of a society may provide for more than one vote in the case of an affiliated society
(2) Either the President or Chairman or the Chief Executive of a registered society which is a member of another registered society, as may be decided by Board shall represent the society in the affairs of such other society as its representative :
Provided that the Annual General Assembly of the society may nominate any other member other than President or Chairman or Chief Executive to represent the Society.
(3) Voting by proxy shall not be allowed.
(4) Notwithstanding anything contained in this Act, a registered society may by specific provisions made in its bye-laws, admit certain class of members without any voting right.
51. The loan advanced by a registered society to a member thereof shall be utilised by him for the purpose for which it was advanced and for no other purpose. The society shall have power to recover the advance as prescribed if the member does not so utilise it.
52. The transfer or change of the share or interest of a member in the capital of a registered society shall be subject to such conditions as to maximum holding as may be prescribed.
VALIDITY OF TRANSFER OR CHARGE OF SHARE OR INTEREST
53. Except otherwise provided in this Act no transfer or charge of his share or interest by a member of a society with unlimited liability shall be valid unless-
(a) he has held such share or interest for not less than one year;
and
(b) the transferer or mortgager is either a member of such society or a person where application for membership has been accepted 396 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 SHARE OR INTEREST NOT LIABLE TO ATTACHMENT NOMINATION OF TRANSFEREE TRANSFER OF INTEREST ON DEATH OF MEMBER DISPOSAL OF SHARES OR INTEREST OF CEASED MEMBERS LIABILITY OF MEMBERS ON WINDING UP OF SOCIETY 54 Notwithstanding anything contained in any other law for the time being in force and subject to the provision of section56, the share or interest of a member in the capital of a registered society or in any fund under section65 shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by such member nor be subject to any claim by a receiver under the Provincial Insolvency Act,1920.
55. If the bye-laws of a registered society so permit, any member of the society may, in accordance therewith, nominate a person in whose favour the society shall dispose of the shares or interest of such member on his death.
56. When a member of a registered society dies, his shares and interest in the society shall, subject to the provisions of this Act, be transferred -
(a) to the person, if any nominated in accordance with the provision of section55 ; or
(b) if there is no such nominee or if the nominee is not available, or is difficult to be ascertained by the managing body, or if for any other cause such transfer cannot be made without unreasonable delay, the transfer of interest on death of a member shall be made to the person as may appear to the managing body to be the legal heir or legal representative of the deceased member, provided that ninety days have elapsed from the date of the member’s death and no new claim shall be entertained after the said period of ninety days.
57 When a member of a registered society is expelled or withdraws or otherwise ceases to be a member under this Act, rules or bye-laws ,his share or interest shall be transferred to his nominee or to another eligible person, and the value thereon, determined in accordance with the rules, shall be paid to such ceased member if his share or interest is not forfeited under the provisions of this Act, rules or bye-laws or if he is insane, to any person appointed to manage his properties under the Indian Lunacy Act,1912 , provided that if there is no eligible transferee and if the bye-laws of the society so provide, the value of his share or interest determined in accordance with the bye-laws shall be paid to him or, if he is insane, to any person appointed to manage his properties under the Indian Lunacy Act, 1912.
58. The members of a registered society shall, in the winding up of the society, jointly and severally liable to contribute towards any deficiency in the assets of the society -
(a) in the case of a society with unlimited liability, without limit; and,
(b) in the case of a society with limited liability, subject to such • limitation of amount as may be provided in the bye-laws.
5 of 1920 A Central Act IV of 1 ^ 2 Central Act IV of 1912 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 397 RESTRICTION ON TRANSFER OF POSSESSION OF LAND HELD UNDERA SOCIETY
59.(1) Notwithstanding anything in any other law for the time being in force, a member of a registered society the object of which is to develop cooperative of collective farming, shall not be entitled to transfer his possession or interest in any land held by him under the society except to the society or with the previous approval of the managing body and in accordance with its bye-laws, to a member thereof or to a person who will be admitted as a member of the society.
(2) On the death of such a member his possession of an interest in any such land held by him under the society shall come to his nominees in accordance with the provisions of section56 or to the first eligible heir according to seniority in age willing to become a member of the society.
(3) If no nominee or heir becomes a member the possession of an interest in such land of the deceased shall vest in the society which shall pay to the nominee or the heir a sum equivalent to the value of the share and interest of the deceased member and any other sum due from the society as determined in accordance with this Act or rules framed thereunder, after deducting all dues of the deceased member owing to the society.
(4) If there is no person qualified to succeed to the share or interest of the deceased member the society shall pay to his heir, executor or the legal representative, as the case may be, a sum equivalent to the value of the share and interest of the deceased member as determined in accordance with the rules, after deducting the dues of the deceased to the society.
(5) When in any other case a member ceases to be a member of such a society under this Act, rules or bye-laws his possession of and interest in any such land held by him under the society shall come to the society. If the bye-laws allow and if the share and interest of the members is not forfeited under this Act or rules framed thereunder, the society shall pay to the ceased member a sum equivalent to the value of the share and interest of such member and any other sum due to him from the society after deducting his debts to the society, if any.
(6) No land held under a registered society specified in sub-section (1) by a member thereof, or vested under sub-section (2) in the heir or nominee of such member shall be attachable in any suit or proceeding for the recovery of any debt other than a debt due to the society or to a member thereof.
(7) No land shall vest in such a society by reason of the provisions of this section unless it is owned by the society or has been leased to the society and, if the society holds the land by lease or contract the land shall vest in the society only during the pendency of lease or contract.
RIGHT OF A REGISTERED SOCIETY TO PAY PRIOR DEBTS OF A MORTGAGOR