(1) Notwithstanding anything contained in section 22, a co-operative society may admit any person as a nominal or associate or joint member in accordance with its bye-laws and subject to the rules.
(2) A nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profits of the co-operative society.
(3) Save as provided in this section, a nominal or associate or joint member shall have such privileges and rights of a member and be subject to such liabilities of a member as may be prescribed in rules and specified in the bye-laws of the cooperative society.
Member not to exercise rights till due payment made.
24. No member of a co-operative society shall exercise the right of a member unless he has made such payment to the co-operative society in respect of membership and share or has acquired such interest in the co-operative society as may be specified in the bye-laws.
Votes of members.
25. Every member of a co-operative society shall have one vote in the affairs of the cooperative society :
Provided that -
(a) in the case of an equality of votes, the Chairman shall have a second or casting vote;
(b) a nominal or associate or joint member shall not have the right of vote;
(c) where the Government is a member of the co-operative society, each person nominated by the Government on the committee shall have one vote; and
Provided that where the Government had subscribed to the Share Capital of such cooperative society, the voting rights of the Government nominees shall be in proportion to the Share Capital of the Government in the paid-up equity of the cooperative society which shall be distributed among nominated members equally;
(d) if a member is in default in payment of the sum demanded by the co-operative society or has transferred his interest in a co-operative society to any other member or to any other person without the approval of the competent authority, he shall have no voting right in the general body meeting of the co-operative society.
(e) “if a co-operative society becomes defunct and has ceased to function in accordance with the bye-laws and co-operative principles, its representative shall have no voting right in the affairs of a federal co-operative society or financial bank or financial society.”
Explanation I. - Default means any default in payment of loan installment, land money, construction money and annual subscription payable as provided in the bye-laws of a co-operative society for which due notice for payment has been served on the member or an award has been passed for recovery of such sum.
* Explanation II. –Defunct society means a society which has not carried on business for three consecutive years or its accounts have not been audited for three or more consecutive years.
Manner of exercising vote.
26.(1) Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy.
(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another co-operative society, may appoint one of its member to vote on its behalf in the affairs of that other co-operative society.
Restriction on transfer of shares or interest.
27. The transfer of the share or interest of a member in the capital of a co-operative society shall be subject to such conditions as to maximum holding as are specified in section 6.
Transfer of interest on death of member.
28.(1) On the death of a member, a co-operative society shall transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf, or, if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules or the bye-laws:
Provided that -
(i) such nominee, heir or legal representative, as the case may be, may require payment by the co-operative society of the value of the share or interest of the deceased member ascertained as aforesaid; or
(ii) the co-operative society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the cooperative society, or on his application within one hundred and eighty days of the death of the deceased member to any person specified in the application who is so qualified; and
(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.
(2) A co-operative society shall, subject to the provisions of section 45 and unless within three hundred and sixty five days of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the co-operative society.
(3) All transfers and payments made by a co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the co-operative society by any other person.
Liability of past member and estate of deceased member.