(1) A co-operative society may, in addition to ordinary members, have the following kinds of members—
(a) Nominal members;
(b) Associate members;
(2) (a) a person with whom the co-operative society has or proposes to have business dealing may be admitted as a nominal member;
(b) a nominal member shall have no right to share in the profits of the society nor shall be eligible for the membership of the committee of management.
(3)(a) any individual including a minor who is a seasonal or temporary worker or apprentice in the business of the society or who is otherwise interested in such business may be admitted as an Associate member;
(b) an Associate member shall not be eligible for the membership of the committee of management nor have a right to share in the profits otherwise than as wages and bonus.
(4) Save as provided in this section or elsewhere in this Act, a nominal or Associate member shall have such privileges and rights of a member and be subject of such liabilities of a member, as may be specified in the bye-laws of the society, or the rules.
Member not to exercise right till due payment made
19. No member of a co-operative society shall exercise the rights of a member unless he has made such payment to the society in respect of membership or has acquired such interest in the society as may be specified in the rules or the bye-laws of the society.
Vote of members
20. A member of a co-operative society shall, notwithstanding the quantum of his interest in the capital of the society, have one vote in the affairs of the society :
Provided further that—2
(a) no nominal or associate member shall have the right of vote;
(aa) a member shall have no right of vote if-
(i) he is defaulter and has been a defaulter for a period of not less than six months; or
(ii) he is a delegate of a society which is such defaulter as is referred to in sub-clause (i)
Explanation—
(1) for the purpose of this clause, the word “defaulter” means-
(i) a member (whether individual or body corporate) who has failed to pay any dues of the society concerned on the due date; or
(ii) a member co-operative society which has failed to pay not less than 75 percent of the total dues on the due date.
(2) In the case of a transaction between a society and its members where there is no documents evidencing the transaction in which the due date is specified the expression due date, for the purposes of the preceding explanation shall mean the date of expiration of six months from the date of transaction.
(3) A member shall cease to be treated as defaulter if he pays the sum for non-payment of which such member became defaulter—
(i) in the case of an election, on or before the date fixed under the rules for deciding objections against the provisional voters, list;
(ii) in any other case before the commencement of the meeting;
(b) Where a co-operative society, the State Warehousing Corporation or a body corporate is a member of such society, each delegate of such co-operative societies, State Warehousing corporation or body corporate, (appointed in the prescribed manner) to the general body of such society shall have one vote;
(c) Where the State Government or the Central Government is a member of such society, each person nominated according to the laws by the State Government or the Central Government on the committee of management or the general body of the co-operative society shall have one vote;
(d) The rules or the bye-laws may provide for a group of members or any class of members partaking in the affairs of the society through a delegate or delegates, each delegate having one vote.
Manner of exercising vote
21. Every individual member, every delegate and every nominee shall exercise his vote in the affairs of a co-operative society in person and no member, delegate or nominee shall be permitted to vote by proxy.
Restriction on holding of shares
22. A member who is an individual shall-
(a) neither hold more than such portion of the total share capital of the society, nor exceeding one-fifth thereof, as may be prescribed;
(b) nor have or claim any interest in the shares of the society exceeding (such amount as may be prescribed) in nominal value.
Restriction on transfer of shares or interest