(1) The transfer or charge of the share or interest of a member of a co-operative society in the capital of the co-operative society shall be subject to the provisions of this Act and to such conditions as to the maximum holding as may be prescribed and shall require the approval of the board:
Provided that in the case of a member of a co-operative society with unlimited liability, such transfer or charge shall not require the approval of the board.
(2) No transfer or charge of his share or interest by a member of a co-operative society with unlimited liability shall be valid unless—
(a) he has held such share or interest (save in the case of transfer under sections 80, 81, 83 or 84) for not less than one year;
and
(b) the transferee or the mortgagee is either a member of such co-operative society or a person whose application for membership has been accepted by any other co-operative society.
(3) Where the State Government is a member of a co-operative society, the restrictions under this section shall not apply to any transfer made by it of its share or interest in the capital of the co-operative society.
Restriction on transfer of share or interest.
79. Subject to the by-laws of a co-operative society, any member of such co-operative society may in accordance with the rules nominate a person in whose favour the co-operative society shall dispose of the share or interest of such member on his death.