20. (1) No person shall be admitted as a member of a society except the following namely;

(a) an individual competent to contract under section II of the
Indian Contract Act, 1872:

(d) a firm, a company or any other body corporate constituted under any law for the time being in force or a society registered under any law in force relating to Registration of societies or a bank as defined in the Act subject to such terms and conditions as may be laid down by the Government by general or special order in this behalf.

(2)Any person who is duly qualified for admission as a member under the provisions of this Act and the bye laws of a primary agricultural credit society. Makes an application for membership of such society, shall be deemed to have been admitted as a member of such society from the date of receipt of the application in the office of the society.
Provided that the Registrar may, either on his own motion at any time or on an application by the primary agricultural credit society or any member thereof made within fifteen days from the date of such admission and after giving reasonable opportunity to the society and the member concerned. by order declare such person as not eligible either to become or to continue as a member of such society for the reasons mentioned therein. Where the order is to be passed on an application of the society or a member thereof it shall be passed within thirty days from the date of receipt of the application by the Registrar.

(3) Any order made by the Registrar under sub-section (2) of this section shall be final and shall not be called in question in any Court.

(4) An application for membership in a society, other than a primary agricultural credit society shall be disposed of by the society within one month from the date of receipt thereof, and the decision of the society on the application shall be communicated to the applicant within fifteen days from the date of the decision;
Provided that is the decision of the society is not communicated to the applicant within a period of forty five days from the date of the receipt application by the Society, the Society shall be deemed to have decided, on the date of expiry of such period, refusing admission to the applicant.

(b) has been sentenced for any offence, other than an offence of a political character or an offence not involving moral turpitude, such sentence not having been reversed or the offence pardoned and a period of five years has not elapsed from the date of expiry of the sentence.

(C) If a member becomes subject to any of the disqualification specified in sub-section (1), he shall be deemed to have ceased to be a member from the date when the disqualification was incurred.

(3) Subject to the general or special order of the Registrar published in the official Gazette, no individual who is a member of a credit society, shall be eligible for admission as a member of another credit society.

22. Every member of a society shall have one vote in the affairs of the society; provided that –
 

(a) a nominal member shall not have the right to vote;

(b) a member of a primary agricultural credit society shall have no right to vote in a general meeting if he is in default in payment of any sums due to that society for more than one year; and

(c) where the Government is the member of the society, each person nominated by the Government on the Committee of the society shall have one vote except when the right to vote is to be exercised for election of office bearers of the society.
 

23. (1) Every member of a society shall exercise his vote in person at a meeting of the society and no member shall be permitted to vote by proxy.

(2) Notwithstanding anything contained in sub-section (1), a society or corporation or firm which is a member of another society may, subject to any rules made under this Act. appoint one of its members or partners, as the case may be, to vote on its behalf in the affairs of that society.

24. (1) A society may admit any individual or other person or firm as a nominal member in accordance with its bye-laws.

(2) A nominal member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to become an officer of the society.

(3) A nominal member shall have such privileges and rights of a member and be subject to liabilities of a member, as may be specified in the bye-laws of the society.

25. No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of member-ship or has acquired such interest in the society, as may be specified in the bye-laws.

26. In any society, no member other than the Government or any or her society shall hold or have claim to more than such portion of the total share capital of the society which exceed one-fifth thereof or Rs, 5,000/- whichever is less.
Provided that the Government may. by notification in the official Gazette specify in respect of any class of societies a higher maximum than one-fifth of the share capital or a higher amount than Rs. 5000/-, as the case may be.

27. (1) The transfer of a share or interest of a member in the capital of a society shall be subject to the restrictions specified in section 26.

(2) No transfer by a member of his share or interest in a society shall be valid unless

(a) the member has held such share or interest for not less than one year;

(b) the transfer is made to the society or to a member of the society and

(c) the transfer is approved by the Committee of the society;

28. (1) On the death of a member the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or, if no person has been so nominated, to such person as may appear to the Committee to be the heir or legal representative of the deceased member;
Provided that such nominee, heir or legal representive, as the case may be, is admitted as the member of the society.

(2) Notwithstanding anything contained in sub – section (1) any such nominee, heir, or a legal representative. as the case may be require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the Rules.

(3) The society may play all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be.

(4) All transfers and payments made by a society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.

29. (1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of the deceased member of a society for the debts of the society as they existed shall continue for a period of two years

(a) in the case of a past member, from the date on which he ceased to be a member: and

(b) in case of a deceased member from the date of his death.

(2) Where a society is ordered to be would up under section 75, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed but such liability shall extend only to the debts of a society as they existed on the date of his ceasing to be a member or death, as the case may be.

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