Amendment status not verified — confirm the current text below against the official source.
Persons who may become members.-(1) No person shall be admitted as a member of a society except the following, namely: (a) an individual competent to contract under section 11 of the Indian Contract Act, 1872 (No.11 of 1872); (b) any other society; (c) a public trust registered under the Madhya Pradesh Public Trusts Act, 1951 (No.30 of 1951); (d) a firm, company or any other body corporate, not having minors as partners or directors, registered established or constituted, as the case may be under any law for the time being in force. (e) a society registered under the Madhya Pradesh Societies Registration Act, 1959 (No.1 of 1960), as may be approved by the State Government in this behalf by general or special order; (ea) a co-operative registered under the Madhya Pradesh Swayatta Sahakarita Adhiniyam, 1999 (No.2 of 2000); (f) the State Government: Provided that the provisions of clause (a) shall not apply to- (i) an individual seeking admission to a society exclusively formed for the benefit of students; (ii) a minor acting through a guardian appointed by the Court. (2) Notwithstanding anything to the contrary in this Act or rules or in the byelaws of a society, where the State Government has contributed to the share capital of a society, the liability of the State Government shall be limited to the face value of the shares held by it. (2-A) Notwithstanding anything contained in this Act or rules made thereunder or in the byelaws of a resource Society or consumers society, as the case may be, if any person duly qualified for admission as a member under the provisions of this Act and the byelaws of that Society makes an application for membership of such Society he shall be deemed to have been admitted as a 22 member of such Society from the date of receipt of the application in the office thereof: Provided that the Registrar may, either on his own motion at any time or on an application by the society or any aggrieved person made within fifteen days from the aforesaid date and after giving reasonable opportunity to the society or person concerned by order, declare such person as not eligible for membership of such society for the reasons mentioned therein, within forty five days from the date of receipt of application by the Registrar. (3) Where a student, who is not competent to contract under section 11 of the Indian Contract Act, 1872 (IX of 1872), desires to become a member of a society formed exclusively for the benefit of students, his application for the registration of a society or his application for membership shall be accompanied by a written undertaking from his guardian or other person competent to contract under section 11 of the said Act in the prescribed form, in respect of the liability of the student as a member. (4) Where a person is refused admission as a member in a society, the decision refusing admission shall be communicated by the society to that person within (thirty days) of the date of such decision. (5) No society shall, without sufficient cause, refuse admission to membership to any person, duly qualified therefor under the provisions of this Act and the byelaws of the society. (6) Any person aggrieved under sub-section (4) or sub-section (5) may appeal to the Registrar within ninety days of the date of rejection. (7) The decision of the Registrar in appeal shall be final and the Registrar shall communicate his decision to the parties within (thirty) days from the date thereof. 19-A. Disqualifications of member.- No person shall be eligible for admission as member and any member shall cease to be a member of a society, if- (a) he is an applicant to be adjudicated or is an undischarged insolvent; (b) he has been sentenced for an offence involving moral turpitude and a period of five years has not elapsed from the date of expiry of sentence; (bb) he has been sentenced for an offence under the provisions of the Protection of Civil Rights Act, 1955 (No.22 of 1955) and a period of six years has not elapsed from the date of expiry of sentence. (c) he or any member of his family, having common interest with him, carries on business similar to one carried on by the society: Provided that the provisions of clause (b) shall not apply to a person seeking admission as member of a society exclusively formed or to be formed for the reclamation of Vimukta Jatis. (d) If he is disqualified under section 48-A of the Act; (e) If he is a person who has been dismissed from the service of any co-operative institution or Government service. Explanation.- For the purposes of this section- (i) "Vimukta Jatis" means such tribes as the State Government may, from time to time, by general or special order, declare as Vimukta Jatis for the purpose of this sub-section; (ii) the business carried on by a trader including that of money lending shall be deemed to be similar to the business carried on by a marketing society. 23 represent the society in other society, if he suffers from such disqualification, as may be prescribed: Provided that, if a member suffers from any of the disqualifications prescribed under this section- (i) it shall be lawful for the committee of the society to disqualify such member where he is elected as a Director being a member of that society, 19-B. Effect of subsequent disabilities.-If any person having been admitted as a member of a society subsequently becomes subject to any of the disqualifications specified in section 19-A, such person shall cease to be a member of the society and the Registrar shall declare his seat to be vacant. 19-C. Expulsion of members.- (1)The Committee may, by a resolution passed by three-fourth majority of the members present and voting at a meeting held for the purposes, expel a member if he - (a) intentionally does any act likely to injure the credit of the society or bring it to disrepute; or (b) willfully deceives the society by false statements; or (c) carries on any business which comes or is likely to come into conflict with the business carried on by the society; or (d) persistently makes default in payment of his dues or fails to comply with any provisions of the bye-laws: Provided that no such resolution shall be valid unless the member concerned has been given seven days' notice, either personally or by registered post, of the proposal to expel him and has been given an opportunity to represent his case to the committee. (1-A) Any person aggrieved by the resolution of the Committee under sub-section (1) may appeal before the Registrar within 30 days of the communication of such resolution. (2) Notwithstanding anything contained in this Act or rules or bye- laws made thereunder, where it appears to the Registrar that it is necessary and desirable in the interest of the society to expel a member from the society for his indulging in any of the activities specified in sub-section (1), he may call upon such member and the society, to explain within a period to be specified by him, why such member should not be expelled from the society. If the member or society fails to furnish his or its explanation, within the specified period or after considering the explanation, if received, the Registrar may pass an order expelling a member from the society. (3) No person who has been expelled shall be eligible for re- admission as a member of the co-operative for a period of six years from the date of such expulsion. (4) Expulsion of a member from a society may involve forfeiture of shares held by the member in such society.