Amendment status not verified — confirm the current text below against the official source.
transfer of, or charge on, the share or interest of a member in the share capital of a Society shall be subject to Such conditions as may be prescribed. (2) A member shall not transfer any share held by him or his interest in the capital or property of any Society, or any part thereof, unless— (a) he has held such share or interest for not less than one year ; (b) the transfer is made to a member of the society or to a person whose appiication for membership has been accepted by the society. (3) Notwithstanding anything contained in sub~Seciions (I) and (2), where a. member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made thereunder or by the bye-Iaws of the society, the society may acquire the share or interest of such member in the share capia’al by paying for it at the Value determined in the manner prescribed, provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent of the paid up share mLpital of the society on the last day of the financial year immediately preceding. Explanation :— The right to forfeit the share or interest of any expelled .nember in the share capital by virtue of any bye-laws of the Hmsicty, shall not be affected by the aforesaid provision. (1) Where the State Government is a member of a society the wmriutions contained in this Section shall not apply to any transfer nm'lu by it nfits share or interest in the capital of the society ; and Hum, Howrnment may, notwithstanding anything contained in this Act, wil iulmw from the society its share capital at any time, after giving to Hm mmiety notice thereof not less than three months. :m, (1) On the death of a member of a society, the society shall trzuzehn- the share or interest of the deceased mem her to a person or peramm n: minated in accordance With the rules, or, if no person has been so nominated, to such person as may appear to the eommitee, to be the heir or legal representative of the deceased member : Restriction: on transfer or charge 0 I) share or interest. Transfer of interest on death of member. lzt Provided that, such nominee, heir or legal represwtetive as the can may be, is duly admitted as a member of the society ; ‘ Provided further that, nothing in this sub-section or in Section 2! shall prevent a minor or a person of unsound mind from acquiring l. inheritance or otherwise, any share or interest of a deceased member i a society. . (2) Notwithstanding anything contained in Snb-section (I), an such nominee, heir or legal repreSentative, a=- the cafe may be, mu require the society to pay to him the value of the share or interest 0 the deceased member, ascertained in accordance With the rules. (3) A society may pay all other moneys due to the decease member from the society to such nominee, heir or legal representatiw as the case may be. (4) All transfers and payments duly made by a society in accor dance With the provisions of this section, shall be valid and efiectu against any demand made upon the society by any other person. U .