Amendment status not verified — confirm the current text below against the official source.
(1) No society, other than a federal society, shall be registered under this Act, unless it consists of at least “fourteen persons” (there shall not be more than two persons from one family of which at least one should be woman. There will be no bar if two members are women)*1, who are qualified to be members under this Act, and who reside in the area of operation of the society. (2) No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages. (3) No federal society shall be registered, unless it has at least five societies as its members. (4) No society shall be registered it the bye-laws of such society permit admission, as member thereof, of a person carrying on transaction or business of the same kind or nature as carried on by such society. (5) In particular and without prejudice to the generality of the provisions of sub- section (4) (a) no credit society shall be registered if the bye-laws of such society permit admission, as member thereof, of a person who is a money-lender by profession; (b) no consumers society shall be registered if the bye-laws of such society permit admission, as member thereof, of a person who is a grocer by profession and (c) no industrial society shall be registered if the bye-laws of such society permit admission, as member thereof of a person who is carrying on his own account or has interest in, any business of the kind carried on by such society. (6) No society formed by particular community, class or group of people for the promotion of economic interests of such community, class or group of people exclusively through specified activity or activities shall be registered where its bye-laws permit more than ten per centum of its members to be persons not to be directly benefitted by such activity or activities. (7) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act. (8) The word “limited” or “unlimited” shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act. Explanation: - For the purposes of this section and section 8, the expression “member of a family” means a wife, husband, father, mother, son or unmarried daughter.