The cooperative credit society movement provided an alternative mode of doing business where control over the organization is diffused equally among all the members irrespective of their individual share holding. Cooperative credit societies who confine their activities to their members alone and who do not perform banking functions. In this chapter, the Committee deals with these
cooperative credit societies.Every member of a Multi State Cooperative Society, including a member who is an employee of such society, shall have one vote in the affairs of the society: Provided that -(a) A member who is an employee of such society shall not be entitled to vote.(i) at the election of a member of the board of such society;(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto;(b) in the case of an equality of votes, the chairperson shall have a casting vote; (c) where any of the authorities, multi state society or a cooperative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a member of credit cooperative societies, each person nominated by such authority or society, on the board in accordance with provisions contained in cooperative credit society Act, 2002, and the rules, shall, have one vote;(d) a Multi State Cooperative society, the membership of which include cooperative societies or other multi state cooperative societies, may provide in its bye-laws for an equitable system of voting having regard to the membership of, and the extent of business carried on, by such cooperative societies .Where the Lt. Governor has notified certain class or classes of persons or associate of persons to be admitted as members of a co-operative society, such persons shall admitted to membership on terms and conditions given as under: The number of such persons does not exceed 5% of total membership of the operative society. Two persons can jointly become members subject to the provisions in bye-laws of society. The second member is known as associated member.
The head office of such association of persons is within the area of operation the co-operative society. Such persons carryon their business within the area of operation of the cooperative society. Such persons purchase at least 10 shares in the capital of the co-operative social The aims and objects of such persons are not contrary to those of the multi state society .
Such persons do not carryon competing business with that of the co-operative society within the local limits specified in the bye-laws or by the registrar. Any other conditions which may be notified by the Thunder the present Act there is no provision to make joint Hindu families members of op. societies. However, under the Co-operative Societies Act, 1912, a joint Hindu could be a member of a society, unless the bye-laws of the society clearly prohibited .