State Act

The Bihar Co-operative Societies Act, 1935

7. Societies which may be registered - 3(1) Subject to the provisions of this Act, a Cooperative Society constituted in accordance with the provisions of the said Act as amended form time to time, which has as its object the promotion of the common interest of its members in conformity with the Cooperative principles and securing the fulfillment of any of all directives contained in Part IV of the Constitution of India, may be registered under this Act with or without limited.” common interest of its members and securing the fulfillment of any all directive contained in Part IV of the Constitution of India, may be registered under this Act with or without limited liability: Provided that, unless the State Government by general or special order otherwise directs- (a) The liability of society of which a member is a registered society shall be limited, and (b) the liability of a society of which the primary object is the creation of fund to lent to its members, and of which the majority of the members are agriculturists, and of which on member is a registered society, shall be unlimited. (2) Where the liability of a society is limited, the liability of each member, past member, of the estate of a deceased member shall on liquidation, be limited to the amount, if any, unpaid on the shares held by such member, or where the liability limited by guarantee, to the amount of such guarantee, or where it is limited in an other manner, then as may be determined by the rules or bye laws subject, however to section 32. (3) Where the liability of a society is unlimited, all members, past members and the estates of deceased members shall on liquidation be jointly and severally liable of and in respect of all its obligations, subject, however, to the provisions of section 32.