State Act

THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.

17. Disqualification for membership.- (1) No person shall be eligible for admission as a member of a co-operative society, if he,— (a) has applied to be adjudicated an insolvent or is an undischarged insolvent; or (b) has been sentenced for any offence, other than an offence of a political character or an offence not involving moral turpitude, such sentence not having been reversed or the offence pardoned and a period of five years has not elapsed from date of expiry of the sentence. 1[(c) carries on 2[XXX]2 business of the kind carried on by such co-operative society; 2[Explanation.—XXX]2 (d) is already a member of a co-operative society carrying on business of the same kind as itself;]1 1[(e) is not eligible for membership under section 16; 1[(f) is a paid employee of the society or its financing bank or its union or its federal society.]1 2[ (g) XXX]2]1 (2) If a member becomes subject to any of the disqualifications specified in 1[2[x x x]2 sub-section (1)]1 , he shall be deemed to have ceased to be a member from the date when the disqualification was incurred. 2[ 1[(2-A) If any person is found to be a member or continuing as member in two or more co-operative societies carrying similar business, it shall be obligatory on his part to retain membership in any one society of his choice within a period of ninety days from the date of commencement of the Karnataka Co-operative Societies (Amendment) Act, 2021. If he fails to do so, his membership shall be deemed to have been ceased in the Co-operative society to which he is newly admitted.]1]2 1[(3) If any question arises as to whether a member is deemed to have ceased or has ceased to be a member under sub-section (2) or (2A), the Registrar may either suo-motu or on a report made to him and after giving an opportunity to the person concerned of being heard, decide the question.]1