State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

20. Persons who may be admitted or continued as members.- (1) Subject to the provisions of this Act, no person shall be admitted 2[or continued]2 as a member of a Co-operative,- (a) unless he needs the services of the Co-operative and accepts the responsibility of membership and is competent to contract under the Contract Act, 1872 (Central Act IX of 1872); (b) if he conducts any business, such business being in conflict or competition 1[or if he is a member of another Co-operative having same objectives]1 with the business of the Co-operative as specified in the bye-laws; and (c) unless he fulfills such other conditions as may be specified in the bye-laws of the Co-operative: 2[(d) is in default regarding any payment to be made to the co-operative exceeding an amount and for a period specified in the bye-laws; (e) has applied to be adjudicated an insolvent or is an un-discharged insolvent; or (f) has been sentenced for any offence, involving moral turpitude, such sentence not having been reversed or the offence pardoned and a period of five years has not elapsed from the date of the sentence; or (g) is a paid employee of the co-operative or of its financing bank or of its union or of its federal co-operative.]2 Provided that after the registration of a Co-operative, the members shall be admitted only by the elected board. 2[(2) XXX]2 1[(2A) No cooperative shall, without sufficient cause in writing, refuse admission to membership to any person under the provisions of this Act or the Rules and the bye-laws made there under The board of the cooperative shall send a written communication of its decision to such person within sixty days from the date of receipt of his application]1 (3) If a question arises as to the eligibility or otherwise of a person to become a member or to continue as a member, the board shall decide the question after giving such person an opportunity of being heard. The decision of the board shall be final.