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Disqualification of a Member from a Co-operative Society: Causes, Process, and Implications


Introduction: The disqualification of a member from a co-operative society is a significant step taken when a member's actions or circumstances render them ineligible to continue their membership. Disqualification is a process guided by the society's rules and regulations to maintain the integrity and functioning of the society. In this blog post, we will explore the reasons for disqualification, the procedure involved, and the implications of such an action.

1.    Reasons for Disqualification: Members may be disqualified from a co-operative society for a variety of reasons, including:

·       Non-payment of Dues: Failure to pay membership fees, subscription charges, or other financial obligations.

·       Violation of Bye-Laws: Breach of the society's rules and regulations or code of conduct.

·       Criminal Convictions: Being convicted of a criminal offense that affects the society's reputation or functioning.

·       Insolvency: Declaring bankruptcy or insolvency, making the member unable to fulfill their financial obligations.

·       Mental Incapacity: Being declared mentally incapacitated or unfit by a competent authority.

·       Falsification of Information: Providing false or misleading information during membership application or subsequent interactions.

2.    Initiating the Disqualification Process: The process of disqualifying a member usually involves the following steps:

·       Complaint or Allegation: A complaint or allegation against the member's conduct or eligibility triggers the disqualification process.

·       Preliminary Inquiry: The society's managing committee conducts a preliminary inquiry to assess the validity of the allegations and whether they warrant further action.

3.    Show Cause Notice: If the managing committee finds grounds for disqualification, a formal show cause notice is issued to the member. The notice outlines the reasons for disqualification and provides the member an opportunity to respond within a specified timeframe.

4.    Member Response and Committee Decision: The member's response to the show cause notice is evaluated by the managing committee. After thorough consideration, the committee decides whether to proceed with the disqualification process.

5.    General Body Meeting: If the managing committee decides to proceed, the matter is presented to the society's general body during a special general body meeting. The member has the right to attend the meeting and present their case.

6.    Voting and Decision: The general body votes on the disqualification issue, and a specific majority, as defined in the society's bye-laws or the Co-operative Societies Act, is needed for the member's disqualification to be approved.

7.    Communication of Decision: If the member is disqualified, they are informed in writing about the decision, the reasons for disqualification, and the effective date.

8.    Transfer of Rights and Assets: Upon disqualification, the member's rights, shares, and assets in the society may need to be transferred or managed as per the society's bye-laws and legal provisions.

9.    Legal Compliance: The disqualification process should adhere to the legal requirements outlined in the Co-operative Societies Act and relevant laws.

Conclusion: Disqualification of a member from a co-operative society is a significant measure that should be executed with fairness, transparency, and adherence to due process. By following a structured procedure, societies can uphold the principles of justice, accountability, and the overall well-being of the society.

ADV LEENA KAULGEKAR

 

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