Question

A member of registered society with unlimited liability, cannot transfer any shares held by him or his interest in the capital of the society unless.

1. He has held that share for at least one year.

2. He has held that share for at least 6 months.

3. The transfer and change are made to the society or to a member of the society.

4. The transfer and change are not made to the society or to a member of the society.

   Which of these options are correct?

• A. 1 and 4 are correct
• B. 2 and 4 are correct
• C. 1 and 3 are correct
• D. 2 and 3 are correct

Answer 1

Answer:

C. 1 and 3 are correct

A member of a registered society with unlimited liability cannot transfer any shares held by them or their interest in the capital of the society unless the transfer is made to a member of the society or to a person whose application for membership has been accepted. 

The Co-operative Societies Act, 1912 also states that a member can only transfer their shares or interest if they have held them for at least one year.