The Co-operative Societies Act, 1912 - Rights and Liabilities of Members
Section 12 of the Co-operative Societies Act, 1912: Member Not to Exercise Rights Till Due Payment Made
Section 12 links the exercise of membership rights in a registered society to fulfillment of the financial or membership-interest requirement prescribed by the applicable rules or the society's by-laws.
| Act | The Co-operative Societies Act, 1912 |
|---|---|
| Act number | Act 2 of 1912 |
| Section | Section 12 |
| Chapter subject | Rights and liabilities of members |
| Core rule | Membership rights cannot be exercised until the required payment is made or the prescribed interest in the society is acquired. |
Text of Section 12
No member of a registered society shall exercise the rights of a member unless or until he has made such payment to the society in respect of membership or acquired such interest in the society, as may be prescribed by the rules or by-laws.
Meaning and Scope of Section 12
The section creates a condition that must be satisfied before a person who is a member of a registered society can exercise the rights attached to membership. The relevant condition is not fixed as a single amount in Section 12 itself. Instead, the section refers to the payment, membership interest, rules and by-laws applicable to the society.
Accordingly, the practical question is whether the member has made the payment required in respect of membership or has acquired the interest in the society required by the governing rules or registered by-laws. Until the applicable requirement is fulfilled, the statutory text restricts the exercise of membership rights.
Key Expressions Explained
Registered society
For the purpose of this Act, Section 2 contains statutory definitions, while the registration provisions appear in Sections 3 to 11. Section 12 applies to a member of a society registered under the Act.
Rights of a member
The expression refers to rights arising from membership and must be read with the Act, applicable rules and the society's by-laws. The following provisions, including Section 13 on votes of members and Section 14 on transfer of share or interest, form part of the same statutory scheme governing members' rights and liabilities.
Payment or interest prescribed by rules or by-laws
Section 12 makes the applicable rules and by-laws important because they may specify the payment to be made or the interest to be acquired before membership rights can be exercised. The exact requirement should therefore be checked from the law and by-laws governing the particular society.
Official Source
The current central Act text can be checked on the official India Code portal. See The Co-operative Societies Act, 1912 - India Code.
Related Provisions
For continuity, readers may also refer to Section 11 - Amendment of the by-laws of a registered society, Section 13 - Votes of members, and Section 14 - Restrictions on transfer of share or interest.