Section 13 of the Co-operative Societies Act, 1912 - Votes of Members
Section 13 of the Co-operative Societies Act, 1912 deals with voting rights in a registered society. The voting rule depends on whether members' liability is limited by shares, and the section also permits a registered society holding shares in another registered society to appoint a member as its proxy.
Current statutory reference: The central text of the Co-operative Societies Act, 1912 continues to list Section 13 under the heading "Rights and Liabilities of Members." The applicable co-operative law can also depend on the State or Union Territory and the particular society concerned.
Text of Section 13 - Votes of Members
(1) Where the liability of the members of a registered society is not limited by shares, each member shall, notwithstanding the amount of his interest in the capital, have one vote only as a member in the affairs of the society.
(2) Where the liability of the members of a registered society is limited by shares, each member shall have as many votes as may be prescribed by the by-laws.
(3) A registered society which has invested any part of its funds in the shares of any other registered society may appoint as its proxy, for the purpose of voting in the affairs of such other registered society, any one of its members.
Meaning and Scope of Section 13
1. Society where liability is not limited by shares
Sub-section (1) establishes a one-member-one-vote rule where members' liability is not limited by shares. The amount of capital interest held by a member does not increase that member's voting entitlement under this provision.
2. Society where liability is limited by shares
Under sub-section (2), where liability is limited by shares, the number of votes available to a member is determined by the registered society's by-laws. The by-laws are therefore important when determining voting entitlement in such a society.
3. Proxy of one registered society in another
Sub-section (3) applies where a registered society has invested part of its funds in shares of another registered society. The investing society may appoint one of its members as proxy to vote in the affairs of the other registered society.
Related Provisions
Section 13 forms part of the provisions concerning the rights and liabilities of members. It follows Section 12, concerning exercise of membership rights after required payment or acquisition of interest, and precedes Section 14, concerning restrictions on transfer of a share or interest.
Practical Note
For an actual voting dispute, the governing enactment, applicable rules, registered by-laws and any State-specific co-operative societies legislation should be checked together. The 1912 Act is a historical central enactment, while co-operative societies are also regulated through jurisdiction-specific legislation.
Official Source
The official text of the central Act can be checked on India Code - The Co-operative Societies Act, 1912.