Randhir (none) 18 April 2015

Share transfer in co op society

Hello,

Can a cooperative society registered under Haryana Cooperative Societies Act, 1984 restrict the right of members to transfer their shares?

The society has not been able to develop a chunk of land due to some litgation, one of the members would like to sell his shares to some one else, Can the society prevent it from doing so?

Reply Follow

2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 18 April 2015

check once your society bye laws. As per bye laws society will follow. If any complaint, you can submit to he registrar of cooperative societies of your state.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 19 April 2015

If the Society is functioning with duly elected managing committee and if the member who wants to transfer has cleared all his liabilities to the Society the Society cannot refuse transfer. The transferor and transferee can execute all the necessary documents and submit to the Society. In Maharashtra if the Managing Committee does not reply in 3 months the transfer shall be deemed to have been approved. I do not know the situation in Haryana. One will have to peruse the relevant Haryana Act. If the transfer is not approved the Society should return the documents to the parties. If the transferring parties are not satisfied, in Maharashtra, they can submit to the Registrar. The Registrar will send the documents to the Society. If the Society does not give valid reasons for not transferring, the Registrar shall order the admission of the new member. What will happen in Haryana will depend on the Haryana Act. In Maharashtra there is stamp duty and registration is mandatory. One has to look into the situation in Haryana. A Haryana lawyer can advise.