Chapter III- Members of Co-operative Societies, their Rights and Liabilities, Section 26- Transfer of interest on death of members.

On the death of a member a co-operative society may transfer the share or interest of the deceased member to the person nominated by in accordance with the rules. If there is no nominee, the committee may decide to make the payment of the value of the shares to the heir or legal representative of the deceased member. This shall be done in accordance with the bye laws, provided that-

  1. In the case of a co-operative society with unlimited liability, the society may be required to pay the nominee, heir or legal representative, the value of the share or interest of the deceased member.
  2. In the case of a co-operative society with limited liability, the society may be required to pay the nominee, heir or legal representative, the share or interest of the deceased member, or on the application of a person within one month of the death of the deceased member.  The society must make this transfer in accordance with the bye laws.
  3. No transfer shall be made without the consent of the nominee, heir or legal representative.
  4. The co-operative society must pay the nominee, heir or legal representative within 6 months of the death of the deceased member, unless it is prevented by a competent court from doing so.
  5. All transfers and payments made by a co-operative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society made by any other person.