Short Answer

Yes, under certain circumstances, a member could be compelled to forfeit their share back to the society.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 empowers the society to expel a member and forfeit their share under specific conditions. If a member violates the bylaws, fails to pay dues, or acts against the interests of the society, the society can take action. This provision ensures discipline and compliance within the cooperative society.

Furthermore, Rule 49 of the Gujarat Cooperative Societies Rules, 1965 outlines the procedure for forfeiting a member's share. The society must provide a show-cause notice to the member, allowing them to present their case. If the member fails to rectify the issue within the specified time, the society can proceed with the forfeiture. This rule safeguards the rights of both the society and the member by ensuring a fair process.

In practice, if a member consistently defaults on payments, engages in fraudulent activities, or disrupts the functioning of the society, the management committee may initiate proceedings for forfeiture. For example, if a member repeatedly fails to pay maintenance fees despite reminders and warnings, the society can take action to protect its financial stability.

In another scenario, if a member is found to be involved in illegal activities that tarnish the reputation of the society, the management committee may decide to expel the member and forfeit their share. This action protects the interests and integrity of the cooperative society.

Overall, the provisions in the Gujarat Cooperative Societies Act and Rules regarding the forfeiture of a member's share serve as a mechanism to maintain order, discipline, and financial stability within cooperative societies.

References

• Section 29 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 49 of the Gujarat Cooperative Societies Rules, 1965: Official PDF