Short Answer

Yes, there are conditions and limits on transferring shares in a cooperative society.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 states that a member of a cooperative society cannot transfer his share or interest in the society unless certain conditions are met. The member must obtain the consent of the society and the transfer must be in accordance with the by-laws of the society. This means that you cannot simply transfer your share in the society without following the prescribed procedures.

Furthermore, Rule 45 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the process of transferring shares. It states that the transferor must give written notice to the society expressing the desire to transfer the shares. The society then has the right to refuse the transfer if it is not in the interest of the society or if the transferee is not eligible to become a member.

In practice, this means that if you wish to transfer your share in a cooperative society in Gujarat, you must first obtain consent from the society and follow the procedures outlined in the by-laws and rules. The society has the authority to approve or reject the transfer based on the best interests of the society.

Real-world Scenarios

• Mr. Patel wants to transfer his share in a cooperative housing society to his friend. He must first inform the society in writing and seek their approval before proceeding with the transfer.

• Mrs. Shah wishes to transfer her share in a cooperative credit society to her daughter. The society can refuse the transfer if it does not comply with the rules and regulations.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 29

• Gujarat Cooperative Societies Rules, 1965: Rule 45