Short Answer

Yes, as per the Gujarat Cooperative Societies Act, 1961, the society is required to issue a share certificate to each member. Failure to do so can lead to legal implications.

Detailed Explanation

Section 30 of the Gujarat Cooperative Societies Act, 1961 mandates that every member of a cooperative society must be issued a share certificate specifying the shares held by them. This share certificate serves as proof of the member's ownership in the society and is crucial for various transactions and rights within the cooperative society.

In practice, the share certificate is a vital document that members rely on to establish their membership and entitlements in the society. It provides clarity on the number of shares held by each member and their corresponding rights and responsibilities. Without a share certificate, members may face challenges in asserting their ownership and exercising their voting rights during general body meetings or elections.

Real-world Scenarios

• Mr. Patel is a member of a cooperative housing society but has not received his share certificate. During a dispute regarding the society's management, Mr. Patel faces difficulties in proving his ownership stake without the share certificate.

• A cooperative credit society fails to issue share certificates to its members. As a result, members are unable to participate effectively in decision-making processes due to the lack of documented proof of their shareholding.

Step-by-step process:

• Upon becoming a member of a cooperative society, the member should request the issuance of a share certificate.

• The society is obligated to prepare and provide the share certificate to the member within a reasonable time frame.

• Members should ensure the accuracy of the information mentioned in the share certificate, including the number of shares held.

Reference

• Section 30 of the Gujarat Cooperative Societies Act, 1961

Official PDF