Short Answer

In case of a member's death in a cooperative society, the transfer of their share depends on whether they have nominated someone or not.

Detailed Explanation

Section 30 of the Gujarat Cooperative Societies Act, 1961 deals with the transfer of shares in case of a member's death. If the deceased member has made a valid nomination, the share will be transferred to the nominee. The nominee becomes the member of the society and is entitled to all rights and privileges associated with the share. This provision ensures a smooth transition of ownership without the need for lengthy legal procedures.

On the other hand, if the deceased member has not nominated anyone, the share will be transferred to their legal heirs. The legal heirs will have to establish their claim through the appropriate legal process, such as obtaining a succession certificate or probate of the will. This process can sometimes be time-consuming and may lead to disputes among the heirs.

In practice, it is advisable for members of cooperative societies to make a valid nomination to ensure a hassle-free transfer of shares in the event of their demise. This not only simplifies the process but also helps in avoiding potential conflicts among legal heirs.

Practical Examples

• Mr. Patel, a member of a cooperative society, passes away without making a nomination. His legal heirs, including his wife and children, have to go through the legal process of obtaining a succession certificate to claim his share in the society.

• Mrs. Shah, another member, has nominated her daughter as the nominee for her share. Upon her demise, the share is smoothly transferred to her daughter without any legal complications.

• In a scenario where a member has multiple legal heirs with conflicting claims, the transfer of shares can get delayed due to legal disputes among the heirs.

References

• Section 30 of the Gujarat Cooperative Societies Act, 1961: Official PDF