Short Answer

If a member defaults on society loans for more than one year, they may lose their voting rights.

Detailed Explanation

Rule 30 of the Gujarat Cooperative Societies Rules, 1965 addresses the consequences of defaulting on society loans. It states that if a member fails to repay a loan for more than one year, they shall lose their right to vote in the society's affairs until the loan is fully repaid. This rule aims to ensure financial discipline among members and protect the society's financial stability.

In practice, if a member defaults on a loan for over a year, the society can take action to suspend their voting rights. This serves as a deterrent against non-payment of dues and encourages timely repayment. For example, if a member fails to repay a housing loan for more than a year, the society can restrict their participation in decision-making processes until the outstanding amount is settled.

Real-world scenarios demonstrate the importance of this rule in maintaining the financial health of cooperative societies. By linking voting rights to loan repayment, societies can incentivize members to fulfill their financial obligations promptly. This mechanism helps prevent defaults and ensures the smooth functioning of the society.

Reference

• Gujarat Cooperative Societies Rules, 1965: Official PDF