Short Answer

When you sell your flat or transfer all your shares in a cooperative society, your membership gets automatically terminated.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 states that if a member of a cooperative society ceases to hold the necessary qualifications for membership, such as owning a flat or holding shares, their membership shall stand terminated. This means that when you sell your flat or transfer all your shares, you no longer meet the criteria for membership, and therefore, your membership in the cooperative society automatically comes to an end.

In practice, this provision ensures that only those individuals who fulfill the membership requirements laid down by the cooperative society can continue to be members. When a member sells their flat or transfers all their shares, they essentially relinquish their ownership interest in the society, which disqualifies them from being a member as per the Act.

Real-world Scenarios

• Mr. Patel sells his flat in a cooperative housing society and transfers all his shares to another individual. As a result, his membership in the society is automatically terminated as per Section 29 of the Gujarat Cooperative Societies Act, 1961.

• Mrs. Shah decides to gift her shares in a cooperative credit society to her daughter. Upon completion of the transfer, Mrs. Shah ceases to be a member of the society due to the termination of her membership as per the Act.

Reference

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