Section 13 of The Co-operative Societies Act, 1912
- (1)Where the liability of the members of a registered society is not limited by shares, each member shall, notwithstanding the amount of his interest in the capital, have one vote only as a member in the affairs of the society.
- (2)Where the liability of the members of a registered society is limited by shares, each member shall have as many votes as may be prescribed by the by-laws.
- (3)A registered society which has invested any part of its funds in the shares of any other registered society may appoint as its proxy, for the purpose of voting in the affairs of such other registered society, any one of its members.
Summary
- This provision sets out how many votes each member gets when making decisions for the society.
- In societies where members do not have limited liability by shares, every member gets exactly one vote no matter how much they have invested.
- In societies where liability is limited by shares, the number of votes a member has is decided by the society's own rules.
- If a society invests in another society, it can pick one of its own members to vote on its behalf in that second society.
Practical examples
FAQ
1. How many votes does each person get under Section 13 of The Co-operative Societies Act, 1912 if the society does not limit liability by shares?
Under Section 13 of The Co-operative Societies Act, 1912, if a society does not limit its members' financial responsibility by shares, every member gets exactly one vote. This rule applies no matter how much money they have invested in the capital of the society.
2. How does voting work under Section 13 of the 1912 co-op law if our society limits liability by shares?
Section 13 of the 1912 co-op law says that if members' financial responsibility is limited by shares, the number of votes each member gets will be decided by the society's own rules, which are called by-laws.
3. Can one society vote in another society's meetings under Section 13 of the societies legislation?
Yes, it is possible. Under Section 13 of the societies legislation, if a registered society has invested its money into the shares of a second registered society, the first society can pick one of its own members to act as a proxy. This proxy person goes to vote on their behalf in the affairs of the second society.
Test yourself
Q1.Under Section 13 of The Co-operative Societies Act, 1912, how are voting rights determined in a society where liability is limited by shares?
Q2.Under Section 13 of The Co-operative Societies Act, 1912, what happens if a registered society invests in the shares of another registered society?
Q3.Under Section 13 of The Co-operative Societies Act, 1912, which factor dictates voting power in a society whose liability is NOT limited by shares?
Q4.Consider Section 13 alongside Section 12 of The Co-operative Societies Act, 1912. Under these provisions, when can a member of an unlimited liability society actually exercise their single vote?