29.Restrictions on transfer or charge of share or interest
(1)Subject to the provisions of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, a transfer of, or charge on, the share or interest of a member in the share capital of a society shall be subject to such conditions as may be prescribed.
(2)A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless—
(a)he has held such share or interest for not less than one year ;
(b)the transfer is made to a member of the society or to a person whose application for membership has been accepted 6[by the society, or to a person whose appeal under section 23 of the Act has been allowed by the Registrar ; or to a person who is deemed to be a member under sub-section (1A) of section 23].
(3)Notwithstanding anything contained in sub-sections (1) and (2), where a member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made thereunder or by the by-laws of the society, the society may acquire the share or interest of such member in the share capital by paying for it at the value determined in the manner prescribed, provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent. of the paid-up share capital of the society on the last day of the financial year immediately preceding.
Explanation 1[I].—The right to forfeit the share or interest of any expelled member in the share capital by virtue of any by-laws of the society, shall not be affected by the aforesaid provision.
Explanation II.—In this section, the expression “ financial year ” means the year ending on the 2[31st day of March] or, in the case of any society or class of socieites the accounts of which are with the previous sanction of the Registrar balanced on any other day, the year ending on such day.]
(4)Where the State Government is a member of a society, the restrictions contained in this section shall not apply to any transfer made by it of its share or interest in the capital of the society ; and that Government may, notwithstanding anything in this Act, withdraw from the society its share capital at any time, after giving to the society notice thereof of not less than three months.
