Section 33 of The Multi-State Co-operative Societies Act, 2002
No member, other than the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society.
Summary
- Individual members are restricted from owning more than a specified portion of a society's total share capital.
- The maximum shareholding limit for individual members can never exceed one-fifth of the total share capital.
- The exact limit within this one-fifth cap is defined by the rules or bye-laws of the specific society.
- Government authorities, other multi-state co-operative societies, and state co-operative societies are exempt from this limit.
Practical examples
FAQ
1. What is the maximum percentage of shares an individual can hold under Section 33 of the Multi-State Co-operative Societies Act, 2002?
Under Section 33 of the Multi-State Co-operative Societies Act, 2002, an individual member can never hold more than one-fifth, or twenty percent, of the total share capital of the society.
2. Who is exempt from the shareholding restrictions in Section 33 of the 2002 Act?
Under Section 33 of the Multi-State Co-operative Societies Act, 2002, the Central Government, State Governments, the National Co-operative Development Corporation, government-owned corporations, government companies, and other co-operative societies are exempt.
3. Can a co-operative's bye-laws set a shareholding limit lower than twenty percent under Section 33 of the Multi-State Co-operative Societies Act?
Yes, under Section 33 of the Multi-State Co-operative Societies Act, 2002, the limit can be set as prescribed in the rules or bye-laws of the society, provided it does not exceed the maximum cap of one-fifth.
4. Does the shareholding restriction in Section 33 of the Act of 2002 apply to other co-operative societies that become members?
No, under Section 33 of the Multi-State Co-operative Societies Act, 2002, other co-operative societies and multi-state co-operative societies are explicitly exempt from the shareholding restriction.
Test yourself
Q1.Under Section 33 of The Multi-State Co-operative Societies Act, 2002, what is the absolute maximum limit of the total share capital that an ordinary individual member can hold?
Q2.Under Section 33 of The Multi-State Co-operative Societies Act, 2002, which of the following is subject to the shareholding limit of twenty percent?
Q3.Under Section 33 of The Multi-State Co-operative Societies Act, 2002, where is the specific shareholding limit of a society written if it is lower than one-fifth?
Q4.Under Section 33 of The Multi-State Co-operative Societies Act, 2002, which of the following government-linked entities is exempt from the restriction on holding shares?