As per Model Bye-law 9: A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, is to be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares. Total Authorized Share Capital of a Co operative Society is to be fixed by Registrar of Co op Societies at the time of registering the Society.
Now a share certificate if an issued prior to its registration, The Registration numbers of the society do not appear on this share certificate. The seal as stipulated in the bye-laws has also not been embossed. The signatories signing this certificate have no authority of law to do so till the society is registered, rendering the certificate invalid
What is the course of action required to be taken?
In case the membership is disputed, can this member take up the issue with the Registrar or the courts?
I C Naik
Why a share certificate should be issued prior to the registration of the cooperative Society? You mean by an unregistered society? There is no answer to this question because Unregistered Cooperative Societies are not governed by the MCS Act 1960.