(1)
No person shall be eligible for admission as a member of a society, if he-
(a) is an applicant to be adjudicated as an insolvent or is an undischarged insolvent; or
(b) has been sentenced for any offence involving moral turpitude punishable under any law with imprisonment for one year and upwards, such sentence not having been annulled and a period of one year has not elapsed from the date of the expiration of the sentence; or
(c) is a paid officer or servant of the society or of its financing bank or of any registered society for which it is the financing bank; or
(d) has been expelled from membership under this Act and a period of three years has not elapsed from the date of such expulsion; or
(e) is engaged directly or indirectly in a business or industry or activity similar to that of the registered society or inconsistent with, or prejudicial to the work of the registered society; or
(f) has resigned from the membership of the registered society and a period of one year has not elapsed from the date of such resignation; or
(g) is already a member of a registered society of the same class except as otherwise prescribed; or
(h) [ does not possess the qualification with reference to the principal object of the society, prescribed in the rules or the by-laws.] [Clause (h) was inserted by section 2 of the Tamil Nadu Co-operative Societies (Amendment) Act, 1992 (Tamil Nadu Act 19 of 1992).]
(2)
A member of a registered society shall cease to be a member of the society, if he-
(a) applies to be adjudicated or is adjudicated as an insolvent;
(b) is sentenced for any such offence as is described in clause (b) of subsection (1) [xxx] [The expression 'or is sentenced under section 162' was omitted by section 2 of the Tamil Nadu Co-operative Societies (Second Amendment) Act, 2004 (Tamil Nadu Art 18 of 2004).]:
(c) becomes a paid officer or servant of the registered society or of its financing bank or of any registered society for which it is the financing bank; or
(d) is expelled from membership under this Act; or
(e) undertakes directly or indirectly any business or industry or activity similar to that of the registered society or inconsistent with, or prejudicial to, the work of the registered society; or
(f) is also a member of a registered society of the same class except as otherwise prescribed;
(g) [ does not possess the qualification, with reference to the principal object of the society, prescribed in the rules or the by-laws; or [Clause (g) substituted by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, w.e.f. 31.1.2013.]
(h) has not used the services of the society up to the minimum level as specified in its by-laws; or
(i) absents himself from attending three consecutive general meetings of the society:]
(3)
(a) The provisions of clause (b) of sub-section (1) and clause (b) of subsection (2) shall not apply to a person seeking admission to, or to a member of, a registered society exclusively formed for the reclamation of such class of persons as may be prescribed.
(b) The provisions of clause (c) of sub-section (1) and clause (c) of sub-section (2) shall not apply to a person seeking admission to, or to a member of, a registered society which has as its principal object the provision of employment to its members or which is composed exclusively of the employees of the financing bank:
(4)
Any question as to whether an applicant for admission as a member of a society is, or a member of a registered society was, or has become, subject to any of the disqualifications mentioned in this section, shall be decided by the Registrar.