(1)
No society other than a federal society shall be registered under this Act unless it consists of atleast ten persons (each of such persons being a member of different family) who are qualified to be members under this Act and who reside in the area of operation of the society.
[(1-A) In case of the society in co-operative credit structure registered under subsection (1), the society shall have power to decide their respective area of operation without any restrictions.] [Inserted by Gujarat 1 of 2008, Section 3 (w.e.f. 8.10.2007).]
(2)
No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages.
(3)
No federal society shall be registered, unless it has atleast five societies as its members.
(4)
Nothing in this Act shall be deemed to effect the registration of any society made before the commencement of this Act.
(5)
The word "limited " or "unlimited " shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act.
Explanation. - For the purposes of this section the expression "member of a family " means a wife, husband, father, mother, grand-father, grand-mother, step-father, stepmother, son, daughter, step-son, step- daughter, grand-son, grand- daughter, brother, sister, half-brother, half-sister and wife of brother or half-brother.