Q.Distinguish between a regular member and a nominal member of a co-operative society.

Not everyone connected with a society has the same rights — the law recognises members admitted for full participation and members admitted only for a limited purpose. …

The Act recognises different classes of members. The two most commonly compared are the regular (ordinary) member and the nominal member.

Regular (ordinary) member — a person duly admitted with full membership rights. A regular member: (i) holds shares in the society; (ii) has the right to attend and vote at general meetings (one member, one vote); (iii) can be elected to the managing committee; (iv) is entitled to dividend and bonus as declared; and (v) shares in the surplus assets if the society is wound up.

Nominal member — a person admitted for a limited purpose only, for example to be able to take a loan against security or to carry out a particular transaction with the society. A nominal member: (i) does not enjoy full membership rights; (ii) cannot vote; (iii) cannot be elected to the committee; and (iv) has no right to dividend and no share in the profits or assets of the society. …

Saying a nominal member can vote or share profits — a nominal member has none of these rights. The distinction is about the extent o …