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Sections 31-32 of the Multi-State Co-operative Societies Act, 2002: Vote of Members and Manner of Exercising Vote

Every member has one vote, including an employee member, but an employee member cannot vote at the election of a board member or at a general meeting convened to frame or amend...

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October 2, 2026
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Last updated: October 2026Verified against: Government sources

Section 31 gives every member of a multi-State co-operative society one vote in the affairs of the society, including a member who is an employee, with limits on where an employee can vote, a casting vote for the chairperson in a tie, one vote for each nominee of a government body or member society, and room for an equitable system of voting where societies are members. Section 32 requires every member to vote in person; no proxy is allowed, though a society that is a member may appoint a representative.

The sections are read as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023; neither was amended in 2023. Questions on voting rights in your own bye-laws can be put in a legal consultation.

Section 31: the vote

The section opens: "Every member of a multi-state cooperative society, including a member who is an employee of such society, shall have one vote in the affairs of the society". Four provisos follow, labelled (a) to (d).

ProvisoRule
(a)"a member who is an employee of such society shall not be entitled to vote (i) at the election of a member of the board of such society; (ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto"
(b)"in the case of an equality of votes, the chairperson shall have a casting vote"
(c)"where any of the authorities, multi-state cooperative society or a cooperative society referred to in clauses (b) to (g) of sub-section (1) of section 25 is a member of a multi-state cooperative society, each person nominated by such authority or society, on the board in accordance with provisions contained in this Act and the rules shall, have one vote"
(d)"a multi-state cooperative society, the membership of which include cooperative societies or other multi-state cooperative society, may provide in its bye-laws for an equitable system of voting having regard to the membership of, and the extent of business carried on by such cooperative societies or multi-state cooperative societies"

Reading the provisos

  • Employee members (a). An employee who is a member keeps one vote in general affairs but loses it in two places: board elections and meetings convened for framing or amending bye-laws. The Act does not list other places where an employee member cannot vote.
  • Casting vote (b). The chairperson's casting vote applies on an equality of votes. The proviso does not say whether it adds to the chairperson's own vote or is the only vote the chairperson has in a tie; the Act is silent on that point.
  • Nominees on the board (c). The authorities in clauses (b) to (g) of section 25(1) are multi-State or other co-operative societies, the Central Government, a State Government, the National Cooperative Development Corporation, Government-owned or controlled corporations and Government companies. Each person such a body nominates to the board "shall have one vote". The proviso is printed with a colon at the end; the punctuation is quoted as printed. The list is explained in Section 25.
  • Equitable voting (d). Where member societies are involved, the bye-laws may give a system of votes that reflects "the membership of, and the extent of business carried on by" those societies. This departs from one member one vote; the section permits it only for societies whose membership includes co-operative societies or other multi-State societies.

Section 32: in person, not by proxy

"Every member of a multi-state cooperative society shall exercise his vote in person and no member shall be permitted to vote by proxy". So a member must attend and vote personally. The Act does not mention postal or electronic voting in this section; it is silent on those.

The proviso. "Provided that a multi-state cooperative society or a cooperative society or any other institution which is a member of any other multi-state cooperative society may, subject to the provisions of sub-section (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such multi-state cooperative society."

A body that is itself a member cannot attend in person; it needs a human representative. Section 38(3) restricts who that representative may be: the chairperson, the president, the Chief Executive or an authorised board member of the member society, or its administrator if there is no board. See Section 38. The detail left to rules is not given here; the Multi-State Co-operative Societies (Amendment) Rules, 2023 were notified on 4 August 2023 (G.S.R. 591(E)) and the consolidated Rules should be checked.

A practical example

Kutch Salt Producers Co-operative, an invented multi-State society, has 300 individual members and two member co-operatives. Each individual has one vote. Rajan, who is also an employee, can vote on a decision to buy new machinery but not at the board election, and not at the meeting that amends the bye-laws. One of the member co-operatives, "Anjar Salt Workers Society", sends its chairperson as its representative under section 32's proviso, subject to section 38(3). The society's bye-laws, under proviso (d), give each member co-operative a number of votes that reflects its business with the society. On a tied vote for a motion, the chairperson of the meeting has a casting vote. Nobody may send a friend to vote on his behalf by proxy.

For the next sections on shares, see Sections 33-35, and for the broader scheme of the Act, the complete guide.

What the 2023 Amendment Act changed

ProvisionBeforeAfter
Section 31 and provisos (a) to (d)As printed aboveNo change
Section 32 and provisoAs printed aboveNo change
Related: new section 45 and 45A to 45L (elections)Old section 45Elections are now conducted under the new sections; section 31 itself was not touched

Need help with voting rules in your bye-laws?

Employee-member limits, equitable voting for member societies and representation at meetings all turn on bye-law wording. A legal consultation can check that your clauses fit sections 31 and 32.

Key takeaways

  • Every member, including an employee member, has one vote (s.31).
  • An employee member cannot vote at board elections or at meetings framing or amending bye-laws.
  • The chairperson has a casting vote on an equality of votes.
  • Societies that are members may be given an equitable system of voting in the bye-laws.
  • Voting is in person; no proxy (s.32), but a member society may appoint a representative.
  • Neither section was amended in 2023.

Read next

Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 31-32

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does an employee of the society have a vote?

Yes, one vote, but not at the election of a board member or at a general meeting convened to frame or amend bye-laws (s.31, proviso (a)).

Who has the casting vote?

The chairperson, in case of an equality of votes (proviso (b)).

Objects drafted clearly at formation save years of questions at registration.

— TaxClue NGO & Trust Desk

Sections 31-32: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Yes, one vote, but not at the election of a board member or at a general meeting convened to frame or amend bye-laws (s.31, proviso (a)).

The chairperson, in case of an equality of votes (proviso (b)).

No. Section 32 says each member must exercise his vote in person and no proxy is permitted.

Through a representative it appoints, subject to section 38(3) and the rules (proviso to s.32).

The bye-laws may provide an equitable system of voting having regard to the membership and extent of business (proviso (d)).

No.