The name “Member” is simply called the owner of the institution. There are three types of members in the Bank.

  • A Class Member
  • B Class Member
  • Nominal Member

The Membership of the Bank shall be open to:-
1. Individuals residing or carrying his profession within the area of operation of the Bank.

  • The Individual or any person who is not a member of any other primary Co-operative Bank or a Co-operative Credit society.
  • The Individual or any partner of a partnership firm is not convicted of any criminal offense involving moral turpitude and a period of 3 years has elapsed from the date of expiry of the Sentence.
  • The Individual or the person is not engaged in a business competing with or conflicting with the business of the Bank.
  • The individual is not an employee of the bank.
  • The individual or the person has subscribed to and fully paid for at least one share of the Bank and his/her application has been fully approved by the Board of Directors.

2. Government of Kerala.
3. The Kerala State Co-Operative Bank Ltd.
4. The Malappuram District Co-Operative Bank Ltd.
5. Any body or persons, whether incorporate or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order.

Value of a single share is Rs.25/-. This amount is refundable only after 5 years. Additional shares taken by the member may be refunded after 3 years.

Privileges of A Class Members

  • TDS exemption
  • Voting Right
  • Eligibility for all types of loans
  • Dividend on shares
  • Declaring dividend on shares continuously for last five decades (Up to a maximum of 20%).

This is applicable only to Government.


Any person who is co-partner or who desires to stand surety for a borrowing member of the bank or who desires to borrow occasionally for a temporary period against certain tangible securities such as gold and silver ornaments, life insurance policies and Government and other securities may be enrolled as a nominal member upon his application in a prescribed form on payment of Re.One as non –refundable entrance fee provided he resides or is gainfully engaged in any occupation within the area of operation of the Bank.

The Nominal member shall not be entitled :-

  • For a share in the Bank.
  • To receive audited accounts and annual reports
  • To attend, to participate and to vote in the General Meetings and /or special General Meetings of the Bank.
  • To any assets or profits of the bank


Every person admitted as member shall be entitled to receive a share certificate gratis stating the number of share/s and their distinctive number/s.


A member may transfer his share or shares after holding them for not less than three years to any person duly approved by the Board of Directors. The transfer is not complete until the name of the transferee has been duly entered in the register of members and tha transfer fee of Rs.1/- share subject to a maximum of Rs.5/- is paid.

Transfer of shares may be declined to a share holder member if :-

  • The member is indebted or is liable as surety to another member who is indebted to the bank.
  • The transferee does not fulfill the conditions prescribed under byelaw.

If any certificate be worn out, defaced, destroyed or lost, a new share certificate may be issued in lieu thereof on payment of Rs.1/- per share. It shall, however, be necessary to produce evidence to the satisfaction of the Board of directors that the share certificate ware worn out, defaced, destroyed or lost, or in absence of such evidence, on such indemnity as the Board of Directors may deem sufficient.


A member may resign his membership and withdraw his capital with the approval of the Board of Directors. The approval shall not be given while such a member is indebted and within 5 years of his becoming a member of the Bank. During any financial year, the aggregate withdrawals should not exceed 10 percent of the total paid up share capital as at 31st March of the preceding year brought for payment/s under byelaws 15 provided the real or exchangeable value of paid up share capital and reserves does not stand reduced to less than Rs.1 lakh as per section 11 (i) of the banking Regulation Act 1949 (As applicable Co-operative societies) as a result of such withdrawals.

Membership will cease:-

  • On death, or dissolution or liquidation in case of firm or company or other corporate body.
  • On breach of any conditions prescribed under byelaw.
  • On transfer of all the shares.
  • On resignation or withdrawal of membership having been accepted.

A share holder member may be expelled as provided in section 17 of The Kerala Co-Operative Societies Act and the rules made there under. Share/s held by an expelled member are liable to be forfeited.


A Member may nominate a person to receive the member’s interest in the Bank after his death. Nomination shall be made in the prescribed form and entered in the special register kept at the Bank’s registered office. Prior approval of the Board shall be necessary if the person to be nominated is an employee of the bank.

Nomination can be revoked and fresh nomination made by number of times after due intimation in writing to the Bank and on payment of fee of Rupee One for every subsequent nomination.

  • On the death of share holder member, the bank shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or byelaw, or if no person has been so nominated to such person as may appear to the Board of Directors to be the heir or legal representative of the deceased member.
  • Notwithstanding anything contained in sub clause (i) any such nominee heir or legal representative, as the case may be may require the Bank to pay him, the value of the share or interest of the deceased member ascertained in accordance with the rules or the byelaws and the Bank shall pay the amount to the nominee, heir or legal representative as the case may be within six months from the date of receipt of such requisition.
  • The amount representing the value of the share or interest of the deceased member payable to his/her nominee, heir or legal representative as the case may be, shall be the amount arrived at by a valuation based on the financial position of the Bank as shown in the last audited balance sheet provided that the amount so ascertained shall not exeed the actual amount received by the Bank in respect of such share or interest.

The liability of a share holder shall be limited to the capital represented by the share or shares of which such shareholder is the registered share holder. The liability of a past shareholder to the extent of shares as they existed at the time when he ceased to be a share holder, shall continue for a period of two years from the date of cessation. The estate of the deceased share holder shall remain liable to the extend of sums due for a period of two years.

The bank shall have the first and paramount lien or charge upon all the shares, dividends and deposits of any member or past member for all moneys due from him to the Bank from time to time. The bank may at any time setoff any sum credited by or payable to the member or past member towards payment of any liability of such member or past member.

Each share holder shall have one vote irrespective of the number of shares held. Individual share holder members shall vote in person while a firm or a company or any other body corporate constituted under any law for the time being in force, or government which is a share holder member may appoint one of its partners, directors or officers to participate in the meting and to exercise the right of vote. The chairman presiding over the meeting shall have a casting vote in case there is equality of votes for and against any resolution.

The dividend declared shall be paid to the person whose name stands as the registered share holder in the books of the Bank on the last day of the Co-operative year to which the dividend relates. Dividend shall be proportionate to the amount paid on shares and the period in whole months for which the amount stood to the credit to the share holder. Dividend shall be payable at the Bank branches. Any dividend remaining un drawn for three years after having been declared shall be forfeited and shall be carried to Reserve fund of the Bank. Unpaid dividend shall be payable on application provided the same has not been forfeited.