Co-operative Agricultural Societies. 73 



the liability of resigned members for Land Bank loans. This was 

 brielly to the effect that a resigned member remained liable for all 

 loans raised by his society from the Land Bank on any authority 

 granted during the period of his membership until such time as that 

 authority was cancelled. One of the delegates referred to the 

 difEculty this would entail in closing off the estate of a deceased 

 member, as it would prevent creditors from filing their claims within 

 the required time. The Eegistrar also explained to the delegates 

 that the provisions of the Co-operative Act, to the effect that a 

 resigned member was free from liability as soon as the society's 

 balance-sheet showed a profit, were specially over-ruled by the Land 

 Bank Act as regards societies obtaining their funds from the bank. 

 Finally it was resolved that a committee be appointed out of the 

 Congress to confer with the Land Bank with a view to the elucidation 

 of Section 32 of the Land Bank Act. 



Item i\o. o. — The desirability of making provision in the Co- 

 operative Act to the effect that a viemher, upon relinquishing 

 active farming operations, will be allowed to transfer his 

 entire share or interest in the society to one of his sons, sub- 

 ject to the approval of the Board of Directors; and tJiat, in 

 the event of a 7nember's death, the amount to which his heir's 

 are entitled and ivhich must be determined by the Board of 

 Directors, but ichich in no case shall exceed 75 j)er cent, 

 of such share, shcdl only be fixed at the end of the financial 

 year, wlien the books shall have been audited. 

 In regard to the first portion of the motion, the delegates appeared 

 to-be divided in their opinion as to the desirability of adopting such 

 a measure. It was pointed out by some delegates that a member who 

 had assisted in building up his society's reserve fund should, upon 

 retirement from farming operations, have the right to transfer his 

 share therein to one of his sons, without the latter having to pay 

 entrance fee. In the opinion of other delegates, however, the fact 

 that any one member had done much for the society should not 

 entitle his son to the privileges of membership free of charge. The 

 son might not prove a desirable member, and all sorts of difficulties 

 might arise. 



The Registrar pointed out that from a legal point of view, if it 

 was merely desired to transfer a member's share in the reserve fund, 

 this could perhaps be effected by altering the regulations of the 

 society to that effect; if it was the intention also to transfer a 

 member's liability to his son, the Act would have to be altered. But 

 he thought that creditors would undoubtedly object to such transfer. 

 Finally it was resolved that the matter be left to the discretion of 

 the boards of the different societies. 



As regards the second portion of the motion, the proposer said 

 that in the event of the death of a member it was impracticable to 

 determine his legitimate share in the reserve fund as at date of death 

 without a proper audit, and for that reason it w^as thought advisable 

 that such share should only be paid out at the end of the financial 

 year, when the books would ordinarily be audited. Mr. Retief 

 explained that in the case of resignations, the resigned members' 

 liability ceased only at the end of the financial year, but it was 

 obviously impossible to apply the same principle in respect of deceased 

 members, whose estates would in that case remain liable for obliga- 

 tions incurred after a member's death. If this was contemplated, 



