ADVOKS GLOBAL · KENYA
Agricultural Finance Corporation Act
25. Liability of members of co-operative society
Edition: 2022-12-31 · Repealed
25. Liability of members of co-operative society
(1)Where a loan is made to a co-operative society, all persons who were members of the society at the time of the application for the loan and are named in the list referred to in section 23(1)(c) shall be jointly and severally liable to repay the loan and to pay the interest payable on the loan.(2)If a person who was a member of a co-operative society at the time of the application for a loan and is named in the list referred to in section 23(1)(c) ceases to be a member of that society, he shall nevertheless remain liable under subsection (1) of this section in respect of any part of a loan and any interest which was outstanding at the time he ceased to be a member, and on ceasing to be a member he shall provide security to the satisfaction of the Board for the due discharge of that liability.(3)Where a co-operative society is a company registered under the Companies Act (Cap. 486), the liability of the shareholders of the company is limited to the amount (if any) of the share capital not called up, and subsection (2) of this section shall not apply to a person who has ceased to be a shareholder in the company.