Section 29(1) in The M.P. Swayatta Sahakarita Adhiniyam, 1999
(1)A co-operative may be registered with limited or unlimited liability :Provided that unless the State Government, by a general or special order otherwise directs, the liability of a co-operative of which another co-operative is a member shall be limited.Explanation : - For the purpose of this sub-section-(a)"cooperative with limited liability" means a co-operative in which the liability of its members for the debts of the co-operative is limited by its bye-laws, to such form and extent as they may undertake to contribute to any deficit in the assets of the co-operative, in the event of its being wound up; and(b)"co-operative with unlimited liability" means a co-operative the members of which are, in the event of its being wound up, jointly and severally liable for and in respect of all its obligations, to contribute to any deficit in the assets of the co-operative.
