Section 4(2) in Sikkim Co-Operative Societies Act, 1955
(2)The liability of a society of which the primary object is the creation of funds to be lent to its members and of, which the majority of the members are agriculturists or artisans, and of which no member is a registered society, shall be unlimited and the members of such a society shall, on its liquidation, be jointly and severally liable for and in respect of, an obligations of such a society:Provided further that no society shall be registered if, in the opinion of the Registrar, its declared objects are unlikely to be achieved or if it is economically unsound or if it may have adverse effect upon any registered society or the Co-operative movement as a whole.
