Co-operative societies are regulated by the Act, rules and regulations of the Cooperative Societies Acts in the concerned States. The provisions generally enable the member of the society to nominate any person or persons by making a statement to that effect in a prescribed form and where such nomination is made, the nominee holds the share and interest of the nominating member after his death. The name of the original holder is substituted by the name of the validly appointed nominee after the death of the original member.

The purpose of nomination is to name a certain person with whom the society is empowered to deal with, after the death of the member in the same way as the nominating member. It does not create ownership interest in the nominee to the exclusion of those who in law are legally entitled to the asset under the applicable law of succession or testamentary disposition.