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The provisions of nomination is found in various Acts, Rules Instructions of Regulators like RBI, SEBI, L.I.C., Provident Fund, Gratuity, but the nomination does not create any title or interest in favour of the nominee. Thus, the simple meaning derived from above proposition is that a nominee cannot be a real owner but, in fact a trustee who has legal control of property that is kept or invested for another person, company or organization. A nominee holds a property on behalf of other legal heirs. The word nominee means a person who holds or acquires right, property or any other kind of liability incurred on behalf of others. He has no power, authority or title to alienate the property to the exclusion of the other legal heirs of the deceased member. He is only empowered to hold the property in trust for the real owners for the purpose of dealings with the society. The nominee does not become the absolute owner of the property.

It does not create any interest in favour of the nominee, to the exclusion of those who are in law entitled to the estate of a deceased member. The purpose of nomination is to make clear the person with whom the society has to deal upon the death of a member. Therefore, on the death of a member, the society shall transfer the share or interest of the deceased member to a person nominated in accordance with the rules.

Section 30 of the Act provides that the society shall transfer the share or interest of the deceased member to a person/s nominated in accordance with the Maharashtra Cooperative Societies Rules, 1961, and if no such person is nominated then the committee of the society shall transfer it to such person as may appear to the committee to be the heir or legal representative of the deceased member. However, his holding and other interests do not lapse, but they pass on to his heirs or legal representatives and the society is bound to transfer the shares or interest to them as provided in section 30 of the Act. Section 25 of the Act provides that a member would cease to be a member of a society on death.

The Maharashtra Co-operative Societies Act, 1960 ("the Act") allows a member to nominate a person or persons to whom his share and interest in the co-operative society will be transferred by the society in the event of the member's death.