THE PUNJAB CO-OPERATIVE SOCIETIES RULES, 1963

 

Contents

 

SN

Subject

CHAPTER-I

PRELIMINARY

  1.  

Short Title

  1.  

Definition

CHAPTER-II

REGISTRATION OF CO-OPERATIVE SOCIETIES AND

THEIR BYE-LAWS

APPLICATOIN FOR REGISTRATION

  1.  

Form of Application

  1.  

Documents which shall accompany the application          

  1.  

Procedure on receipt of application

  1.  

Person to whom order under Section 8 (2) to be Communicated

  1.  

Appeal against refusal of registration

  1.  

Subject mattters of bye-laws- (1)

  1.  

Amendment of by-laws

  1.  

Resolution for amendment

  1.  

Application to Registrar for registration of amendment

  1.  

Registration of amendment

  1.  

Appeal against refusal to register amendments of bye laws

CHAPTER-III

MEMBERS OF CO-OPERATIVE SOCIETY, THEIR

RIGHTS AND LIABILITIES

  1.  

Disqualification for membership

  1.  

Prohibition of membership in two Co-operative Credit Or Service Societies

  1.  

Admission of members before general meeting of Coop. Society          

16A

Member not to exercise rights till due payment made.

  1.  

Disposal of application for admission of member

  1.  

Withdrawal from Membership

18A

Retirement of shares of individuals who are members of the Central and apex Co-operative Societies.

  1.  

Nomination of heir   

  1.  

Maintenance of register members 

  1.  

Restriction on holding of shares

CHAPTER – IV

General meeting

  1.  

Power of general meeting

  1.  

Election of Committee

23A

The manner of Co-option, the area of agricultural land to be held and the conditions required to be fulfilled for the purpose of Section 26A

23B

Election of the first committee after Registration of the Co-op. Society

  1.  

Proportion of individual and Co-op. Societies for Constituting Committee

  1.  

Disqualification for membership of committee

  1.  

Ceasation of membership of committee

  1.  

Division of area of society into Zones

  1.  

Qualifications and conditions of service of employee

  1.  

Restrictions on transactions of officers and past officer with The Co-operative Society

CHAPTER-V

WORKING OF CO-OPERATIVE SOCIETIES

  1.  

Manner of certifying copies of entries in books   

  1.  

Loans and subsidies by Government

  1.  

Manner of making application for loan of subsidy

  1.  

Submission of information and returns by Co-operative Societies having state participation

  1.  

Reserve fund

  1.  

Payment of dividend or bonus

35A

Net Profit      

  1.  

Creation of Co-operative Education fund

  1.  

Investment of fund

  1.  

Writing of bad debts and other sums due  

  1.  

Maximum credit limit of members

  1.  

Nature and extent of securities for loan

  1.  

Restriction on grant of loans by a Co-operative Society Against it own shares

  1.  

Declaration under section 32

  1.  

Restriction on borrowing by Co-operative Society

  1.  

Maintenance of fluid resource

  1.  

Powers of Registrar to give directions

  1.  

Appointment of relatives to any office

CHAPTER-IV

AUDIT AND ACCOUNT

  1.  

Auditing of Account

  1.  

Maintenance of account books and other record  

  1.  

Preparation of balance-sheet and other accounts

  1.  

Audit Fees

CHAPTER-VII

SETLEMENT OF DISPUTES

  1.  

Reference of Disputes

  1.  

Arbitration Fee

  1.  

Communication of date, time and place of hearing

  1.  

Power to appoint guardian for minors etc. 

  1.  

Hearing of Disputes

  1.  

Cost of arbitration

  1.  

Maintenance of records of arbitration

CHAPTER –VIII

WINDING UP AND CENCELLATION

  1.  

Procedures to be followed by liquidators

  1.  

Approval by Registrar of orders of liquidator

  1.  

Submission of quarterly report by liqluidator

  1.  

Deposit of funds by liquidators

  1.  

Expenses incurred by liquidator

  1.  

Distribution of assets

  1.  

Remuneration of liquidators

  1.  

Disposal of surplus assets

  1.  

Liability due to claimants whose where abouts not known

  1.  

Removal of liquidators

  1.  

Maintenance of accounts by liqidators

  1.  

Final report by liquidator

  1.  

Disposal of record

CHAPTER –IX

EXECUTION OF AWARDS, DECEES, ORDERS

AND DECISIONS

  1.  

Manner of service of notice

  1.  

Procedure in execution of award etc.         

  1.  

Delegation of powers under Section 65

  1.  

Mode of service of summons

CHAPTER-X

MISCELLANEOUS

  1.  

Appeals

  1.  

Returns to be submitted by co-operative societies

  1.  

Inspection of documents

  1.  

Fees for copies of public documents

  1.  

Form of order

  1.  

********

80A

Bar on voting by Government nominated Members on certain matter

  1.  

Repeal

  1.  

Appeal-A (See Rule 3) Form of Application

 

           

 

 

THE PUNJAB CO-OPERATIVE SOCIETIES RULES, 1963

NOTIFICATION

The 24th December, 1963

 

            No.  GSR/PA-25/61/S.   85/64 – In exercise of the powers conferred by section 85 of the Punjab co-operative Societies Act, 1961 ( Punjab Act. No.25 of 1961), the Government of Punjab is pleased to make the following rules namely:-

 

CHAPTER – I

PRELIMINARY

 

1.                                        Short Title- These rules may be called the Punjab Co-operative Societies Rules, 1963.

 

2.                                        Definition- In these rules, unless the context otherwise requires.

 

(a)        “The Act” means the Punjab Co-operative Societies Act, 1961.

(b)        Appendix means an appendix to these rules;

(c)        “Co-operative Year” means the year ending with the 31st day of March or in the case of any co-operative society or class of co-operative societies, the accounts of which are made up to any other date, with the previous sanction of the Registrar, the year ending with such date;

(d)        “decree” means any order, decision or award referred to in section 63 of the Act.

(e)        “decree holder” means – any person holding a decree as defined in clause (d);

(f)         “maximum credit limit” means the extent to which a co-operative  society may receive deposits and loans from member and non-members;

(g)        “model bye-laws” means a set of bye-laws approved and proposed by the Registrar for general adoption by a class of co-operative societies;

(h)        “owned capital” means the total paid-up share capital and reserve fund and other funds created out of profits and undistributed profits minus accumulated losses;

(i)          “paid-up share capital” mean such portion of the subscribed share capital as is actually paid up;

(j)          recovery officer” means a person subordinate to the Registrar who is empowered to exercise in a district, the powers of the Registrar under section 63 of the Act;

(k)        “relative” includes anyone related to the person concerned his wife, his son/daughter or his son’s wife or daughter ‘s husband through a common ancestor, not more remote than a grandfather or any one married to a person so related;

 

(l)          “reserve fund” means a fund to which at least one tenth of the net profits of a co operative society in any year shall be carried as required by Section 41 of the Act;

(m)      ‘sale officer’ means an officer empowered by the Registrar by general or special order, to attach and sell the property of defaulters or to execute any decree by attachment and sale of property;

(n)        “section” means a section of the Act,

(o)        share capital” means the subscribed share capital;

(p)        “working capital” means the total of owned capital plus the borrowed capital;

(q)        words and expression defined in the Act and used in the rules shall have the meanings, respectively, assigned to them in the Act.

 

CHAPTER – II

REGISTRATION OF CO-OPERATIVE SOCIETIES AND THEIR BYE-LAWS APPLICATION FOR REGISTRATION

 

3.         Form of Application - Section 85(2)- An application for registration of a co-operative society shall be made in the form given in Appendix A and shall specify the name and address of one of the applicants to whom the Registrar may address  his correspondence under rules 5(2) and 6.

 

4.         Documents which shall accompany the application – The application for  registration shall be accompanied by three copies of the bye-laws which the co-operative society proposes to adopt. Such copies of bye-laws shall bear the signatures of not less than two of the applicants, duly authorized by the members of the proposed co-operative society.

 

5.         Procedure on receipt of application – (1) Before passing final orders under Section 8 the Registrar may call for such further Information from the applicants or make such independent inquiries as he may deem necessary.

 

(2)    After the Registrar is satisfied with regard to the matters stated in sub-section (1) of section 8, he may registrar the co-operative society and its bye-laws. A copy of the registered bye-laws shall be returned by him to the co-operative society by Registered A.D.

 

6.         Person to which order under Section 8(2) to be communicated – The order passed by the registrar under sub-section (2) of section 8 shall be communicated by registered post to the applicant referred in rule 3.

 

7.         Appeal against refusal of registration: - Where an application for registration of a Cooperative Society is rejected by the Registrar the appeal. If made, shall be signed by the persons joining in the application for registration.

 

Provided that where the application for registration has been signed by more than ten persons, the appeal shall be signed by at least two-third persons, joining the application for registration.

 

8.                             Subject matters of bye-laws –(1) A co-operative society shall make bye-laws in respect of the following matters:-

(a)    name and address of the co-operative society;

(b)    area of operation;

(c)     the objects for which the cooperative society is established;

(d)     the manner in which the funds may be raised;

(e)     the qualifications for membership and the terms of admission of members.

(f)     the nature and the extent of the liability of the  members;

(g)     Withdrawal and expulsion of members, and the payments, if any, to be made to such members.

(h)    Transfers of  shares or interests of the members.

(i)       General meeting and the procedure and powers of such meeting.

(j)      Appointment, suspension and removal of the officers of the co-operative society and members of the committee;

(k)     Constitution of the committee and procedure of holding its meeting;

(l)      powers and duties of the committee and the officers of the co-operative society;

(m)  disposal of profits;

 

Provided that if in the opinion of the Registrar the bye-laws of any co-operative society do not contain with regard to the matters specified in clause (I) and (k) or contain insufficient provision with regard to these matters, the provisions specified in appendix B shall apply to such society as if these had been a part of the bye-laws registered under section 8;

 

(2)                  The bye –laws of ‘a co-op. Society may further provide for such matters as are incidental to the Organisation of the co-op. society and the management of its business.

 

9.         Amendment of bye-laws- Section 85(2)- Subject to the provision of section 10 and rule 8 a Co-op. Society may from time to time amend its bye-laws.

 

10.       Resolution for amendment- Section 85(2)- No amendment under rule 9 shall be carried out save in accordance with a resolution passed at a general meeting of the co-operative society of which due notice of the intention to discuss the amendments has been given;

                                  

            Provided that no such resolution shall be valid unless it is passed by a majority of members present at the general meeting at which not less than two-third of members for the time being of the co-operative society are present :

                      

         Provided further that model bye-laws for amendments previously approved by the Registrar by a majority at an ordinary general meeting.

 

11.        Application to Registrar for registration of amendment:- Three copies of the amendment adopted by the co-operative society under rule 10, signed by two officers of the co-op. Society duly authorised by the general meeting in this behalf, shall be submitted to the Registrar along-with an application for registration duly signed as aforesaid. Such copies of the amendments shall be accompanied by the certificate signed by any one of the above two officers of the co-operative society to the effect that the provisions of rule 10 have been complied with.

 

12.        Registration of amendment:- (1) After the Registrar is satisfied with regard of the matters stated in sub-section(2) of section 10, he may register of amendments and return a copy of the registered amendments to the co-operative society by registered A . D.

 

(2)               The order of the registrar passed under the sub-section (4) of section 10, shall be communicated by registered post of the co-operative society.

 

13.       Appeal against refusal to register amendments of bye-laws:- where an application for registered of an amendment in bye-laws of a cooperative society is rejected by the registrar under sub-section(4) of section 10, the appeal, if any, shall be made only after a meeting of the general body has reconsidered the matter and has decided to prefer an appeal  and shall be signed by an officer of the co-operative society duly authorised in this behalf by a general meeting.

 

CHAPTER-III

MEMBER OF CO-OPERATIVE SOCIETY, THEIR

RIGHTS AND LIABILITIES

 

14.       Disqualification for membership –(1) No person shall be eligible for admission as a member of a co-op. Society if he-

 

(a)               has applied to be adjudicated an insolvent or is an undischarged insolvent; or

(b)               has been sentenced for any offence other than an offence not involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence.

 

(2)       If a member becomes subject to any of the disqualification specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date when the disqualification was incurred.

 

15.   (1) Prohibition of membership in two co-operative Credit or Service Societies. No individual, who is member of a primary co-op. Society having one of the objects the creation of the funds to be lent to its members, shall be a member of any other such co-op. Society without the general or special permission of the Registrar, and where an individual has become a member of two such co-op. Societies, either or both of the co-op. Societies shall be bound to remove him from membership upon a written requisition from the Registrar to that effect.

(2)               No individual who is an officer of any co-op. Society shall without the general or special permission of the Registrar, be a member of any other co-op. Society whose objects are similar to the objects of the society of  which he is an officer; and where such an individual has become a  member of another Co-op. Society with similar objects, either or both of the co-op. Societies shall be bound to remove him from membership upon written requisition from the Registrar to that effect. If any question arises as to whether or not two Co-op. Societies have similar objects the decision of the Registrar on the point shall be final.

 

16. Admission of members before general meeting of Co-op. Society- Section 85(2)-No co-op. Society shall admit members within fourteen days prior to the date of its annual general meeting.

 

16.       A. Member not to exercise rights till due payment made.- Section 85(2)(v)2-(1) No member of a co-operative Society shall participate in the general meeting of the Co-op. Society or in the election to the committee unless ha has made all such payments to the Co-op. Society as are due from him.

 

(2) At the commencement of each general meeting. The Secretary of the co-op. Society shall announce the name of the defaulting members which shall from part of the proceeding of the meeting.

 

17.       Disposal of application for admission of members- Section 85(2)  A co-op. Society, other than a producers co-op. Society, shall dispose of an application received for admission as a member as early as possible and in no case later than the expiration of a period of one month from the date of receipt of the application by the Co-op. Society in case of refusal to admit, such a    Co-operative society shall communicate its decision, together with reasons thereof, to the applicant within 15 days

 

18        (1) Withdrawal from Membership- In the co-operative society with unlimited liability, a member who is not indebted to a co-operative society and is not a surety for an unpaid debt, may withdraw from the co-operative society after giving such notice to the Secretary of the Co-operative society as may be laid down in the bye-laws of the co-op. Society.

 

(2) in a co-operative society with unlimited liability, a member who withdraws or is otherwise removed or expelled from the co-op. Society, shall be entitled to repayment without interest of any money paid by him or his predecessor in interest towards the purchase of shares after such period as may be laid down in the bye-laws.

 

(3)               No member of a co-operative society with limited liability shall ordinarily be permitted to seek withdrawal or refund of his shares:

                                      

Provided that where the society has created a share-transfer fund out of Its earned profits, its managing committee may, keeping in view the over all    interests of the society, allow withdrawal of shares;

                      

Provided further that such withdrawal of shares at any time shall not exceed five percent of the aggregate paid up share capital of the society, excluding Government contributions, as it stood on the 31st March of the proceeding year.

 

3.                 Irrespective of the nature of liability of a co-operative society the share capital subscribed by the State Government in a co-operative society or by a Central or Apex co-operative Financing Institution will be retired in such a manner and during such period as may be determined by the registrar from time to time .

 

18A.    Retirement of shares of individuals who are members of the central and apex Co-operative Societies:- The central and apex societies (having individuals as members) shall retire the shares of individual members in the following manner, namely:-

 

(i)                At least one-third of the shares shall be retired every year;

(ii)               The names of the shares are to be retired under clause (i) shall be take in an alphabetical order in Gurmukhi script; and

(iii)             The payment in respect of shares to be retired shall be made in full at one time.

 

19. (1) Nomination of heir: Every member of a Co-operative shall nominate a person or persons to whom his share or interest referred to in Section 21 or such sums out of shares or interest as may be specified by the member, shall on the death of the member be transferred or paid as laid down in the bye-laws.

 

(2)               Such nomination may, from time to time, be revoked or modified by the member.

 

(3)               The number of persons who may be nominated by a member shall not exceed the number of shares held by the member.

 

(4)               When a member of a Co-operative Society nominate more than one person, he shall, as far as practicable specify the amount to be paid of transferred to each nominee in terms of whole share and the interest occurring  thereon.

 

(5)               The record of nomination shall be kept by a Co-operative Society in such manner as may be laid down in the bye-laws.

 

(6)               The value of the share or interest transferred or paid  to a nominee or nominees shall be determined on the basis of the sum actually paid by the member to acquire such share or interest, unless the bye-laws provide for calculation on a different basis.

 

20.       Maintenance of register of members - Section 85(2): - Every C-operative Society shall maintain a register of members showing-

(a)     the name, address and occupation of each member, and a statement of shares held by him.

(b)     The date on which the member’s name was entered in the register.

(c)     The date on which any person ceased to be a member.

(d)     The nominee appointed by a member.

 

21.   Restriction on holding of sharesSection 6 and 85 (2)- No member other than the Government of a Co-operative Society shall hold more than one 3tenth of shares capital of a Co-operative Society or have or claim any interest in the shares of the Co-operative exceeding 4fifty thousand rupees, whichever is 1less.

 

CHAPTER – IV

General meeting

 

22.       Power of general meeting- Section 85(2) - Without prejudice to the provisions of section 24, the general meeting alone shall have the power to transact the following business:-

1(a)     fixing the maximum credit limit of the Co-operative society having 1000 or less members subject to the approval of the Registrar.

2(b)     .....................................

(c)              expulsion of the members.

 

23.              Election of Committee – The members of the committee of a Co-operative society shall be elected in accordance with the rules given in Appendix c.

 

23-A. The manner of Co-option, the area of agricultural land to be held and the conditions required to be fulfilled for the purpose of Section 26A- (1) - The Registrar in his direction under Section 26-A shall intimate the number and class of persons to be co-opted in the committee of a co-operative society.

 

(2)               The committee of a cooperative society, to which a direction under Section 26-A has been issued by the Registrar, shall immediately after the receipt of such direction, call a meeting in accordance with these rules and the bye-laws.

 

(3)               The Committee shall then co-opt. The number of members specified in the direction issued by the Registrar from amongst the members belonging to Schedule Tribes or Backward Classes or from amongst members who hold, as land owner or tenant or as both, not more than two hectares of  agricultural land.

 

 

Provided that the members so co-opted fulfil the condition and qualifications prescribed for the elected members of the committee in these rules or in the bye-laws of such a co-operative society.

 

 Note:-            Standard Acre’ for the purpose of this rule shall have the same meaning as given in Punjab Security of Land tenures Act, 1953(Act 10 of 1953).

 

23-B. Election of the first committee after Registration of the Co-op. Society- Section 26 (IF) - Subject to the provisions of sub-section (IF) of section 26, the first committee of a co-operative society. Shall be elected within a period of fix months from the date of its registration.

 

24.  Proportion of individual and Co-op. Societies for constituting committee Section 85(2)- In a Cooperative Society, the membership which is not exclusively confined to individuals, the representation of individuals’ and Co-op. Societies on the committee and the general body shall be such as may be laid down in the bye-laws of the cooperative Society.

 

25.       Disqualification for Section membership of committee- No person shall be eligible for election as a member of the committee if-

 

(a)              he is in default to any Co-operative Society in respect of any co-operative due from him to the Co-op. Society or owes to any co-operative Society an amount exceeding his maximum credit limit.

 

(b)              He has, directly or indirectly any interest in any contract to which the Co-op. Society is a party except in transactions made with the Co-operative Society as a member in accordance with the objects of the Co-op. Society as stated in the bye-laws;

 

(c)              He has at any time during a period of one year prior to the dated of scrutiny of nomination papers, engaged in any private business, trade of profession of any description which is carried on by the society.

 

(d)              He has been convicted for any offence involving dishonesty or moral turpitude during a period of five years prior to the date of scrutiny of nomination papers;

 

(e)              He is subject to any of the 1restrictions contained in rule 29;

 

(f)               He has, during a period of 12 months preceding the date of filing of nomination papers, remained inactive as member or has been carrying on, through agencies other than the Co-operative Society of which he is a member, the same business as is being carried on, by the Co-operative Society;

 

2(g)     he is a member of 3any Co-operative Society which has ceased to function or which has not fulfilled its objects as stated in its bye-laws and has been included in the list of D class societies maintained by the Registrar if is a member 1of a Co-op. Society which is under winding up process.

 

(gg)           he has ceased to be a member of any Co-operative Society within a period of one year proceeding the date of inclusion of such Co-op. Society in the list of D class Co-op. Societies maintained by the Registrar or the operation of order of winding up to such Co-op. Society under section 57 of the Act.

 

Provided that nothing in clause (g) and (gg) shall be deemed to debar any person from seeking selection if the C-op. Society under winding up process of which he is a member is a Co-op. Society with 3limited or unlimited liability as a surety, if any, in relation to such a Co-op. Society, within two months from the receipt of assessment orders.

 

(h)   The has incurred any other disqualification laid down in the bye-laws of the society.

 

26.       Cessation of membership of committee:- A member of the committee shall cease to hold his office as such if he:

 

(a)              continues to be in default in respect of any sum due from him to the Cooperative society for such period as may be laid down in the bye-laws;

(b)              ceases to be a member;

(c)              is declared insolvent;

(d)              becomes of unsound mind;

(e)              is convicted of an offence involving dishonesty or moral turpitude; or

(f)               becomes subject to any dis-qualification which would have prevented him from seeking election, had he incurred that qualification before election-

 

27.       Division of area of society into Zones – The registrar may, in such cases as he thinks fit, divide the area of operation of a co-operative Society into zones not exceeding in number than the number of members to be elected for the committee.

 

28.       Qualifications and conditions of service of employees- (1)- The qualifications and conditions of services subject to which any person may be employed by a co-operative society or a class of Co-operative societies shall be such as may be determined by the Registrar from time to time.

(2)       Where the Registrar is of the opinion that it is necessary or expedient so to do, he may by order, for reasons to be recorded in writing relax the provisions of this rule with respect to any Co-operative societies to such extent as he may consider proper.

 

29.       Restrictions on transactions of officers and past officers with the Co-operative Society –(1) - Section 85(2)- Without prejudice to the bye-laws, no officer of a cooperative society shall, without the prior permission in writing of the Registrar, have an interest directly or indirectly, otherwise than as such officer-

(a)   in any  contract made with the society; or

(b)   in any property sold or purchased or leased by the Co-op. Society; or

(c)    in any other transaction of the Co-op. Society, except as investment made or as loan taken from the Co-op. Society or the provision of residential accommodation by the Co-op. Society.

 

(2)   No officer of a Co-operative Society shall without the prior permission in writing of the Registrar, purchase directly or indirectly, any property of a member of the Co-op. Society sold for the recovery of his dues to that Co-op. Society.

(3)   The restrictions contained in this rule shall continue to apply for a period of two years after a person ceases to be an officer of the Co-op. Society.

 

CHAPTER-V

WORKING OF CO-OPERATIVE SOCIETIES

 

30.       Manner of certifying copies of entries in books- Section 36(1) and 85(2) (xv)  - For the purpose section 36 a copy of an entry in the books of a Co-operative Society shall be certified by a certificate written at the book containing the entry is still in the custody of the Co-operative Society.      

 

1Provided that the certificate shall be signed and dated by the Manager or Secretary of the Co-operative society or by an officer authorised by a Cooperative society to do so.

 

31.       Loans and subsidies by Government – Loans and subsidies to a Co-operative Society or class of Co-operative Societies may be granted by Government on such terms and conditions as may be laid down by Government by a general or special order from time to time.

 

32.       Manner of making application for loan of subsidy- An Application by a Cooperative Society for a loan or subsidy or both  from 2 the Government or a Government sponsored agency shall be made through the Registrar. While forwarding the application, the Registrar shall record his opinion regarding the eligibility of the Co-operative Society for the said loan or subsidy or both, its financial position and the desirability of sanctioning to the Co-op. Society the said loan or subsidy or both.

 

33.                                     Submission of information and returns by Co-operative Societies having state participation- A Co-operative Society receiving Government loan or subsidy or a Co-op. Society in which a share or shares have been subscribed or liability by way of guarantee for borrowing exceeding fifty percent of the working capital of the Co-op. Society has been undertaken by the Government, shall furnish such information and submit such returns as the sanctioning authority or the Registrar may, from time to time, require.

 

34.                                    Reserve fund- 3(1)...............................

 

(2) The reserve fund of a Co-operative Society or class of cooperative Societies, may unless the Registrar by special order otherwise directs to be invested under section 44, be utilized in the business of the Co-operative Society.

 

(3)       The reserve fund shall be indivisible and no member shall be entitled to claim a specified Society.

 

4Provided that the Reserve Fund may be utilized with the prior approval of Registrar in meeting losses when it is necessary so to do to save the Co-op. Society from going under liquidation or to prevent the depositors from making a run on the Co-op. Society for getting back their deposits or any such other eventuality.

 

(4)       No Co-operative Society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such found except with the sanction of the Registrar previously obtained in writing.

 

35.                                     Payment of dividend or bonus-(1) In no Co-operative Society the dividend shall exceed ’20 percent per annum on paid up share-capital.

 

(2)              In a Co-operative Society with unlimited liability on dividend or bonus shall be paid until a period of five years has elapsed from the date of registration.

 

(3)              No dividend shall be paid by the Co-operative Society while any claim due from the Co-operative society  to a depositor or lender remains unsatisfied.

 

(4)              The Registrar, may, by a general or special order, direct that a Co-operative Society shall not pay dividend or shall pay dividend at a reduced rate so long as it receives loans and deposits from non-members.

 

235-A Net Profit- the net profits of a Co-operative Society shall be the profits remaining after allowing for the following charges, in addition to those specified in clause (gg) of Section 2, namely-

 

(a)              all other usual working charges, such as repairs, rent, taxes, subsidies received, depreciation and  irrecoverable bad debts written off;

(b)              capital expenditure written off, either wholly or in part;

(c)              capital losses actually incurred and not adjusted against bad debts written off:

(d)              provision for estimated bad debts, if any; and

(e)              expenses incurred in connection with election of the committee;

 

36.       Creation of Co-operative Education fund- Every Co-operative Society shall contribute such amount not exceeding two percent as may be directed by the Registrar, from time to time, out of its net profits of the years to the Co-operative Education fund to be administered by the State Co-operative     Education Fund to be administered by the State Co-operative Union.(now Puncofed). The contributions payable by a Co-operative society shall be recoverable in the manner provided in section 63.

 

The State Co-operative Union (now Puncofed) shall 1frame regulations with the approval of the registrar for the utilization and administration of the fund.

 

Contents    Next