| 54. |
Distribution of profits |
| 1. |
No society shall declare any
dividend or bonus to its members ;- |
| a. |
Unless the audit of its accounts
is completed and an audit
certificate is issued specifying the
net profits available for
distribution among the members; |
|
b. |
without the prior
approval of the general body; and |
| c. |
in excess of none percent per
annum on the paid up share capital, |
| 2. |
The dividend or
bonus shall be paid to be member
within three months from the date of
declaration by the general body.
Provided that no dividend as
declared by the general body shall
be paid to a member who his in
default in payment of any sums due
to the society and the society shall
be entitled to appropriate the
dividend of such member toward such
sums in default. |
| 3. |
Notwithstanding
anything contained in these rules
and the Bye-laws, the Registrar may
by a general or special order direct
that any society or class of
societies shall not pay any dividend
or shall pay dividend at a reduced
rate for such period or periods as
he may specify in the order. |
| 4. |
in the case of
State Co-operative Bank, not less
than 10 percent of net profits after
contribution to the reserve fund
under the provision to section 57,
shall be credited to the
Agricultural Stabilization Fund to
be utilized for enabling the
borrowers to make postponement of
repayment of loans on account of
famine, brought or such other
unforeseen causes. Any subsidy for
the purpose given by the Government
shall also be credited to this
Stabilization Fund. |
|
5. |
Any
distribution of the remaining
balance of profit under section 57
and after the distribution of the
dividend under sub rule (1) shall be
in accordance with the bye laws of
the society regarding such
distribution. It shall be in
proportion to the wages earned by
each member in the case member or
where it is so provided in the bye
laws, by each member or customer
incase of a consumer’s society. It
shall also be in proportion to be
amount of rent paid by each member
in the case of a Housing Society,
may be in proportion to the goods
obtained or sold through the society
by each member, or to the loans
borrowed from and the deposits with
the society by each member. |
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| 55. |
Co-operative
Education Fund : |
| 1. |
The Registrar
shall constitute maintain with the
State Co-operative bank a Fund to be
known as ‘Co-operative Education
Fund’ and administer it subject to
such regulations as he may frame
with the prior approval of the State
Government. |
| 2. |
Every society shall make an annual
contribution to the Co-operative
Education Fund a sum calculated at
two percent of its net profits
during the year subject to a maximum
of Rs. 2500. Such contribution shall
be made within 3 month from the date
on which the accounts are duly
audited and certified in accordance
with the provision of the Act and
these rules. |
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| 56. |
Object and
Investment of Reserve Fund : |
| 1. |
A reserve fund
maintained by a society shall belong
to a society and shall be utilized
to meet unforeseen losses. No member
shall have any claim to a share in
it. |
| 2. |
A society shall
invest or deposit its reserve fund
to one or more of the modes
mentioned in section 60 |
| 3. |
A society shall
may subject to the approval of the
Registrar and subject to such
conditions as he may impose use in
its business;- |
| |
upto one fourth
of its reserve fund, if the owned
capital is less than the borrowed
capital; |
| ii. |
upto one half of
its reserve fund, if the owned
capital is equal to or exceeds the
borrowed capital; |
| 4. |
No society shall
drawn upto, pledge or otherwise
employ the reserve fund, except with
the previous sanction in writing of
the Registrar. |
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| 57. |
Writing off
of Debts and other sums due : |
| |
No society shall
write off in whole or in part any
debt or other sums due to it without
the previous sanction of the
Registrar. |
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| 58. |
Restriction
on transactions with non members : |
| |
On the
application of a society, or of a
member of any society or of his own
motion when it appears to the
Registrar that it is necessary in
the interest of the working of any
particular society, to regulate or
restrict transactions of such
society with any non member, the
Registrar may, after giving an
opportunity to the society of being
heard, issue such directions as he
may consider necessary, regulating
or restricting such transaction. |
