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46. Funds not to be divided by way of profit.
No part of the funds of a co-operative society shall be divide by way of bonus or dividend or otherwise among its members.
Provided that after at least one-fourth of the net profit in the year has been carried to the reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made to the member to such extent and under such conditions as may be prescribed by the rules or by-laws.
47. Contribution to charitable purpose.
Any co-operative society may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to the reserve fund, contribute an amount not exceeding five per cent of the remaining net profits to any purpose as defined in section 20 of the Charitable Endowments Act, 1890.
48. Contribution to Co-operative Education Fund.
A co-operative society shall out of its net profits in any year credit such portion of the profits not exceeding five per cent as may be prescribed to the Co-operative Education fund constituted under the rules.
49. Investment of funds.
- A cooperative society may invest or deposit its fund -
- In the post office saving Bank; or
- In any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
- In the shares or securities of any other co-operative society; or
- With any bank carrying on the business of banking approved for this purpose by the Registrar; or
- In any other mode permitted by the rules.
- Any investment or deposits made before the commencement of this Act, which would have been valid of its Act, had been in force are hereby rectified and confirmed.
50. Restrictions on loans
- A co-operative society shall not make a loan to any person other than a member:
- Provided that with the general or special sanction of the Registrar a co-operative society may make a loan to another co-operative society.
- Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security.
51. Restrictions on borrowings.
A co-operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws.
52. Restrictions on other transactions with non-members.
Save as provided in section 50 and 51, the transactions of a co-operative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be prescribed.
Last Updated Date :- 18-06-2018
Page last updated on: 27-01-2023