Chptr-8.State Aid To Co-operative Societies

State partnership in co-operative society would provide a helping hand to co-operative movement so as to enable the co-operative organisation to withstand oppositions from vested interest This would also create confidence of the public in the co-operative institutions .it would also provide the societies adequate borrowing power and enable them to meet the credit requirement of members to the desired extent. In this respect state partnership should not lead to state control or interference

SECTION 42
DIRECT PARTICIPATION OF GOVERNMENT
The government may subscribe directly to the share capital of a society with limited liability. The government is entitled to get dividend at the rate payable to other shares of the society. The government cannot claim a high rate of dividend

SECTION 43
INDIRECT PARTNERSHIP OF GOVERNMENT
The government may advance money to the society for the purchase of the shares in other society with limited liability

SECTION 44
PRINCIPLE STATE PARTNERSHIP FUNDS
An apex society which has received money from the government for the purchase of shares shall establish a fund known as principal state partnership fund. The fund shall be utilized
1. Directly to purchase shares in other society with limited liability
2. providing funds to a central society to enable the society to purchase shares
    in other societies with limited liabilities
3. Making payment to the government in accordance with the provisions
4. And for no other purpose

SECTION 45
SUBSIDIARY STATE PARTNERSHIP FUND
A separate funds known as subsidiary state partnership fund shall be established by a central bank. with the money received from the apex bank. Subsidiary state partnership fund shall be utilized.
1. only for the purpose of purchasing shares in primary society
2. Also to make payment to the apex society
3. And for no other purpose.