Like other organisation co-operative society are business organisation. They are also dealing in funds and financial matters. Hence they require sound financial base and control. For the systematic and sound financial operations societies are framed property with measures and rules in co-operative act this chapter deals with sections and rules which are needed for the management of properties and funds of co-operative societies.
SECTION 55
FUNDS NOT TO BE DIVIDED
Except the net profit, the funds of co-operative society shall not be paid as bonus or dividend or otherwise distributed to members. But a member may be paid down in the bye-laws for the service rendered by him to the society.
SECTION 56
DISPOSAL OF NET PROFIT
Net profit of a co-operative society shall disposed in the following manner.
1. Transfer an amount not less than 15% of net profit to the reserve funds.
2. An amount not exceeding 5% shall be paid to the co-operative education
fund subject to a maximum of Rs.40000
3. In the case of central society including a direct co-operative bank an amount
not exceeding 25% of the paid up capital for dividend to its members
The balance of profit may be utilized for any of the following purposes
1. dividend to members at a rate not exceeding 20% of the paid up share capital
2. Bonus to members in proportion to the business transacted with the society
3. Contribution to special funds as specified in the bye law.
4. Contribution to common good fund to the extent of 10%
5. payment of bonus to employees of the society as specified in the bye law.
SECTION 57
INVESTMENT OF FUNDS
This deals with the manner in which the funds of a society shall be invested.It may be as follows.
1. In government savings bank
2. In share or securities of the society approved by the registrar
3. securities specified in section 20 of the Indian trust act
4. In any bank approved by the registrar
5. In any other manner prescribed in rule 54
FUNDS NOT TO BE DIVIDED
Except the net profit, the funds of co-operative society shall not be paid as bonus or dividend or otherwise distributed to members. But a member may be paid down in the bye-laws for the service rendered by him to the society.
SECTION 56
DISPOSAL OF NET PROFIT
Net profit of a co-operative society shall disposed in the following manner.
1. Transfer an amount not less than 15% of net profit to the reserve funds.
2. An amount not exceeding 5% shall be paid to the co-operative education
fund subject to a maximum of Rs.40000
3. In the case of central society including a direct co-operative bank an amount
not exceeding 25% of the paid up capital for dividend to its members
The balance of profit may be utilized for any of the following purposes
1. dividend to members at a rate not exceeding 20% of the paid up share capital
2. Bonus to members in proportion to the business transacted with the society
3. Contribution to special funds as specified in the bye law.
4. Contribution to common good fund to the extent of 10%
5. payment of bonus to employees of the society as specified in the bye law.
SECTION 57
INVESTMENT OF FUNDS
This deals with the manner in which the funds of a society shall be invested.It may be as follows.
1. In government savings bank
2. In share or securities of the society approved by the registrar
3. securities specified in section 20 of the Indian trust act
4. In any bank approved by the registrar
5. In any other manner prescribed in rule 54
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