cooperative societies

The elections of the cooperative society is held first time within six months from the date of its registration. After that the elections are carried out at every 5 years. A President can stay as a Head of state for two successive times however the 3rd time, the President needs to change. No part of the funds, other than net profits of a multi state cooperative society will be divided by way of perk or dividend or otherwise distributed among its members. The net profits of the multi mention society should be calculated by deducting from the gross revenue for the year, all interest accrued, and building up in relation to quantities which are past due, establishment charges, interest payable on loans and deposits, audit fees, working expenditures consisting of repair works, rent, taxes and depreciation, perk payable to workers under the law relating to repayment of incentive for the time being in force, and equalization fund for such bonus, provision for repayment of income-tax and making approved donations under the Earnings Tax Act 1961, development rebate, arrangement for development fund, bad financial obligation fund, cost change fund, dividend equalization fund, share capital redemption fund, financial investment change fund, share capital redemption fund, financial investment fluctuation fund, provision for retirement benefits to staff members and after offering or crossing out bad financial obligations and losses not adjusted versus any fund produced out of revenue. The condition is that such society could contribute to the net profits for the year interest accrued in the preceding years, however recovered during the year. In case of multi state cooperative societies which do not have share capital, the surplus of earnings over expenditure shall not be treated as net profits and such surplus should be dealt with in accordance with the bye-laws. A multi state cooperative society shall, from its net revenues in any year move a quantity not less than twenty-five percent to the reserve fund, credit one percent to cooperative education fund kept by the National Co-operative Union of India Limited, New Delhi or move an amount not less than 10 percent to a reserve fund for conference unforeseen losses. No multi state cooperative society will make a contribution either in cash or in kind, whether directly or indirectly, to an institution which has a things of furtherance of the interest of a political celebration. There is a limitation on loan. No cooperative society aside from cooperative bank shall make a loan to a member on the protection of this share or on the security of a non-member. The society can make a loan to a depositor on the safety of this deposit. The multi state cooperative society registration my receive deposits, raise loans and get grants from external sources to such extent and under such conditions as might be pointed out in the memorandum offered that the overall quantity of deposits and loans received during any monetary year shall not go beyond 10 times of the sum of subscribed share capital and collected reserves. The net collected reserves is determined by deducting built up losses from collected reserves.