Multi State Cooperative Society

Description

The elections of the cooperative society are held the first time within six months from the date of its registration. After that, the elections are conducted every five years. A President can remain as a Head of state for two successive times however the 3rd time, the President has to change. No part of the funds, aside from net earnings of a multi-state cooperative society will be divided by means of bonus or dividend or otherwise dispersed among its members. The net earnings of the multi provide society will be computed by deducting from the gross earnings for the year, all interest built up, and building up in relation to amounts which are past due, establishment charges, interest payable on deposits and loans, audit fees, working costs including repairs, rent, taxes and depreciation, perk payable to staff members under the law relating to payment of incentive for the time being in force, and equalization fund for such perk, arrangement for repayment of income-tax and making approved donations under the Income Tax Act 1961, development discount, provision for development fund, bad debt fund, price fluctuation fund, dividend equalization fund, share capital redemption fund, investment change fund, share capital redemption fund, financial investment variation fund, arrangement for retirement advantages to workers and after offering or writing off bad financial obligations and losses not adjusted against any fund created out of revenue. The condition is that such society might contribute to the net revenues for the year interest accumulated in the preceding years, but recovered during the year. In case of multi-state cooperative societies that do not have a share capital, the surplus of earnings over expenditure shall not be treated as net earnings and such surplus will be handled in accordance with the bye-laws. A multi-state cooperative society shall, from its net earnings in any year move an amount 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 a quantity not less than ten percent to a reserve fund for meeting unpredicted losses. No multi-state cooperative society shall make a contribution either in cash or in-kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party. There is a restriction on loans. No cooperative society other than cooperative bank shall make a loan to a member of 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 specify society may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as could be pointed out in the memorandum offered that the total quantity of loans and deposits gotten during any monetary year should not exceed 10 times of the sum of subscribed share capital and accumulated reserves. The net accumulated reserves are calculated by deducting accumulated losses from collected reserves.

 multi state cooperative society