(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement in such form as may be prescribed in favour of that society providing that his employer or the officer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement but not exceeding one-third of the salary or wages and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such agreement, the employer or the officer disbursing the salary or wages of the members shall, iP so required by the co-operative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within fourteen days from the date of the deduction.
(3) Tf nfler the receipt of a recluisition m a d e under sub-section (2), tiie ~:ll.iployer or the ofEcel. c?isbi~~sing the salary :j:. wages of the mcinheli ! t ai-iy lime i 2 i j . l ~ t o r':ccii:ct i h e amount specified iii :.he requisition 01.
malces ilc4:1laii in ~,cll~iilin;,; t.hc: anioltlit cleduclcd to ti-!a :;ociei:,r, thc sociicly ~11a l l be enlitled to recover a n y such amount f1.ol1-I sucl~ cl-1111;oyc;- O I .
Deduction from salary to meet cooperative society's elaim in certain cases.
Other forms of 'State aid t3 CO- operative societies.
Funds not to be divided by way of profit.
(34 THE GAZETTE OF INDIA EXTRAORDINARY [ P A R T IX- . . . . . .. -- - -- -- - . - ----P----- officer, as the case may be, as arrears of land revenue and the amount due from such employer or officer shall rank in priority 'in respect of the liability of such employer or officer equal to that of the salary or wages in arrears.
(4) The employer or the officer disbursing the salary or wages shall maintain such registers as may be prescribed by the Chief Commissioner or the Registrar from time to time.
(5) When a requisition in writing from any co-operative society registered or deemed to be registered in ally Stale in respect of a member of that society who for the time being is ePllployed in the Union territory, is received by his employer, the requisition shall be acted upon as if i t had been made by a c~-~-ir~~er.at.ive society in the Union territory.
40. Notwithstanding anything contained in any law for the time being in force, the Government may-
(a) subscribe to the share capital of a co-operative society;
(b ) give loans or make advances to a co-operative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(d) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Government;
( e ) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and
(f) give financial assistance in any other form, including grants and subsidies, to a co-operative society.
CHAPTER VI
41. No part of the lunds of a co-operative society shall 'be divided by way of bonus or dividend or otherwise among its members:
Provided that payment may be made to a member for the work done by him as secretary or as clerk on such scale as may be prescribed by the bye-laws:
Provided further that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made-
(a) as a bonus to a member for ally specific service rendered by him to the co-operative society including work done as secretary or as clerk; and
(0) alnong the. rnelnt~cls to sucli extent and uilcler such conditiolis as illay be prescribed o r as rnay bc specified in the b5-e-laws:
I '~.n\li t l l~tl also 111;tt 110 d ~ \ v t l ( ~ s r l ~11311 ]_IC 1 ) ~ 1 i ( l 011 t l l ~ 11:tid-ul) s l i n ~ c capital of mcmhers a t n rntc rscccrlinc twcl\7c per ccnt. pn- ni111111n.
SEC. 11 THE GAZETTE OF INDIA EXTRAORDINARY -- -- 65 --
42. Any co-operative sociely ~ n a y , wi l l ~ h e sailctio~l of the Registrar, after one-fourth of the net profits in any year has been carried to a reserve fund, contribute an amount not exceeding five per cent. of the remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in section 20 of
90. the Charitable Endowments Act, 1890.
43. 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.