(1) A Central Society which is provided with moneys by anApex Society, from the Principal State Partnership Fund shall with such moneys establish a Fund to be called the “Subsidiary State Partnership Fund”.
(2) A Central Society shall utilize the subsidiary State Partnership Fund for the purpose of –
(a) Purchasing shares in Primary Society ;
(b) Making payment to the Apex Society in accordance with the provisions of this Chapter; and for no other purpose.
55. Shares shall not be purchased in a society from one moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund, except with the previous approval of Central Government.
56. Where any shares are purchased in a society by –
(a) The Central Government ; or
(b) An Apex Society from the Principal State Partnership Fund, or Central Society from the Subsidiary State Partnership Fund as the case may be :
the liability in respect of such shares shall in the event of the society of which the shares are purchased being wound up the limited to the amount paid in respect of such shares.
57. An Apex Society which has purchased shares in other societies from the moneys in the Principal State Partnership Fund and a Central Society which has purchased shares in Primary Societies from the money in the Subsidiary State Partnership Fund, shall be entitled only to such dividend on the said share as is decided by the society concerned and is payable to other share holders of the society.
Principal State Partnership Fund.
Subsidiary State Partnership Fund.
Approval of Central Government for purchase of shares.
Liability to be limited in respect of certain share.
Restriction on amount of dividend.
APCS ACT 1978 26