(1) On the winding up of a Co-operative Society, the reserve fund together with other funds constituted by the society in accordance with its bye-laws, shall be applied by the liquidator to the 61 discharge of such liabilities of the society as may remain un discharged out of the assets of the society, in the following order, namely:
(a) the debts of the society;
(b) the dividend upon paid-up share capital at rates not exceeding six per cent for any periods for which dividend has not been paid, or such dividend upon paid up share capital as will bring dividend to the maximum rate for any period for which the dividend at a rate lower than the
1. Sub-rule (2) substituted by GSR 80, dated 5-3-1976.
2. Substituted for the words “twelve per cent” by Notification No. CMW 261 CLM 96, dated 10-11-1997.
3. First proviso omitted by Notification No. CMW 261 CLM 96, dated 10-11-1997.
4. Substituted for the word, brackets and letters “(a) to (d)” by Notification No. CO 200 CLM 2009, dated 15-12-2009, w.e.f.16-12-2009.
maximum specified has been paid. No dividend shall, however, be paid on share capital, if the bye-laws of the society do not provide for payment of dividend.
1[(2) any surplus funds remaining after the payment mentioned in sub-rule (1) shall be utilized in the following manner and subject to the following conditions, namely.-
(a) in the case of a Co-operative Society other than a financing bank,- (i) the surplus funds shall be applied to such object of public utility as may be selected by the general body of the dissolved Society at a meeting and approved by the Registrar.
If within thirty days, after the issue of notice by the liquidator appointed to wind up the affairs of the society, the General Body fails to make any selection that is approved by the Registrar; the liquidator shall transfer the surplus funds to the Cooperative Development Fund.
(b) In the case of financing bank, the surplus funds shall be assigned by the Registrar to the reserve fund or funds of any other financing bank or banks, to which the societies working in the area in which the financing Bank which is being wound up carried on its operations are affiliated. If there is no financing bank working in such area, the Registrar shall direct the liquidator of the concerned liquidated society to transfer such surplus funds to the Co-operative Development Fund.
(c) The Registrar shall utilize the Co-operative Development Fund for the following purposes with the prior approval of the State Government, namely.-
(i) Organization and establishment of research centers for the purpose of conducting study, research in the Co-operative sector and to hold seminars and workshops at State/National level on the latest trends in Co-operative movement.
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(ii) Creation of infrastructure such as construction of buildings, acquisition of vehicles and other facilities.
(iii) Any other related development works, assignments entrusted by the State Government from time to time or any other statutory body/agencies who are in the Co-operative field, duly recognized and authorized by the State Government;
1. Sub-rule (2) substituted by Notification No. CMW 103 CLM 2004, dated 6-10-2004, w.e.f.7-10-2004
(iv) the Registrar shall submit annual progress report and future programmes of activities to be undertaken by the Department to the Government.]
1[24-A. Transfer of surplus fund and assets of liquidated society.- Notwithstanding anything contained in rule 24 and 33, the surplus amount available or indisposed immovable property is left with the liquidated society, the liquidator shall transfer the surplus fund to the co-operative development fund and the immovable property to Government as directed by the Registrar of Co-operative Societies.]
[25. Borrowings by Co-operative Societies.- x x x x x.]