(1) Every society which declares, out of the current year’s profit, a dividend to its members, shall contribute towards the education fund at such rate as may be prescribed.
Fund not to be divided.
Appropriation of profits.
Reserve fund.
Restrictions on dividend.
Contribution to education fund.
2 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Contribution to public purpose.
Investments of funds.
Funds not to be utilised for certain proceedings filed or taken by or against officers in personal capacities.
(2) No society, liable to contribute towards the education fund, shall pay a dividend to its members, unless the said contribution is made to the Registrar within two months from the date on which its accounts are adopted by the general body of members at its annual general meeting.
(3) An officer who wilfully fails to comply with the requirements of this section, shall be personally liable for making good the amount to the Registrar.
61. After providing for the reserve fund as provided in section 58, for the educational fund as provided in section 60, a society may set aside a sum not exceeding twenty per cent.
of its net profits, and utilise from time to time, with the approval of the Registrar, whole or part of such sum in contributing to any prescribed co-operative purpose, or to any charitable purpose within the meaning of section 2 of the Charitable Endowments Act, 1890, or to any other public purpose.
62. A society may invest, or deposit its fund,—
(a) in a Central Bank, or the State Co-operative Bank;
(b) in the State Bank of India or in any nationalised bank;
(c) in the Postal Savings Bank;
(d) in any of the securities specified in section 20 of the Indian Trusts Act, 1882;
(e) in shares, or security bonds, or debentures, issued by any other society with limited liability;
(f) in any land or building;
(g) in Employee’s provident fund; or
(h) in any corporation owned or controlled by the Union territory Administration, with the prior approval of the Administrator subject to such terms and conditions as may be prescribed in this behalf.
Explanation.—For the purposes of this section, the expression “nationalised bank” means a corresponding new bank constituted under sub-section (1) of section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.