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Section 31: Investment and use of funds other than reserve fund

Madhya Pradeh Co-Operative Society Rules, 1962State Rules of Madhya Pradesh · 1960

(1) Subject to the provisions of Section 44, a society shall not, except with the previous sanction of the Registrar, invest and use the whol e or any portion of i ts funds (other than reserve or other fund created for specified purposes) in the 27 purchase or lease of land or in acquisition, construction or renewal of any building or in the purchase of any machinery or mechanically propel led vehicle costing more than the l imit f ixed by the Registrar from time to t ime that may be necessary to conduct i ts business. The amount of the funds so invested shall be recouped on such terms as may be deter mined in each case by the Registrar.

(2) The provisions of sub -rule (1) shall not apply—

(a) to immovable property purchased—

(i) by a society at a sale held in execution of a decree obtained by i t , for the recovery of any sum due to i t ; or ( i i) by a f inancing bank at a sale held in execution of a decree obtained by a society financed by i t , for the recovery of any sum due to such society or at a sale brought about by the l iquidator of such society; or

(b) to the purchase or lease of lands or purchase , construction or renewal of buildings by a society whose objects according to i ts byelaws include such purchase, lease construction or renewal.

(3) No recoupment of the amount invested under this rule shall be necessary where the investment is made—

(a) by a society from i ts building fund consti tuted out of profits; or

(b) by a society, other than a credit society, in which the share capital raised from the members is intended to buil t up the special kind of business for which i t has been registered.

Where this provision sits

ActMadhya Pradeh Co-Operative Society Rules, 1962
Section31
Marginal noteInvestment and use of funds other than reserve fund
JurisdictionState of Madhya Pradesh
StatusIn force as published by the source

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