(1) Every society which does, or can, derive a profit from its transactions, shall maintain a reserve fund.
(2) 9[Every society shall carry at least one-fourth of the net profits each year to the reserve fund;]
and 10[such reserve fund may, subject to the rules made in this behalf, if any, be used] in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, with the previous sanction of the State Government, be used in part for some public purpose likely to promote the objects of this Act, or some such purpose of the State, or of local interest:
11[Provided that, the Registrar may, having regard to the financial position of any society or class of societies, fix the contribution to be made to the reserve fund under this sub-section at a lower rate, but not lower than one-tenth of the net profits of the society or societies concerned.]
1 These words were inserted by Mah. 16 of 2013, s. 20.
2 These words were inserted by Mah. 33 of 1963, s. 12.
3 This marginal note was substituted by Mah. 20 of 1986, s. 22(b).
4 Sub-section (1) was substituted by Mah. 20 of 1986, s. 22(a).
5 These words were substituted for the words “its profits” by Mah. 33 of 1963, s. 13(b).
6 The portion beginning with the words “to the contribution” and ending with the words “by the State Government” was deleted by Mah. 27 of 1969, s. 10(b).
7 This Proviso was added by Mah. 31 of 2020, s. 2.
8 These words, Figures and sign were inserted by Mah. 5 of 2022, s. 2.
9 These words were substituted for the portion beginning with the words “In the case of” and ending with the words “to the reserve fund” by Mah. 33 of 1963, s. 14(a).
10 These words were substituted for the words “such reserve fund may be used” by Mah. 3 of 1974, s. 10.
11 This proviso was added by Mah. 33 of 1963, s. 14(b).
46 The Maharashtra Co-operative Societies Act, 1960 [1961 : Mah. XXIV 1[67. Restrictions on dividend.— No society shall pay dividend to its members at a rate exceeding 2[15 per cent. except with the prior sanction of the Registrar :]] 3[Provided that, the primary agricultural credit co-operative society shall pay dividend to its members as per the guidelines issued by the Registrar, in accordance with criteria specified by the National Bank.]