(1) Every society Which does, or can, derive a profit from its transactions, shall maintain a reserve fund.
(2) In the case of a Resource or Producer’s society at least one-fifth of the net profit of the Society each year, and in the case of - any other society at least one-tenth of the net profits of the society each year, shall be carried to the Reserve Fund; and such reserve fund 3 shall not 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 Registrar, 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.
67. No society shall pay dividend to its members at the rate exceeding 9 per cent.
68. 1[(1) Every society shall contribute annually towards the Education Fund of the Manipur State Co-operative Union which may be notified in this behalf by the State Government at such rate as may be prescribed and different rate may be preScribed for different societies or classes of societies depending on their financial conditions] ’[(2) Every society shall pay its contribution to the said fund, within two months ,from the date on which its accounts are adopted Amendments 1 and 2. These sub-sections of section 68 were substituted by Manipur Act 12 of ‘ 1984, see. 4, (1) and (2). . .
by the general meeting, Any officer wilfully failing to comply with the requirement of this section shall be personally liable for makinggood the amount to the Manipur State Oo-operative Union,”]
69. After providing for the reserve fund as provided in Section 66, and for the educational fund as provided in section 68, a Society may set aside a sum not exceeding twenty 'per cent, of its net prefitsand utilise, with the approval 'of the State» Cesoperative Union as may be notified by the State Government in this behalf from time to time, the ‘whole or part of such sum in contributing to any Co-operative purpose, or any charitable purpose within the meaning of section 2 of the Charitable Endowments Act, 1890 or to any other public purpose.
70. A Society shall invest or deposit its funds in one or more of the following :—
(a) in a Central Bank, or the State Co-operative Bank ;
(b) in any of the securities specified in section 20 of the Indian Trustee Act, 1882 ;
(c) in the shares, or security bonds, or debentures issued by any other society With limited liability ;
(d) in any banking company, approved for this purpose by the Registrar, and on such conditions as the Registrar may from time to time impose ;
(e) in any other mode permitted by the rules, or by general or special order of the State Government.