4.1 Shares.
4.2 Debentures.
4.3 Deposits.
4.4 Loans.
4.5 Grants, Aids and Subsidies.
4.6 Donations.
4.7 Entrance Fees.
4.8 The authorised share capital of the Federation shall be Rs.258 crore divdided into 5,00,000 shares of Rs.5000 each and shall be paid in full on allotment.
4.9 The funds of the kind specified in (4.2), (4.3) & (4.4) above to be raised shall not exceed twelve times of the total of paid up share capital and reserve fund, less accumulated losses as provided in the Act and Rules framed there under.
4.10 The Federation may accept funds from any development agency or any financial institution by accepting loan etc. as per the terms and conditions prescribed by such institution as may be mutually agreed upon with the prior approval of the Registrar 4
5. MEMBERSHIP:
5.1 Membership of the Federation shall be of the following types:
Ordinary Nominal
5.1.1 Any registered Cooperative Milk Producer’s Union falling under the jurisdiction of the Federation shall be entitled to hold an ordinary membership. The bye-laws of such unions shall be in confirmity with the Model Bye Laws recommended by the Federation and NDDB and approved by the Registrar.
5.1.2 State Govt. where the Government has subscribed share capital to the Federation.
5.2 “Nominal Membership” The persons having financial dealing with the federation such as suppliers, contractors, selling agents, their sureties etc. may be admitted by the Board as nominal members of the Federation. Such nominal members shall not be required to hold the shares, but each shall have to pay Rs.1000/- as fee. The shall have no right to vote or to participate in the management of the Federation or in the distribution of profits. They shall continue as members so long as they have business relating with the federation. They shall incur no liabilities in any events and in binding up of the federation.
5.2.1 Milk Unions, which have signed the Bye-Laws and the application for registration of the Federation shall be deemed to be ordinary members.
5.3 Every member Milk Union shall subscribe at least Rs.20,000/- as share capital.
5.3.1 The Federation will have the right to call upon members to subscribe as share capital and/or debentures in proportion to the business transacted through the Federation, as may be prescribed by the Board from time to time.
5.3.2 If the amount of share and /or debentures remains unpaid for more than six months from the due date, the Board of Directors may take suitable action on the members as they may deem fit.
6. The liability of member shall not exceed the amount of share capital subscribed
6.1 The members will have to subscribe the amount in full on allotment of share.
7. No member other than the Government or a Cooperative Society shall hold more than 1/10 of the share capital of a Cooperative Society or have or claim any interest in the shares of such a Cooperative Society exceeding Rs.50,000/- whichever is less.
7.1 A share certificate shall be issued every time, when a share is subscribed by a member.
5
7.2 A duplicate share certificate will be issued in the event of loss or damage of the share certificate(s) by a member with the written approval of the Board of Directors on payment of Rs.5/- per share against an indemnity bond to be furnished by the member.
8. The properties and funds of the Federation shall be invested in accordance with the Rules and Act.
9. No member once affiliated can seek disaffiliation without the permission of the Registrar, unless it is dissolved.