i) at least 25 per cent shall be carried to the Reserve Fund;
ii) such proportion not exceeding 5 per cent of the net profits as may be specified by the Registrar, shall be carried to a Cooperative Education Fund to be administered in accordance with the instructions of the Registrar issued from time to time.
iii) the remainder may be utilised for one or more of the following purposes :- a) Distribution of dividend amongst members at a rate not 19 exceeding one percent above the rate at which debentures were last floated on the paid up value of each share.
b) A sum not exceeding 5% of the remaining net profit after having carried out 1/10th of the net profit in any year to the reserve fund may be contributed to the development of Cooperative Movement of charitable purpose as defined in Section 2 of the Charitable Endowment Act 1890 (VI of 1890) with prior sanction of the Registrar.
c) Creation of a Bad Debt Reserve, Dividend Equalisation Fund, Building Fund Depreciation Fund, Debenture Redemption Reserve or any other required by the State Bank.
d) Bonus to staff.
iv) Any surplus may be credited to Reserve fund or carried to the profits of next year.
55. The allocation of net profits shall be decided upon by the General Body on the recommendation of the Board. It shall be subject to the approval of the Registrar.
AMENDMENT OF BYE-LAW
56. Subject to the provision of the Act and the Rules, amendment to these bye-laws shall be carried out save in accordance with the resolution passed in the general meeting of the State Bank of which due notice of the intention to discuss the amendment has been given.
Provided that no such resolution shall be valid unless it is passed by majority of members present at the general meeting at which no less than two-thirds of the members for the time being of the State Bank present.
Provided further that amendments previously approved by the Registrar may be adopted by a majority at an ordinary general 20 meeting. The amendment shall come into force after they are registered by the Registrar.
MISCELLANEOUS
57. Deleted.
58. Deleted.
59. The State Bank shall be competent to undertake such measures as are conducive to the propagation of the Cooperative principles. The State Bank shall pay such contribution to the Punjab State Cooperative Development Federation Limited (PUNCOFED) as may be prescribed by the Registrar.
60. The State Bank shall pay such audit fee as may be assessed from time to time by the authority competent to do so.
61. The services of the members of the Board shall be honorary but they may be paid travelling and daily allowances on a scale approved by the Registrar. However, the facilities given by the Punjab Govt. to Chairman of Apex Cooperative Institutions from time to time will be given to the Chairman of bank elected by members of Board of Directors.
62. In the conduct of the affairs of State Bank, the member of the Board and the officials of the State Bank shall exercise prudence and diligence of ordinary men of business and shall be responsible for any loss sustained to the State Bank through acts of commission contrary to these bye-laws.
63. The Reserve fund of the State Bank shall be indivisible and no member shall be entitled to claim a specified share in it. It shall be invested and utilised in such manner as the statutory notified by Government may specify.
64. Should any doubt arise with regard to the interpretation of any of these bye-laws, the matter shall be referred to the Registrar whose decision shall be final.
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65. If any dispute, other than a dispute regarding disciplinary action taken by the State Bank or its Board against a paid servant of the Bank, touching the constitution or business of the State Bank arises between the members and post members of the State Bank or other persons referred to in the relevant provisions of the Cooperative Societies Act and the rules framed thereunder, it shall be disposed of in the manner provided in such an Act and the Rules.
66. The State Bank shall maintain such accounts and other record connected with accounts in such form or manner as may be directed by the authority competent to do so under the Cooperative Societies Act.
67. The State Bank shall prepare and submit such returns and statements as the Registrar may, from time to time, specify.
68. The State Bank may, in the circumstances specified by the relevant provisions of the Cooperative Societies Act be wound up and cancelled by the Registrar in accordance with the procedure laid down by such an Act and the Rules framed there under.
69. All notices of meetings and all other notices shall be deemed sufficient and proper if felt at or posted to the address given by the share holders, depositors and other constituents of the State Bank, it being their duty to keep the State Bank informed of any change of address.
70. a) No person shall be employed by the State Bank unless he satisfies the qualifications that may be laid down by the Registrar from time to time.
b) No person shall be employed by the State Bank without obtaining from him security in such form and to such according to such standards as may be laid down by the Registrar from time to time.
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71. If at a meeting of the General Body or the Board of Directors the quorum is not complete within one hour of the time fixed for the meeting, the meeting shall be adjourned. The fresh meeting shall be convened after giving a new notice. If at the reconvened meeting, the Quorum is not complete within one hour of the time fixed for the meeting, then after one members present shall constitute the quorum.
72. Deleted.
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