(1) In the case of a society whose reserve fund is equal to or more than its paid up share capital the Registrar under section 58(2) may, by general or special order permit that society to invest that portion of the reserve fund which is in excess of its paid up share capital, or a portion thereof, in its business.
Provided that, in the case of State Co-operative Banks, the Registrar may, by general or special order authorise such Bank to invest fifty percent of their reserve fund in their business.
(2) No society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise, employ such fund except with the sanction of the Registrar previously obtained in writing.
(3) In the case of a society constituted with the object of Cooperative Housing on a Co-partnership basis, the reserve fund may be utilised for expenditure on the maintenance, repair, and renewal of buildings of the society.
(4) In the case of a processing society the reserve fund may be utilised in the acquisition, purchase or construction of lands, buildings.
55.(1) A society may invest any of its funds (other than reserve fund) in any of the modes specified in section 62 when such funds are not utilised for the business of the society. Explanation : For the purpose of this subrule, “Business of a society” shall include any investment made by the society in immovable property with the prior sanction of the Registrar in the process of recovery of the societies normal dues or for the purpose of construction of building or buildings for its own use.
Rule 53* are inserted by TCS (Fourth Amendment) Act 2011.
Use of Reserve fund in the business of a society with the approval of the Registrar.
Investment of other funds.
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(2) The Registrar may, in the case of any society or class of societies, Other than a Cooperative Credit Structure Society specify by a special or general order the maximum amounts to be invested in any class or classes of societies.
(3) Every society which has invested an amount not less than 10 percent of its working capital in securities shall be required to constitute an Investment Fluctuation Fund. The Registrar may direct that a specified percent of the net profits every year shall be credited to the Investment Fluctuation Fund until, in his opinion, the amount of the funds is adequate to cover anticipated losses arising out of the disposal of securities.
56. A society which has established a provident fund for its employees under section 63 shall, with the previous approval of the Registrar, frame regulations for the maintenance and utilisation of the provident fund for its employees. Among other matters, such regulation shall provide for the following:-
(i) amount (not exceeding ten percent of the employees salary) of contribution to be deducted from the employees salary;
(ii) the rate of contribution (not exceeding the annual contribution made by the employee) to be made by the society;
(iii) advances which may be made against the security of the provident fund;
(iv) refund of employees’ contribution and contributions made by the society;
(v) mode of investment of the provident fund and payment of interest thereon.
CHAPTER- VI MANAGEMENT OF SOCIETIES