(1) A central society which is provided with moneys by an apex society from the principal State partnership fund shall, with such moneys, establish a fund to be called the Subsidiary State partnership Fund.
(2) A central society shall utilize the subsidiary State partnership fund for the purpose of—
(a) purchasing shares in primary societies;
(b) making payments to the apex society in accordance with the provisions of this chapter, and for no other purpose.
Approval of State Government for purchase of shares
47. No shares shall be purchased in a co-operative society from the moneys in the principal State partnership fund or the subsidiary State partnership fund, except with the previous approval in writing of the State Government.
Liability to be limited in respect of certain shares
48. Where any shares are purchased in a co-operative society by—
(a) the State Government; or
(b) an apex society from the principal State partnership fund;
(c) a central society from the Subsidiary State Partnership Fund, the liability in respect of such shares shall, in the event of the co-operative society being wound up, be limited to the nominal value of the shares.
Restrictions on amount of dividend
49. An apex society which has purchased shares in other co-operative societies from the moneys in the principal State partnership fund and a central society which has purchased shares in primary societies from the moneys in the subsidiary State partnership fund shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other shareholders of that society.
Indemnity of apex and central societies