(1) Deficit, if any, arising out of the business of a co-operative in a financial year, shall be fully settled by debiting a part or all of the deficit to the deficit cover fund, if any and/or as deficit charge, among its members;
Provided that nothing in this sub-section shall preclude a co-operative from also proceeding against its Directors for recovery of amounts contributing to the deficit, where such deficit is the result of deviation from the approved plan and or budget, and where such deviation does not receive the approval of the general body, or is the result of gross negligence or mismanagement;
Provided further that where such amounts are recovered, the general body may resolve to credit a part or the entire amount to the deficit cover fund and/or to the account of each member in proportion to the deficit charge levied on him/her in this regard.
(2) No member shall be permitted to withdraw from the membership of the cooperative without paying his/her share towards clearing the deficit, if any.
Operation of special funds