Promotion of Co-operative Movement by Government

§44

Summary

(1) it shall be the duty of the State Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the State Government may- (a) with a view to aid the growth of co-operative societies in general or of any class of co-operative societies, subscribe directly to the share capital of a co-operative society with limited liability with its consent; (b) subject to any rules made in this behalf, provide money to a State-level co-operative society 1[ X X X ] or the purchase of shares in other co-operative societies with limited liability. [Provided that in case of a Co-operative Bank or a Primary Agriculture Credit Co-operative Society the state Government shall not subscribe more than twenty five percent in the share capital of such society and where the share capital of the State Government is more than twenty five percent, it shall bring down the same to twenty five percent or less and shall convert the rest of its share capital in grant to the society.]2 (3) The State Government shall be entitled to dividend on its shares in any such co-operative society at the same rate as paid to other share-holder of the society.

(1) it shall be the duty of the State Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the State Government may- (a) with a view to aid the growth of co-operative societies in general or of any class of co-operative societies, subscribe directly to the share capital of a co-operative society with limited liability with its consent; (b) subject to any rules made in this behalf, provide money to a State-level co-operative society 1[ X X X ] or the purchase of shares in other co-operative societies with limited liability. [Provided that in case of a Co-operative Bank or a Primary Agriculture Credit Co-operative Society the state Government shall not subscribe more than twenty five percent in the share capital of such society and where the share capital of the State Government is more than twenty five percent, it shall bring down the same to twenty five percent or less and shall convert the rest of its share capital in grant to the society.]2 (3) The State Government shall be entitled to dividend on its shares in any such co-operative society at the same rate as paid to other share-holder of the society.

← Previous Section Next Section →

Explore this Chapter