Society Bye-laws are the rules and regulations laid down for the proper and peaceful running of the co-operative housing societies. Co-operative society bye-laws are approved by the government authorities and are formed with the intention to help the societies self-regulate themselves.
MODEL BYE-LAWS OF COOPERATIVE HOUSING SOCIETY
VI. FUNDS, THEIR UTILIZATION AND INVESTMENT
(D) Constitution of the Reserve Fund (Bye Law No 12)
Bye Law No 12.(a) How the Reserve Fund shall be constituted
The Reserve Fund of the Society shall comprise of —
|i.||all entrance fees received by the Society from its Members;|
|ii.||all transfer fees received by the Society from its Members on transfers of the shares, along with the occupancy rights;|
|iii.||all premium received by the Society from its Members on transfers of their interest in the capital or property of the Society;|
|iv.||the amounts carried to the said fund, from year to year, out of the net profit / surplus of that year, subject to the provisions of Section 66 (1) and (2) of the The Maharashtra Cooperative Societies Act 1960;|
|v.||all donations received by the Society, except those received by it for the specific purpose.|
The Maharashtra Cooperative Societies Act 1960, Section 66 (1) and (2) – Reserve Fund
1) Every society which does, or can, derive a profit from its transactions shall maintain a reserve fund.
(2) [Every society shall carry at least one-fourth of the net profits each year to the reserve fund;] and [such reserve fund may, subject to the rules made in this behalf, if any, be used] in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, with the previous sanction of the State Government, be used in part for some public purpose likely to promote the objects of this Act, or for some such purpose of the State, or of local interest:[Provided that, the Registrar may, having regard to the financial position of any society or class of societies, fix the contribution to be made to the reserve fund under this subsection at a lower rate, but not lower than one-tenth of the net profits of the society or societies concerned.)
Bye Law No 12(b) Appropriation of amounts to the Reserve Fund of the Society
The Society shall, while finalising the accounts for the preceding cooperative year, appropriate all amounts referred to in the bye-law No. 12(a)(i) to (v) to the Reserve Fund of the Society.
Read other Co-operative housing society bye-laws: