Definitions

(42) “thrift and credit cooperative” means coming together of a group of people with common interest who have agreed to pool their resources together from which loan facilities are made available to the members. (1) Deficit, if any, arising out of the business of a cooperative in a financial year, shall be fully settled by debiting a part or all of the deficit to the deficit cover funds if any, and/or as deficit charge, among its members : Provided that nothing in this sub-section shall preclude a cooperative from also proceeding against its directors or staff 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 mis-management : Provided further where such amounts are recovered, the general body may resolve to credit a part or all of the amount to be 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. Provided further where such amounts are recovered, the general body may resolve to credit a part or all of the amount to be 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.