Mobilisation of funds

It is proposed to amend Section 56 to state the mode of mobilisation of funds of a co-operative society and to provide that TA, DA & Other allowances payable to the members of the Committee be specified in the bye-laws subject to the maximum rate specified by the Registrar. (1) A co-operative society may mobilise funds in the form of share capital, deposits, debentures, loans and other contributions from,- (i) its members; or (ii) its depositors; or (iii) any other person, institutions and organisations to such extent and subject to such conditions as may be specified in the bye-laws of the co-operative society. (2) No part of the funds, other than the net profits of a co-operative society, shall be paid by way of bonus or dividend or otherwise distributed among its members: (1) A co-operative society may mobilise funds in the form of share capital, deposits, debentures, loans and other contributions from,- (i) its members; or (ii) its depositors; or (iii) any other person, institutions and organisations to such extent and subject to such conditions as may be specified in the bye-laws of the co-operative society. (2) No part of the funds, other than the net profits of a co-operative society, shall be paid by way of bonus or dividend or otherwise distributed among its members: Provided that a member may be paid such remuneration, allowances or honoraria at such rate as may be specified in the bye-laws for any services rendered by him to such co-operative society. Provided further that no director shall be paid travelling allowance, daily allowance or such other allowances or fees for attending meetings of the board or committees or sub-committees or for performing any other functions as a director at a rate higher than the maximum rate specified in the byelaws for the purpose, having regard to the financial position and profitability of the society