Partnership of Government in societies

(1) The Government may subscribe to the share capital of a society with limited liability, upon such terms and conditions as may be agreed upon. (2) “Notwithstanding anything contained in sub-section(1), the share capital contribution by the Government in the case of cooperative credit structure society shall not exceed twenty five percent of the share capital and the Government or such society may reduce the Government’s subscription further at its choice. Provided that the State Government may contribute equity in excess of the aforesaid limit only if equity infusion is required in the State Cooperative Bank, to enable it to comply with section 11(1) of the Banking Regulation Act, 1949 (Central Act 10 of 1949).