Permissible Exemptions/Reductions for Society Applications

A co-operative society applying to the Registrar under Sub-section (3) of Section 58, may- (i) if the majority of its members are students or trainees who are likely to leave the society on the completion of their studies or training, be permitted by the Registrar to reduce allocation to Reserve Fund to ten per cent of the net profit and to enhance rate of dividend to 20 per cent and may also be exempted from contributing to any or all of the funds mentioned under Clause (c) or Sub-section (2) of Section 58; (ii) if it is a farming society, be permitted by the Registrar under Sub-section (3) of Section 58, to enhance the percentage of dividend up to twenty per cent and reduce its contribution to "Co-operative Education Fund" upto one-tenth of the general rate mentioned in Rule 155; (iii) if it is a society of any other kind, be permitted by the Registrar to reduce its contribution to reserve fund to twenty per cent and enhance its percentage of dividend to 20 per cent unless otherwise permissible under these rules.