Section 197

The Maximum liability of a co-operative society shall be fixed in its Annual General Meeting but it shall not exceed 15 times of its owned capital and shall be subject to the approval of – (i) the Central Co-operative Society to which the co-operative society is affiliated and indebted, or (ii) the Registrar if the co-operative society is not affiliated to any Central Co-operative Society or if affiliated, is not indebted to such Central Society: Provided that where a co-operative society is affiliated and indebted to more than one Central Society, approval of such Central Co-operative Society shall be necessary to which the society is more heavily indebted: Provided further that the maximum liability of a co-operative society may, in special circumstances, exceed the limit fixed as above with the special sanction of the Registrar.