STATE AIDS TO SOCIETIES
50.
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The State Government may subscribe
directly to the share capital of a society with limited liability, upon such
terms and conditions as may be agreed upon.
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Provided that in the case of the
co-operative credit structure entity, the State Government shall not hold
more than 25% of the total share capital and the entity shall have option to
further reduce the share capital contributed by the Government.
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51.
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The State Government may, under
appropriation made by law, provide moneys to a society for the purchase
directly or indirectly of shares in other societies with limited liability.
(A society to which money are so provided for the aforesaid purpose is
hereinafter in this Chapter referred to as an "Apex Society").
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52.
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(1)
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An Apex society which is provided with
moneys as aforesaid shall, with such moneys, establish a Fund to be called
the "Principal State Partnership Fund".
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(2)
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An Apex society shall utilize the
Principal State Partnership Fund for the purpose of
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(a)
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directly purchasing shares in other
societies with limited liability;
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(b)
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providing money to a society to enable
that society (hereinafter in this Chapter referred to as a "Central
Society") to purchase shares in other societies with limited liability
the latter societies being hereinafter in this Chapter referred to as
"Primary societies";
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(c)
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Making payments to the State Government
in accordance with the provisions of this chapter; and for no other purpose.
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53.
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(1)
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A Central Society which is provided with
moneys by an Apex Society from the Principal State Partnership Fund shall
with such moneys, establish a fund to be called the "Subsidiary State
Partnership Fund".
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(2)
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A Central society shall utilize the
Subsidiary State Partnership Fund for the purpose of
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(a)
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Purchasing shares in Primary Societies;
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(b)
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Making payments to the Apex Society in
accordance with the provisions of this Chapter and for no other purpose.
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54.
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Shares shall not be purchased in a
society from the moneys in the Principal State Partnership Fund or the
Subsidiary State Partnership Fund, except with the previous approval of the
State Government.
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55.
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Where any shares are purchased in a
society by-
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(a)
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the State Government; or
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(b)
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an Apex society from the Principal State
Partnership Fund, or a Central society from the Subsidiary State Partnership
Fund, as the case may be, the liability in respect of such shares shall, in
the event of the society of which the shares are purchased being wound up, be
limited to the amount paid in respect of such shares.
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56.
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An Apex society which has purchased
shares in other societies from the moneys in the Principal State Partnership
Fund, and a Central society which has purchased shares in Primary societies
from the moneys in the Subsidiary State Partnership Fund, shall be entitled only
to such dividend on the said shares as is declared by the society concerned
and is payable to other shareholders of that society.
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57.
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(1)
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If a society in which shares are
purchased from the Principal State Partnership Fund is wound up, or is
dissolved, the State Government shall not have any claim against the Apex
society which purchased the shares in respect of any loss arising from such
purchase; but the State Government shall be entitled to any moneys received
by the Apex society in liquidation proceedings or on dissolution, as the case
may be.
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(2)
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If a society in which shares are
purchased from the Subsidiary State Partnership Fund is, wound up or
dissolved, neither the State Government nor the Apex society shall have any
claim against the Central society which purchased the shares in respect of
any loss arising from such purchase; but the Apex society shall be entitled
to any moneys received by the Central society in liquidation proceedings or
on dissolution, as the case may be, and such moneys shall be credited to the
Principal State Partnership Fund.
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58.
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(1)
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All moneys received by an Apex society in
respect of shares of other societies, purchased from the moneys in the
Principal State Partnership Fund on redemption of such shares, or by way of
dividends or otherwise, shall be credited to that Fund.
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(2)
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All moneys received by a Central society,
in respect of shares of Primary societies purchased from the moneys in the
Subsidiary State Partnership Fund on redemption of such shares, or by way of
dividends or otherwise, shall in the first instance be credited to that Fund,
and then transferred to the Apex society, which shall credit them to the
Principal State Partnership fund.
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(3)
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All moneys and dividends referred to in
sub-sections (1) and (2) shall, notwithstanding that the shares stand in the
name of the Apex society or the Central society, as the case may be, paid to
the State Government.
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(4)
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Save as provided in sub-section (3), the
State Government shall not be entitled to any other return on the moneys
provided by it to an Apex society under Section 51.
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59.
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(1)
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If an Apex society which has established
a Principal State Partnership Fund is wound up or dissolved, all money, to
the credit of, or payable to that Fund, shall be paid to the State
Government.
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(2)
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If a Central society which has
established a Subsidiary State Partnership Fund is wound up or is dissolved,
all moneys to the credit of, or payable to that Fund shall be paid and
credited to the Principal State Partnership Fund from which it received
moneys under clause (b) of sub-section (2) of section 52.
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60.
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Any amount to the credit of a Principal
State Partnership Fund or a Subsidiary State Partnership Fund shall not form
part of the assets of the Apex society or the Central Society, as the case
may be.
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61.
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Subject to the
foregoing provisions of this Chapter –
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(a)
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the State Government may enter into an
agreement with an Apex society setting out the terms and conditions on which
it shall provide moneys to the Apex society for the purpose specified in
section 51;
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(b)
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an Apex society may, with the previous
approval of the State Government, enter into an agreement with a Central
society, setting out the terms and conditions on which it shall provide
moneys to that society from the Principal State Partnership Fund for the
purpose specified in clause (b) of sub-section (2) of section 52.
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62.
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Notwithstanding anything contained in any
law for the time being in force, but subject to such conditions as the State
Government by general or special order may specify in this behalf, the State
Government may,-
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(a)
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give loans to a society;
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(b)
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guarantee the payment of the principal of
debentures issued by a society, or of interest thereon, or both or the
repayment of the share capital of a society to its members, or the payment of
dividends thereon at such rates as may be specified by the State Government;
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(c)
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guarantee the repayment of loans given by
a Co-operative Bank to a society;
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(d)
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guarantee the repayment of the principal
of, and payment of interest on, loans and advances given by the Reserve Bank
of India, or the Industrial Finance Corporation of India or any other
authority constituted under any law for the time being in force; or
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(e)
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Provide financial assistance, in any
other form (including subsidies), to a society, “including a co-operative
credit structure entity”. [* Was
inserted By MAH. XXIV of 1961].
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63.
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The provisions of sections 51 to 61 (both
inclusive) in this Chapter shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in
force.
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