Critical Analysis of Cooperative Society

Shubham Kumar
Guru Gobind Singh Indraprastha University, India

Volume II – Issue II, 2020

The sources of funds of a co-operative society mainly consist of borrowed capital or debt capital and owned capital. Borrowed capital means the total of loaiis, deposits, other borrowings of a co-operative society and current liabilities. Owned capital means the total of paid up share capital and accumulated reserve fund and others created out of profits of a co-operative society or otherwise. The maximum amount which a society may borrow shall be determined a general meeting of the society and no society shall borrow beyond the maximum amount so determined. The Registrar may, at any time, revise the limit fixed by the general meeting. No society shall incur liabilities from persons who are not members, in excess of a maximum amount fixed time to time in general meeting and approved by the Registrar.  A primary agricultural credit society which is a member of a central co-operative bank, shall not borrow by way of loans or deposits from any non-member without the sanction of the central co-operative bank, and where the society is not a member of any central co-operative bank, sanction is to be made from the Registrar.

Keyword: Capital Income, Person liabilities, co-operative bank


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