Besides own capital the cooperative society has also to borrow capital from time which includes loans, deposits and other borrowings of the society inkle' debentures subscribed and paid up. A co-operative society can receive from non-mesa deposits, loans and advances unto a certain limit. This limit is known as Maximum Limit or (MCL).• Therefore, it is obvious that the borrowed capital of a society more than its MCL because borrowed capital includes total loans both from the and non-members whereas the MCL is only fixed for loans and deposits which may receive from non-members. A cooperative registrar earns profits out or the commercial transactions carried out to achievobjects of the society and to lift the economic status of the members. The member’s society looks to the society for their share in the profits earned by the society. The certain restrictions on distribution of profits to the members. These are very restrictions. The dividends or the profits are distributed to the members only out of profits. The net profit of the society means that profit which remains after allowing following charges : -
(i) Establishment charges, contingent charges, interest payable on loans and at approved rates and the audit fee approved by the Registrar. The establishes charges include the pay and allowances on the rates determined by the to employees fulfilling the prescribed qualification.
(ii) All usual working charges such as repairs, rent, taxes and the like, depreciate and irrecoverable book debts written off with the prior approval .
(iii) Capital expenditure written off either wholly or in part.
(iv) Capital loss actually incurred and not adjusted against funds credited profits.
(v) Provisions for estimated bad debts, if any.
(vi) Any other charges allowed by the Registrar in writing.
multi state cooperative registrar once the net profit has been arrived at after allowing the charges stated above, of this net profit has to be carried to the reserve fund. Thereafter, out of the available dividend or profit can be distributed to the members. However, in case agricultural credit cooperative society 10% of net profits remaining after contribution the reserve fund has to be credited to agricultural stabilization fund.'
A special General Body Meeting of the Society in accordance with Rules 5 may be convened, which shall have a specific item on the agenda with regard fixation of the Maximum Credit Limit.. Ensure that in the said Special General Body Cetin; is a quorum as required under of the members of the Society she present in the meeting. If there is no quorum, the meeting shall be adjourned for hour and will be held at the same place after half an hour without any quorum. A this effect may be given in the agenda notice of the Special General Body however, no quorum is required for an adjourned meeting.
