Question

A Co-operative Society shall make loan only to its members. An exemption to this is ----.

• A. Kerala Bar
• B. Government Banks
• C. Private Corporations
• D. Foreign Nationals

Answer 1

Answer:

A. Kerala Bar

PROPERTIES AND FUND OF CO-OPERATIVE SOCIETY

Chapter VII, KCS Act (Sec 55 - 62)

Section : 55

• Funds not be divided 

• No part of funds other than net profit shall be distributed among members.

Section : 56

• Disposal of Net Profit

• Net profit shall be divided in the Following manner. 

Sec : 56A

• Disposal of Non Banking Asset

• Disposed within 7 years from the date of acquisition with the prior sanction of General body and registrar.

Sec 57: Investment of Funds

Sec 58: Restriction On Borrowings

Sec 59: Restrictions on Loan

• A Society shall make loan only to members Exemption: Kerala Bar 

• With the sanction of RCS through Special or general Society may make loan to other Society 

• On security of deposit Society can make loan to depositor

• Granting loans to members and non-members on security of deposit 

• Recovery manner specified by registrar. 

Sec 60 (Rule 57):

• Restriction on other Transactions with non member