Question

The section of KCS Act, that specifies about the restrictions of Co-operative Society on borrowing.

• A. Section 45
• B. Section 58
• C. Section 62
• D. Section 50

Answer 1

Answer:

B. Section 58

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

• Cooperative Society have specified MBP as per byelaw 

• Cooperative Society  can't borrow against byelaw 

• Certain 7 of paid up share capital = MBP + Reserve fund 

Sec 59: Restrictions on Loan

Sec 60 (Rule 57):

• Restriction on other Transactions with non member