Question

What is the maximum Share Capital that an individual member can hold in a Co-operative Society?

• A. 1/5th of total Share Capital
• B. 1/3rd of total Share capital
• C. Rs. 5000
• D. Rs. 50,000

Answer 1

Answer:

A. 1/5th of total Share Capital

Share capital:

• Society can purchase the share of another Society.
• Maximum share capital that a member can hold is - (1/5)^th of the total share capital or not exceeding Rs 1000
• Share of interest in co-operative societies were exempted from attachment (sec. 39 of KCS Act 1969)
• There are provisions for the right to set off shares and deposits of members.

Liability of members:

• Liability of past members - 2 years (KCS Act sec-26)
• Liability of deceased member - 1 year from his death
• A member of unlimited liability can transfer his share only after - 1 year from the date of holding the share