Question

Which section of KCS Act mentions that the Govt shall not have any claim against the apex or central Society which purchased shares, PSPF or SSPF in a society, subsequently wound up or dissolved?

• A. Section 49
• B. Section 36
• C. Section 58
• D. Section 72

Answer 1

Answer:

A. Section 49

STATE AID TO COOPERATIVES

• Sec 42 - Direct Partnership of Govt in Societies 

• Sec 42(1) - The Govt may Subscribe directly to the share capital of a society with limited liability 

• Sec 42(2) - Govt get the Same rate of dividend as Ordinary member get 

• Govt not entitled to get high rate of dividend (B class high rate)

• Sec 43 - Indirect Partnership of Govt in Societies

  Govt give money to other societies for the purchase of shares of another societies with limited liability 

• Sec 44 - Principal state Partnership Fund

• Sec 46 - Approval of Govt for the purchase of shares 

• Sec 47 - Liability to be limited for the purchase of shares 

• Sec 48 - Restrictions on rate of dividend 

• Sec 49 - Indemnity of Apex and central Society 

• Sec 50 - Disposal of share Capital and Dividend