Practice Questions

Under co-operative law, a society cannot dispose of any immovable property it owns without obtaining prior approval from both:

The General Body – representing the members’ consent.

The Registrar – ensuring compliance with legal and regulatory requirements.

This dual sanction protects the society’s assets and prevents misuse.

Prior sanction of the general body and Registrar

According to co-operative principles, only the net profit of the society—after deducting all expenses, provisions, and reserves—can be distributed among members as a bonus, dividend, or in any other form.

Gross profit is before deductions.

Working profit is used for operational purposes.

Retained profit is kept in the society for reserves and future needs.

Thus, distribution is strictly from the net profit.

In a co-operative or organizational setup, the Chief Executive acts as the link between the governing body (e.g., Board of Directors) and the team of officials responsible for executing policies and handling day-to-day administration.

The President or Chairperson primarily provides leadership and oversight, but the Chief Executive ensures implementation and coordination.

Section 69 of the Kerala Co-operative Societies (KCS) Act deals with disputes related to financial matters, such as claims for debts, dues, or obligations between members, societies, or sureties.

Election-related disputes are not considered under Section 69; they are governed by separate provisions relating to co-operative society elections.

A claim by a society for any debt due to it from a member

A claim by a surety against the principal debtor

A claim by a surety against the co-Surety

Any dispute arising in connection with the election of the Board of Directors of a society

The Registrar of Co-operative Societies issues directions to ensure smooth implementation of amalgamation.

Section 14A was inserted by the 2019 KCS Amendment Act to enable the formation of Kerala Bank.

Section 2(ka) of the Kerala Co-operative Societies Act defines the Kerala State Co-operative Bank.

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