Reserve Fund

The Society shall constitute and maintain a Reserve Fund in accordance with the provisions of Section 66 of the Maharashtra Co-operative Societies Act, 1960.

(a) Constitution of Reserve Fund — The Reserve Fund of the Society shall consist of: (i) all entrance fees received from Members; (ii) all transfer fees and transfer premium received on transfer of shares and interest in the capital or property of the Society; (iii) amounts appropriated from the net profits or surplus of the Society in accordance with the provisions of Section 66 of the Maharashtra Co-operative Societies Act, 1960; (iv) all donations and contributions received by the Society, except those specifically earmarked for any particular purpose.

(b) Credit to Reserve Fund — All amounts specified in clause (i) above shall be credited to and shall form part of the Reserve Fund of the Society. The Society shall, while finalising the accounts for every Co-operative Year, transfer to the Reserve Fund such portion of its net profits as may be prescribed under Section 66 of the Act and the Rules made thereunder.

(c) Nature and Accounting of Reserve Fund — The Reserve Fund shall be separately accounted for in the books of the Society and shall be indivisible. The Reserve Fund shall be utilised only in accordance with the provisions of the Act, the Rules and the directions issued by the competent authority from time to time.