CAP. 33]
[r. 18 cont.]
Division of profits.
Maximum liability.
Co-operative Societies.
(4) Every appointment of a nominee shall be recorded in the Register of Members.
(5) For the purpose of a transfer to a nominee, the value of any share or interest shall be represented by the sum actually paid for that share or interest by the member holding it unless the by-laws of the registered society otherwise provide.
(6) Where any money is paid to a nominee who is a minor, a receipt given either by the minor or by his guardian shall be sufficient discharge to the registered society.
19. (1) Unless otherwise authorized by the Governor under the proviso to subsection (1) of section 34 of the Ordinance no dividend or payment on account of profits shall be made by a society registered with unlimited liability until the reserve fund has reached a proportion of not less than one-tenth of the society's total liabilities.
(2) No registered society shall pay a dividend if the rate of interest on loans granted by it to its members exceeds ten per cent per annum.
(3) No registered society shall pay a dividend on share capital exceeding five per cent per annum of the capital actually paid up.
(4) A bonus based on wages or on the value of the products of a member, or a bonus or rebate on patronage calculated in proportion to the amount of the business done by each member with the registered society may be distributed periodically to the members from surplus funds after the deduction of all expenditure and after making provision for bad and doubtful debts and making allocation to the reserve fund.
20. (1) Every registered society shall, from time to time, fix at a general meeting the maximum liability it may incur in loans or deposits whether from members or non-members.
(2) The maximum so fixed shall be subject to the sanction of the Registrar, who may at any time reduce it. No registered society shall receive loans or deposits which will make its liability exceed the limit sanctioned by the Registrar.
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CAP. 33]
[r. 18 cont.]
Division of profits.
Maximum liability.
Co-operative Societies.
(4) Every appointment of a nominee shall be recorded in the Register of Members.
(5) For the purpose of a transfer to a nominee, the value of any share or interest shall be represented by the sum actually paid for that share or interest by the member holding it unless the by-laws of the registered society other- wise provide.
(6) Where any money is paid to a nominee who is a minor, a receipt given either by the minor or by his guardian shall be sufficient discharge to the registered society.
19. (1) Unless otherwise authorized by the Governor under the proviso to subsection (1) of section 34 of the Ordinance no dividend or payment on account of profits shall be made by a society registered with unlimited liability until the reserve fund has reached a proportion of not less than one tenth of the society's total liabilities.
(2) No registered society shall pay a dividend if the rate of interest on loans granted by it to its members exceeds ten per cent per annum.
(3) No registered society shall pay a dividend on share capital exceeding five per cent per annum of the capital actually paid up.
(4) A bonus based on wages or on the value of the products of a member, or a bonus or rebate on patronage calculated in proportion to the amount of the business done by each member with the registered society may be dis- tributed periodically to the members from surplus funds after the deduction of all expenditure and after making provision for bad and doubtful debts and making allocation to the reserve fund.
20. (1) Every registered society shall, from time to time, fix at a general meeting the maximum liability it may incur in loans or deposits whether from members or non- members.
(2) The maximum so fixed shall be subject to the sanction of the Registrar, who may at any time reduce it. No registered society shall receive loans or deposits which will make its liability exceed the limit sanctioned by the Registrar.
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