Co-operative Societies (Amendment) Bill

by deleting the words “and the Central Co-operative Fund” in the definition of “net surplus” and substituting the words “, the Singapore Labour Foundation and the Central Co-operative Fund in accordance with sections 70 and 71”; and

by inserting, immediately after the definition of “share”, the following definition:“ “Singapore Labour Foundation” means the Singapore Labour Foundation established under the Singapore Labour Foundation Act (Cap. 303);”.

There shall be established a fund to be known as the Central Co-operative Fund which shall be used to further co-operative education, training, research, audit and for the general development of the co-operative movement in Singapore.(2) Subject to subsection (3), every society shall contribute —

5% of the first $500,000 of the surplus resulting from the operations of the society during the preceding financial year to the Central Co-operative Fund; and

20% of any surplus in excess of $500,000 from the operations of the society during the preceding financial year either to the Central Co-operative Fund or to the Singapore Labour Foundation as the society may opt.(3) The Minister may at any time reduce the percentage of the surplus that every society is liable to contribute under subsection (2)(a) so long as the difference between the reduced percentage and the amount that the society would have been liable to contribute under subsection (2)(a) shall be carried to the reserve fund.(4) The requirement to transfer the difference referred to in subsection (3) shall not apply to a society that is required to maintain a reserve fund or any fund by whatever name called having a purpose similar to a reserve fund pursuant to the Banking Act [Cap. 19], the Insurance Act [Cap. 142] or any other written law.(5) A society shall be deemed to have opted to contribute to the Central Co-operative Fund under subsection (2)(b) if that society does not exercise its option within such time and in such manner as the Registrar may require.(6) A society may from time to time change its option in respect of its contribution under subsection (2)(b) by notifying the Registrar in such manner as the Registrar may require and the change in option shall apply to the contribution of the society for the financial year in which falls the second anniversary of the date on which the Registrar was notified under this subsection and to all contributions of the society thereafter until the society again changes its option.(7) The Central Co-operative Fund shall be administered as a trust fund in such manner as the Minister may prescribe in the Rules.”.