Co-operative Societies (Amendment) Bill

in the definitions of “dividend” and “honorarium”, after “net surplus”, insert “or the reserves (if approved under section 72A)”; and

after the definition of “Registrar”, insert —“ “reserves” means the assets of a society that are in excess of its liabilities, paid‑up share capital, subscription capital and other deposits;”.

delete subsection (5);

in subsection (6), replace “Despite subsection (5), the” with “The”; and

in subsection (6), replace “referred to in that subsection” with “mentioned in subsection (1)”.

replace “otherwise provide” with “provide for a longer period”; and

replace “prior to” with “before”.

in paragraph (d), delete “or invested”; and

after paragraph (d), insert —“(da)to consider and resolve the distribution of dividends or payment of honoraria from any reserves for which the approval of the Registrar under section 72A has been obtained;

replace “(but not both)” with “, or both,”; and

after “such honorarium or allowance”, insert “, or both,”.

renumber subsection (1) as section 66;

after paragraph (d), insert —“(da)bonds or debentures issued by the society subject to such restrictions as are laid down in this Act and in the by‑laws;”; and

delete subsection (2).

in subsection (2)(a) and (b), after “preceding financial year”, insert “(excluding any amount specified in subsection (2A) and any grant from the Government excluded under subsection (2B))”; and

after subsection (2), insert —“(2A) In subsection (2), any gains or profits arising from the disposal of any of the following are excluded from the surplus of a society:

immovable property owned by the society and used by the society for its own operations;

shares (whether listed or unlisted) in any entity held by the society.(2B) In subsection (2), the Minister may, by order in the Gazette and subject to any conditions specified in the order, exclude any grant from the Government from the surplus of a society.”.

Subject to this Act, any conditions prescribed in the by‑laws and any written direction by the Registrar, a society may allocate its reserves (or any part of the reserves) to funds constituted by the society, and may change the amount of the reserves allocated to any fund from time to time.(2) Subject to subsection (3), the reserves (or any part of the reserves) may be distributed to the members by way of dividend or paid to officers of the society by way of honoraria, to such extent and under such conditions as may be prescribed under this Act or in the by‑laws.(3) A committee of management proposing to make a distribution or payment under subsection (2) must obtain the Registrar’s approval for the distribution or payment before the annual general meeting of the society is held to consider and resolve the making of the distribution or payment.”.

in subsection (7), delete “, (4)”;

in subsection (7), replace “stated on” with “of”; and

after subsection (7), insert —“(7A) Despite subsections (3) and (5), a person who is authorised to administer the property of a member is eligible to receive from the society the value of the member’s bonus certificate or bonus share if the member is —

dead;

bankrupt;

a society for which a winding up order has been made under section 83(1) or (2); or

a trade union that has been dissolved under section 19 of the Trade Unions Act 1940.”.