Section 100 in Tamil Nadu Co-operative Societies Rules, 1988
100. Disposal of the reserve fond on the winding up of the society.
(1)On the winding up of the society, the reserve fund together with the other funds constituted by the society, in accordance with its bye-laws including the common good fund and the dividend equalisation fund shall be applied by the Liquidator to the discharge of such liabilities of the society as may remain undischarged out of the assets of the society, in the following order, namely:-(a)the debts of the society;(b)the paid up share capital; and(c)the dividend upon paid-up share capital at a rate not exceeding fourteen per cent per annum for any period or periods for which dividend has not been paid; or such dividend upon paid-up share capital as may bring the total dividend paid to the maximum rate of fourteen per cent per annum for any period or periods for which the dividend at a rate lower than the maximum specified has been paid:Provided that in the case of a co-operative society for ex-servicemen, any balance of assets remaining after meeting the debts of the society shall be credited to Government and the Post War Services Re-construction Fund Committee, up to the extent of the value of the original gifts in proportion to the contributions made by the Government and that surplus assets, if any, shall be applied by the liquidator for the discharge of the paid-up share capital and dividend as laid down in clauses (b) and (c):Provided further that in the case of societies other than co-operative societies for ex-servicemen, any balance of assets remaining after meeting the debts of the society shall be credited to the Government in proportion to the amount of money granted by the Government other than the money granted by the Government towards the establishment and contingent charges of the society; and that surplus assets, if any, shall be applied by the Liquidator for the discharge of the paid-up share capital and dividend as laid down in clause (b) and (c).(2)Any surplus funds remaining after the payments mentioned in sub-rule (1) may, with the prior approval of the Registrar, be applied by the general meeting for making contribution to the National Defence Fund or any other fund approved by the Government and any surplus find not so applied shall be utilised in the following manner and subject to the following conditions, namely:-(a)In the case of a society other than a financing bank,-(i)The surplus funds shall be applied to such object of public utility as may be selected by the general meeting of the members of the society ordered to be wound up, and approved by the Registrar. It shall be competent for the Liquidator to constitute a trust to carry out such object and to require the general meeting to select a trustee or trustees from among both former members and others. If the general meeting does not select a trustee or trustees or if the selection of the trustee or trustees by the general meeting is not acceptable to the Liquidator, the Liquidator may himself appoint a trustee or trustees, as the case may be. The trustee or trustees; as the case maybe, shall execute a deed in such form as the Registrar may, from time to time, specify and shall utilise the said funds for the said purpose within a period of three years from the date of execution of the deed. If the trustee or trustees fails or fail to utilise the amount within the aforesaid period in accordance with the terms of the trust deed, it shall be competent for the Registrar, after giving an opportunity to the trustee or trustees to state his or their objections, if any, to assign the amount to the reserve fund of the financing bank working in the area in which the society ordered to be wound up carried on its operations or to the co-operative research and development fund or the co-operative education fund. A trust created under this sub-clause shall be governed by the provisions of the Indian Trusts Act, 1882 (Central Act II of 1882).(ii)If within thirty days after the issue of notice by the Liquidator appointed to wind-up the affairs of the society, the general meeting fails to make any selection, the Registrar may place the surplus funds on deposit or 'otherwise with the financing bank working in the area in which the society ordered to be wound up carried on its operations, until a new co-operative society with similar objects is registered in such area in which case the funds shall be credited to the reserve fund of such society. If, in the opinion of the Registrar, there is no prospect of a new society being formed in such area within a reasonable time, the Registrar shall assign the amount to the bad deb t reserve or the reserve fund of the financing bank working in such area or to the co-operative research and development fund or the co-operative education find.(b)In the case of a financing bank, the surplus funds shall be assigned by the Registrar to the reserve fund or funds of any other financing bank or banks to which the societies, working in the area in which the financing bank ordered to be wound up carried on its operations are affiliated or transferred. If there is no financing bank working in such area, the Registrar shall invest the amount on interest in the Tamil Nadu State Co-operative Bank Limited, until a new financing bank is formed in such area, in which case the funds shall be credited to the reserve fund of such financing bank.
