Section 44 in The U.P. Co-operative Societies Act, 1965
44. Promotion of Co-operative movement by Government.
(1)It shall be the duty of the State Government to encourage and promote the co-operative movement in the State and to take such steps in this direction as may be necessary.(2)Without prejudice to the generality of the provisions contained in sub-section (1) the State Government may -(a)with a view to aid the growth of co-operative societies, in general or of any class of co-operative societies, subscribe directly to the share capital of a co-operative society with limited liability with its consent;(b)subject to any rules made in this behalf provide money to a State-level co-operative society [* * *] [Omitted by U.P. Act No. 12 of 1976, vide Section 17, for 'hereinafter in this chapter referred to as apex society' (w.e.f. 30.10.1975.)] for the purchase of shares in other co-operative societies with limited liability.[Provided that in case of a Co-operative Bank or a Primary Agriculture Credit Co-operative Society the State Government shall not subscribe more than twenty five per cent in the share capital of such society and where the share capital of the State Government is more than twenty five per cent, it shall bring down the same to twenty five per cent or less and shall convert the rest of its share capital in grant to the society.] [Inserted by U.P. Act 47 of 2007, Section 10.](3)The State Government shall be entitled to dividend on its shares in any such co-operative society at the same rate as paid to other share-holders of the society.
