Section 20 in Punjab Self-Supporting Co-operative Societies Act, 2006
20. Management of deficit.
(1)The deficit, if any, arising out of the operation of the business of a self-supporting co-operative society during a financial year, shall be fully settled by debiting a part or whole of the deficit to the deficit cover fund or business risk fund, or as charge among its members.(2)Notwithstanding the settlement of the deficit referred to in sub-section (I), a self-supporting co-operative society shall be at liberty to recover the deficit from any of its officers, if it is found that such deficit occurred due to the gross negligence or mis-management of the officer or officers, as the case may be:Provided that no such settlement shall be allowed unless the deficit so arisen is audited and certified to be correct by the auditor appointed under section 50.(3)The amount recovered under sub-section (2), may be allowed to be credited by the general body to the deficit cover fund or to the accounts of each member, as the case may be, in proportion to the deficit charge.(4)No member shall be permitted to withdraw from the membership of the self-supporting co-operative society without paying his share towards clearing the deficit, if any.
