Section 82 in Tamil Nadu Co-operative Societies Rules, 1988
82. Payment of honorarium from general funds by a society with accumulated loss but working on current profit.
- A society with accumulated loss, but working on current profit may pay honorarium to the members of the board including the President and the Vice-President at such sum as may be decided upon by the general meeting subject to the following conditions, namely:-(1)Current profit shall be the notional net profit arrived at from the profit and loss account enclosed to the audit certificate issued by the Registrar without taking into account the accumulated loss at the end of the previous year.(2)The aggregate of honorarium payable to all the members of the board including the President and the Vice-President shall not exceed five per cent, of the current profit.(3)The amount of honorarium payable to the President or the Vice-President shall not exceed rupees one thousand and two hundred in the case of a primary society, rupees two thousand and four hundred in the case of a central society and rupees three thousand and six hundred in the case of an apex society.(4)The amount of honorarium payable to a member of the board other than the President or the Vice-President shall not exceed fifty per cent of the amount of honorarium payable to the President or the Vice-President.(5)If a member of the board or the President or the Vice-President has held office for a part of the year, honorarium may be paid proportionately.(6)Officers of the Government who are members of the board may receive honorarium subject to general or special orders issued by the Government in this behalf.(7)Honorarium shall not be pa id to such member or members of the board including the President and the Vice-President who was or were responsible for the accumulated loss at the end of the previous year, provided that this shall not apply where the accumulated loss was due to factors beyond the control of such member or members. The decision of the Registrar whether the accumulated loss was due to the factors beyond the control of the member or members or not shall be final.(8)Payment of honorarium shall be made only after obtaining the approval of the Registrar.(9)Where a society had accumulated loss at the end of the previous year and has earned net profits during the year after wiping off the accumulated loss, the general meeting may decide to give honorarium either from out of current profit or from out of the net profits with the approval of the Registrar.
