Section 74 in Tamil Nadu Co-operative Societies Rules, 1988
74. Prohibition against a society entrusting whole of its business and restriction on entrusting part of its business to others.
(1)No society shall entrust the whole or any part of its business to any of its members or to any person or body of persons whether incorporated or not:Provided that where the principal object of a society is production of articles or finished goods or processing of raw materials through or with the help of its members, such society may carry on its business through its members or entrust its business to its members in accordance with the specific provisions in its bye-laws:Provided further that in the case of a society for unemployed engineering graduate, any part of its work may be entrusted by the society to its members on sub-contract basis.(2)Notwithstanding anything contained in sub-rule (1), a society may entrust any part of its work not exceeding twenty-five per cent thereof to its members and in exceptional cases to non-members on piece rate basis or on subcontract, if such part is not capable of being executed by the society on account of the society not having any facility for execution of such part:Provided that no such entrustment of such part of the work shall be made be except with the prior approval of the board and that it shall be subject to the ratification of the general body at its next meeting.
