Section 67A in The Gujarat Co-Operative Societies Act, 1961
67A. [ Bad Debt Reserve Fund. [Inserted by Gujarat 1 of 2008, Sec. 10 (w.e.f. 8.10.2007).]
(1)Every society which earns profit from its transactions, shall maintain a Bad Debt Reserve Fund.(2)Every year, the society shall carry at least fifteen per cent of the net profit to the Bad Debt Reserve Fund.(3)All debts which are found to be irrecoverable and certified as such by a certified auditor and expenses incurred in recovering the same shall first be written off against the Bad Debt Reserve Fund.(4)Notwithstanding anything contained in Section 67-(a)the balance of bad debts, if any, remaining after first writing them off under sub-section (3); and(b)all losses incurred by a society including those suffered on account of settlement of disputes under Section 98 which are certified as such by a certified auditor, may be written off against the reserve fund maintained under Section 67 to the extent of not more than thirty per cent of the balance in that fund :Provided that no bad debt or loss shall be written off against the bad debt fund or, as the case may be, the reserve fund, unless the society in the general meeting passes a resolution approving the same by a majority of total membership of the society and by a majority of not less than two-third of the members of the society present and voting.(5)Notwithstanding anything contained in the Act, no society in co-operative credit structure shall be directed by the State Government or otherwise required to contribute to any fund other than those for improving the net worth and owned fund of the society.]
