Section 58 in The Meghalaya Co-operative Societies Rules
58. Use of reserve fund in the business of a society.
- A co-operative society may, subject to the approval of the Registrar and to such conditions as he may impose, use in its business-(i)up to one-third of its reserve fund when the owned capital is less than the borrowed capital ;(ii)up to two-thirds of its reserve fund when the owned capital is equal to or exceeds the borrowed capital; and(iii)the entire reserve fund when there is no borrowed capital :Provided that a society not being credit society may, with the special sanction of the Registrar utilise the whole of its reserve fund in its business.
