Section 56 in The Meghalaya Co-operative Societies Rules
56. Reserve Fund and its subject.
- (i) Every society shall form and maintain a reserve fund which shall belong to the society as a whole and shall be built up by carrying in each year not less than twenty fie per cent of its net profits. The fund shall be indivisible and no member shall have any claim or share in it.(ii)With the previous sanction of the Registrar, co-operative society with shares and with limited liability may meet the loss of any year partly or wholly from the reserve fund ; provided that no' dividend or shares, bonus, patronage dividend or rebate is paid during the year out of the profit. Not less than fifty per cent of the reserve fund shall be separately invested every year not to be utilised in the ordinary working of the society subject to Rule 58.
