Section 7(6) in Multi-State Co-Operative Societies (Privileges, Properties and Funds, Accounts, Audit, Winding Up and Execution of Decrees, Orders and Decisions) Rules, 1985
(6)(a)In the case of winding up of a multi-State co-operative society, the reserve fund and the other funds of the multi-State co-operative society shall be applied first in discharge of the liabilities of the multi-State co-operative society in accordance with the priority specified in items (i) to (vi) below:-(i)salary and wages or other payments, if any, due to the employees of the multi-State cooperative society;(ii)security deposits of staff, if any;(iii)borrowings held from Government or on the guarantee of Government) if any;(iv)deposits of non-members, if any; (v) loans, if any ; and (vi) deposits of members, if any.(b)The balance, if any, after discharging the liabilities mentioned in clause (a) shall be applied to the re-payment of the paid-up share capital and thereafter to the payment of dividend where it has not been paid.(c)Notwithstanding anything contained in clause (b), no dividend shall be paid if the bye-laws of the multi-State co-operative society do not provide for payment of dividend.
