Section 100(1) in Tamil Nadu Co-operative Societies Rules, 1988
(1)On the winding up of the society, the reserve fund together with the other funds constituted by the society, in accordance with its bye-laws including the common good fund and the dividend equalisation fund shall be applied by the Liquidator to the discharge of such liabilities of the society as may remain undischarged out of the assets of the society, in the following order, namely:-(a)the debts of the society;(b)the paid up share capital; and(c)the dividend upon paid-up share capital at a rate not exceeding fourteen per cent per annum for any period or periods for which dividend has not been paid; or such dividend upon paid-up share capital as may bring the total dividend paid to the maximum rate of fourteen per cent per annum for any period or periods for which the dividend at a rate lower than the maximum specified has been paid:Provided that in the case of a co-operative society for ex-servicemen, any balance of assets remaining after meeting the debts of the society shall be credited to Government and the Post War Services Re-construction Fund Committee, up to the extent of the value of the original gifts in proportion to the contributions made by the Government and that surplus assets, if any, shall be applied by the liquidator for the discharge of the paid-up share capital and dividend as laid down in clauses (b) and (c):Provided further that in the case of societies other than co-operative societies for ex-servicemen, any balance of assets remaining after meeting the debts of the society shall be credited to the Government in proportion to the amount of money granted by the Government other than the money granted by the Government towards the establishment and contingent charges of the society; and that surplus assets, if any, shall be applied by the Liquidator for the discharge of the paid-up share capital and dividend as laid down in clause (b) and (c).
