CO-OPERATIVE CREDIT IN INDIA 



25 



a member of a rural society, but 

 all profits made by such a society 

 shall be carried to a fund (to be 

 called the reserve fund) : 



Provided that when such reserve 

 fund has attained such propor- 

 tion to the total liability of the soc- 

 iety, and when the interest on 

 loans to members has been reduced 

 to such rates as may be determined 

 by the by-laws or rules made under 

 this Act, any further profits of the 

 society, not exceeding three-fourth 

 of the total annual profits, may 

 be distributed to members by way 

 of bonus. 



(2) Not less than one-fourth of the 

 profits in each year of an urban 

 society shall be carried to a fund 

 (to be called the reserve fund) be 

 fore any dividend or payment on 

 account of profits is paid to the 

 members or any of them. 



of bonus or dividend or otherwise 

 among its members : 



Provided that after at least one- 

 fourth of the net profits in any year 

 have been carried to a reserve fund, 

 payments from the remainder of such 

 profits and from any profit of past 

 years available for distribution may 

 be made among the members to 

 such extent and under such con- 

 ditions as may be prescribed b}'' the 

 rules or by-laws : 



Provided also that in the case of 

 a society with unlimited liability 

 no distribution of profits shall be 

 made without the general or spec- 

 ial order of the lyOcal Government 

 in this behalf. 



Both Acts give power to the L,ocal Government, that is, to each Prov- 

 incial Government, to exempt any society from any of the conditions 

 laid down as to registration, and from any of the provision of the Act. The 

 object of granting such power of exemption is to enable the Act to be exten- 

 ded to certain societies already established in some of the Provinces, and 

 which difter somewhat from the type of societ3- contemplated by the Acts, 



The new Act contains a provision which prohibits any person, other than 

 a registered society, from carrying on business under any name or title of 

 which the word " Co-operative " is part, which was not in use on the 

 date of the coming into force of the Act, without the sanction of the Local 

 Government. 



The Act of 1904 is repealed, but societies registered under it are deem- 

 ed to be registered under the new Act, and their by-laws need only be 

 altered or rescinded in so far as they are inconsistent with the express 

 provisions of the new Act. 



//. 



RURAL SOCIETIES IiX 1911-T2. 



From the Reports of the Registrars, transmitted to the Provincial 

 Governments, the Government of India compiles statistical statements show- 

 ing the progress of the movement in British India. No report, however, 

 accompanies the statements, which are published with a short explanatory 



