IXFORlVL\TION RELATING TO CO-OPERATION AND ASSOCIATION 33 



held for at least one year. Every transfer of a share must have the sanc- 

 tion of the Board of Management and involves payment of a fee of 2 rupees. 

 The value of each share is pa3'able in five instalments of 20 rupees each, 

 the instalments being paid at intervals of at least three months. 



The funds of the society must be utilized primarily for the granting 

 of loans to registered co-operative societies. lyoans may also be granted 

 to members i) on the securit}^ of their deposits or on their paid-up share 

 capital, not exceeding 90 per cent. ; 2) on the security of Government of 

 India promissory notes ; 3) on the personal security of the borrower and 

 two sureties from among the members. 



No loan to an individual member shall be granted in the first instance 

 for more than three months, nor to a society member for more than two 

 years ; but the Board of Management may from time to time grant exten- 

 sion of loans, no extension exceeding the original period. The rate of in- 

 terest charged on loans shall not exceed 9 14 P^^ cent, per annum and 

 a rebate of 2 per cent, per annum shall be allowed on all punctual 

 repayments. 



One fourth of the net profits of each year shall be carried to the credit 

 of the reserve fimd. One eighth shall be paid as honorarium to the secre- 

 tSLvy. Of the balance 10 per cent, shall be set apart to meet the charges 

 of inspection, the remainder being divided among all the members, subject 

 to a maximum of 12 per cent, per annum, according to the paid-up share 

 capital held by them during the year. The reserve fund shall be one and 

 indivisible : it shall not be drawn upon except to make losses good, and 

 shall be invested as the registrar directs. 



This bank has now 85 members, namely 69 individual members and 

 16 societ}^ members — including 15 associations of agricultural credit. 

 Hitherto its loans on personal guarantees have been negligible but it has 

 lent to its society-members 27,560 rupees of which sum 27,310 rupees have 

 not yet been repaid. Its paid-up share capital amounts to 8,340 rupees 

 and its loans to the government to 29,800 rupees. 



The Trivandrum Co-operative Distributive Society, Limited, is a society 

 of a different type. It has a capital of 5,000 rupees consisting of 1,000 

 shares of 5 rupees each. There is an entrance fees of six annas (i) a share. 

 No member may hold in the first instance more than twenty shares ; but 

 members may use the dividends earned by them in the purchase of addi- 

 tional shares until they hold altogether a maximum of twenty-five. 



Profits must be disposed of as follows : one fourth shall be carried to 

 the credit of the reserve fund ; a bonus, not exceeding 10 per cent, of the 

 net profit or a maximum of 250 rupees a year, shall be paid to the secretary; 

 out of the remaining profits a dividend not exceeding 7 ^ per cent, a year 

 shall be paid on the paid-up share capital ; any balance shall be paid to 

 the members as a bonus, proportionately to the purchases made by them. 



The following table shows the activity of agricultural co-operative 

 societies in Travancore in the year which ended on 15 August 1916. 



([) I anna = i penny. 



