264 PROVISION OF BORROWING FACILITIES. 



discarded, and these clauses are confined to giving them a prior claim 

 as against ordinary creditors on the crops grown, and cattle, etc., 

 purchased with the aid of advances, and also a lien on shares, dividends 

 and deposits. 



Clause 15. This provision will render official audit compulsory, 

 and, it is believed, will give the outside public and the members 

 confidence in the management. Even although a society may receive 

 no financial assistance from the Government, yet it will obtain 

 valuable privileges under the proposed Act, and it is but reasonable 

 that it should at the same time be obliged to submit its accounts to 

 some check, which must in this country take the form of an official 

 audit. 



Clauses 17 and 18. These provisions as to the dissolution and 

 liquidation of a society call for no special explanation. 



Clause 19. Power is here taken to grant by executive order 

 certain exemptions in respect of income-tax, stamp-duties, and 

 registration-fees. In provinces where there are no records-of- rights, 

 the searching of registers kept under the Indian Registration Act, 

 1877 (3 of 1877), is the only means of ascertaining the existence 

 of encumbrances upon land ; but the right to search free of charge is 

 a privilege which might be used to obtain information required really 

 for private purposes, and power has, therefore, been expressly taken to 

 withdraw it, in case of such abuse, from any particular society. 



Clause 20. The Bill does not provide for the grant of financial 

 assistance by the Government ; but it may be necessary to afford such 

 assistance, and the matter is left to be regulated by executive order. 

 The power summarily to recover any advances made in this way, as 

 also any other sums due to the Government, is reserved by clause 20. 



Clause 21. The object of the wide rule-making power here 

 contemplated has already been adverted to. 



Clause 22. It is proposed, as has also been explained above^ that 

 duly registered Co-operative Credit Societies should not be subject to 

 the provisions of the Indian Companies Act, 1882 (6 of 1882). 



