I am a Director in a Co-operative Credit Society. As we are growing we come across various issues for which we need expert advice. However the Karnataka Co-operative Society Act does not give answer to all our queries. In such a situation we would like to retain Chartered Accountants who deal with audits of Co-operative credit societies and with the registrar’s on a regular basis. In the absence of such an expert I am seeking advice from my esteemed colleagues here.
Here are some of the immediate queries:
- Does the KCS Act provide monetary limits above which a Co-operative Credit Society (CCS) cannot give loan to its members or CCS can amend its Bye Laws and set its own limit
- Does KCS Act provide for a maximum loan term beyond which CCS cannot give a loan. Can CCS set its own limits of say 60 months, or 120 months etc by amending its Bye Laws
- Does KCS Act puts any restrictions on giving unsecured loans
- Are there any restrictions on various types of secured loans, i.e. housing loan, vehicle loan, jewellery loan etc or CCS can deal with any kind of loan as entitled by its bye laws
- Is there a restriction requiring the members to have x% of shares to enable itself for a certain amount of loan. E.g. to take a loan of Rs. 1 lakh loan a members has to hold shares of 10% of the value of the loan. Or this can be dictated by the Bye Laws
- Can CCS amend its bye laws in a general body meeting or it needs to call for an extra-ordinary general meeting
Will appreciate inputs from my colleagues. Thanks.
CAclubindia
