( A ) Raising of Funds
7.
The funds of the Society may be raised in one or more of the following ways: Modes of raising the funds of the
- by entrance fees,
- by issue of shares,
- by loans and subsidies,
- by deposits,
- by voluntary donations, (but not from Transferor and Transferee)
- by contributions towards cost of building or buildings,
- by fee on transfer of shares, along with the occupancy right, assignment
- by premium on transfer of occupancy right over the flats,
- by corpus fund from Promoter Builder
- by any other mode permitted under these bye-laws,
- by way of statutory requirements.
- by way of non-occupancy charges, leasing / hiring of open spaces
- by way of corpus fund, in case of redevelopment
(B)Share Capital
8.
The Authorised Share Capital of the Society shall be Rs …………………………..divided into …………… shares of Rs. 50 each.
9.
a.) A Share Certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the Member, the number of shares issued and the value paid there on, shall be issued by the Society to every Member for the shares subscribed by him, within a period of six months of the allotment of the shares.
b) the Committee of the Society shall issue a duplicate share certificate, “So Marked”, on application to its members on production of following documents.
1. if the share certificate is lost – copy of police complaint lodged, and an affidavit in that regard.
2. if the share certificate is soiled, burnt, torn, disfigured etc. affidavit in that regard.
10.
Every such Share Certificate shall bear the seal of the Society and be signed and by the Chairman, the Secretary and one Member of the Committee, duly authorised by the Committee. The same shall be issued by the Secretary of the Society.
(C) Limit of Liabilities
11. Deposits from Members and loans may be received by the society for such period and at such rate of interest and upto such mount and on such terms and conditions as may be determined by the Committee, provided that at no time, the total amount of such liabilities shall exceed the limit prescribed under Rule 35 of the MSCS Rules.
(D) Constitution of the Reserve Fund
12.
a. The Reserve Fund of the Society shall comprise of —
i. all entrance fees received by the Society from its Members;
ii. all transfer fees received by the Society from its Members on transfers of the shares, along with the occupancy rights;
iii. all premium received by the Society from its Members on transfers of their interest in the capital or property of the Society;
iv. the amounts carried to the said fund, from year to year, out of the net profit / surplus of that year, subject to the provisions of Section 66 (1) and (2) of the Act;
v. all donations received by the Society, except those received by it for the specific purpose.
b. The Society shall, while finalising the accounts for the preceding cooperative year, appropriate all amounts referred to in the bye-law No. 12(a)(i) to (v) to the Reserve Fund of the Society.
(E) Creation of Other Funds
13.
The Society shall create and establish the following funds by collecting contributions from its Members at the rates mentioned hereunder :
a. The Repairs and Maintenance Fund, at the rate fixed at the general body subject to the minimum of 0.75 per cent per annum of the construction cost of each flat, incurred during the construction of the building of the Society and certified by the Architect, for meeting expenses of normal recurring repairs of the Society’s buildings/property.
b. Major Repairs Funds, as and when required and decided by the by the General Body at the rate fixed pro-rata on area basis.
c. The Sinking Fund at the rate decided at the meeting of the general body, subject to the minimum of 0.25 per cent per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.
d. To create Education and Training Fund from contribution by the Members Rs 10 per month / per unit or as decided by the General Body.
(F) Utilisation of the Funds by the Society
14.
The Society may utilise its Funds in the manner indicated below :
a. Reserve Fund : The Reserve Fund of the Society may be utilised for the expenditure on repairs, maintenance and renewals of the society’s property.
b. Repairs and Maintenance Fund: The Repairs and Maintenance fund may be utilised for meeting the expenditure on maintenance of the Society’s property and repairs and renewals thereof.
c. Sinking Fund : On the resolution passed at the meeting of the general. Body of the Society, the Sinking Fund may be used by the Society for reconstruction of its building/buildings or for carrying out such structural additions or alteration to the building/buildings, as in the opinion of the Society’s Architect, would be necessary to strengthen it / them or for carrying out such heavy repairs as maybe certified by the Architect and on approval of General Body.
d. The Education& Training Fund be utilized as provided under section 24(A) of the Act Utilisation of all the Funds shall be with the specific prior approval of Society’s General Body.
(G) Investment of Funds
15.
The funds of the Society, when not deployed in its objects, may be invested or deposited as required under Section 70 of the Act. Provided that Society’s funds collection shall be invested on long term basis, along with the interest earned thereon by one of the modes permitted under the said section of the Act.
