Society Bye-laws are the rules and regulations laid down for the proper and peaceful running of the co-operative housing societies. Co-operative society bye-laws are approved by the government authorities and are formed with the intention to help the societies self-regulate themselves.
MODEL BYE-LAWS OF COOPERATIVE HOUSING SOCIETY
VI. FUNDS, THEIR UTILIZATION AND INVESTMENT
(C) Limit of Liabilities (Bye Law No 11)
Bye Law No 11. Restrictions on incurring liabilities by the Society
Deposits from Members and loans may be received by the Society for such period and at such rate of interest and upto such amount 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.
Rule no. 35 (Conditions for borrowing by societies with limited liability) of the Maharashtra Coperative Society Rule 1961 states that,
“(1) No society other than those referred in Rules 36 and 37 with limited liability shall, without the previous sanction of the Registrar, incur liability exceeding in total ten times the total amount of its paid up share capital, accumulated reserve fund and building fund minus accumulated losses :
Provided that central banks, urban banks and producers’ societies shall not except with the previous sanction of the Registrar, incur liabilities exceeding twelve times the total of their paid up share capital, accumulated reserve fund and building fund minus accumulated losses.
Provided that central banks, urban banks and producers’ societies shall not except with the previous sanction of the Registrar, incur liabilities exceeding twelve times the total of their paid up share capital, accumulated reserve fund and building fund minus accumulated losses.
(2) Any society may incur liabilities in excess of the limit specified in sub-rule (1) by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the society but shall be invested in Government securities which, in the case of Central Banks, shall be deposited with the Maharashtra State Co-operative Bank and, in case of other co-operative banks, with the Central Banks. No society shall borrow against such securities.”
Read other Co-operative housing society bye-laws: