(1) Every registered co-operative society shall maintain a Reserve Fund formed from its profits and carry to the fund in each year not less than twenty five per cent of its net profit.
(2) The Reserve Fund shall be invested separately in any of the ways prescribed in section 52 of this Act or with the sanction of the Registrar, in immovable property required for the furtherance of the activities Oof the co-operative society. Any such investment shall be deemed to constitute Reserve Fund. No instrument securing a loan on a Reserve Fund shall be valid.
(3) The Reserve Fund shall not be utilized for any purpose whatsoever except in exceptional circumstances as specified in the rules only in exceptional circumstances.
(2) The Reserve Fund shall be invested separately in any of the ways prescribed in section 52 of this Act or with the sanction of the Registrar, in immovable property required for the furtherance of the activities Oof the co-operative society. Any such investment shall be deemed to constitute Reserve Fund. No instrument securing a loan on a Reserve Fund shall be valid.
(3) The Reserve Fund shall not be utilized for any purpose whatsoever except in exceptional circumstances as specified in the rules only in exceptional circumstances.
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More sections of this act
Section 1 · Short title,extent and commencementSection 2 · DefinitionsSection 3 · The Registrar.Section 4 · Co-operative Societies which may be registered.Section 5 · Age, qualification of a member.Section 6 · Conditions of registration.Section 7 · Restrictions on acquisition of Share in a Cooperative Society.Section 8 · Power of Registrar to decide certain questions.India Code, Government of India. Text fetched 10 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.