Section 46
of Co-Operative Societies Act 1948
Section 46
In the liquidation of a society whose registration has been cancelled, the funds, including the reserve fund, shall be applied first to the costs of liquidation, then to the discharge of the liabilities of the society, then to the payment of the share capital and then, provided the by-laws of the society permit, to the payment of a dividend at a rate not exceeding six per centum per annum for any period for which no disposal of profits was made.
the powers of a n 42 of this ed to him by the the liquidator's distribution of meration of the eration shall be liquidation and assets in priority ute between a party to arbitra-ve consented in decision of the r on any matter this Ordinance and shall be er made by the ator or by the 13 of this Ordit Court having registered office r as a decree of before expressly jurisdiction in the dissolution finance, and no any order of y whose regis including the o the costs of the liabilities of share capital society permit, not exceeding iod-for-which
(2)
When the liquidation of a society has been closed and any/erediter of that society has not claimed or received what is due to him under the scheme of distribution notice of the closing of the liquidation
(i)
he shall place the said balance or part thereof on deposit in some co-operative or other bank; or
"(3) Any balance of the reserve fund which may remain after making the payments specified in sub-section (1) of this section, including moneys remaining in respect of claims prescribed under sub-section (2) of this section, shall be applied to such local object or objects of public utility as may be selected by a majority of the votes of the members of the society (as they existed at the date of the dissolution) assembled in a special meeting and approved of by the Registrar. If within three months of the dissolution of the society the members fail to make a selection which is approved of by the Registrar, the latter shall credit the above-mentioned balance of the reserve fund to the reserve fund of the co-operative society, if any, to which the society was affiliated, or, if the society was not affiliated to any other society, shall after obtaining the approval of the Member for Home-Affairs deal with the balance in all or any of the following ways:
(ii)
he shall invest the said balance or part thereof in the purchase of any investments authorised under section 4 of the Trustee
" (3) Any balance of the reserve fund which may remain after making the payments specified in sub-section (1) of this section, including moneys remaining in respect of claims prescribed under sub-section (2) of this section, shall be applied to such local object or objects of public utility as may be selected by a majority of the votes of the members of the society (as they existed at the date the dissolution) assembled in a special meeting as approved of by the Registrar. If within the months of the dissolution of the society to members fail to make a selection which is approved of by the Registrar, the latter shall credit the above-mentioned balances of the reserve fund