Co-Operative Societies Act 1993 · Updated to 1 Apr 2015 · Part VI · Property and Funds of Co-Operative Societies
52. Restriction on borrowing
Feedback & supportA co-operative society may accept deposits and borrow funds from its members.
co-operative society
“co-operative society” means an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise which is registered under this Act;
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Subject to section 52A and regulations, a co-operative society may borrow funds from persons who are not members of that co-operative society.
A co-operative society shall notify its members of its borrowings under subsection (1) at its annual general meeting.
Any co-operative society who fails to comply with this section commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit.
conviction
“conviction” includes a finding of guilt and the proving of an offence; Co-operative Societies 11