State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

15. Promotion of subsidiary organisations.- (1) Any Co-operative may, by a resolution passed at its general meeting by a majority of members present with a right to vote, promote one or more subsidiary organisations for the furtherance of its objectives and such organisations may be registered under any law for the time being in force. 1[Provided that a Co-operative Bank shall not promote a subsidiary, nor shall a Co-operative promote a subsidiary whose by-laws permit the carrying on of banking business, without the prior permission of the Reserve Bank in writing.]1 2[Provided further that, subject to such rules as may be prescribed, no co-operative shall promote or invest in subsidiary organizations without prior approval of the registrar.]2 (2) The annual reports and accounts of any such subsidiary organisation shall be placed before the general meeting of the Co-operative every year.