State Act

Kerala Co-operative Societies Act 1969

24a[24[14AA.Promotion of subsidiary institutions for the economic welfare of members.-(1)A co-operative society may by a resolution passed at general body meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects with the prior approval of Registrar. (2)Any subsidiary institution promoted under sub-section (1) shall exist only as long as the general body of the co-operative society deems its existence necessary: Provided that a co-operative society, while promoting such a subsidiary institution shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects to such subsidiary institutions. Explanation: For the purpose of this section,- (a)An institution shall be deemed to be a subsidiary institution where the co-operative society,- (i)controls the management or board of directors or members of governing body of such institutions; or (ii)holds more than half in nominal value of equity shares of such institutions. (b)a subsidiary institution shall not include a partnership firm. (3)The annual reports and audited accounts of any such subsidiary institution shall be placed each year before general body meeting of the promoting co-operative society.