Amendment status not verified — confirm the current text below against the official source.
(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. [(2A) The share capital contribution or financial assistance to the subsidiary institution shall be met from the balance net profit of the society, as provided under sub-section (2) of section 56 and any further investment in subsidiary institutions from the society/bank other than share capital shall be released as loan as per the norms as may be specified by the Registrar. (2B) Any society/bank which had availed any financial assistance from Government, shall include nominees of Government of Kerala in the board of directors of the subsidiary institutions, as may be prescribed. (2C) The Registrar shall conduct audit, inspection and verification of records in the subsidiary institutions, as may be prescribed. (2D) Any share capital contribution or financial assistance to the subsidiary institutions from the society/bank shall be allotted with the prior approval of the Registrar based on the resolution passed by the general body of the society/bank concerned. (2E) Transferring funds or leasing of assets of the society to its subsidiary institutions shall be made with the prior approval of the Government based on the resolution passed by the general body of the society/bank.] (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.] [(4) Notwithstanding anything contained in the foregoing provisions of this section, no subsidiary institution shall be promoted under this section on or after the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 and the existing subsidiary institutions registered and working immediately before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 shall continue its operation subject to the foregoing provisions in sub-sections (1) to (3) and in the manner as may be prescribed.] Inserted by Act 8 of 2013 w.e.f. 14-02-2013. Renumbered as per Act 1 of 2019, (w.e.f. 08/01/2019). Added by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024). Added by Act 9 of 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024).