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Co-Operative Societies Act 2008

23. Borrowing by directors and other officers

1.      No officer, director, Credit Committee member, Supervisory Committee member, or employee of a society, may borrow from the society an amount in excess of his holdings therein in shares, deposits and accumulated earnings, unless approved by the vote of two-thirds of the other members of the Board, Credit Committee and Supervisory Committee sitting together.

2.      A meeting referred to in paragraph (1) is not properly constituted unless a quorum of the members of the Credit Committee is present.

3.      No registered society shall lend any member an amount exceeding—

a.      10 percent of the aggregate of the registered society’s share capital, retained earnings and reserves;

b.     the aggregate of the members’ ordinary deposits and the society’s reserves; or

c.      such lesser percentage as is specified in the by-laws.

Cooperative Societies Act, 2008 Back

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