Raising of Funds and Utilization

Raising of Funds Bye Law-7
Modes of raising Funds of the Society : The funds of the Society may be raised in one or more of the following ways:

• By entrance fees,
• By issue of shares,
• By loans and subsidies,
• By deposits,
• By voluntary donations, (but not from Transferor and Transferee)
• By contributions towards cost of building or buildings,
• By fee on transfer of shares, along with the occupancy right, assignment
• By premium on transfer of occupancy right over the flats,
• By corpus fund from Promoter Builder
• By any other mode permitted under these bye-laws,
• By way of statutory requirements.
• By way of non-occupancy charges, leasing / hiring of open spaces
• By way of corpus fund, in case of redevelopment

Share Capital Bye Law-8
The Authorized Share Capital of the Society shall be Rs 17500 Divided into 350 shares of Rs 50/- each.
Ex. 35x500 = 17500
One share 17500/50 = 350

Society's seal and signature of office bearers on every share certificate
Every such Share Certificate shall bear the seal of the Society and be signed and by the Chairman, the Secretary and one Member of the Committee, duly authorized by the Committee. The same shall be issued by the Secretary of the Society.

Constitution of Reserve Fund Bye Law-12
A)The Reserve Fund of the Society shall comprise of —

•  All entrance fees received by the Society from its Members; 
• All transfer fees received by the Society from its Members on transfers of the shares, along with the occupancy rights;
• All premium received by the Society from its Members on transfers of their interest in the capital or property of the Society;
• The amounts carried to the said fund, from year to year, out of the net profit / surplus of that year, subject to the provisions of Section 66 (1) and (2) of the Act;
• All donations received by the Society, except those received by it for the specific purpose.

B .The Society shall, while finalizing the accounts for the preceding cooperative year, appropriate all amounts referred to in the bye-law No. 12(a)(i) to (v) to the Reserve Fund of the Society.

Creation of other fund Bye Law-13(a)
Creation of Repairs & Maintenance Fund
The Repairs and Maintenance Fund, at the rate fixed at the general body subject to the minimum of 0.75 per cent per annum of the construction cost of each flat, incurred during the construction of the building of the Society and certified by the Architect, for meeting expenses of normal recurring repairs of the Society’s buildings/property.

Creation of Major Repairs Fund Bye Law-13(b)
Major Repairs Funds, as and when required and decided by the by the General Body at the rate fixed pro-rata on area basis.

Creation of Sinking Fund Bye Law-13(c)
The Sinking Fund at the rate decided at the meeting of the General Body subject to the minimum of 0.25 per cent per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.

 Creation of Education & Training Fund Bye Law-13(d)
 To create Education and Training Fund from contribution by the Members Rs 10 per month / per unit or as decided by the General Body.

Utilization of the Funds Bye Law-14
Utilization of Sinking Fund
Sinking Fund : On the resolution passed at the meeting of the general. Body of the Society, the Sinking Fund may be used by the Society for reconstruction of its building/buildings or for carrying out such structural additions or alteration to the building/buildings, as in the opinion of the Society's Architect, would be necessary to

Utilization of Repairs and Maintenance
Repairs and Maintenance Fund: The Repairs and Maintenance Fund- may be utilized for meeting the expenditure on maintenance of the Society's property and repairs and renewals thereof.

Utilization of Reserve Fund
Reserve Fund : The Reserve Fund of the Society may be utilized for the expenditure on repairs, maintenance and renewals of the Society's property.

Utilization of Education & Training Fund
The Education& Training Fund be utilized as provided under section 24(A) of the Act

Utilization of all Funds with approval of General Body
Utilization of all the Funds shall be with the specific prior approval of Society’s General Body.