perty, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes of its constitution.

Charge and set-off in respect of shares or interest of member.

32. Every co-operative society shall have a charge upon the share or interest in the capital and upon the deposits of a member or past member and upon any dividend, bonus or profits payable to a member or past member in respect of any debt due from such member or past member to the society, and may set off any sum credited or payable to a member or past member in or towards payment of any such debt.

Admissibility of copy of document or entry as evidence.

33. (1) A copy of any entry in any book, register or list regularly kept in the course of business in the possession of a co-operative society shall, if certified in such manner as may be prescribed by the rules, be admissible in evidence of the existence of the document or entry.

(2) In the case of such co-operative societies as the Local Government by general or special order may direct, no officer of a society shall in any legal proceedings to which the society is not a party be compelled to produce any of the society's books, the contents of which can be proved under sub-section (1), or to appear as a witness to prove the matters, transactions and accounts therein recorded, unless by order of the Court or a Judge made for special cause.

Exemption from compulsory registration of instruments relating to shares and debentures of co-operative society.

XV of 1908.

34. Nothing in section 17, sub-section (1), clauses (b) and (c), of the Indian Registration Act, 1908, shall apply to:

(a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of such society consist in whole or in part of immoveable property; or

(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immoveable property except in so far as it entitles the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immoveable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or

(c) any endorsement upon or transfer of any debenture issued by any such society. Power to exempt from stamp-duty and registration-fees.

35. The Local Government, by notification may, in the case of any co-operative society or class of co-operative societies, remit :

(a) the stamp-duty with which, under any law for the time being in force instruments executed by or on behalf of a co-operative society or by an officer or member and relating to the business of such society, or any class of such instruments are respectively chargeable; and

(b) any fee payable under the law of registration for the time being in force.

PROPERTY AND FUNDS

OF CO-OPERATIVE SOCIETIES.

Restrictions on loans.

36. (1) A co-operative society shall not make a loan to any person other than a member; provided that, with the general or special sanction of the Registrar, a co-operative society may make loans to another co-operative society.

(2) The Local Government may, by general or special order, prohibit or restrict the lending of money on mortgage of immoveable property by any co-operative society or class of co-operative societies.

Restrictions on borrowing.

37. A co-operative society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules or by-laws, and shall in respect of such deposits or loans make such provision for the maintenance of fluid resource as the Registrar may, by general or special order in this behalf, prescribe.

Restrictions on other transactions with nonmembers.

38. The transactions of a co-operative society with persons other than members shall be subject to such other prohibitions and restrictions, if any, as the Local Government may, by rule, prescribe.

Investment of funds.

II of 1882.

39. (1) A co-operative society may invest or deposit its funds :

(a) in the Government Savings Bank, or (b) in any of the securities specified in

section 20 of the Indian Trusts Act, 1882, or (c) in the shares or on the security of any other co-operative society, or

(d) with any bank or person carrying on the business of banking, approved for this purpose by the Registrar, or

(e) in any other mode permitted by the rules.

(2) Any investments or deposits made before the commencement of this Act which would have been valid if this Act had been in force are hereby ratified and confirmed.

Funds not to be divided by way of profit.

40. No part of the funds of a co-operative society shall be divided by way of bonus or otherwise among its members :

Provided that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such extent and under such conditions as may be prescribed by the rules or by-laws:

Provided also that in the case of a co-operative society which is not limited no distribution of profits shall be made without the general or special order of the Local Government in this behalf.

Contribution to charitable purpose. I of 1890.

41. Any co-operative society may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to the reserve fund, contribute an amount not exceeding ten per cent. of the remaining net profits to any charitable purpose, as defined in section 2 of the Charitable Endowments Act, 1890.

INSPECTION OF AFFAIRS.

Costs of inquiry.

Inquiry by Registrar.

42. (1) The Registrar may of his Own motion by himself or by a person duly authorized by him in writing in this behalf hold an inquiry into the constitution, working and financial condition of a co-operative society.

(2) The Registrar shall hold such an inquiry as is contemplated in sub-section (1) :

(a) on the application of a majority of the committee of the society;

(b) on the application of not less than onethird of the members of the society.

(3) All officers and members of the society whose affairs are investigated shall furnish such information in their possession in regard to the affairs of the society as the Registrar or the person authorized by the Registrar may require.

(4) The result of any inquiry under this section shall be communicated to the society whose affairs have been investigated.

Inspection of books of indebted society.

43. (1) The Registrar shall, on the application of a creditor of a co-operative society, inspect or direct some person authorized by him by order in writing in this behalf to inspect the books of the society; provided that : (a) the applicant satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and (b) the applicant deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require. (2) The Registrar shall communicate the results of any such inspection to the creditor.

44. Where an inquiry is held under section 42, or an inspection is made under section 43, the Registrar may apportion the costs, or such part of the costs as he may think right, between the society, the members or creditor demanding the inquiry or inspection, the officers or foriner officers, and members or past members of the society.

LIQUIDATION AND DISSOLUTION.

Winding up.

45. (1) If the Registrar, after an inquiry has been held under section 42 or after an inspection has been made under section 43 or on receipt of an application made by threefourths of the members of a co-operative society, is of opinion that the society ought to be dissolved, he may order the society to be wound up.

(2) Any member of a co-operative society may, within two months from the date of an order made under sub-section (1), appeal from such order.

(3) Where no appeal is presented within two months from the making of an order for the winding up of a co-operative society, the order shall take effect on the expiry of that period.

(4) Where an appeal is presented within two months, the order shall not take effect until it is confirmed by the appelate authority.

(5) The authority to which appeals under this section shall lie shall be the Local Government; provided that the Local Government may by notification direct that appeals shall lie to such other authority as may be specified in the notification.

44. Cet article règle les frais de l'enquête.

Winding up where members are less than ten.

46. In the case of a co-operative society of which all the members are individuals, the Registrar may order the society to be wound up if at any time it is proved to his satisfaction that the number of the members has been reduced to less than ten.

Liquidation.

47. (1) Where the Registrar has passed an order under section 45, or section 46 for the winding up of a co-operative society, he may forthwith appoint a competent person to be liquidator, and such person notwithstanding anything in section 45 relating to the time when the order for winding up shall take effect shall have power to take immediate possession of all assets belongong to the society, and of all books, records and other documents per taining to the business thereof and to carry on the business of the society so far as may be necessary for the beneficial winding-up of the

same.

(2) A liquidator appointed under subsection (1) shall, as soon as the order of win ding up takes effect, have power:

(a) to institute and defend suits and other legal proceedings on behalf of the society by his name or office;

(b) from time to time to determine the debts payable and the contribution to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officer, to the assets of the society. In the case of a society which is not limited such contributions shall be determined at the discretion of the liquidator both as to the persons who shall be called upon to pay and the amounts which they shall pay, but without prejudice to any right of contribution amongst themselves;

(c) to investigate all claims against the society, and, subject to the provisions of this Act, to decide questions of priority arising between claimants;

(d) to determine by what persons and in what proportions the costs of the liquidation are to be borne;

(e) in the case of a society which is a member of a co-operative society established with the object of guaranteeing sums borrowed by co-operative societies which are its members, to determine, in accordance with the by-laws of such guaranteeing society, at any stage of the proceedings, the amounts which the other members of such guaranteeing society shall severally contribute towards the discharge of the debts guaranteed by it.

V of 1908.

(3) Subject to any rules, a liquidator appointed under this section shall, in so far as such powers are necessary for carrying out the purposes of this section, have power to summon and enforce the attendance of witnesses and to compel the production of documents by the same means and (so far as may be) in the same manner as is provided in the case of a civil Court under the Code of Civil Procedure, 1908.

(4) Where an appeal from any order made by a liquidator under this section is provided for by the rules, it shall lie to the Court of the District Judge.

(5) Orders made under this section shall, save as provided for by section 51,on application, be enforced as follows:

(a) when made by a liquidator, by any Civil Court having local jurisdiction in the same manner as a decree of such Court;

(b) when made by the Court of the District Judge on appeal, in the same manner as a decree of such Court made in any suit pending therein.

50. (1) The Local Government may, for the whole or any part of Burma and for any cooperative society or class of co-operative societies, make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules inay

(a) prescribe subject to the provisions of section 10 the maximum number of shares or portion of the capital of a society which may be held by a member;

(b) prescribe the forms to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such applications;

(c) prescribe the matters in respect of which a co-operative society may or shall make bylaws and for the procedure to be followed in making, altering and abrogating by-laws, and

the conditions to be satisfied prior to such making, alteration or abrogation;

(d) prescribe the conditions to be complied with by persons applying for admission or admitted as members, and provide for the election and admission of members, and the payment to be made and the interests to be acquired before the exercise of the right of membership;

(e) regulate the manner in which funds may be raised by means of shares or debentures or otherwise;

(f) provide for general and special meetings of the members and for the procedure at such meetings and the resolutions to be passed at. and the powers to be exercised by, such meetings;

(g) provide for the appointment, suspension and removal of the members of the committee and other officers, and for the procedure at meetings of the committee, and for the powers to be exercised and the duties to be performed by the committee and other officers;

(h) prescribe the accounts and books to be kept by a co-operative society and provide for the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance sheet showing the assets and liabilities of a society;

(i) prescribe the returns to be submitted by a co-operative society to the Registrar and provide for the persons by whom and the form in which such returns shall be submitted;

(1) provide for the persons by whom and the form in which copies of entries in books of cooperative societies may be certified, and for the charges to be levied for such copies;

(k) provide for the formation and maintenance of a register of members and, where the liability of the members is limited by shares, of a register of shares;

(1) provide that any dispute touching the business of a co-operative society between members or past members of the society or

m) Fixer le mode d'évaluation des actions;