Short Answer

Yes, a society can keep a part of surplus in a contingency or special fund beyond reserves.

Detailed Explanation

Section 67 of the Gujarat Cooperative Societies Act, 1961 allows cooperative societies to maintain various funds, including a reserve fund, a contingency fund, and other funds as specified in the by-laws. The Act does not explicitly restrict societies from keeping a part of surplus in a contingency or special fund beyond reserves. This means that societies have the flexibility to allocate surplus funds to different funds based on their specific needs and objectives.

In practice, societies may choose to allocate a portion of their surplus to a contingency or special fund to cover unexpected expenses, emergencies, or specific projects. For example, a housing cooperative society may decide to set aside a portion of its surplus in a contingency fund to address any urgent repairs or maintenance work that may arise in the future. This allows the society to be better prepared for unforeseen circumstances and ensures financial stability.

Another scenario could involve a cooperative credit society allocating a part of its surplus to a special fund dedicated to providing financial assistance to members during times of crisis or hardship. By maintaining such a fund, the society can fulfill its social objectives and support members in need without depleting its reserves or affecting its regular operations.

Overall, the ability to keep a part of surplus in a contingency or special fund beyond reserves provides societies with the necessary financial flexibility to address various contingencies and meet specific needs as they arise. It enables societies to prudently manage their finances and enhance their overall resilience in the face of uncertainties.

References

• Section 67 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]