Short Answer

Yes, a society can rent out common facilities for private events and share the proceeds.

Detailed Explanation

Section 66 of the Gujarat Cooperative Societies Act, 1961 allows cooperative societies to utilize their funds for various purposes, including the maintenance and repair of common facilities. This provision empowers societies to generate revenue by renting out common facilities for private events. The society can decide on the terms and conditions of such rentals, including the rental amount, duration, and usage guidelines. The proceeds generated from renting out common facilities can be utilized for the benefit of all members of the society, such as funding maintenance activities or reducing common expenses.

Furthermore, Rule 92 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the management of the society's funds. It states that the society's funds should be utilized for the welfare of its members and for the maintenance and upkeep of common facilities. Renting out common facilities for private events aligns with this rule as it helps in generating additional income for the society, which can be used for the betterment of the society as a whole.

Practical Examples

• Scenario 1: A cooperative housing society rents out its clubhouse for a private party. The society charges a rental fee and shares the proceeds among all members to reduce maintenance costs.

• Scenario 2: A cooperative society rents out its community hall for a wedding reception. The income generated is used to upgrade the security system in the society premises.

• Scenario 3: A society rents out its sports facilities for a corporate event. The funds collected are utilized to organize community development programs for all members.

References

• Section 66 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 92 of the Gujarat Cooperative Societies Rules, 1965: Official PDF