Short Answer

To transfer funds between accounts, such as from maintenance to sinking fund, the procedure involves obtaining approval from the managing committee, passing a resolution, updating the books of accounts, and ensuring compliance with the Gujarat Cooperative Societies Act, 1961.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the managing committee to manage the funds of the society. Any transfer of funds between accounts requires approval from the managing committee through a resolution passed in a meeting. The resolution should clearly mention the amount to be transferred, the purpose of the transfer, and the source and destination accounts.

Furthermore, Rule 129 of the Gujarat Cooperative Societies Rules, 1965 specifies the procedure for maintaining accounts and records. After obtaining approval and passing the resolution, the society must update its books of accounts to reflect the transfer accurately. This ensures transparency and accountability in financial transactions.

In practice, before initiating the transfer, the society should convene a meeting of the managing committee, discuss the need for the transfer, and obtain consensus through a formal resolution. The treasurer or authorized signatory should then execute the transfer as per the resolution passed.

Real-world Scenarios

• Scenario 1: A cooperative housing society decides to transfer excess maintenance funds to the sinking fund for future repairs and maintenance.

• Scenario 2: A cooperative credit society transfers a portion of its profits to a reserve fund for contingencies as per the resolution passed in the annual general meeting.

Step-by-step process:

• Convene a meeting of the managing committee.

• Discuss and approve the transfer of funds.

• Pass a resolution specifying the details of the transfer.

• Update the books of accounts with the transfer details.

• Execute the transfer as per the resolution.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961

• Rule 129 of the Gujarat Cooperative Societies Rules, 1965