Can a Registered Cooperative housing society use the Common welfare fund for cultural events
Ours is a registered cooperative society in Thane. Last AGM it was decided that society would not spend any amount on cultural events and festivals stating the bye laws does not permit the same.
However in response to an earlier query it was replied that "For Social, Cultural or Recreational activities; Society should use the reserve fund as described in Byelaw 147(b)iii, iv and utilise it as indicated in Byelaw 5(d).
Byelaw 147(a) After providing for the interest upon any loans and deposits and after making such other deductions as required under Section 65(1) and 66 of the MCS Act 1960 and Rule 49A of MCS Rules 1961, twenty five percent (25%) of the net profit of all the business carried on by or on account of the Society, shall be placed at the credit of the RESERVE FUND of the Society.
Byelaw 147(b) The remaining seventy five percent (75%) of the net profit of the Society shall be utilised as provided under Rule 50, 51, 52, 53 of MCS Rule 1961
please advise whether the society can spend certain percentage of the reserve fund or common welfare fund on festivals and cultural events after getting the same ratified by the GB
Related to housing society bye-laws