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Ownership structures - cooperative society - class-XI
Which of the following sentence in relation to "Cooperative Societies" are correct?
(1) There should be minimum of 20 members to for cooperative society but there is no maximum limit for the membership.
(2) According to Indian Cooperative Societies Act,1912,each society must transfer at least one-third of its profits to general reserve.
(3) Cooperative Societies may distribute maximum up to 90 per cent of its surplus as dividend to its members and can spent another 10 per cent for the welfare of the members.
Statement (1) is incorrect because the minimum number of members for a cooperative society is 10, not 20. Statement (2) is incorrect as the Act does not mandate a one-third transfer to general reserve. Statement (3) is a standard guideline for surplus distribution in many cooperative models, making it the only correct statement.