19. Promotion of subsidiary institution.-(1) Any multi-State co-operative society may, by a resolution passed at general meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any l w for the time being in force, for the furtherance of its stated objects.
(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body of the multi-State co-operative society deems its existence necessary: Provided that a multi-State co-operative society, while promoting such a subsidiary institution, shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects. Explanation.-For the purposes of this section,-
(a) an institution shall be deemed to be a subsidiary institution if the multi-State co-operative society-
(i) controls the management or board of directors or members of governing body of such institution; or
(ii) holds more than half in nominal value of equity shares of such institutions; or
(iii) if one or more members of such multi-State co-operative society, hold whether by themselves or together with subsidiary institution or their relatives, as the case may be, the majority of equity shares in that institution; (b) a subsidiary institution shall not include a partnership firm.
(3) The annual reports and accounts of any such subsidiary institution shall be placed each year before general meeting of the promoting multi-State co-operative society.
| 