The liability of a shareholder shall be limited to five times of capital represented by the share or shares of which such
shareholder is the registered shareholder. The liability of a past shareholder, to the extent of shares as they existed at
the time when be ceased to be a shareholder, shall continue for a period of two years from the date of cessation. The estate
of the deceased shareholder shall remain liable to the extent of sums due for a period of two years.
Dividend is payable only when share capital is deposited in the bank for a whole financial year. The dividend declared
shall be paid to the person whose name stands as the registered shareholder in the books of the bank for co-operative year
to which the dividend relates.
Linking of Share-holding With Loan Limits
- The dividend shall be proportionate to the amount paid on shares.
- The dividend shall be payable at par at all the branches of the bank.
- Dividend not withdrawn within 3 years after been declared shall be forfeited and be carried to the
Reserve Fund of bank.
- Unpaid dividend shall be payable on application provided the same has not been forfeited.
A borrower should hold shares @5% of his borrowing's if such borrowing's are on an unsecured basis, i.e. in the form
of clean overdraft loans against one or two personal sureties and purchases/discount of clean bills and cheques. A borrower
against tangible securities should hold share of the bank to the extent of @2.5% of his borrowing's from the bank.