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 :
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

full co-operative year to which the dividend relates.
Dividend shall be proportionate to the amount paid on shares.
Dividend shall be payable at par at all the branches of the bank.
Any dividend remaining undrawn for 3 years after having been declared shall be forfeited and shall be carried to the

Reserve Fund of the bank.
Unpaid dividend shall be payable on application provided the same has not been forfeited.

Linking of Shareholding With Loan Limits :
A borrower should hold shares @5% of his borrowings if such borrowings 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 borrowings from the bank.