Section 8: Minimum share capital

8. Minimum share capital (1) The minimum issued and paid up share capital of a society shall, at the time of registration, be not less than— (a) 5,000 rupees divided into ordinary shares of a denomination of 10 rupees for a primary society; (b) 10,000 rupees divided into ordinary shares of a denomination of 10 rupees for a secondary society; and (c) 25,000 rupees divided into ordinary shares of a denomination of 10 rupees for the tertiary society. (2) A society shall, at all times, maintain the minimum issued and paid up capital specified in subsection (1) and it may issue— (a) non-redeemable preference shares; (b) redeemable preference shares of a domination of 10 rupees. (3) Where non-redeemable preference shares are issued— (a) the rights attached to those shares in terms of dividends payable by the society; C49 – 7 [Issue 9] Co-Operatives Act (b) the ranking of those shares for the purposes of dividends; (c) the cumulating or non-cumulating of dividends in arrears; and (d) the periodicity and time for payment for dividends, shall be specified in the rules. (4) Where redeemable preference shares are issued— (a) the conditions that make the shares redeemable; (b) the rights subject to which dividends are payable in respect of those shares; (c) the ranking of those shares for the purposes of dividends; (d) the cumulating or non-cumulating of dividends in arrears; and (e) the periodicity and time for payment for dividends, shall be specified in the rules. (5) Where a society issues redeemable or non-redeemable preference shares, the ranking of those shares for liquidation purposes shall be in the order of priority specified in section 100.