Share Holders

Shares

The authorized share capital of the Bank is of Rs.5,00,00,000/- divided into 5,00,000 shares of Rs.100/- each payable in full on application for membership. The authorized share capital may be increased from time to time by a resolution at the general body meeting but subject to the approval of the Registrar of the co-op. societies.

Share-holders

a) An individual or a proprietary firm or a partnership firm may be admitted as a share-holder (member) if he/she is an adult or the firm competent to contract and resides or is established within the area of operation of the Bank or is gainfully engaged in any occupation in the area of operation of the Bank provided that,

  • The individual or any partner of a partnership firm is not convicted of any criminal offence involving moral turpitude;
  • The individual or the person is not engaged in a business competing or conficting with the business of the Bank;
  • The individual is not an employee of the Bank;
  • The individual or the firm has subscribed to and fully paid for at least one share of the Bank together with entrance fee of Rs.10/- and his/her application has  been duly approved by the Board of Directors of the Bank;

b) Government of Gujarat
c) The Gujarat State Co-operative Bank Ltd.
e) The Surat District Co-operative Bank Ltd.

Share Linking

  • A borrower will have to hold at least 5 percent borrowings, if such borrowings are on an unsecured basis i.e., in the form of clean overdrafts, loan against one/two personal sureties or guarantors and purchase/discount of clean bills and cheques;
  • A secured borrower against tangible securities will have to hold shares of the Bank to the extent of at least 2.5 percent of his/her borrowings from the Bank;
  • In the case of loans from small-scale Industrial units, the linking of share capital will be fixed initially at 1 percent of the borrowings to be raised in the course of the next 2 years to 2.5 percent. The total amount of share capital held by a member will, however, have to be within the limits laid down under the Gujarat Co-operative Societies Act.

Dividend

  • The dividend declared shall be paid to the person whose name stands as the registered share-holder in the register of members on the last day of the accounting year to which the dividend relates;
  • Dividend shall be proportionate to the amount paid on share and the period in whole months for which the amount stood to the credit of the share-holder,
  • Dividend shall be payable at pat at the Bank’s Head Office as well as at the branches;
  • Any dividend remaining undrawn or unclaimed for three years after having been declared shall be forfeited and carried to the Reserve Fund;

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