Disposal of surplus –(1) In any year a Co-operative Society shall allocate

towards a deficit cover fund, reserve funds, deferred payment to members as patronage rebate in proportion to their use of the Co-operative Societies . Proviso inserted by Act No.20 of 2018, s.2 . Inserted by Act No.20 of 2018, s.2. . The word “deposits” omitted by Act No.20 of 2018, s.2. Added by Act No.20 of 2018, s.2.

services and payment on share capital of interest not exceeding the rate of interest paid by scheduled banks such percentage of the surplus arising from its business transactions in the previous year, as may be approved by the general body.

1. (2) Reserves created under sub-section (1) shall be costed by crediting on annual interest equal to the rate paid by scheduled banks on fixed deposits.