section 43
Funds and profits.
The Chhattisgarh Co-operative Societies Act, 1960Corporate1960195 sections
Statutory text
- (1) No part of the funds of a society other than the net profits shall be paid by way of bonus or dividend or otherwise distributed amongst its members; Provided that a member may be paid remuneration on such scale as may be laid down by the bye-laws for any services rendered by him to the society.
- (2) A society shall, out of its net profits in any year,-
- (a) transfer an amount not being less than twenty-five percent of such profits to the reserve funds unless such society has been, by general or special order, partially or wholly exempted in this behalf by the Registrar; and
- (b) pay to the Chhattisgarh Co-operative Union Limited and to such other institutions or unions as may be specified by the Registrar in this behalf, such contribution as may be prescribed.
- (c) transfer at least twenty per cent to an equity redemption fund by such societies which have Government equity participation.
- (3) No society shall pay dividend to its members at the rate exceeding twenty five per cent, except with the prior approval of the Registrar.
- (4) A society may, with the sanction of the Registrar, after one fourth of the net profit in any year has been carried to the reserve fund, contribute not exceeding five per cent of the remaining net profits to any purpose connected with the development of Co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowment Act, 1890 (No. 8 of 1890).
- (5) No society shall make a contribution either in money or in kind, either directly or indirectly to an organisation that has an object in furtherance of the interest of a political party or of any religious faith.
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