section 40
Disposal of surplus
The Orissa Self-Help Co-Operatives Act, 2001General200162 sections8 chapters
Chapter 5 FINANCE
Statutory text
- (1) Surplus, if any, arising out of the business of a Co-operative in a financial year may be used in one or more of the following ways, namely:-
- (a) deficit cover fund;
- (b) surplus refund among its members;
- (c) development of its business;
- (d) reserves and funds constituted in accordance with the articles of association;
- (e) common services to its members;
- (f) rewards or incentives to employees; and
- (g) nondivisible corpus fund.
- (2) Surplus arising out of services provided to potential members may not be distributed amongst members or staff, but may be used for the purpose of common services to the community at large, and for encouraging potential members to become members.
- (3) Surplus must be fully disposed of at the annual general body meeting in which the audited statements of accounts for the financial year in which the surplus arose are presented for the consideration of the general body.
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