section 48
Disposal of net profits
The Rajasthan Co-Operative Societies Act, 2001Corporate2001128 sections16 chapters
Chapter VIII PROPERTIES AND FUNDS OF CO-OPERATIVE SOCIETIES
Statutory text
- (1) A co-operative society shall, out of its net profits in any year,-
- (a) transfer, to the reserve funds, twenty five percent of its profits within such period as may by prescribed;
- (b) credit one portion of the profits, as may be prescribed, to the Co-operative Education and Training Fund constituted under the rules;
- (c) credit such portion of the profits, as may be specified in the bye-laws, in the fund created under bye-laws to meet out the losses, if any; and
- (d) pay dividend to members on their paid up share capital at such rate, as may be prescribed.
- (2) The balance of the net profits may be utilised for all or any of the following purpose, namely:-
- (a) payment of incentive to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws;
- (b) constitution of, or contribution to, such special fund as may be specified in the bye-laws;
- (c) donations of amount not exceeding ten percent of the net profits for any charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (Central Act 6 of 1890); or for a cause dedicated to the co-operative movement;
- (d) payment of bonus to employee of the society, to the extent and in the manner specified in the bye-laws: 54[ Provided that a short term co-operative credit structure society shall not be bound to continue to any funds other than funds as may be established or maintained for the improvement of its net worth: Provided further that a primary agricultural credit society may decide disposal of its net profits and declare dividend as per the guidelines issued by the Registrar in consultation with the National Bank.]
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