Allocation of funds/disposal of profits

(1) A Society shall, subject to such limits as may be prescribed, credit one percent of gross income in a year, as the case may be, to the cooperative education fund. (2) A Society shall credit an amount not being more than 30 percent of gross profit or 2 percent of working capital, whichever is less, in a year towards pay and other allowances of its employees and contingencies in the manner prescribed. (3) A society shall, out of its net profits in any co-operative year,– (a) transfer an amount not being less than twenty five percent of the profits as may be prescribed, to the reserve fund: Provided that when the total amount so transferred becomes equal to the amount of paid-up share capital, the amount to be transferred may, with the previous permission of the Registrar, be reduced to a sum not less than ten per cent of such profits; (b) [xxx] (c) credit such portion of the profits, as may be prescribed, to the bad debts reserve. (d) pay towards dividend to members on their paid up share capital, an amount not being less than ten percent of the net profit; (e) pay an amount not being less than fifteen percent of the net profit towards rebate to members on amount or volume of business done by them with the extent in the manner specified in the bye-laws. (4) The balance of the net profits may be utilised for all or any of the following purposes, namely:— (a) [xxx] (b) [xxx] (c) constitution of or contribution to, such special funds as may be specified in the bye-laws; (d) payment of bonus to employees of the society or remuneration to a member for services rendered by him to