Section 190

(1) In the case of winding up of a co-operative society, the reserve fund and the other funds of the society shall be applied first in discharge of the liabilities of the society in accordance with the priority specified in items (i) to (vi) below: (i) salary and wages or other payments, if any, due to the employees of the society; (ii) security deposits of staff, if any; (iii) borrowings held from Government or on the guarantee of Government, if any; (iv) deposits of non-members, if any; (v) loans, if any; and (vi) deposits of members, if any (2) The balance, if any, after discharging the liabilities mentioned in Sub-rule (1) shall be applied to the re-payment of the paid-up share capital and thereafter to the payment of dividend where it has not been paid. (3) Notwithstanding anything contained in Sub-rule (2), no dividend shall be paid if the Bye-laws of the society do not provide for payment of dividend.