Section 61 in The Meghalaya Co-operative Societies Rules
61. Distribution of net profits.
- After making the allocation to the reserve fund as prescribed in Rules 56 and 59, the remaining "net profits" may be distributed according to the provisions in the bye-laws of the society subject to-(a)Payment of dividend on shares. - No co-operative society shall pay its share-holders in any year a dividend exceeding twelve and a half per cent on the paid-up shares unless otherwise permitted by the Registrar in writing :Provided that if any co-operative society, other than a credit society is unable to pay a dividend of four per cent of any year, it may make good the deficit by paying the difference out of profits in future years at any time not later than five years immediately succeeding the year of such deficit.(b)No dividend shall be paid by any co-operative society with shares and unlimited liability without the previous sanction of the Registrar and that the rate of such dividend shall not exceed 6¼ per cent per annum on the paid up share.(c)No co-operative society shall declare a dividend at a rate exceeding that recommended by its administrative council or managing body ;(d)Dividend Equalisation Fund. - A society may credit in any year a sum out of the dividend allotted under (a) above not exceeding 3 per cent on the paid-up share capital to a fund called the "Dividend Equalisation Fund" till the total amount in such fund accumulates to 9 per cent of the paid up share capital :Provided that except for the purpose of paying a dividend no with drawals from such fund, shall be made without the previous written sanction of the Registrar.
