Section 59(2) in Jammu and Kashmir Co-Operative Societies Act, 1989
(2)The balance of the net profits may be utilized for all or any of the following purposes, namely:-(a)payment of dividend to members on their paid up share capital at a rate not exceeding the prescribed limit;(b)payment of bonus 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;(c)constitution of, or contribution to such special fund as may be specified in the bye-laws;(d)donations of amounts not exceeding ten percent of the net profits for any charitable purposes;(e)payment of bonus to employees of the society, to the extent and in the manner specified in the bye-laws.Explanation. - Charitable purpose includes relief to the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship.
