Section 56 in The Orissa Co-operative Societies Act, 1962
56. Disposal of net profits [* * *] [Deleted by Orissa Act No. 19 of 1983, Section 16(i)-See O. G. E. dated 11.10.1983.].
(1)A Society shall, out of its net profit in any year -(a)transfer an amount not less than ten per cent in the case of a Co-operative Farming Society and not less than twenty-five per cent in any other case, of the profits to the reserve fund; and(b)[ credit four per cent of such profits to the Co-operative Education Fund constituted under Section 56-A] [Substituted by Orissa Act No. 19 of 1983, Section 16 (ii).],[Provided that nothing in this clause shall apply to a Co-operative Credit Society.] [Inserted by Orissa Act 1 of 2008 Section 17 (a) & (b) (O.G.E. No. 654 dated 20.3.2008).](2)The balance of the net profits may be utilised 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 [twelve] [Substituted by O.A. No. 28 of 1991, Section 29 dated 31.12.1991, force w.e.f. 7.1.1993.] per cent of such share capital;[Provided that the Primary Agricultural Credit Co-operative Society, Large-sized Adivasi Multipurpose Co-operative Society, Service Co-operative Society and Farmers' Service Co-operative Society shall pay such dividend to its members in accordance with the guidelines laid down by the Registrar in consulation with the National Bank] [Inserted by Orissa Act 1 of 2008 Section 17 (a) & (b) (O.G.E. No. 654 dated 20.3.2008).](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 contributions to such special fund as may be specified in the Bye-Laws;(d)[ * * *] [Omitted by Orissa Act 1 of 2008 Section 17 (b)(ii) (O.G.E. No. 654 dated 20.3.2008).](e)payment of bonus to employees of the Society, to the extent and in the manner specified in the Bye-Laws;(f)payment of bonus to Government servants who are sent on deputation to the Society or are engaged whole-time in connection with the affairs of the Society; and(g)payment of honorarium to members of the Committee for rendering specific services provided that the aggregate of such honorarium paid during any year does not exceed an amount equal to ten per centum of the net profits of that year.(3)[ Notwithstanding anything contained in this section, a Co-operative Society shall contribute annually to the Co-operative Education Fund constituted under Section 56-A a sum as the State Government may, by notification, specify from time to time or four per cent of the net profit (earned) by the Society whichever is more :Provided that the State Government may, for reasons to be recorded in writing, by general or special order, exempt any Society or class of Societies from payment of such contribution.] [Inserted by Orissa Act No. 19 of 1983 Section 56 & Section 17-See O. G. E. dated 11.10.1933.]
