Section 56 in Kerala Cooperative Societies Act, 1969
56. Disposal of net profit.
(1)A society shall, out of its net profits in any year,-(a)transfer an amount not being less than fifteen per cent of the net profits to the reserve fund; and(b)credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Co-operative Education Fund referred to in clause (xix) of sub-section (2) of section 109.(c)[ ten per cent of the net profit to the Co-operative Member Relief Fund as may be prescribed.] [Inserted by Kerala Act No. 8 of 2013.](2)The balance of the net profits may be utilized for all or any of the following purposes, namely:-(a)payment of dividends to members on their paid-up share capital at such rate not exceeding [twenty five] [Substituted 'twenty' by Kerala Act No. 7 of 2010.] per cent as may be prescribed;(b)payment of bonus to members on the amount or volume of business done by them with the society, to the extent and the manner specified in the bye-laws;(c)[ seven percent of the net profit to Agricultural Credit Stabilization Fund; [Substituted by Kerala Act No. 7 of 2010.](cc), five percent of the net profit to the professional education fund maintained by the Registrar;](d)donations of amounts not exceeding ten per cent of the net profits for any charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (Central Act 6 of 1890) ; and(e)[ balance of net profit may be utilised for any or all of the purposes specified in the bye-laws of the societies except for payment of bonus to employees.] [Substituted by Kerala Act No. 7 of 2010.](3)[ Notwithstanding anything contained in section 18 of this Act, in the case of District Co-operative Banks the term 'member' shall include nominal and associate members, for the purpose of clause (a) of sub-section (2).] [Inserted by Kerala Act No. 7 of 2010.]
