Section 47 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
47. Disposal of surplus.
(1)The surplus, if any, arising out of the business of a co-operative in a financial year may be used in one or more of the following purposes :-(a)towards a deficit cover fund;(b)to be distributed as surplus refund among its members;(c)to develop its business;(d)towards reserves and funds constituted in accordance with the bye-laws;(e)to provide common services to its members;(f)to provide rewards or incentives to staff;(g)towards payment of bonus under the Payment of Bonus Act, 1965 (No. 21 of 1965) to the employees;(h)towards payment of taxes;(i)towards writing off bad debts and losses not adjusted;(j)towards, such purposes as may be specified in the bye-laws.(2)Surplus arising out of the business of a co-operative shall be fully disposed of at the annual general meeting in which the audited annual financial statement of accounts for the year in which the surplus arose is presented for the consideration of the general body.
