Section 72(2) in The Tamil Nadu Co-Operative Societies Act, 1983
(2)The balance of the net profits as so declared shall be appropriated,-firstly, for being credited to a reserve fund, the amount so credited being not less than twenty per cent of the net profits;secondly, towards contribution to an agricultural credit stabilisation fund at fifteen per cent of the net profits in the case of every agricultural service cooperative society including the State and Primary Agricultural and Rural Development Banks and other financing banks:Provided that the State Agricultural and Rural Development Bank shall also contribute to a failed wells fund and to a project service account at such rates as may be specified in the rules;thirdly, towards payment of honorarium to the members of the board including the President and the Vice-President of the registered society at such rates and subject to such conditions as may be prescribed:Provided that the aggregate of the honorarium so paid shall not exceed ten per cent of the net profits;.fourthly, towards payment of dividend on shares to members at a rate not exceeding fourteen per cent per annum on the paid-up value of each share:Provided that the Government may by general or special order permit any registered society or any class or category of registered societies to declare dividend at a rate exceeding fourteen per cent per annum subject to the condition that the amount of dividend in excess of fourteen per cent shall be credited to the share account of the members in such manner as may be prescribed;fifthly, towards payment of bonus to members with reference to business done with or services rendered to the registered society, at such rate and subject to such conditions as may be specified in the rules;sixthly, towards payment of bonus to paid employees of the registered society not governed by the Payment of Bonus Act, 1965 (Central Act 21 of 1965) at such rate and subject to such conditions as may be specified in the rules;seventhly, towards contribution to such other funds and at such rates as may be specified in the bye-laws;eighthly, towards contribution to the common good fund at such rate not exceeding ten per cent of the net profits as may be specified in the rules; andninthly, the remainder, if any, of the net profits being credited to the reserve fund.
