Section 54 in The Meghalaya Co-operative Societies Act
54. Restriction on distribution profit.
(1)Save as may be prescribed, no distribution of profit shall be made in the case of a registered society with unlimited liability and no part of the net profit or of a fund of any society shall be divided by way of dividend, bonus patronage dividend, rebate or otherwise among its members.(2)No dividend bonus, patronage dividend, or rebate shall be paid-(a)otherwise than out of net profits certified by the audit officer or have been actually realised ; provided that the advance patronage dividend may be paid in accordance with the directions of the Registrar and on the certificate of an internal auditor approved by the Registrar; or(b)without the previous sanction of the Registrar, if the audit officer reports that any asset is bad or doubtful and also recommends that such sanction is necessary.(3)Notwithstanding anything contained in this section payments may be made to members as a fixed interest on share capital if so provided in the bye-laws.
