Section 5 in Multi-State Co-Operative Societies (Privileges, Properties and Funds, Accounts, Audit, Winding Up and Execution of Decrees, Orders and Decisions) Rules, 1985
5. Disposal of Net Profits.
- The net profits of every multi-State co-operative society shall be disbursed or utilised subject to the following terms and conditions :-(a)No dividend shall be declared or paid except from out of the net profits and shall not exceed 12 per cent per annum on the paid-up share capital.(b)No dividend shall be declared or paid while a claim due from the multi-State co-operative society to a depositor or lender remains unsatisfied.(c)No donation made by the multi-State co-operative society out of the net profits of any year Shall exceed rupees five lakhs.
