Section 87 in Haryana Co-operative Societies Act, 1984
87. Distribution of profits.
(1)A co-operative society may distribute profits as per audited balance sheet for any year and from the remainder of such profits of past years, among the members to such extent and under such conditions as may be prescribed by rules or bye laws :Provided that -(a)at least 10% of the profits of any year are carried each to the reserve fund and the bad and doubtful debt fund;(b)not exceeding 5% of the profits is carried to the co-operative education fund;(c)such percentage of the profits to carry to such other funds as are specified in the bye-laws or by the Registrar; and(d)[ such profits may also be utilized for such purposes and in such percentage as may be prescribed.] [Added by Haryana Act No. 19 of 2006.](2)The Registrar may require a co-operative society not to invest the whole or a part of its funds referred to in sub-section (1) in the business of the society.[Explanation. - (1) The net profits of a co-operative society shall be calculated by deducting from the gross profit for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under any law relating to payment of bonus for the time being in force, and equalization fund for such bonus, provisions for payment of income-tax and approved donations under the Income-tax Act, 1961 (43 of 1961), development rebate, provision for development fund, bad debt fund, price capital redemption fund, investment fluctuation fund, provision for retirement benefits to employees and after providing for or writing off bad debts and losses not adjusted against any fund created out of profit.(2)Society may add to the net profits for the financial year interest accrued in the proceeding year, but actually recovered during the current year.](3)[ There shall be no compulsion on Co-operative Credit Structure for contribution to any funds other than those required for improving the net worth/owned funds of a co-operative society :Provided that the Registrar shall lay guidelines in consultation with the National Bank regarding payment of dividend.] [Added by Haryana Act No. 18 of 2007.]
