Section 83 in Tamil Nadu Co-operative Societies Rules, 1988
83. Rebate on patronage out of funds of society.
(1)Any society may, with the previous sanction of the Registrar, allow rebate on patronage to its members, in respect of any transactions other than loan transactions, with the society as a member:Provided that no sanction is necessary for allowing cash discount:Provided further that the Registrar shall not accord his sanction unless he is satisfied that after payment of rebate on patronage, there shall be adequate net profit to pay reasonable dividend on paid up share capital of the members and also to make reasonable allocations to other funds in accordance with section 72.(2)The society may, and if the Registrar so directs, shall, credit a portion of, or the entire patronage rebate to, the share capital of the respective members.
