Section 43 in The M.P. Co-Operative Societies Act, 1960
43. Funds and profits.
(1)No part of the funds of a society other than the net profits shall be paid by way of bonus or dividend or otherwise distributed among its members :Provided that a member may be paid remuneration on such scale as may be laid down by the bye-laws for any services rendered by him to the society.(2)A society shall, out of its net profits in any year-(a)transfer an amount not being less than twenty-five per cent of such profits to the reserve funds unless such society has been, by general or special order, partially or wholly exempted in this behalf by the Registrar; and(b)pay to the Madhya Pradesh Co-operative Union Ltd. and to such other institutions or unions as may be specified by the Registrar in this behalf, such contribution as may be prescribed.(c)[ transfer at least twenty per cent to an equity redemption fund by such societies which have Government equity participation.] [Inserted by M.P. Act No. 12 of 1994 [w.e.f. 8-5-1994].](3)[ No society shall pay dividend to its members at the rate exceeding twenty five per cent except with the prior approval of the Registrar] [Substituted by M.P. Act No. 12 of 1994 [w.e.f. 8-5-1994].].(4)[ A society may, with the sanction of the Registrar, after one fourth of the net profit in any year has been carried to the reserve fund, contribute not exceeding five per cent of the remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in Section 2 of the Charitable Endowments Act, 1890 (No. 6 of 1890).] [Substituted by M.P. Act No. 14 of 1976.](5)[ No society shall make a contribution either in money or in kind, either directly or indirectly to an organisation that has an object the furtherance of the interest of a political party or of any religious faith.] [Inserted by M.P. Act No. 12 of 1994 [w.e.f. 8-5-1994].]
