Section 54(2) in The Meghalaya Co-operative Societies Act
(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.
