Section 59 in Jammu and Kashmir Co-Operative Societies Act, 1989
59. Disposal of net profits.
(1)A co-operative society shall, out of its net profits duly certified in audit in any year, transfer an amount not being less than twenty-five percent of the profits to the reserve fund.(2)The balance of the net profits may be utilized for all or any of the following purposes, namely:-(a)payment of dividend to members on their paid up share capital at a rate not exceeding the prescribed limit;(b)payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws;(c)constitution of, or contribution to such special fund as may be specified in the bye-laws;(d)donations of amounts not exceeding ten percent of the net profits for any charitable purposes;(e)payment of bonus to employees of the society, to the extent and in the manner specified in the bye-laws.Explanation. - Charitable purpose includes relief to the poor, education, medical relief and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship.(3)A co-operative society which pays dividend to its members at the rate of four percent or more shall contribute at such rate as may be prescribed towards the educational fund of the Jammu and Kashmir Co-operative Union to be utilized in such manner as may be prescribed.(4)[ Notwithstanding anything contained in sub-sections (2) and (3), there shall be no compulsion on a Co-operative Credit Structure Society for contribution to any fund other than that required for improving its net worth or its owned funds.(5)Notwithstanding anything contained in sub-section (2), a Primary Agricultural Credit Society shall pay a dividend to its members in accordance with the guidelines laid down by the Registrar in consultation with the National Bank.][Inserted by Act No. X of 2010, Dated 28.4.2010, w.e.f. 29.4.2010.]
