Section 71 in Himachal Pradesh Co-Operative Societies Rules, 1971
71. Distribution of profits.
(1)Save as may be directed by the Registrar, no distribution of profits shall be made in the case of a society with unlimited liability, and save as provided in this rule, no part of the funds of a society shall be divided by way of dividend or loans or otherwise among its members.(2)No dividend or loans shall be paid :-(a)otherwise than out of profits certified by the auditor to have been actually realised in accordance with subsection (1) of section 56, or(b)without the previous sanction of the Registrar, if the auditor reports that any asset is bad or doubtful and also recommends that such sanction is necessary:Provided that the auditor shall not so recommend if such an asset is adequately covered.(3)Subject to the provisions of sub-rule (2) after the proportion required by sub-section (2) of section 57 and sub- rule (1) of rule 69 has been carried to the Reserve Fund, and the Co-operative Education Fund from the net profits of an year, the balance of such profits together with undistributed profits of past years, if any, may to such extent and under such conditions as are laid down in this Chapter, be distributed, as dividend among the members or paid as bonus or remuneration to a member or employee for any specific service rendered to the society.
