Section 70 in Rajasthan Co-operative Societies Rules, 2003
70. Distribution of net profits.
The net profits of any society as declared by the Registrar in respect of any co-operative year shall be appropriated in the manner set forth in section 48 subject to the following conditions, namely:-(i)For each financial year, the percentage of the net profit as set forth in section 48 shall be carried out to the reserve fund while finalizing the accounts of the society for that particulars year.(ii)Every agricultural credit society other than a Land Development Bank or a society the object of which is to grant long-term loans exclusively on the mortgage of immovable properties and every financing bank other than a financial bank, the principal object of which is to provide funds for the grant of long term loans on the mortgage of immovable properties, shall set apart such percentage of its net profits as may be directed by the Registrar from time to time towards an agricultural credit stabilisation fund to be utilised to enable borrowers to make postponement of repayment of loans on account of famine, drought or such other unforeseen causes. This fund shall not be utilised except with the previous permission of the Registrar.(iii)The payment of dividend on shares to members by a society shall not exceed 10 percent per annum on the paid up value of each share:Provided that the Government or a person authorised by the Government in that behalf may, by general or special order, permit any society or class of societies to pay dividend at a rate exceeding 10 percent:[Provided further that a primary agricultural credit society may dispose off its net profit and pay dividend to its members in accordance with the guidelines issued by the Registrar in consultation with the National Bank.] [Added by Notification No. G.S.R. 73, dated 19.9.2011.](iv)A society may pay, in accordance with its bye-laws bonus to its members, based on the extent of business done by those members with it or on the value of the services rendered by such members to the society, subject to a maximum of 25 percent of the net profits;Provided that a co-operative society shall not utilise any portion of the bonus accruing on the business done by non-members for payment of bonus to members but shall carry the entire amount so accrued to the reserve fund or business losses reserve.(v)A society which employs paid establishment may pay bonus to such employees:Provided that the amount so paid shall not exceed such amount as may be specified in its bye-laws subject to a maximum of two months basic pay.(vi)Subject to the availability of funds, such sum as may be decided upon by the general body calculated at 10 percent of the net profits may be carried to a common good fund for being utilized on any of the object specified in section 2 of the Charitable Endowment Act, 1890 (Central Act VI of 1890) such as medical relief, sanitation, Co-operative propaganda, maintenance of library education and relief to poor.
