Section 56(ii) in The Meghalaya Co-operative Societies Rules
(ii)With the previous sanction of the Registrar, co-operative society with shares and with limited liability may meet the loss of any year partly or wholly from the reserve fund ; provided that no' dividend or shares, bonus, patronage dividend or rebate is paid during the year out of the profit. Not less than fifty per cent of the reserve fund shall be separately invested every year not to be utilised in the ordinary working of the society subject to Rule 58.
