Section 47(1) in The M.P. Swayatta Sahakarita Adhiniyam, 1999
(1)The surplus, if any, arising out of the business of a co-operative in a financial year may be used in one or more of the following purposes :-(a)towards a deficit cover fund;(b)to be distributed as surplus refund among its members;(c)to develop its business;(d)towards reserves and funds constituted in accordance with the bye-laws;(e)to provide common services to its members;(f)to provide rewards or incentives to staff;(g)towards payment of bonus under the Payment of Bonus Act, 1965 (No. 21 of 1965) to the employees;(h)towards payment of taxes;(i)towards writing off bad debts and losses not adjusted;(j)towards, such purposes as may be specified in the bye-laws.
