Section 45 in Amended Bye-Laws of the Pradeshik Co-operative Dairy Federation Limited
45.
(i)In the case of winding up of the Federation, the reserve and other funds belonging to the Federation shall be applied first to discharging the liabilities of the Federation in accordance with the priority laid down in sub-rule (i) of Rule 271,than to the repayment of the share capital paid-up and thereafter, if for any period dividend for such period at a rate not exceeding 9 percent.(ii)Any surplus remaining after payments mentioned in clause (i) above, shall be applied for contribution to National Defence Fund or to such charitable purposes or local objects of public utility as may be selected by the Board of Directors and approved by the Registrar (Milk Commissioner). If the Board of Directors fail to make any selection of such object that is approved by the Registrar (Milk Commissioner) within the time specified by the Registrar. The latter may use the surplus funds either in contributing the National Defence Fund or to Co-operative Education Fund.
