Section 63(2) in The Multi-State Co-Operative Societies Act, 2002
(2)Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:—(a)payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit;(b)constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;(c)donation of amounts not exceeding five per cent. of the net profits for any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890);(d)payment of ex gratia amount to employees of the multi-State co-operative society to the extent and in the manner specified in the bye-laws.
