Section 61 in Multi State Co-Operative Societies Act, 1984
61. Disposal of Net Profits.
(1)A multi-State co-operative society shall, out of its net profits in any year -(a)transfer an amount not less than twenty-five per cent to the reserve fund; and(b)credit such portion, as may be prescribed, to the co-operative education fund maintained by the National Co-operative Union of India Limited, New Delhi.(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 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;(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.(3)The funds of a multi-State co-operative society shall not be utilised for any political purpose.
