Amendment status not verified — confirm the current text below against the official source.
Restriction on distribution of profits.—(1) Save as may be prescribed, ;no distribution of profit shall be made in the case of a registered society with "unlimited liability and no part of the net profit or of a fund of any society shall be divided by way of dividend, bonus, patronage dividend, rebate or otherwise iamong its members. (2) No dividend, bonus, patronage dividend, or rebate shall be paid— (a) otherwise than out of net profits certified by the audit officer to have been actually realised ; provided that advance patronage dividend may be paid ■in accordance with the directions of the Registrar and on the certificate of an internal auditor approved by the Registrar; or (b) without the previous sanction of the Registrar, if the audit officer reports that any asset is bad or doubtful and also recommends that such sanction is necessary. Notwithstanding anything contained in this section payments may be . members as a fixed interest on share capital, if so provided in the bye- (3) made to /laws. CHAPTER VIII Audit Registrar is responsible for audit.-—(1) The Registrar shall audit or be audited by some person authorized by him by general or special order F