Amendment status not verified — confirm the current text below against the official source.
Funds and profits.- (1) No part of the funds of a society other than the net profits shall be paid by way of bonus or dividend or otherwise distributed among its members: Provided that a member may be paid remuneration on such scale as may be laid down by the bye-laws for any services rendered by him to the society. (2) A society shall, out of its net profits in any year- (a) transfer an amount not being less than twenty-five percent of such profits to the reserve funds unless such society has been, by general or special order, partially or wholly exempted in this behalf by the Registrar; and (b) pay to the Madhya Pradesh Co-operative Union Ltd. and to such other institutions or unions as may be specified by the Registrar in this behalf, such contribution as may be prescribed but co-operative credit structure shall not be required to pay any contribution; and (c) transfer at least twenty per cent, to an equity redemption fund by such societies which have Government equity participation." (3) No society shall pay dividend to its members at the rate exceeding twenty five per cent. except with the prior approval of the Registrar. (3-A) The Primary Agriculture Credit Co-operative Society shall pay dividend to its members in accordance with the guidelines issued by the Registrar in consultation with the National Bank for the purpose. (4) A society may, with the sanction of the Registrar, after one fourth of the net profit in any year has been carried to the reserve fund, contribute not exceeding five per cent of the remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowment Act, 1890 (No.6 of 1890). 33 (5) No society shall make a contribution either in money or in kind, either directly or indirectly to an organization that has an object the furtherance of the interest of a political party or of any religious faith. 43-A. Appropriation of profits.-(1) A society earning profit shall calculate the net profit by deducting from the gross profits for the year the following:- (a) all overdue interest accrued on loan accounts. (b) management charges; (c) interest payable on loans and deposits; (d) audit fee; (e) working expenses, including repairs, rent, taxes; (f) depreciation; (g) bonus payable to employees under the Payment of Bonus Act, 1965 (No.21 of 1965)' (h) provision for payment of income-tax; (i) provision for payment of subscription to the State/District Co- operative Union as may be notified; (j) provision for development fund, bad debt fund, price fluctuation fund, dividend and equalization fund, investment fluctuation fund and such other funds as may be specified by the Registrar in this behalf; (k) provision for retirement benefits to employees and in the case of societies engaged in consumer goods business, provision for purchase rebate to be paid to the members; and (l) provision for writing off bad debts and losses not adjusted against any fund created out of profits. (m) provision for non performing assets, as may be specified from time to time by the Registrar in consultation with the Reserve Bank of India and National Bank for Agriculture and Rural Development. (2) A society may, however, add to the net profits of the year, interest accrued in the preceding years but actually recovered during the year; the net profits thus arrived at, together with the amount of the profits brought forward from the previous year, shall be available for appropriation for the purposes of section 43. 43-B. Liability for deficit.-(1) Where a society has an operational deficit in any year, the committee shall place before the general body the reasons therefor. (2) The general body shall examine the reasons and where the deficit has arisen in the normal course of business of the society the general body based on its examination may resolve to make good the operational deficit wholly or partially from members and or its reserves.