Amendment status not verified — confirm the current text below against the official source.
Disposal of Surplus: (1) In any financial, accounting or Co-operative Year a Co-operative shall, out of the surplus arising from transactions held with members in that year, make ,deferrecl payment to members as patronage rebate at an amount more than twenty percent but less than fifty percent of such surplus and make interest payment on share capital at a rate not exceeding the prevailing rate of interest available to depositors in the concerned Co-operative Bank. 2) The balance surplus accruing from members and the entire surplus accruingfrom transactions held or entered with others, shall be utilised in the following manner: a. not less than twenty five percent shall be transferred to a statutory reserve fund; b. not less than twenty percent shall be transferred to a separate reserve for meeting unforeseen losses; C. where the Co-operative is a member of the State Co-operative Union, not exceeding three percent may be transferred in the manner 602 prescribed to a Co-operative Education Fund' maintained by the Co- operative Union; d. bonus shall be paid to employees in accordance with the decision of the General Body; e. not less than twenty percent shalt be transferred to an equity redemption fund by such Co-operative who already have Government equity participation; f. not less than five percent may be transferred towards a common good fund whose purpose is approved by the General Body; g. Not more than five percent may be paid contribution for any purpose connected with the development of the Co-operative Movement; h. the balance shall be transferred to such other funds and reserves as created by the General Body; i. surplus accruing as a result of servicing persons other than members shall not be divisible amongst members and may be utilized in the case of other than Credit Co-operative towards equity participation of potential members and towards 'Credit Equalization Fund' in the case of Credit Co-operatives (3) No Dividend, Bonus, Patronage Dividend or Rebate shall be paid without the previous sanction of the Registrar and on the Certificate Statutory Audit Report approved in the Bye-Law.