Amendment status not verified — confirm the current text below against the official source.
(1) Save as may be prescribed, no distribution of profits shall be made in the case of a co-operative society with unlimited liability; and save as provided in this section, no part of the funds of a co-operative society shall be divided by way of dividend or otherwise among its members. (2) No dividend shall be paid— (a) otherwise than out of profits certified by the audit officer to have been actually realised; 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: Provided that the audit officer shall not so recommend if such asset is adequately covered. (3) Subject to the provisions of sub-section (2), after the proportions required by sub-section (2) and sub-section (3) of section 56 have been carried to the funds referred to therein from the net profits of any year, the balance of such profits, together with the undistributed profits of past years, if any, may, to such extent and under such conditions as may be prescribed, be distributed as dividend among the members. (4) No contribution under section 58 shall be paid otherwise than out of the profit actually realised.