The Co-operative Societies Act, 1912
Section 33. Funds not to be divided by way of profit.
No part of the funds of a registered society shall be divided by way of bonus or dividend or otherwise among its members:
Provided that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such extent and under such conditions as may be prescribed by the rules or by-laws:
Provided also that in the case of a society with unlimited liability no distribution of profits shall be made without the general or special order of the State Government in this behalf
Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.
Cases citing this section
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