Section 41. Disposal of surplus.

(1) Surplus, if any, arising out of the business of a cooperative in a financial year may be used in one or more of the following ways :–– (a) towards a deficit cover fund ; (b) to be distributed as surplus refund among its members ; (c) to develop its business ; (d) towards reserves and funds constituted in accordance with the articles of association ; (e) to provide common services to its members ; (f) to provide rewards or incentives to staff : Provided that surplus arising out of services provided to non-members may not be distributed amongst members or staff. (2) Surplus must be fully disposed of at the annual general meeting in which the audited statements of accounts for the financial year in which the surplus arose are presented for the consideration of the general body.