Rule 24 - Distribution of profit to members - Multi-State Cooperative Societies Rules, 2002

Distribution of profit to members 24. (1) No part of the funds, other than net profits, of a Multi-state cooperative society shall be distributed by way of bonus or dividend or otherwise among its members. (2) Payment of dividend to the members on their paid-up share capital shall be as specified in the bye-laws. (3) The bye-laws of a Multi-state cooperative society may provide for distribution of patronage bonus to its members in consonance with the transactions of a member with the society. (4) Every multi-state cooperative society may also provide for in their bye-laws the subjects and purposes for which the reserve fund will be utilized.