Co-Operative Societies Act · 2015 Revised Edition · Part V · Property and Funds of Registered Societies
Section 33
Official textFrom Attorney General's Chambers, unchanged
At least one-fifth of the net profits of every registered society, ascertained by the audit required by section 34, shall be carried to a fund called the reserve fund, which shall be employed as stipulated by the rules:
registered society
“registered society” means a co-operative society registered under this Act;
Provided that the Registrar may, in his discretion, lower the percentage of contribution or exempt a society from the obligation to maintain a reserve fund.
Registrar
“Registrar” means the Registrar of Co-operative Societies appointed under section 3 and includes any person when exercising such powers of the Registrar as may be conferred upon him under that section;
Every registered society shall out of its audited net profits pay into its development fund 5 per cent for the preceding year to —
any co-operative educational institution; or
any secondary or tertiary society which the Minister has declared to be a body representing the co-operative movement at national and international level, established under the rules for the furtherance of co-operative principles.
Co-operative Societies
No secondary or tertiary society shall be declared under subsection (2)(b) to be a body representing the co-operative movement at national and international level unless —
the objects of such society include the promotion of co-operative principles and the facilitation of the operations of registered societies; and
the by-laws of such society provide for the affiliation of all registered societies without any restrictions or the payment of any fee except entrance fees.
After deductions have been made under subsections (1) and (2), the remainder of such profits and any profits of past years available for distribution may be divided among members by way of dividend or bonus, or allocated to any funds constituted by the society to such extent or under conditions as may be prescribed by the rules or by-laws:
dividend
“dividend” means a share of the profits of a registered society divided among its members in proportion to the volume of capital held by them;
Provided 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 Minister.
Minister
“Minister” means Minister responsible for co-operative societies’ matters;
Any registered society may, with the approval of the Registrar, after one-fifth of the net profits in any year has been carried to a reserve fund and 5 per cent out of its audited profits to a development fund, contribute an amount not exceeding 10 per cent of the remaining net profits to any charitable purposes or to a common-good fund.
Terms defined in s 2
bonus
Defined · s 2“bonus” means a share of the profits of a registered society divided among its members in proportion to the share business done with the society by them from which profits of the society were derived;
by-laws
Defined · s 2“by-laws” means the registered by-laws made by a society in the exercise of any power conferred by this Act, and includes a registered amendment of the by-laws;
co-operative principles
Defined · s 2“co-operative principles” includes — (a) voluntary and open membership; (b) member control; (c) member economic participations; (d) autonomy and independence; (e) education, training and information; (f) co-operation among co-operatives; and (g) concern for community;
dividend
Defined · s 2“dividend” means a share of the profits of a registered society divided among its members in proportion to the volume of capital held by them;
Minister
Defined · s 2“Minister” means Minister responsible for co-operative societies’ matters;
registered society
Defined · s 2“registered society” means a co-operative society registered under this Act;
Registrar
Defined · s 2“Registrar” means the Registrar of Co-operative Societies appointed under section 3 and includes any person when exercising such powers of the Registrar as may be conferred upon him under that section;
Part VI
Audit, Inspection and Inquiry
Part VII
Part VIII
Surcharge and Attachment
Part IX
Disputes
Part X
Rules
Part XI