Section 63 - Disposal of net profits. - Multi-State Co-Operative Societies Act, 2002

Disposal of net profits . 63. (1) A multi‑State co‑operative society shall, out of its net profits in any year, ( a ) transfer an amount not less than twenty‑five per cent to the reserve fund; 1 [ (b) credit annually one per cent. of net profit to co-operative education fund to be maintained by the Central Government in such manner as may be prescribed and the proceeds from such fund shall be used for co-operative education and training through the National Co-operative Union of India and any other agency in such manner as may be determined by the Central Government; ] ( c ) transfer an amount not less than ten per cent to a reserve fund for meeting unforeseen losses. (2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely: ( a ) payment of dividend to the members on their paid‑up share capital at a rate not exceeding the prescribed limit; ( b ) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye‑laws; ( c ) donation of amounts not exceeding five per cent of the net profits for any purpose connected with the development of co‑operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890); ( d ) payment of ex gratia amount to employees of the multi‑State co‑operative society to the extent and in the manner specified in the bye‑laws. **************** NOTES:- 1. Substituted vide THE MULTI-STATE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 dated 03-08-2023 before it was read as, ( b ) credit one per cent to co‑operative education fund maintained, by the National Co‑operative Union of India Limited, New Delhi, in the manner as may be prescribed;