Distribution of Profit

43. After making provisions for depreciation on the building, machinery and other stocks as decided by the Board of Directors, the net audited profits of the Federation shall be disposed off in the following manner:

i) At least 10% shall be carried to the Reserve Fund.

ii) 10% shall be carried to the Price Fluctuation Fund.

iii) Such proportion, not exceeding 5% of the net profits as may be determined by the Registrar by the General or Special order shall be carried to Cooperative Education Fund to be administered in accordance with the instructions from the Registrar issued from time to time.

iv) The remainder may be utilized for one or more of the following purposes:

a) Distribution of dividend amongst members at a rate not exceeding 10% per annum on the value of the share actually paid up;

(b) Rebate to members in proportion to their purchases made by them from the Society.

(d) Creation of Building fund, loss adjustment fund, and any other fund required by the Federation.

(e) A sum not exceeding 9% of the net profits may be spent on any charitable purpose as defined in Section 2 of the Charitable Endowment Act, 1890 or be allocated to a Common Good Fund devoted to any of these purpose;

(f) Any surplus may be credited to Reserve Fund or carried to next year's profit.

44. The allocation of net profits shall be decided upon by the Board of Directors and placed before the General Body for its information.