Section 33
Disposal of profits. [S 61/2012]
(1)
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:
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.
(2)
Every registered society shall out of its audited net profits pay into its development fund 5 per cent for the preceding year to —
(a)
any co-operative educational institution; or
(b)
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
B.L.R.O. 1/2015 29
(3)
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 —
(a)
the objects of such society include the promotion of co-operative principles and the facilitation of the operations of registered societies; and
(b)
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.
(4)
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:
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.
(5)
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.