State Act

Andaman and Nicobar Islands Cooperative Socities Regulation 1973

41. Funds not to be divided by way of profit :- No part of the funds of a co-operative society shall be divided by way of bonus or dividend or otherwise among its members : Provided that payment may be made to a member for the work done by him as secretary or as clerk on such scale as may be prescribed by the bye-laws : Provided further that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made – (a) as a bonus to a member for any specific service rendered by him to the co-operative society including work done as secretary or as clerk ; and (b) among the members to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws : Provided also that no dividend shall be paid on the paid-up share capital of members at a rate exceeding twelve percent per annum.